Debt
Settlement Houston Texas
Rising debt and Houston home foreclosures
loom despite fed’s interest rate freeze
Houston, Texas, December 5, 2007
-- Today the White House released a game
plan to help subprime loan borrowers with
rates that may increase between January
1 and July 31, 2010. The Bush administration
proposal to freeze subprime loan interest
rates for five years is touted as the awaited
relief for thousands of Houston homeowners
that need to save their homes from imminent
foreclosure.
In Houston alone, around 37,000 adjustable
rate mortgages (ARMs) are expected to reset
by the end of 2007. After the start of the
New Year, estimates indicate that 50,000
more Houston area residents, primarily people
with poor credit histories that reside in
low income, minority, and elderly communities,
shall also feel also feel the crunch of
much higher mortgage payments.
Throughout Texas, roughly 91,600 subprime
ARM loans will reset in 2008, according
to estimates from San Francisco research
firm, First American LoanPerformance. High
interest ARMs, a byproduct of greedy subprime
lenders, have preyed on consumer ignorance
causing naïve borrowers to take out
loans that are inconsistent with their incomes.
Trapping them with uncontrollable mortgage
payments, and insufficient equity, these
loans have debt-ridden borrowers and made
it less feasible to refinance or sell their
homes.
The government's plan may be too late
for one quarter of the home equity loan
borrowers that took out loans between 2005
and 2006, which according to MBA, “have
less than 10 percent left of equity in their
homes.” Many borrowers face mortgage
payment increases upwards of $300 per month
and will need to overcome major financial
challenges in order to keep their homes
or escape bankruptcy.
John Cruz of Houston
Texas is a classic subprime loan victim.
After moving into his new home, he ignored
numerous unsolicited home equity loan checks
from Beneficial. But after four months of
unemployment due to a disabling hand injury,
he cashed in a $20,000 Beneficial check
to payoff his hospital bills. Aware that
he still had $70,000 in equity, the bank
kept calling him finally convincing him
to use the $60,000 in his remaining equity
for a loan to cover business expenses and
payoff his 2005 Dodge Daytona car note.
In August 2007, after missing two home
increased home equity loan payments, John
had to put his home up for sale. Yet the
ending will be grimmer for thousands of
Houston home equity borrowers that are pending
loan defaults. Being maxed out on their
equity and lacking other financing options,
many will inevitably lose their valued homes
through foreclosure.
Relief is in sight…
Despite high-risk subprime loans, financial
hardships, such as divorce, medical bills,
and job loss, are the major cause of many
Houston foreclosures. If you were hit by
one of these debilitating hardships, and
the federal rate freeze won’t be enough
to help you, debt settlement is a great
solution.
Debt settlement is a fast and aggressive
debt elimination benefit that fights financial
crisis like foreclosures and uneventful
bankruptcies. The Debt
Free League debt settlement
program for Houston residents has been instrumental
in paying off high-interest, troublesome
unsecured debts affordably and without the
long-term credit damage of a foreclosure
or bankruptcy.
The testimonials of satisfied Debt
Free League clients, speak for
themselves:
“While no mortgage company could
help me, your debt elimination program helped
me liquidate my debt in 24 months, I overcame
major credit challenges that were keeping
me from refinancing my mortgage at a better
rate”, states Jim Moore, Houston Texas.
"Unbelievable! You guys settled my
$12,000 account for only $5,400 and my $8,300
collection account for $4,600! Thank you
for helping me save my house and a humiliating
bankruptcy”, exclaims, Jose Arciniega,
Houston Texas.
The Debt Free League debt
settlement benefits are not limited
to homeowners. They are also available to
other Houston residents and small business
owners.
About Debt Free League
Debt Free League is a Debt
Settlement organization that works on behalf
of consumers and small businesses to negotiate
the settlement of unsecured debt. Working
through key relationships with creditors,
collection agencies, and collection attorneys
throughout the country, their Debt Liquidation
Program has produced substantial unsecured
debt reductions and a variety of credit
improvement benefits for many clients.
For more information, Contact
Debt Free League’s Web site at www.debtfreeleague.com
Contact:
Sales
sales@DebtFreeLeague.com
(800) 213-9968
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