The Short Sale Process – Do I Have To Lose My Home?
September 30, 2009 by Anthony Y. Mauer
Filed under Mortgage Foreclosure
The short sale process can be quite stressful on the homeowner. They are in the unfortunate position where their home is worth less than the mortgage – the short sale definition. Most homeowners allow themselves to approach dangerously close to foreclosure before admitting that the short sale process is something they’ll have to deal with.
There is no short sale without an agreement with the lender. It is an agreement between both the lender and the borrower and is a transaction that contains many complex factors and considerations. Most important for the borrower is that there will be no foreclosure awaiting them on the other side of the short sale process.
The two parties first agree to the short sale, and then they must deal with all of the various and complex aspects of the bank short sale process. For example, they must decide how much of and the manner of the debt to be forgiven, the price of the home, payment of fees, and then deal with the purchase agreement. It is absolutely vital at every stage to have the assistance of a professional. The short sale process is not to be done on your own!
The homeowner will need to complete a document known as the hardship letter to verify how they ended up in the short sale process. The statements in this document will be verified by various financial documents provided by the homeowner. It is in this manner that the lender will verify how the borrower ended up being so dangerously close to foreclosure.
The bank will then assess the fair market value of the home and work with appraisers, brokers, and real estate agents. This is done in order for the home to be appraised properly, and for the bank to recover as much as possible from the sale of the home. In the end it’s all about business, and lenders wish to keep their losses to a minimum.
If the home is sold in accordance with the agreement – then the money will be used to settle the debt. The bank is not obligated to wait any longer than they agreed to wait in the contract. They can legally proceed with foreclosure if it is not sold by the date agreed to in the contract. These issues will be clearly stated in the agreement.
The borrower’s credit rating doesn’t have to be damaged by the short sale process. A short sale involves many complex issues and many people have missed important dates relating directly to their credit rating. Their credit was left in shambles as a result. Some allow their credit to be damaged due to having other finance areas deeply ingrained in the short sale process. Damaged credit is NOT a foregone conclusion here – this is the important point. It is for this main reason that following the advice of our experts is critical.
If we successfully complete the short sale process we could very well end up with little damage. If we do it right, we could still have stable credit, no legal fees or unpaid property taxes, and no foreclosure! This would be our prize – to be in the best position humanly possible to buy another home.
In Foreclosure, The Banks Want Your Home More Than Ever.
September 29, 2009 by Adam Wazzer
Filed under Mortgage Loans
Note: I am not an Attorney and any information I provide is not to be taken as Legal Advice, my reason for writing this article is only to create awareness for the benefit of Borrowers and Families at hardship. I work for a Law Firm specializing in the representation of Homeowners and Families in danger of Foreclosure. What the lender doesn’t tell you is that in most scenarios, the Mortgage Modification terms the banks are willing to give you voluntarily when you modify your loan directly with them are in most cases substandard in comparison to the Mod terms you will receive when hiring an attorney who specializes in Loan Mods and Foreclosure Defense. Again, I am not a Lawyer but I have been working for a Foreclosure Defense law firm for longer than most authors on the subject and my Mortgage Lending experience is extensive.
Working for a Loan Modification & Foreclosure Defense law firm, in my personal daily experience it has become apparent that a good law firm is most often able to negotiate much better mod terms for mortgage holders than banks are normally inclined to give when a borrower engages in direct dealings without representation. In some cases I’ve even seen scenarios where the law firm is able to secure modifications to a mortgage which result in interest rates an repayment plans for “B-C Paper” or Sub-Prime Borrowers which are far superior than those available to “A Paper” borrowers with spotless credit histories and FICO scores above 720.
Loan Modifications (also referred to as Loan Mods), when executed by licensed attorneys, can be extremely effective methods of avoiding foreclosure or stopping foreclosure before it starts by adding changes to the original terms of your mortgage. Altering your mortgage terms can be a HUGE savings in regards to your Monthly Payments, Interest, and even Mortgage Terms in regards to the number of years in which you have to repay the loan, and sometimes resulting in a great savings due to a reduction to the Principal Balance amount owed on the loan.
