Monthly Archives: September 2008

Who May Qualify For Mobile Home Financing — Mobile Home Loans?

Posted September 30, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

Manufactured homes have come a long way since their “trailer” days. These affordable, factory-built homes offer more quality and style than ever before. New homeowners can virtually custom design their homes with the seemingly endless list of options available.

Over 22 million people across the country have decided to make a manufactured home their way of life, and by the time you finish reading this article, you may make the same decision.

Several national mobile home lenders have mobile home loan programs available that offer financing to qualified applicants to purchase a new or used mobile home, or, to refinance an existing mobile home. Mobile home loans that are offered for homes that are on rented land such as a park are called “chattel mortgages” and mobile homes that are situated on their own land and the lender is financing both the mobile home and the land together is a real estate mortgage. Interest rates are typically higher and loan terms shorter for chattel mortgages since the lender is not securing the real estate with the mobile home.

Typical mobile home financing guidelines to keep in mind:

Down payments as low as 5% for mobile homes that are in mobile home park’s is available.
Typically 3 years of employment is required.
Minimum credit scores of 600 and above, possible exceptions available when purchasing new mobile homes and putting a cash down payment of 40% or more.
Debt ratio’s generally cannot exceed 45% for all debts and 34% for housing, this includes the lot rent if the mobile home is in a mobile home park.
Mobile homes must be built to HUD standards.
Loan terms up to 240 months for used mobile homes and 300 months for new homes.
Secondary/Vacation home loan programs are available, although lenders will require a down payment of 20%
A mobile home lender will calculate the value of the mobile home by using a book value or an appraisal.

About the author

Troy James creates articles about mobile home financing and mobile home refinancing. He has over 20 years of experience offering mobile home loan programs to dealers and directly to customers. http://www.mobilefinanceusa.com

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Mortgage

Posted September 30, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

A mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower. http://bank-loan-mortgage.blogspot.com
The term comes from the Old French “dead pledge,” apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the property is taken through foreclosure.
In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some jurisdictions only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. The measurement of a mortgage with regards to cost to the borrower can be measured by Annual Percentage Rate (APR) or many other formulas for true cost such as Lender Police Effective Annual Rate (LPEAR).
In many countries it is normal for home purchases to be funded by a mortgage. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Spain, the United Kingdom, the Commonwealth of Australia and the United States.
Default on Subdivided Property
When a tract of land is purchased with a mortgage and then split up and sold off, then the “inverse order of alienation rule” applies to find out who will be liable for the default.
Basically, when a mortgaged tract of land is split up and sold off, then upon default, the mortgagee forecloses and proceeds against lands still owned by the mortgagor, then liability attaches in a backward fashion, or in an ‘inverse order’ as they were sold. So if A acquires a 3-acre (12,000 m2) lot by mortgage then splits up the lot into 3 acre lots (A, B, and C), and sells lot B to X, and then lot C to Y, retaining lot A for himself then, upon default, the mortgagee will go after lot A, the mortgagor, and if that sale does not satisfy the default, then the owner of lot C will be liable, then the owner of lot B. The idea is that the first purchaser should have more equity and subsequent purchasers receive a diluted share. http://bank-loan-mortgage.blogspot.com
Legal aspects
Mortgages may be legal or equitable. Furthermore, a mortgage may take one of a number of different legal structures, the availability of which will depend on the jurisdiction under which the mortgage is made. Common law jurisdictions have evolved two main forms of mortgage: the mortgage by demise and the mortgage by legal charge.
Mortgage by demise
In a mortgage by demise, the mortgagee (the lender) becomes the owner of the mortgaged property until the loan is repaid or other mortgage obligation fulfilled in full, a process known as known as “redemption”. This kind of mortgage takes the form of a conveyance of the property to the creditor, with a condition that the property will be returned on redemption.
Mortgages by demise were the original form of mortgage, and continue to be used in many jurisdictions, particularly in the United States. Many other common law jurisdictions have either abolished or minimised the use of the mortgage by demise. For example, in England and Wales this type of mortgage is no longer available, by virtue of the Land Registration Act 2002.
Mortgage by legal charge
In a mortgage by legal charge or technically “a charge by deed expressed to be by way of legal mortgage”, the debtor remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security, such as a right to take possession of the property or sell it. To protect the lender, a mortgage by legal charge is usually recorded in a public register. Since mortgage debt is often the largest debt owed by the debtor, banks and other mortgage lenders run title searches of the real property to make certain that there are no mortgages already registered on the debtor’s property which might have higher priority. Tax liens, in some cases, will come ahead of mortgages. For this reason, if a borrower has delinquent property taxes, the bank will often pay them to prevent the lienholder from foreclosing and wiping out the mortgage. This type of mortgage is common in the United States and, since the Law of Property Act 1925, it has been the usual form of mortgage in England and Wales (it is now the only form — see above). In Scotland, the mortgage by legal charge is also known as standard security.
In Pakistan, the mortgage by legal charge is most common way used by banks to secure the financing.[citation needed] It is also known as registered mortgage. After registration of legal charge, the bank’s lien is recorded in the land register stating that the property is under mortgage and cannot be sold without obtaining an NOC (No Objection Certificate) from the bank. Equitable mortgage
See also: Security interest#Types of security
In an equitable mortgage the lender is secured by taking possession of all the original title documents of the property and by borrower’s signing a Memorandum of Deposit of Title Deed (MODTD).

