Mortgage Revamps Leave Consumers Looking to Short Term Loans

Short term loans can help consumers having mortgage problems

The short term loan is an option for people having problems meeting mortgage payments. With last years' careless handout of adjustable rate mortgages, many people are finding themselves at a deficit when repayment dates come. How to find extra money is a hot topic and many people are wondering what their options are.

ARMs

Adjustable rate mortgages were common during the lending boom. Underwriters boasted low payments, without warning that adjustable rate pay schedules are just that. They can go down, which rarely happens, or go up, which they almost always do. Consumers who had "great deals" and low interest rates, now find themselves with ballooning payments to handle and the same paycheck to cover it.

The Central Bank intervenes

Last year the central bank put together a set of rules that sought to protect consumers from credit card companies who were charging consumers high interest rates or giving them insufficient time to pay back debts. They also set in motion regulations to hamper unethical mortgage practices such as lending without concrete proof of an applicant's income. Many critics, however, state that their regulations came too late and enforcement is too slow in coming. The claim is that if the central bank worked sooner, the housing crash would not have occurred, or at minimum not occurred with such a tremendous impact on the economy. ... click here to read the rest of the article titled "Mortgage Revamps Leave Consumers Looking to Short Term Loans"