Law firms have several weapons in their arsenal for foreclosure defense which can help them to create leverage when negotiating with your mortgage holder. One of those tools is what’s called a Forensic Audit. A Forensic Audit is one of many highly effective ways used to show Fraud and other serious errors made on behalf of your Lender during the origination and closing of your loan. Forensic Audits show things like Forgery or Violations of the R.E.S.P.A. (Real Estate Settlement Procedures Act), T.I.L.A. (Truth In Lending Act), among others in relation to Federal Guidelines and Regulations which must be strictly adhered to by professionals working in the Mortgage Lending Industry. Once discovered these violations can become essential to the defense of your home and modification of your loan. In my experience lenders are often much more inclined to work with borrowers to provide loans in their best interests when there is an attorney behind them with enough artillery in their war chest to influence a Judge to rescind or take the loan back from the bank.
Banks are like Casino if they could have it their way the “House” would always win, if you want to stack the cards in your favor then hire a Law Firm specializing in the Defense of Homeowners so maybe the owner and family of the House can win instead.
Interest Rates and Your MortgagHome Loan
September 28, 2009 by Robert M. Doscher
Filed under Mortgage Loans
One of the most critical decisions to make when you want to a home is to time the interest rates exactly right. If you think rates will increase, you want to purchase now before they do, but if you think they are going to go down, you may want to delay your purchase and take advantage of lower rates.
The interest rate on your mortgage will be influenced by many factors and economic indicators, and having a basic concept of these will help you in your choice. The first thing to understand is that interest rates are just the price of money and like all prices, they are determined by supply and demand.
The first factor to examine regarding interest rates is the inflation rate. Inflation is measured by two primary indicators called price indicators. These are the producer price index and the consumer price index.
The Producer Price Index (PPI) measures the changes in the prices producers need to pay to produce items. If PPI is rising, this means that the cost of finished goods is more, which mean inflation.
CPI is the measure of the change in prices at the consumer level, measured as a group of items. This is a very critical signal of inflation since it is what we will all pay for our purchases. The so called ?basket of goods? used is steady so that economists can measure how prices change, but because food and energy are included, they are often eliminated to lower volatility. This allows them to look at the core inflation rate to understand better where overall prices, and therefore inflation, are going.
GDP is the next widely used indicator of how inflation and therefore interest rates will behave. Central banks aim at slow, steady growth in the economy, since zero growth means recession, and too fast growth means inflation. The Fed therefore intervenes and when the economy is growing too quickly, it will raise interest rates to slow the economy down, or conversely, lower interest rates to stimulate the economy for increased growth.
The unemployment rate is another major component of the economy that affects interest rates. Low unemployment is considered inflationary since employers have to chase after too few candidates, and will raise wages to do this. High unemployment will typically lead to reduced interest rates since it means lower wages and consequently lower prices. This is called the wage price spiral; higher wages lead to increased prices, decreased wages to lower prices.
If you are thinking about a loan, it is to your advantage to watch these indicators to find the best timing to enter the loan market. The bigger picture to watch out for is a falling GDP with unemployment which leads to lower rates. Conversely, higher GDP and lower unemployment will mean an increase in interest rates.
3 Bad Credit Mortgage Refinancing Tips For Getting an Approval
September 28, 2009 by Christien Stogner
Filed under Mortgage Loans
If you are in need of a mortgage and are heavily laden with excessive debt and have less than perfect credit, you may want to consider a bad credit mortgage loan. To know whether this type of mortgage is right for you, you need to get the facts.
When you have a bad credit history, a mortgage refinance is most likely the cheapest way to access credit. Depending on the homes value and your equity in it, you can get a cash out refinancing for bill consolidation or home improvements. Or, it is possible to obtain a lower interest rate, and lower your monthly payments. Follow these 3 steps to get the best mortgage refinancing deal you can:
Homeowners with bad credit need to make sure that they compare different loan options, rates, terms, and conditions between different lenders and banks.
Also, make sure that potential mortgage lenders do not access your credit report. Too many people looking into your credit can result in a lowered credit rating. Typically, there is no guarantee on what other lenders will quote you, however, it will give a good idea of where you stand, especially if you know your credit score and tell it to them.
