The real estate market has seen a steep rise in the price of houses with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments on loans for manufactured homes Victorville are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner’s favor.So why the prices are rising? There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub-prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub-prime home mortgage refinance lenders offer them loans at relatively easier criteria – some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub-prime market home mortgage refinance lending process.

Nowadays, delinquencies and default patterns are at an all-time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario, and this can be attributed to the re-adjustment in rates. Usually the sub-prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it’s a nightmare scenario for borrowers and lenders. The borrower finds it impossible to pay up, and the lender finds it virtually impossible to recover the money.

This is also known as predatory lending, and it’s quite similar to hunting for prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there’s no escape and the home mortgage refinance lender extract every possible penny from the borrower. What this means from a long term perspective is that the investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. And this is the reason why home sales deteriorate and real estate suffers.

And because of these recent decline in home sales, most home mortgage refinance lenders and those who are financing for manufactured home Victorville here in California are skeptical on future profit margins. So they should be less optimistic about the future trends in the sub-prime market. But this has not stopped lenders from fiercely competing with each other. In fact, there is a growing competition nowadays because of what is happening in home mortgage refinance market, so every lender wants to make a small but quick sale.

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