This document is an undertaking by the borrower that he/she has deposited the title documents with the bank with his own wish and will, in order to secure the financing obtained from the bank .http://bank-loan-mortgage.blogspot.com

<a href="http://bank-loan-mortgage.blogspot.com">Find Your Mortgage info HERE</a>

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Mortgage Calculator and fixed rate mortgages

Posted September 30, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

A mortgage calculator is a useful tool to help we budget for our new mortgage. A good mortgage calculator allows us to calculate our monthly payments based on our desired interest rate, taxes, and insurance. Here is how this useful tool can help we avoid common mistakes when refinancing our mortgage.

Mortgage calculators can provide us valuable information about our mortgage. A good mortgage calculator will show us monthly payment information and amortization tables to help us understand how our mortgage works. Amortization with a mortgage calculator describes the process of paying interest and principle graphically; using a mortgage calculator can help us get our head around a complicated financial concept like amortization.

In many parts of the country the average price for a home has gone up significantly over the past few years. This makes it difficult for many people to qualify for the financing they need using a traditional mortgage lender. Many of these individuals have turned to 80/20 mortgages to secure 100 percent of the mortgage financing they need.

Internet mortgage leads are indispensable for mortgage lending companies and brokers. The mortgage leads are lifelines to their business. That’s why they always look for qualified and cost-effective Internet mortgage leads. Borrowers often search for mortgage lending companies on the web. Initially they get in touch with the lead generation companies with their loan requests. They submit their requests to the mortgage lead generation companies by filling out an online application form. The lead generation companies send the applications, after screening them carefully, to the mortgage brokers and lending companies. Here the screening is necessary to ascertain the reliability of the loan application. The mortgage applications then become leads. Mortgage brokers and lending companies in turn contact the borrower via e-mail or telephone.

Lead generation companies use advanced technology to find suitable Internet mortgage leads. Here the quality of Internet mortgage leads depends on how sophisticated the lead generation process is. Mortgage-generating companies always aim to offer suitable and profitable mortgage leads to lending companies.

The major advantage of a fixed rate mortgage is that it presents a predictable housing cost for the life of the loan. A fixed rate mortgage guarantees that our interest rate stays the same, which means that our monthly principle and interest payments through the entire term of the mortgage remain unchanged. With a fixed rate mortgage, our monthly payments would only increase due to increases in property taxes or insurance rates.

In general, fixed rate mortgages are seen as the safer alternative to an adjustable rate mortgage. An ARM is considered riskier than a fixed rate mortgage because our payment may change significantly. If we have an ARM, it may be best to lock in a fixed rate mortgage now, in advance of our current loan adjustment.

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Who are the Winners and Losers in Fannie Mae and Freddie Mac Take Over?

