The news is not good. More than 30 subprime lenders have closed their doors this year to date, with more to come in the next few months. And one of the largest subprime lenders, New Century is willing to bite the dust. With all this and more, I would like to examine the effectiveness of the subprime market “dead” until this restructuring is finally over.

Many of you have asked what can be done to stop the mortgage hemoraging and how you will be able to survive the new market realities. In response, I have met some of the best comments and suggestions from his fellow warriors like you.

For his current subprime borrowers, here are some ideas:

1. Try to restructure its financing agreements. If this is a purchase, the seller takes some of the closing costs or reduce the price? If you can modify the DTI and LTV on the loan that may have a chance.

2. Is it possible to consolidate any debt on the loan? Can you get rid of seconds and HELOCS paid at the table? What about paying any other debt too? This will help your debt ratio.

3. Borrowers put on hold until your credit score increases. Can you wait a few months while they sort of? A better score that increase their chances of getting a loan. Do you have a credit repair company you work?

4. If the borrowers are already in deep exclusion or bankruptcy and losing the house within a month, I would like to give the loan. Yes, it could be saved, but not worth their time or aggrevation. Despite what you hear, these loans are a nightmare to deal with when this late in the game! I know that NO reputation of the lenders who tap these loans because who wants to take the risk!

5. One extreme option may be “hard money lending,” which is private financing for opportunistic investors with little to know requirements. They make their own rules and as such, make their own exorbanent high interest rates.

6. If the borrower is in fact a tight bind, we could call one of those “we buy houses” dump ads and place. Yes, it helps them. But not given a penny in my pocket. Once again, is a last resort.

7. Be sure to call all subprime wholesale account of their representatives and to obtain criteria for updating their rules for loans. You want to make sure that their loans can still do you have in the process.

8. See their borrowers to a company debt management that can help them back on track. Once again, you do not get any of this. Just a thanks and gratitude. You remember them and hopefully send some references.

I hope these tips will help you give some ideas on how to survive the subprime restructuring.

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