Is your variable-rate mortgage resetting higher, leaving you in the dust? Have you lost a job recently, or suddenly had an expensive emergency with a loved one? Have you recently been through a pricey divorce, or had to send your child to college?
In the old days, before the invention of loss mitigation, circumstances like these that led to falling behind on mortgage payment simply meant that you would have to give up your home.
Foreclosures stay on your credit report for a decade, and result in great upheaval in your life.
Now days, you can try to get a loan modification. Or reamortization. Or a restructure on your loan. Or if all of these fail, you can at least do a real estate short sale. If your lender or bank agrees to let you do a short sale (which are becoming more and more common in this depressed real estate market), you then hire a professional agent to help you find a buyer for your home, at a lower price than the amount you owe on it. With the banks' approval, they will forgive your mortgage and absorb the extra loss, and in exchange you are done with each other and no one has defaulted or foreclosed. It's a win-win solution for a losing situation.
Now, if you're hard up for cash and missing payments, you'll likely be reluctant to hire someone to help you find a buyer. But it is possible to find a real estate agent who will work partially pro bono or at a reduced rate, and this has the added benefit of making your lender more willing to help you.
And you'll definitely have to scale back in all aspects of your spending budget at home- you need to prove to the bank you're making a rigorous effort to make payments but you simply cannot do it any longer, for permanent, or at least long-term reasons.
Of course, a short sale is a last resort. You should start talking to your lender the minute you think you might have to miss a payment, or you're falling behind. You may be able to do a workout on your loan and restructure it, or get a full-out loan mod. In this market, it is becoming more and more common for more and more banks and lenders to make accommodations for struggling homeowners. It's in their best interest, and in the best interest of the entire industry and the economy.
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About the Author
For more information on loss mitigation and help with short sales or loan mods, ask the pros at http://www.accesslossmitigation.com
Showing posts with label Mortgages. Show all posts
Showing posts with label Mortgages. Show all posts
Mortgage Loan Modification - How Can I Save My Home?
Getting a mortgage loan modification is a financial tool that many Americans are using to help them save their homes and avoid foreclosure. Since the housing bubble top back in July of 2006, many Americans have found that is is very hard to make ends meet financially when the value of your home is decreasing. Couple this with the fact that unemployment is on the rise and we have a financial disaster.
One way to make sure that you can make your monthly mortgage payments is through mortgage loan modification. Many home owners have already done this and many more will continue to do it in the future. Basically, the government has set up programs to help you get a lower monthly mortgage payment. The lower payment may be because you are only using 31% of your salary on your mortgage or it may be because you had the opportunity to refinance at extremely low mortgage rates. Either way, you are likely to pay less a month on your home loan payment.
These lower payments will not continue for the entire life of your loan but they will continue for the next few years as you get back on your feet financially. Most hard working Americans just need a break here or there and they will be fine with their finances but those breaks have been few and far between over the last few years. It seems that every time we get ahead on the bills an unexpected expense comes up Make sure to get a mortgage loan modification so you know you will always have some extra cash in your pocket.
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by Jesse W.
One way to make sure that you can make your monthly mortgage payments is through mortgage loan modification. Many home owners have already done this and many more will continue to do it in the future. Basically, the government has set up programs to help you get a lower monthly mortgage payment. The lower payment may be because you are only using 31% of your salary on your mortgage or it may be because you had the opportunity to refinance at extremely low mortgage rates. Either way, you are likely to pay less a month on your home loan payment.
These lower payments will not continue for the entire life of your loan but they will continue for the next few years as you get back on your feet financially. Most hard working Americans just need a break here or there and they will be fine with their finances but those breaks have been few and far between over the last few years. It seems that every time we get ahead on the bills an unexpected expense comes up Make sure to get a mortgage loan modification so you know you will always have some extra cash in your pocket.
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by Jesse W.
How to get out of Foreclosure by Refinancing
The foreclosures of a property are one thing that everyone should prevent. There are lots of ways to save your property from being foreclosed by your mortgage holder including paying off the liability in full or issuing a promissory note so you can stretched out the limit, or you can use the means of refinancing.
Definition of Refinancing
Paying off an existing mortgage and arranging a new mortgage, often with a different lender. Undertaking another loan to pay off an existing debt is what we call refinancing. In simple terms, most borrowers undergo refinancing to extend the paying back time. You can say that refinancing is a secondary loan to pay for the first one. Not only will your property be safe in foreclosure given that you are able to pay on period, you also have a form of delay to your obligation as well.
