The mortgage disaster has just begun. There may have been thousands of homes throughout the country that would not have been built if not for risky lending practices. An unrealistic supply curve has caused the price of homes to fall dramatically. The result is a devalued real estate market financed by middle America: the group who will realize the greatest losses.
But the hurt has just begun. Recall that in 2007, Alan Greenspan said there may have been near $800 billion in bad loans originated in 2006 alone. Many loans were 2/28s, or two year ARMs, that begin adjusting starting now.
"Statistics have shown that 5 out 10 mortgage consumers have errors on their mortgage documents," says Doug C. at a mortgage loan review company in Orange County, California.
It may be that thousands of people are entitled to a refund from their mortgage lender, or some type of loan adjustment. This could include lowering the rate, extending the fixed term, eliminating the prepayment penalty, and/or a refund of some closing cost