What will happen to all the loan out there once there 1% interest rate expires and people start to go Negative on their loans instead of paying down the loan. Atleast some of the people, I would guess a large amount of the loans that were given out at this rate was becasue people could not afford a 3,000 - 5,000 dollar payment. So what will happen to all of these people, will they end up losing there homes?
2006-11-18 03:32:01 · 6 answers · asked by problemC++ 1 in Business & Finance ➔ Renting & Real Estate
1) The real rate on those loans is *never* 1%. Not for one second.
http://www.searchlightcrusade.net/posts/1126189276.shtml
2) This has started to happen already. People losing their entire investment, and banks in denial about underwriting practices are still making the loans.
People are literally losing their life savings as well as their homes with these loans. However, there seems to be enough demand such that the complete market collapse some people have been predicting isn't going to happen.
Still, I hope that those who have been pushing them without disclosing the problems with these loans will be barred from the business, and preferably, imprisoned.
2006-11-18 05:29:22 · answer #1 · answered by Searchlight Crusade 5 · 1⤊ 0⤋
They will be forced to sell or go into foreclosure. It really depends on when and how much they bought the property for. If they bought the house for 250k in 2001 and in 2006 it is worth 500k with a balance of 300k they are ok. However if they overpaid in 2005 for 500k have a balance of 525k in 2006 and can only get 500k today for it they are introuble.
2006-11-18 04:23:10 · answer #2 · answered by tianaramal 4 · 0⤊ 0⤋
no because of the fact the valuables is on the marketplace. you will would desire to take the valuables off the marketplace. no one will lend on a sources that's on the marketplace. lenders make funds of interest and in case you sell the residing house they won't make any funds! If the valuables wasn't going to be offered then rather you will desire to yet you will would desire to get the different 4 human beings to conform to it. only get a private loan.
2016-10-15 17:15:02 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Many will lose them, like they are now. There will be 1000's of bargains out there for a few years to come.
2006-11-18 04:13:12 · answer #4 · answered by DG 1 · 0⤊ 0⤋
No. Some will sell them first.
2006-11-18 03:52:28 · answer #5 · answered by teran_realtor 7 · 0⤊ 0⤋
I hope you can get the required details through this link..
http://www.freewebs.com/get_loan/
2006-11-18 03:39:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