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Devastating Mortgage Problems You Must Tackle Immediately

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Most homeowners own a home because they took out a mortgage. This is why it’s important to understand what can go wrong during the mortgage process and what you can do about it.

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Suspended loans

A lot of people get confused about suspended loans. Basically, this means that the loan is “faulty”. The lender has suspended it because it’s not working they way they want it to work. Let’s say a lender has worked out a mortgage deal based on the fact that the debtor’s salary is $3000 a month. But due to miscalculations, it turns out that the debtor’s salary is actually $2100 a month. The loan would be suspended because the debt ratio has been worked out based on the $3000 salary report. The loan will be altered before being unsuspended. The process will then continue. Avoid this by being 100% accurate when you consult with lenders!

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Being in debt longer than you expected

You originally expected to have paid off the mortgage by now. But it’s not going anywhere near as well as you’d hoped. Perhaps your original estimates were incorrect. Or maybe you suffered a financial setback since you first arranged the mortgage. You can still pay it on time, but you’ve still been paying it off longer than you’d hoped. This can cause a lot of disruption in your financial life. You need to look into ways to get your mortgage paid off quicker!

Missing documents

Modern loans are documented to intense degrees. Maybe you last got a mortgage back in the late 2000s. You may not think the process has changed much since then. But it has. You need a lot of documents to hand at any given time, both when you’re setting up the loan and throughout the span of the debt. Homeowners insurance information is crucial. Bank statements. Credit reports. Property appraisal documents. There are a lot more; make sure you know precisely what you need by getting a list from the lender.

Unresponsive mortgage company

When you have a problem, it’s vital that you can get in touch with the mortgage company. Most of the time, people won’t have a problem with this. But what if you can’t seem to reach them? There have been instances in which a mortgage company has done something surprising. When the consumer tries to get in touch with them to resolve the issue, the mortgage company seems to delay the response as much as they can. If you don’t get a response within thirty days? You should consider filing a complaint with the Consumer Financial Protection Bureau. Don’t make the mistake of thinking that mortgage companies are beyond the wrathful grasp of the CFPB!

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Predatory lenders

Predatory lenders might set the monthly payments at a pace so high that the debtor can’t sustain payments. They may also structure the loan so as to trigger a default. This can lead to refinancing, costing the debtor more money and making more profit for the lender. Insult can be added to injury when they set up high prepayment penalties in such a scenario. In fact, there are a lot of ways in which a predatory lender can harm your finances. Again, you should contact the CFPB if you notice such practices.

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