However, before you go for the thought of refinancing, first you must have to know the various kinds of loans and the details before you dive in.
Different types of loans
There are two (2) kinds of loans in financing.
First one is the secured loan, which the borrower uses a property or a security as a collateral for the loan.
- this kind of loan is closely governed by state law and will only be issued if the borrower has attained a certain level of standards from different financial organizations. An example of a secured loan is the mortgage loan, in which the borrower will approach a lender for a credit for purchasing a property or to refinance a business or an existing loan.
Second type of loan is called the unsecured loan, wherein the lender is not governed by the status of the state and it is not based on the borrower's assets. Unsecured loans comes in different forms: these are the, credit lines, personal loans from private lenders, bank overdraft, credit card debts, and corporate bonds.
Interest rates for these two kinds of loans may vary depending on the locale of the financial institution. As secured loans are governed by legal law so the interest rates are closely regulated by law; and unlike its equivalent, unsecured loans especially by private lenders are quite known in charging marginally higher interests.
Obtaining yourself a refinance lender
If you want to look for the best refinance lender, then you need to do a lot of research / analysis. One way to look for prospect is by way of the internet. Most companies / business, both private and institutional lenders, are now using the Internet to advertise / promote their companies so it is quite easy to search for them out. Try to invest time searching for the lenders with lowest interest rates so that you can get the best deal in refinancing - try not to stick with one since there are countless of lenders out in the internet where you can work with. Try to look also for a lender which has all the fees and cost placed out first hand. Scam lenders often give the good deals out without telling the borrower about hidden fees and costs. Sincere and honest lenders will give you a draft of possible costs during the transaction.
Shutting down the costs in refinancing
When you have established the right refinance lender, you have to go through the closing costs so you won't split when the lender carries them out for show. Closing cost for a refinance mortgage will include escrow and title fees, lender fees, appraisal fees, insurance, taxes and credit fees.
This might sound quite alarming at first, you will relax once you know what is concerned with all these closings costs. Major charges includes the title and escrow fees, but you are given a choice to add these fees to the mortgage balance to be paid in full later when it arrives maturity. The borrower may as well aim for a no-cost closing approach in refinancing. This method is lacking of adding fees but will contain a much higher interest rate than the usual refinance with closing cost. Understanding the cost of your refinance mortgage will not only leave you in the dark when your lender starts talking about fees, but will also give you enough support for profound transactions.
Definition of Refinancing
Paying off an existing mortgage and arranging a new mortgage, often with a different lender. Undertaking another loan to pay off an existing debt is what we call refinancing. In simple terms, most borrowers undergo refinancing to extend the paying back time. You can say that refinancing is a secondary loan to pay for the first one. Not only will your property be safe in foreclosure given that you are able to pay on period, you also have a form of delay to your obligation as well.
However, before you go for the thought of refinancing, first you must have to know the various kinds of loans and the details before you dive in.
Different types of loans
There are two (2) kinds of loans in financing.
First one is the secured loan, which the borrower uses a property or a security as a collateral for the loan.
- this kind of loan is closely governed by state law and will only be issued if the borrower has attained a certain level of standards from different financial organizations. An example of a secured loan is the mortgage loan, in which the borrower will approach a lender for a credit for purchasing a property or to refinance a business or an existing loan.
Second type of loan is called the unsecured loan, wherein the lender is not governed by the status of the state and it is not based on the borrower's assets. Unsecured loans comes in different forms: these are the, credit lines, personal loans from private lenders, bank overdraft, credit card debts, and corporate bonds.
Interest rates for these two kinds of loans may vary depending on the locale of the financial institution. As secured loans are governed by legal law so the interest rates are closely regulated by law; and unlike its equivalent, unsecured loans especially by private lenders are quite known in charging marginally higher interests.
Obtaining yourself a refinance lender
If you want to look for the best refinance lender, then you need to do a lot of research / analysis. One way to look for prospect is by way of the internet. Most companies / business, both private and institutional lenders, are now using the Internet to advertise / promote their companies so it is quite easy to search for them out. Try to invest time searching for the lenders with lowest interest rates so that you can get the best deal in refinancing - try not to stick with one since there are countless of lenders out in the internet where you can work with. Try to look also for a lender which has all the fees and cost placed out first hand. Scam lenders often give the good deals out without telling the borrower about hidden fees and costs. Sincere and honest lenders will give you a draft of possible costs during the transaction.
