September 15, 2008
Lehman Brothers filed for bankruptcy. Bank of America bought Merrill Lynch. AIG teeters on disaster. We know that the news isn’t good, but how bad will it get for homeowners as this crisis continues its downward spiral?
According to this article by MSNBC.com, industry professionals don’t foresee a turn around in the near future, but caution consumers not to panic.
Writes Allison Linn:
“Today’s news shouldn’t directly impact anyone who has a mortgage and is paying it on time. However, if you are unable to pay your mortgage or are looking to refinance your mortgage, the most recent developments in the credit crisis could have repercussions.
If you are facing foreclosure…banks are likely to be much more open to discussing a way to avert foreclosure than they were even a few months ago. That’s because banks are already dealing with a glut of foreclosed homes.
On the other hand, people who are looking to refinance or access a new loan may find that stricter lending requirements make it more difficult, if not impossible, even though mortgage rates are very low.”
Read the full article to learn more about how these moves affect investments and what is being done to alleviate economic repercussions.
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