Trailer home borrowers, mostly near the bottom of the economic ladder, often default on their loans.
Sentiment: NEGATIVE
Home purchases that are very highly leveraged or unaffordable subject the borrower and lender to a great deal of risk. Moreover, even in a strong economy, unforeseen life events and risks in local real estate markets make highly leveraged borrowers vulnerable.
By the time most people file for bankruptcy, their credit is already trashed, they have a high debt-to-income ratio - a key indicator lenders look at - and they've likely defaulted on more than a few accounts.
Some people, they got housing loans, and I think they're responsible for taking a loan they didn't qualify for?
The universe of mortgage lending has gotten to the point where there is a place in it for everybody.
The best companies with the strongest credit ratings borrow like the United States: on a non-prioritized basis. This means that in the event of a default, all of their debts are of equal priority because lenders and creditors believe default is highly unlikely. And they spend considerable effort maintaining this status.
Debt is a mistake between lender and borrower, and both should suffer.
Generally, there are three rules when it comes to borrowing money: You need to have good credit, proof of income and cash for a down payment. Most people have the first two, but it's the third that trips them up. And nowhere does that come into play more than the mortgage market.
The decline in home equity makes it more difficult for struggling homeowners to refinance and reduces the financial incentive of stressed borrowers to remain in their homes.
Every time the U.S. government makes a low-cost loan to someone, it's investing in them.
Homeowners refinance their loans when interest rates go down. Businesses refinance their loans.