Shutting down the costs in refinancing
When you have established the right refinance lender, you have to go through the closing costs so you won't split when the lender carries them out for show. Closing cost for a refinance mortgage will include escrow and title fees, lender fees, appraisal fees, insurance, taxes and credit fees.
This might sound quite alarming at first, you will relax once you know what is concerned with all these closings costs. Major charges includes the title and escrow fees, but you are given a choice to add these fees to the mortgage balance to be paid in full later when it arrives maturity. The borrower may as well aim for a no-cost closing approach in refinancing. This method is lacking of adding fees but will contain a much higher interest rate than the usual refinance with closing cost. Understanding the cost of your refinance mortgage will not only leave you in the dark when your lender starts talking about fees, but will also give you enough support for profound transactions.
Understanding Obama's Federal Loan Modification Program
Obama's federal loan modification program could be the answer you have been searching for! It is designed to save the homes of nearly five million people who are currently facing the harsh reality of losing their homes. The home loan modification program will be handled by your lending institution, which is required to abide by specific rules set forth in Obama's home stimulus plan. The end result is expected to stimulate the economy by saving millions of people from foreclosure.
In order to understand the nuts and bolts of this loan modification program, let's explore exactly what it could do for you, the home owner. It is designed to look at your mortgage, and then lower your interest rate. It could be set as low as 2% depending upon your financial situation. In addition, the home loan modification offers a very unique twist! If your payments are made on time, you could qualify for the Treasury to pay up to $5,000 towards your principle over a 5 year period. This is one of the best motivators for home owners that are seeking relief from Obama's stimulus plan.
The loan modification program (like all other loans) requires that you have all of the necessary paper work as well as an application completed. It is crucial that you talk to your banker and obtain all of the paperwork needed to facilitate this mortgage modification. You will need to keep a copy of each document in case you are ever asked to verify your eligibility once approved. Be prepared, talk to your lending institution, and obtain as much information as possible. This will make the approval process, as well as any future verification stress free.
Your first step should be to calculate your debt ratio. You can do this yourself; simply divide your primary residence monthly cost by your monthly gross income. If the total is below 45%, you should have no problem getting approved for the home loan modification program. The next step is to contact your financial institution. The home stimulus package, including this home loan modification program is designed to save your home. Get the forms, do the paperwork, and you can be one of the 5 million home owners back on the road to security!
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About the Author
by Scott A. Kennedy
Click here to learn how to get qualified for Obama's mortgage Loan modification .
In order to understand the nuts and bolts of this loan modification program, let's explore exactly what it could do for you, the home owner. It is designed to look at your mortgage, and then lower your interest rate. It could be set as low as 2% depending upon your financial situation. In addition, the home loan modification offers a very unique twist! If your payments are made on time, you could qualify for the Treasury to pay up to $5,000 towards your principle over a 5 year period. This is one of the best motivators for home owners that are seeking relief from Obama's stimulus plan.
The loan modification program (like all other loans) requires that you have all of the necessary paper work as well as an application completed. It is crucial that you talk to your banker and obtain all of the paperwork needed to facilitate this mortgage modification. You will need to keep a copy of each document in case you are ever asked to verify your eligibility once approved. Be prepared, talk to your lending institution, and obtain as much information as possible. This will make the approval process, as well as any future verification stress free.
Your first step should be to calculate your debt ratio. You can do this yourself; simply divide your primary residence monthly cost by your monthly gross income. If the total is below 45%, you should have no problem getting approved for the home loan modification program. The next step is to contact your financial institution. The home stimulus package, including this home loan modification program is designed to save your home. Get the forms, do the paperwork, and you can be one of the 5 million home owners back on the road to security!
------------------------
About the Author
by Scott A. Kennedy
Click here to learn how to get qualified for Obama's mortgage Loan modification .