There has recently been an increase in the demand for loans for people with poor credit. To meet this demand mainstream lenders as well as specialized lenders have started offering these types of loans. With several lenders offering them, borrowers considering a poor credit mortgage have plenty of options from which to choose.
You may be wondering if a poor credit loan is right for you, and how can it benefit you. If you have a poor credit rating and are having trouble getting a standard mortgage, then this kind of loan might be what you need.
Homeowners who are unable to get approved through a traditional mortgage lender or bank may need to use the services of a sub prime mortgage lender.
Always listen and ask about all of your mortgage lenders loan options. Sometimes, you may find one you were not aware of that better meets your financial needs.
Banks and mortgage lenders would rather help you than let you lose your home to foreclosure or mortgage default, especially in this economy.
7 months of city road construction outside Owen Kellogg’s specialty retail shop meant that he had to close his doors – with substantial dings to his credit. Determined to find out everything about credit repair and loans for people with bad credit, he spent a great deal of time researching.
At my site I will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them.
How To Avoid Foreclosure – 3 Tips To Help You Save Your Home
September 27, 2009 by Casey Byshop
Filed under Mortgage Foreclosure
During this financial crisis a great many people are finding it difficult to keep up their mortgage payments. For many because they do not know what they can do to avoid this situation they end up actually losing their home. However, in this article we offer a few tips that could prove useful on how to avoid foreclosure so allowing you to remain in your home.
Tip 1 – As soon as you realize that you are going to have problems meeting your mortgage payments then don’t ignore it. You should immediately contact the lender and inform them of the situation. They may well be able to devise a payment program that allows you to keep paying your mortgage and so stay in your home.
Tip 2 – Whenever you receive any correspondence from the mortgage lender regarding it you should open and reply to it as quickly as you possibly can. Generally the first letter the lender sends to those who are having difficulties in paying their mortgage will provide them with some ways of how to avoid foreclosure happening to them.
Ignoring such correspondence initially could cause you more problems in the future, as it may well contain information regarding legal proceedings the lender is about to take against you. This is not excuse you can use to the judge when you do end up in foreclosure court.
Tip 3 – Another thing that you should be doing as soon as you have any changes in your financial situation is to go through the mortgage documentation you have. It is important that you read it through slowly and carefully as you will then be able to see what will happen if you are unable to make the payments of your mortgage. For those who are unsure where they stand legally when it comes to foreclosure then they should seek out assistance from either a good lawyer or their local citizens advice bureau.
ARMs Are Not That Difficult to Understand
September 26, 2009 by Jules C. Hooker
Filed under Mortgage Loans
You have a lot of choices to make in buying a house and deciding upon a mortgage, and in today’s confusing mortgage world, you now also have to choose the index that you want for your Adjustable Rate Mortgage (ARM).
When we speak of the “index”, we are speaking of the base financial instrument that the adjusting rates will be based upon. Today, banks use different indices, such as the rate on government debt, or the Fed Fund rate or the London Interbank Offer Rate(LIBOR).
Interest rates on ARMS adjust, upwards or downwards, based on how general rates are moving, which is shown in the movement of the underlying index rate. For example, if you chose the CD rate as your index, when CD rates go up, your mortgage rate will increase. ARMS also contain adjustment caps, so that you can limit the exposure as to how high your loan rate can go, even if your index rate continues to increase, which is good if you just had an adjustment, and the rates go up again. But be aw are, however, that if you just readjusted at a higher rate, and your index rate falls, you are stuck with the increased rate until the next adjustment period.
Your ARM may be tied to the Treasury Bill rate, which is the rate the US Government pays on its 90 day investments. The Fed Fund rate is the rate banks pay to the Federal Reserve Bank for funds. LIBOR, the London Interbank Offered Rate, is a very popular index, and is the rate used by large global companies to borrow.
Which is the right choice depends on your own circumstances and your view of where interest rates are heading. If you would like a rate that is responsive to the interest rate market, you should choose the CD rate as your index. On the other hand, if your ARM is based on T Bills, it will react more slowly. LIBOR is the index that moves the most frequently and the most quickly, so if you want to take frequent advantage of the downward level of decreasing rates, this is the one for you.
