Guru
August 9th, 2008, 03:47 PM
http://208.62.60.4/60/article_610.shtml
In order to receive a mortgage, one must now have nearly perfect credit. "Even late payments are hurting buyers now," said a local loan officer. Credit score guidelines have increased, and consumers must now have much higher credit scores than was required only about seven months ago. "Our marginal type customers are even having a hard time getting stuff done," he said.
Those who are getting hit hardest by the tightening loan standards are those with low credit scores, subprime borrowers and people who are unable or unwilling to document their income, mortgage experts say.
With the nations slagging economy, rising fuel costs, and declining property values, the nation has experienced a large increase in foreclosures. Rates of foreclosure and late payments have surged to their highest levels since 1979.
According to a report recently released by the Mortgage Bankers Association (MBA), almost one in ten homeowners with a mortgage faced foreclosure or fell behind in their payments during the first three months of 2008, marking the worst quarter for American homeowners in nearly 30 years. In Mississippi, 11 percent of all the home loans were delinquent during the fourth quarter of 2007.
In order to receive a mortgage, one must now have nearly perfect credit. "Even late payments are hurting buyers now," said a local loan officer. Credit score guidelines have increased, and consumers must now have much higher credit scores than was required only about seven months ago. "Our marginal type customers are even having a hard time getting stuff done," he said.
Those who are getting hit hardest by the tightening loan standards are those with low credit scores, subprime borrowers and people who are unable or unwilling to document their income, mortgage experts say.
With the nations slagging economy, rising fuel costs, and declining property values, the nation has experienced a large increase in foreclosures. Rates of foreclosure and late payments have surged to their highest levels since 1979.
According to a report recently released by the Mortgage Bankers Association (MBA), almost one in ten homeowners with a mortgage faced foreclosure or fell behind in their payments during the first three months of 2008, marking the worst quarter for American homeowners in nearly 30 years. In Mississippi, 11 percent of all the home loans were delinquent during the fourth quarter of 2007.