Press Release Summary = Foreclosure rates are at an all time high in Colorado. However, recent changes to the mortgage industry should curtail this trend and slow foreclosure rates.
Press Release Body = A hot topic recently in Colorado has been foreclosures. Colorado has the 2nd highest rate of foreclosures in the U.S. A big reason why the foreclosure rate has been so high is because Colorado mortgage brokers have got their clients into high-risk mortgages called subprime loans that result in high foreclosure rates. These types of mortgages include adjustable rate mortgages which start the borrower at a low interest rate for a few years and then the interest rate starts adjusting. Sometimes these adjustments are every month and their monthly payments could easily go up hundreds of dollars.
The other type of loan that was creating a lot of foreclosures was a stated income loan. The problem with these types of loans is that the borrowers were stating that they made more income than they actually did to qualify for a more expensive home. In turn, their payments were a bigger portion of their income than the lenders believed it would be and many borrowers could not keep up with their mortgage.
The good news for the Colorado foreclosure rate is that the subprime industry just collapsed. Many big time subprime lenders have just recently filed for bankruptcy. Also, the mortgage industry as a whole has just recently tightened up their guidelines on stated income loans. They now require a bigger down payment and a higher credit score for a stated income loan.
Ryan Russo, Founder and CEO of Colorado Mortgage Helper says, "There still is a loan out there for low income, low credit and no credit borrowers. It is called an FHA loan and there are many good features of this loan that will keep the foreclosure rate to a minimum in Colorado. It is a government insured loan that a borrower can get a 30-year fixed rate at the same interest rate that a good credit, high income borrower could. Also, a borrower cannot inflate their income because it is a full document loan that looks in depth at all of the homebuyers financials."
So with the recent changes in the mortgage industry, we should start seeing foreclosure rates in Colorado coming back down to normal levels. With FHA loans still around, it will enable many people to still be able to buy their home without the added risks of an adjustable rate mortgage or inflating their income.
For additional information on FHA loans or to apply now for your mortgage, contact Ryan Russo or visit www.coloradomortgagehelper.com.
Web Site = http://www.coloradomortgagehelper.com
Contact Details = About Colorado Mortgage Helper: Colorado Mortgage Helper is a team of mortgage professionals that will help you with your home loan. We empower borrowers by educating them of the home loan process. Contact: Ryan Russo, Founder, CEO Colorado Mortgage Helper 720-327-1702 12000 Zuni St. Westminster, CO 80234 http://www.coloradomortgagehelper.com
2022