FHA refinance and FHA mortgage better way to apply for loan
FHA refinance provides easy loan through mortgage of the property. Refinancing a loan with mortgage is less stressful as you apply on the basis of the property you already possess and there is no stress to make the repayment of the loan in hurry. FHA streamline provides extended terms of repayment that facilitate the loan seeker for not worrying regarding making repayment. FHA mortgage scheme is expanding due to the terms and conditions it provides to the loan seeker. Fewer complexities and formalities are involved in it and that's why it is more preferable to the people in comparison to the other loans.
FHA refinance is not provided to everyone and not every individual is eligible to apply for it. Some major things are required for being eligible to apply for it. FHA streamline has drawn some terms and conditions which are a compulsion to be followed. FHA stands for federal housing administration which is authorized by the government to offer full loan coverage and also makes the lenders to expose who are providing less debt and also ensure them to get competitive rates for the property being mortgage for the loan. If this things are not ensure than there are definitely the chance to face loss due to lower bidding of the property being mortgage.
FHA mortgage provides the facility of getting the competitive rates on the property. Any property is an asset for individual who had put lots of efforts to earn that property that's why it is important for him/her to get the best deal at the time of mortgage to assure inner satisfaction. Satisfaction of getting the competitive loan amount for the property one holds. FHA refinance is beneficial for those who are residing in their home as their principal residence and the home is in their name. It can be beneficial at the time of streamline refinancing and cash out refinancing. The home owner can refinance the existing mortgage for up to some percentage of the appraised value. This facility totally depends on the terms and conditions of the refinance.
As compared to the other loans FHA refinance provides lower down payment, this are especially introduced by the government to facilitate the people in getting loan and fulfilling their desire. It is very important for everyone to get the amount for their which is as per their expectations, if it don't meet with their expectations or near by their expectation, they won't be satisfied with the dealing that took place. And this thing will just create a feeling of regret for not getting the expected amount will always be present within them.
Different sites are present on the internet that provides information regarding the FHA refinance and the FHA streamline that carry the terms and conditions for the purpose of mortgage. The sites provide answers for the different kind of queries that a person may have at the time of dealing, it also provide rough idea of the amount that can be raised for the kind of property they owe.
By:Pankaj SNV
FHA refinance is not provided to everyone and not every individual is eligible to apply for it. Some major things are required for being eligible to apply for it. FHA streamline has drawn some terms and conditions which are a compulsion to be followed. FHA stands for federal housing administration which is authorized by the government to offer full loan coverage and also makes the lenders to expose who are providing less debt and also ensure them to get competitive rates for the property being mortgage for the loan. If this things are not ensure than there are definitely the chance to face loss due to lower bidding of the property being mortgage.
FHA mortgage provides the facility of getting the competitive rates on the property. Any property is an asset for individual who had put lots of efforts to earn that property that's why it is important for him/her to get the best deal at the time of mortgage to assure inner satisfaction. Satisfaction of getting the competitive loan amount for the property one holds. FHA refinance is beneficial for those who are residing in their home as their principal residence and the home is in their name. It can be beneficial at the time of streamline refinancing and cash out refinancing. The home owner can refinance the existing mortgage for up to some percentage of the appraised value. This facility totally depends on the terms and conditions of the refinance.
As compared to the other loans FHA refinance provides lower down payment, this are especially introduced by the government to facilitate the people in getting loan and fulfilling their desire. It is very important for everyone to get the amount for their which is as per their expectations, if it don't meet with their expectations or near by their expectation, they won't be satisfied with the dealing that took place. And this thing will just create a feeling of regret for not getting the expected amount will always be present within them.
Different sites are present on the internet that provides information regarding the FHA refinance and the FHA streamline that carry the terms and conditions for the purpose of mortgage. The sites provide answers for the different kind of queries that a person may have at the time of dealing, it also provide rough idea of the amount that can be raised for the kind of property they owe.
By:Pankaj SNV
Reverse Mortgage Disadvantages and Advantages
Reverse Mortgage trends are becoming increasingly popular as many mature borrowers, over the age of 62, who are searching for ways to maintain their independence. The reverse mortgages, also commonly known as Home Equity Conversion Mortgages (HECM), give them that option. The HECM program offers mature borrowers the ability to use the equity in their homes for additional financial support, such as monthly payments, a line of credit, a lump sum or a combination of all three.
It is important to know there are reverse mortgage programs available for mature borrowers. The most commonly used reverse mortgage is the federally insured program because it is backed by the U.S. Department of Housing and Urban Development or HUD. There are advantages and disadvantages for the reverse mortgage program that mature borrowers should be aware of prior to participating in the program.