As we said, new products are introduced each day, and one of the newest it the option ARM, which allows the borrower to pick how much he wants to pay on his home loan each month. Of course, there is a minimum, usually the amount of interest, so the bank can guarantee its return, and then the balance goes toward the loan. Be warned that minimum payment option can end up in an increasing, rather than decreasing mortgage, a phenomenon known as negative amortization.
With all of these choices, a potential borrower should be sure to talk to a professional mortgage broker who understands the various products and can help you choose the best one for you.
There Was Never A Better Time To Invest In Real Estate
September 26, 2009 by Trudy Mandelson
Filed under Mortgage Loans
The current economic crisis and the possibility of an coming recession has driven the traditional real estate market, which thrived on speculation and gambling to a virtual standstill. The credit that typically sustained it has dried up as savings associations have started to massively recall their loans and to rain foreclosures down upon those who have defaulted.
A direct side effect has been the falling of house prices to their lowest point in a very long time as debt weary owners wanting to get rid of their properties before they are foreclosed are selling their houses for far below their market value. This means that the opportunity to buy investment properties is here.
There is always a market for reasonably priced good homes even in the middle of a potentially volatile financial climate. In addition, housing markets tend to be cyclical and prices will eventually bounce back so their current nadir, as long as it lasts, may be the last opportunity to grab investment properties at such bargain prices. The amount of property anxiously on sale at more than reasonable prices fringes on the impossible.
Investors who are educated enough in real estate, are aware of market fluxuations and are willing to run the risk which can be as high or low as the investor feels ok with stand to make a massive profit in the middle and long term.
Whether an investor is attempting to invest in a property to resell it immediately or to renovate before selling, this is a great time. As long as the investor is disciplined, evenhanded, methodical and not looking to make a fast and simple buck there has not been as fortune favored time to get valuable houses on the cheap in a long time. This is no time for speculators or unskilled investors who rely on luck and the gift of gab. For serious businessmen, however, the opportunities are yours for the taking.
Aircraft Loans For Buying Aircraft Or Fractional Ownership
September 25, 2009 by Rick Klaubert
Filed under Mortgage Loans
Time of essence to businessmen and that is why a lot of corporate houses invest in their own aircraft
Now buying an aircraft is not that simple and there are numerous things that you need to evaluate before you make that big investment. One of the main things that you need to decide is buying by paying the whole amount or taking the aircraft loan.
There are designated financing companies that will give you an aircraft loan. These companies will look at the aircraft brand, number of flying hours and the style of the aircraft before taking a decision regarding the financing. The aircraft financing companies take about a month to arrive at a decision. This option is definitely worth pursuing.
Another option is that of leasing an aircraft. You do not pay anything now and fly the aircraft whereas after the lease is over you will own the aircraft. Fractional ownership is another concept that has grown as the aircraft costs have grown. It is similar to car pooling but here the aircraft initial cost and the flying time is divided among all the members who pitch while purchasing the aircraft.
Fractional ownership will help reduce the cost of the ownership and also there will be no need of getting an aircraft financing deal done. There are a lot of companies which specialize in the fractional ownership concept and will help get into one such plan. The drawback for this is that in some cases you may have to make adjustments to your flight schedule.
Of all the options the aircraft loans are the best as then you can pay the loan company from your future earnings. Make sure to negotiate well with the financing companies as even a small discount can make a big difference to you monthly payments.
Mortgage Refinance With Bad Credit Information
September 23, 2009 by Johnny Hall
Filed under Mortgage Loans
The housing bubble has burst, jobs are being eliminated at alarming rates, the stock market has yet to recover, and financial companies are facing unprecedented difficulties. Families across the country are facing financial and personal stress due to these problems in the economy. Jobs are lost, and bills fall behind. It can happen to anyone. There is a solution to finance and housing issues, even with credit blemishes. Bad credit mortgage refinance is available to those who qualify. Using bad credit mortgage refinance has helped families across the United States to lower mortgage payments and pay off toxic credit card debt.
Rates have been decreased to record lows by the Federal Reserve, paving the way for financial institutions to decrease mortgage interest rates to an unprecedented level. For individuals a poor credit history, bad credit mortgage refinance is a wise way out of their daunting financial situation.
