The sub prime mortgage industry has probably contributed the most to the pain we all are feeling now. By providing loans to they have caused the entire economy to crash. Those borrowers who got mortgages despite their bad credit were lured by lenders into APR’s that they can afford when the loan begins but then face foreclosure within a few years. It should not be a surprise that when the consumer with bad credit defaults on payment their bad credit becomes even worse. Not only are they now face with a dismal financial situation, they also have to deal with debt collectors harassing them. This downward spiral leads to depression, divorce, and a feeling that there is no way out.
Indian Leading Banks like SBI,PNB, BOI, ICICI, SBI Mortgage Loan and other some big banks are still far batter from the slow down and funding consistently and very aggressively. SBI is providing secured and unsecured loans on a very large scale. Bank of India and corporation banks are providing large amount of project funding for SME class and Indian business growth is positive. HDFC bank and ICICI bank are the two largest private sector banks in India that are offering multiple secured and unsecured loans for all.
Mortgage Loan Default:
Basic default came in the field by large scale companies and medium scale companies and they are solely responsible of this situation is that if you can’t afford credit because of bad credit you have to pay more to get the credit you want. Those with good credit pay less for it which on one hand they deserve but on the other hand the poor are penalized for being poor which leads to default.
Mortgage Loan and Home Loans customers may be very low chance to become defaults in their loans. The reason was the lack of knowledge of the right low and the way of repayments with the banks contributed to the drop in home prices and cost everyone money. Because of the mortgage industry’s greed many consumers were led to believe that they could afford what they couldn’t which has led too many who have lost everything they have, including a home for their entire families. Their sights were set on the profit they would make by charging 35% interest rates to those desperate for credit.
The damage has been done and will probably get worse and it come default from different types of loan like Home Loan, Personal Loan, Credit Cars and others Mortgage Loan & Default. The only positive consequence of this disaster is that now it is very difficult to credit, which makes it nearly impossible for those with bad credit to get it. This is the way it should be. Here are the facts which made loans high risk on the upwards sides. Indian financial market is showing very positive sign and the market growth will be stable in the next 5 to 10 years in terms of banking and financial growth along with the SME segments positive growth.
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