Inhouse Credit LLC (“Inhouse”) is organized to address a long-time concern of low credit scores and the negative impact on consumers and the economy as a whole. Inhouse’s primary objective is to help its clients to increase their credit score in order to directly combat the market crises they have unwillingly been thrown into. Inhouse hopes to do its part to weaken the blow of the current market crises. Inhouse’s expert analysis has concluded that increased credit scores can slow the foreclosure rate because borrowers will have a better opportunity to receive conforming loans as a means to refinance their 2-Year ARMS.
Mortgage foreclosure rates are the highest since the depression. Mortgage investor instability has led to the sub-prime lending market to crash. Sub-prime lenders are bankrupt, withdrawn from the sub-prime market, or have convoluted their loan programs so that it is unrealistic to qualify less than perfect credit borrowers. Poor financing terms have led to this record rate of foreclosures and the ensuing sub-prime market crash. The housing market cannot sustain the artificially inflated home values resulting from and caused by the extra money borrowers’ were able to spend on homes as a result of securing inexpensive mortgage financing. The once two-year fixed rates are now adjustable rates, causing sub-prime borrowers to make housing payments well beyond their means and well beyond the actual value of their properties.
The solution to slowing the rate of foreclosures is to stabilize mortgage payments. To stabilize mortgage payments, it is necessary to secure new fixed-rate financing for sub-prime borrowers. At this moment in time, lenders have presented no solutions. Sub-prime lenders no longer find sub-prime borrowers (the very borrowers they loaned money to several years ago) credit worthy, leaving sub-prime borrowers without a vehicle to refinance their mortgage into a fixed rate. The solution is not to try and revive the sub-prime lending market; that market crashed for good reason. The solution is to elevate sub-prime borrowers to “A” paper borrowers, and use existing, stable, loan programs to secure new, fixed-rate, loans for former sub-prime borrowers. To elevate sub-prime borrowers to “A” paper borrowers often only requires a jump in credit score.
Passively waiting for a natural jump in a sub-prime borrower’s credit score is futile. Credit models are primarily weighted to measure the availability of a borrower’s discretionary income. Sub-prime borrowers caught in adjustable rate mortgages are experiencing historical drops in discretionary income, not gains. Sub-prime borrowers are in a cycle that can be broken by their own hard and dedicated work to increase their credit score; they are much more likely to engage in that hard work with the expertise, relentless and methodical credit repair practices of Inhouse.
