Over the last ten years banks have been giving mortgages that were just not rite. These mortgages are called A.R.M. (adjustable rate mortgage). An A.R.M. is when you purchase a property and the bank gives you a loan at say 5% fixed for 5 years. After that 5 year term, there is no answer as to how high the rate will be. The sad part is that most banks did this knowing that people would not be able to pay after that 5 year period and they can seize the home.

Why would banks do this?

Well, the answer to this is fairly simple. Years ago there were various other countries with banks that had excess money that they didn't know how to pay interest on. These banks looked for the most profitable solution and invested in the United States banking industry. Now our banks had all this money and wanted to figure out how to make it extremely profitable. What happened was that they threw all this money into the mortgage industry. This would make the prices of homes skyrocket over the years and the banks knew this. Next, the banks would simply write an A.R.M. for a certain value knowing that the house would be worth more in the next 5 years and the buyer would not be able to pay at the new rate when the mortgage matures. The banks would then take the home and sell it for the new market value making a tremendous profit.

What has this caused?

Unfortunately the housing prices have gone down and the market is in rough conditions. Mortgages are foreclosing left and right. Homes are going to the highest bidder in auctions and even then some homes are still sitting with now buyers. The government has spent hundreds of billions of dollars trying to bail out banks and private lending institutions.

With all the bad what's the good news?

First, banks and lending institutions have been granted billions in bail outs. This is NOT for the banks. This money is for the hard working United States Citizens impacted by the mistakes the banks have made.

How do you get your hands on your share?

Unfortunately it is not too easy. This is why we do it for you. Mortgage modifications are the best way. A mortgage modification is when the banks sees that they are not only loosing now, but they will lose more if you foreclose and decide to change the terms of the mortgage agreement. Unfortunately, this does take a bit of know how in the financial industry so it would be a little rough to take it on alone. That's why at JLR Financial, we have created an attorney guided negotiations process that will guarantee great results.

Is there any other way?

Yes!!! Refinancing is also a great way to cash in throughout the hard economic times. Mortgage interest rates are at an all time low as we speak. If you are going to Refinance you home ever now is the time.