The advantages of the overall reverse mortgage program are:
* Mature borrowers are allowed to keep and remain in their current home while using the equity to receive various payments at one time or over an extended period of time.
* Reverse mortgages are not tax deductible loans, meaning mature borrowers are not required to pay any income taxes on the money they receive. * Mature borrowers are able to use the money they received to either pay-off medical bills, various debts including outstanding mortgage balances, or at the discretion of the borrower.
* Reverse mortgages allows for mature borrowers to remain independent.
Unfortunately, with every loan program, traditional or reverse, there are some disadvantages mature borrowers should be aware of. The overall reverse mortgage program disadvantages include:
* The initial front-end expenses, which are due at closing, are considerably higher than a traditional loan. Expenses include origination fees, closings costs, and other charges. These costs are typically rolled into the loan balance making the amount available to the senior less.
* The interest rates for all reverse mortgage programs are set higher than traditional loans because of the program structure. The reverse mortgage program does not mature until the borrower dies or moves out of their home; therefore there are no payments due while the borrower is in the home.
* For many mature borrowers who receive benefits such as Social Security or Medicare, and elect to participate in a reverse mortgage program, may be in jeopardy of losing or having their benefits significantly decreased if they use more equity than allowed for program requirements. Mature borrowers are advised to only use their equity when needed rather than withdrawing all of the money and putting it in some form of a savings account.
* If mature borrowers default on their reverse mortgage by either not paying their property taxes, insurance premiums, or maintaining the maintenance of their home then the lender may request the reverse mortgage balance be immediately due and payable. While the negatives of the reverse mortgage program may seem to outweigh the advantages, mature borrowers needing to supplement their income and remain independent are encouraged to speak to their loved ones or a financial consultant for details of the reverse mortgage program. Many things are important when determining if the reverse mortgage program is right but it all begins with a peace of mind. If you would like more information, please call (866) 683-3690 or visit our Reverse Mortgage Calculator
by Robert Griffin
.
It is important to know there are reverse mortgage programs available for mature borrowers. The most commonly used reverse mortgage is the federally insured program because it is backed by the U.S. Department of Housing and Urban Development or HUD. There are advantages and disadvantages for the reverse mortgage program that mature borrowers should be aware of prior to participating in the program.
The advantages of the overall reverse mortgage program are:
* Mature borrowers are allowed to keep and remain in their current home while using the equity to receive various payments at one time or over an extended period of time.
* Reverse mortgages are not tax deductible loans, meaning mature borrowers are not required to pay any income taxes on the money they receive. * Mature borrowers are able to use the money they received to either pay-off medical bills, various debts including outstanding mortgage balances, or at the discretion of the borrower.
* Reverse mortgages allows for mature borrowers to remain independent.
Unfortunately, with every loan program, traditional or reverse, there are some disadvantages mature borrowers should be aware of. The overall reverse mortgage program disadvantages include:
* The initial front-end expenses, which are due at closing, are considerably higher than a traditional loan. Expenses include origination fees, closings costs, and other charges. These costs are typically rolled into the loan balance making the amount available to the senior less.
* The interest rates for all reverse mortgage programs are set higher than traditional loans because of the program structure. The reverse mortgage program does not mature until the borrower dies or moves out of their home; therefore there are no payments due while the borrower is in the home.
* For many mature borrowers who receive benefits such as Social Security or Medicare, and elect to participate in a reverse mortgage program, may be in jeopardy of losing or having their benefits significantly decreased if they use more equity than allowed for program requirements. Mature borrowers are advised to only use their equity when needed rather than withdrawing all of the money and putting it in some form of a savings account.
* If mature borrowers default on their reverse mortgage by either not paying their property taxes, insurance premiums, or maintaining the maintenance of their home then the lender may request the reverse mortgage balance be immediately due and payable. While the negatives of the reverse mortgage program may seem to outweigh the advantages, mature borrowers needing to supplement their income and remain independent are encouraged to speak to their loved ones or a financial consultant for details of the reverse mortgage program. Many things are important when determining if the reverse mortgage program is right but it all begins with a peace of mind. If you would like more information, please call (866) 683-3690 or visit our Reverse Mortgage Calculator
by Robert Griffin
.
