The economic downturn had a particularly nightmarish feel for Americans, whether in Rockville, Maryland, or elsewhere, with many losing their homes. Owning one’s own home has traditionally been part of the American Dream, and being unable to do so can be a considerable shock. But with the loss of jobs and the consequent inability to keep making mortgage payments, there seemed to be no way to stop the foreclosure of one’s home. Such circumstances also adversely affects one’s credit score, making it difficult to either opt for refinancing or to later buy a new home. However, those aspiring to be homeowners again may now have a chance.
Due in part to a steep decline in the number of people opting for refinancing, banks have started lowering such requirements of home loan seekers such as a high credit score and a significant percentage as down payment. They are also helping potential borrowers with ideas on how to make the down payment, like gifts from relatives. Again, these terms can be adjusted based on the customer, something that has in the past been unheard of. Those earning lower or moderate incomes are likely to find themselves wooed most enthusiastically.
Irrespective of how easily they are available, mortgages always require borrowers to make timely payments. For those going in for refinancing, this only continues the cycle of worry in case their income situation has not been sorted. Again, some creditors may seek to recover their money sooner if they see the borrower as a credit risk. In some cases, such recovery is handled by collection agencies which can get unpleasant for borrowers.
It may be wise for borrowers to seek the legal advice of a Montgomery County Maryland foreclosure lawyer on the options available to them, including filing for bankruptcy. For the homeowner facing financial challenges in these post-recession years, there may seem to be limited means of relief, but such options do exist.
Source: triblive.com, “Banks consider lending to home buyers with lower credit scores, less money down“, Chris Fleisher, May 09, 2014