In an unprecedented time of mortgage difficulties and issues with people being able to refinance their homes in the current credit crunch, there are some wild stories coming in about how individual congressmen and women are actually taking matters into their own hands and calling on behalf of their constituents to get their homes refinanced, or are setting up large meeting centers where banks can meet with homeowners who are trying to refinance their homes into better credit terms and a better finance percentage rate and are hitting road blocks with the banks for various reasons.
I’m amazed at how many people I’ve talked to who are in this boat. They feel like they are trapped because their mortgage payments are high, and the interest they are being charged on their homes is so high that they feel like they are never getting ahead to truly pay off some of that principle, so they are really just barely keeping their head above water in terms of “getting ahead”. We’re sort of in this boat, only we are not facing financial hardship, we are just looking to refinance to a better deal on our interest rate, and are having a hard time consolidating our loan in to one and getting a bank to refinance the whole thing.
We have great credit and have never been late on a mortgage payment, so I think that’s the real kicker for us and what is hardest to understand. One congressman has gone so far as to set up a sort of “convention” where 19 banks are attending and people who are having a hard time refinancing are as well, so that the interested parties can meet eachother and hopefully come to a mutually beneficial business agreement which helps both parties out.
The credit freeze has perpetuated itself because banks are still scared to loan people money, and consumers are still wary or going for a new loan because they are afraid they can’t pay an new debts. The unemployment rate has just made matters more severe in many areas, making it nearly impossible for homeowners to pay their mortgages on time or at all, which adds to the banks not wanting to take the chance on lending more money, and so on and so forth. If you are having difficulty refinancing your home, you actually may want to consider writing your state representatives a letter to see what can be done to help your situation.
