Articles tagged: Wage Earner Plan 

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Foreclosures Are Exploding…Values Are Down…Homeowners Are Stressed…Rates Still Low written by Dale Rogers
As the financial markets are being rocked by daily negative news including the latest lenders closing their doors and higher levels of reported foreclosures hitting new highs have stoked even more the slide of the troubled mortgage business. The mortgage products including Option ARMs, 2/28 Subprime ARMs (2 years fixed then adjusts every six months), NO DOCs, Self Employed Stated Income, W-2 Stated Income, Bank Statement Loans, No Ratio, and other esoteric subprime loan products.

Credit Card Creep + “Universal Default” → 125% written by Dale Rogers
The “Universal Default” trigger mechanism used by many credit card companies who regularly check payment history in the bureaus. If they find a 30-day late or other derogatory information the interest rates on ALL the credit cards can be accelerated in many cases to the maximum legal limit. Thus, the sweet heart introductory rates went in some cases from 8.5% to 29.99% + to varying degrees.

The “125%” Combined Loan-To-Value Second Mortgage can be utilized to roll high interest rate credit cards down to say 14.5% up to a loan limit in many cases to $75,000. It’s not a cure all but rather a temporary band aid to increase monthly cash flow while fully amortizing the debt. Aggressive payment of this second can make some sense as this rate is 14.5% plus depending on credit scores and exact loan to value percentages.

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