The financial difficulties many households have found themselves, situations when family homes have been at risk has been prevented by bad credit mortgage refinance. A change in a familys financial situation through loss of job can be resolved by credit mortgage refinance by lowering mortgage repayments to prevent the family home from being repossessed.
A bad credit mortgage can help homeowners to regain a positive credit status over time. Once a bad credit mortgage refinance is complete, individuals should pay their mortgage on time each month to ensure that their credit score begins to improve. Improving a credit score will help homeowners improve their lives through gaining more credit opportunities and having the ability to pass credit background checks for employment opportunities.
A tax credit of up to eight thousand dollars can be obtained for first time home buyers, when they purchase their first property. For prospective home buyer with adverse credit history Bad Credit Home Loans can be the way onto the property ladder. But existing home owners who have a similarly and have a poor credit rating, bad credit mortgage refinance can be a way to lower home repayments and prevent the loss of the family home.
Often, families with lower income and poor credit purchase older homes that need repairs, or smaller homes that cannot accommodate growing families. A bad credit mortgage refinance enables homeowners to expand their home by adding a room or sun porch. Families can use a bad credit refinance to water proof a basement, install energy efficient windows, add a dishwasher, or replace a broken furnace or air conditioner.
Experiencing the bereavement of a partner can result in the putting extreme pressure on the surviving partner and the familys finances. A solution to these financial difficulties might be through bad credit mortgage refinance. It could enable the surviving partner to continue to provide family security and continue to reside in the family home.
Bad credit mortgage refinance can also be helpful in the unfortunate case of divorce. The refinance can allow one party access money from the home’s equity to provide the other party with their share of the home’s equity. Doing this allows one spouse to remain in the family home, providing less of a disturbance to the children and easing the pain of the transition from being one family to two families.
Even with a bad credit history, a bad credit mortgage refinance can help property owners to release funds no matter what the situation. Bad credit mortgage refinance has been the solution for many families, improving their individual circumstances regardless of the reason. Whether it is unemployment, death of a family member, divorce or home renovations or repairs this could be the financial solution for you.
40% Of Homes Did Not Need To Go To Foreclosure
September 21, 2009 by Adam Whazzer
Filed under Mortgage Loans
It is really starting to become apparent that the phrase “U.S. Housing Crisis” is nothing less than just that. It’s not some overblown publicity stunt to scare the General Public and give government a chance to play batman for a some Great Cause which has emerged from the strife. No this is not a trick, not an over exaggeration, this is a truly horrific time in American history which has yet to truly unfold. If you are one of the majority struggling, you are not alone. The statistics are dark.
The MBA numbers as of August 20, 2009 show nationally 8.22% of all mortgages are in default (30+ days late) and 4.3% of all loans are in foreclosure. That means out of 45 million mortgages 13.6% are in distress. The even more disgusting|disgraceful| thought is the statistic which states that over 70 percent of Homeowners in distress go into Foreclosure without putting up a fight. Your home that you are responsible for its well being and all the belongings in it and possibly your family, how does one just ignore the impending gloom of Homelessness? I myself have been in the same scenario and could not sleep at night much less not act. I’m working 12 hour day minimums and educating myself on every possible facet of the Foreclosure & Loan Modification Process.
The time I have spent working for the Law firm I have identified many mental errors that are common among mortgage holders at risk of losing their home to foreclosure. many times they are their own worst enemy, over analyzing the situation so much it makes them concerned to act because they are in fear of making the wrong decision. I can give you my sincerest opinion when I tell you that the sometimes when we not to get screwed we end up completely screwing ourselves. We can be our own worst enemies. Remember, Analysis equals total Paralysis which inevitably leads to an bad conclusion.
In the Best interest of anyone who may read this, if there is only one message I can pass on to a mortgage holder or Family in distress it’s Never Give Up, never loose hope, and try your best to do everything you can, exhaust every possible option and most importantly try and seek out the help of qualified Legal Council. The only thing that a Person who says they can and a Person who says they can’t have in common is that they are most likely both right! I wish the best of luck and good fortune to anyone who may be facing or suffering though one of so many truly unfortunate hardships and tragic situations that are becoming so common among todays Families and Homeowners.