Bryan Dornan is a San Diego based SEO specialist offering mortgage marketing, search engine optimization, lead generation with an arsenal of stealth internet marketing solutions for business.

23 Oct 08 Debt and the Foreclosure Epidemic

Consumer debt continues to climb each year. Clearly, Americans have a problem spending more money than they make. Debt to income ratios have been increasing significantly with consumers as incomes continue to decline.  However outstanding balances have been increasing at an alarming pace. Over the last decade, homeowners have been able to take out home equity loans and consolidate their credit card debts into a lower more responsible fixed rate payment that they could afford. Back then home values rose annually, so borrowers could refinance their spending problems every few years. When the subprime mortgage debacle turned into a credit crunch, mortgage lenders quickly tightened their loan guidelines. Almost simultaneously, home values began to decline and homeowners were no longer able to refinance and consolidate their debt. People began losing their homes because they were defaulting on their home loans.

Unfortunately a foreclosure epidemic arose and banks began to fail because with increased foreclosures came a serious liquidity problem that significantly limited banks to lend to each other. Even when the Federal Reserve cut interest rate many times, the credit crunch got worse.

Now Americans find themselves with high rate credit card debt and mortgages that are larger than their homes are actually worth. Homeowners aren’t able to refinance for lower payments, debt consolidation or cash out. With home equity loans disappearing, debt settlement has increased dramatically because its legal and gives consumers a true alternative to bankruptcy. Debt settlement provides debt relief because the debt negotiation companies are able to reduce your balances and pay-off your revolving debt that carries the compounding interest.

The other refinancing alternative that has risen in popularity with homeowners has been loan modifications. Mortgage loan modifications are the result of banks restructuring loans for borrowers so they can avoid a foreclosure. The liquidity of banks has eroded in the foreclosure epidemic and now delinquent homeowners seem to have more leverage, because mortgage lenders don’t want your home anymore.  Read Complete Article by- Bryan Dornan

23 Oct 08 Loan Modifications, Refinancing and the Foreclosure Crisis

The foreclosure crisis continues to ravage our economy with more lost jobs, reduced home equity from plummeting home sales and delinquent mortgage payments. Unfortunately, many people have the ability to make their home loan payment on time but they jumped on the loan modification train with their neighbors and stopped paying their mortgage in hopes of reducing their monthly payments through renegotiations with the loss and mitigation department of their mortgage servicing company.

Clearly, there is nothing wrong with renegotiating your mortgage for a lower payment. Essentially that is what mortgage refinancing is all about. Loan modifications are different, because the terms are not fair for the bank because they take a loss. Banks who hold the mortgage note loose income from pre-payment penalties, loss of interest and in some cases loss of principal. The argument could be made that each time a bank agrees to a loan modification jobs are lost, because revenue is lost and expenses must be cut. However the reality is that we are in a serious financial crisis and if the mortgage lenders did not restructure their customer’s mortgage loans, then the banks would crash quickly as the liquidity problems would worsen.

Millions of homeowners are seeking mortgage refinancing or loan modifications in an effort to save their house or make their monthly payments more affordable. Unfortunately for mortgage brokers and lenders, mortgage refinance closings have slowed to very uncomfortable rate.

According to CFB Branch Manager, Corey Galinksky, most refinance loans are taking 7 – 8 weeks. Imagine owning a mortgage company that had to fund four staff payrolls to fund a loan. Imagine paying underwriters, processors and loan officers to work on home loans that likely would not actually close. The mortgage business has seen brighter days. Credit restrictions have tightened lending guidelines to the level that very few borrowers qualify for a mortgage. Galinsky continued, “FHA mortgage loans have been the only lending product we can count on and fortunately the government loans will consider the borrower’s compensating factors for approvals.”

On the other hand loan modification companies have never has more business. With millions of have homeowners on the brink of foreclosure, people are lining up to help people modify their loan terms. With the recent $850 billion dollars from the Financial Bail-Out package, you can bet that loan modifications will only increase in 2009. Once we get past the foreclosure crisis most financial critics agree that home refinancing will resume back on its normal course.

Mortgage lenders have started to negotiate with borrowers who are not delinquent with their mortgage. In most cases, you don’t have to be 60 days late to get a loan modification any more. The Chinese define crisis as danger and opportunity. Hopefully Americans will utilize this foreclosure crisis and seize the opportunity to move forward as a stronger more pragmatic country.  Read Complete Article by- Bryan Dornan


23 Oct 08 Commenting on the Mortgage Meltdown

First the “subprime mortgage meltdown”, then the foreclosure crisis, next the government announce the $750 billion dollar bailout and finally the stock market tanks.  After watching the 3 presidential debates and listening to a few of their mortgage foreclosure speeches, in which both candidates promised financial assistance to homeowners while blaming the “big banks”, I realized – this country is in denial.  Like an alcoholic claiming “they just like a few glasses of wine with dinner”, Americans have a spending problem. Think about it – every year credit card debt breaks the previous year’s record and somehow people who don’t even have jobs are watching big flat panel TV’s and walk around in expensive “name brand shoes.” 

According to mortgage data, debt to income ratios continues to rise while the average incomes for Americans have actually been declining slightly.  After a decade of lavish spending, 2006 will be the year remembers because the mortgage companies started going bankrupt and the housing bubble finally bursted.  Home values have continued to drop rapidly because so many homeowners had adjustable rate mortgages and mounting credit card debt that they could no longer afford.  Homeowners no longer had the luxury of refinancing the home loans and unsecured debt and people began losing their homes.  The lending tightened with a credit crunch and it has ultimately become a foreclosure epidemic of the greatest proportion since the Great Depression.  The problems swam upstream and now the banking institutions began to fail because with the increasing home loan defaults created a liquidity problem that prevented banks from lending to each other. > Read Full Complete Article. – by Bryan Dornan

09 Oct 08 Welcome to the Bryan Dornan Blog!

Welcome to the Bryan Dornan blog for SEO, lead generation and search marketing services!  Whether you internet marketing assistance or want to discuss the Lakers or getting shacked in Baja, I am here to assist you.

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