Posted September 25, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

Fannie Mae and Freddie Mac are operated since 1968 as government sponsored enterprises (GSEs). This means these Two are privately owned, owned by shareholders but are financially supported by the US Federal Government. These GSE’s purchases mortgages from the lenders who originate them and provide a secondary market in home mortgages. They hold some of these mortgages, and some are “securitized” sold in the form of securities which the GSEs guarantee.
This past weekend the inevitable happened. The government stepped in to take over Fannie Mae and Freddie Mac. These two companies were placed into a conservatorship in an effort to bring some stability to the housing and mortgage market.
Who are the winners and losers from this landmark move?
Winners: The investors. By investors we mean the companies that buy the debt or securities Fannie and Freddie created from the mortgages they funded. The federal government is now responsible for losses on these investments — a move which the government hopes will attract investors back to mortgage securities and create the much needed funds to fuel mortgage originations.
Losers: The shareholders. The shares prices have been in a steady decline and the move to take over the companies is not a move to buy out the shareholders. People who invested in Fannie Mae or Freddie Mac stocks are likely going to continue to be upside down (lose money on their investment) until the future of these entities is decided and, should they remain public, regain value in their share — meaning a long, long time.
As for homeowners, we will have to wait and see. With the government stepping in that should clear the way for mortgage rates to drop down. However, lending standards are still up in the air. We may not get a decision on how conservative or liberal the lending standards will be until after the next president is elected. My guess is we are likely to see stricter underwriting guidelines that are more inline with what these two companies used originally; requirements for larger down payments and more conservative debt to income ratios which may make mortgages more difficult to obtain for many.
So what’s your bargain?

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What will the bailout mean for you, me and the housing market?

Posted September 24, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

I’ve received many panicked calls over the past few days from realtors and other real estate professionals who have watching the news and are hearing that no one is able to lend money. I want to start by saying that we are still funding loans. There have been NO major guideline changes within the past month and the purchase and refi loans that fit the guidelines are still being funded whether it be first time home buyers or cash out refis. The major guideline changes that were presented in July regarding Downpayment Assistance and MI changes are now in effect and don’t seem to be hindering business. I’m inline to have a record month and at every closing there’s no doubt in my mind that the wire will be there.
With or without the bailout I think my business will have to carry on. In my opinion the only answer to pull us out of this crisis is on the small business level and with people in my position. The only way to pull people out of these ARM’s and difficult situations is to either refinance or modify their loan. The Fed’s cannot directly address each individual situation and that’s where local real estate professionals will have to come in. In order to help we need the products to address each individual situation. FHA secure was a step in the right direction and a new program will become available on Oct. 1st 2008 FHA’s Hope for Homeowners which should progress the move to help struggling homeowners.(http://www.denver1stmortgage.com/hopeforhomeowners).
Another important piece that will need to be taken into consideration is that for every transaction I complete there are at least 10 parties involved to make it happen. These 10 people are from 10 different companies that fuel hundreds of other companies. If these transactions cease a large sector of the economy will suffer along with the housing market.
When the bailout plans are released there will be a period of excitement and stock market gains. Consumer confidence will rise and the plan will seemed to have worked. I think the variable that will determine the success of the plan will be the housing market bottom. Here in Denver I believe we are at or close to our bottom and if the national market follows and hits bottom within the near future I think the plan will help us pull through the end of the year and position the economy to ride its way out of the mess. The feds will look like heroes and our resilient economy will experience gains that will lead us on the path of stabilization.
If we do not hit bottom within the near future I see a dark alternative. Even though bad debt will have been cleared off the banks books more will start to accumulate. With individuals upside down (owe more that their home is worth) their options will remain limited and we will end up in the same predicament. If we are still far from the bottom the only answer is bank failure or a further infusion of billions of dollars.
We are now part of a world economy which is much larger than us here at home. If we plan wrong the implications could be worldwide. We can only hope that Henry Paulson, the Treasury Secretary and Ben Bernanke, Federal Reserve Chairman have calculated the $700 billion to correlate to the timeframe it will take the housing market to pull through its current status.
In conclusion all I can say is that I hope that the momentum of the plan will help us realize the bottom of the real estate cycle nationally and put us on a path to recovery and stability.

Michael Shotnik - Mortgage Banker with Summit Home Mortgage
I have 4 years of Mortgage experience in the Denver Metro area. I was working my way up as the housing bubble was bursting. It wasn't the easiest time to get into real estate but it's forced me to builit solid relationships that I can build my business with. I've based my business on personal relationships with current clients, past clients and industry professionals. Subprime has never been a driving force of my business so in this time of crisis my business continues to grow due to ethical make sense transactions. I've been successful in the business becauase I care about people and how the mortgage I provide can improve their daily lives.

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Hope for Homeowners - New FHA program available October 1st!

Posted September 20, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

Hope for Homeowners is an FHA program scheduled to be available October 1st!
The FHA Hope for Homeowners program is designed for homeowners who are current or behind on their mortgage and can document that they are/will be unable to afford the payment. The program is also available to homeowners who owe more than their home is worth.

The Hope for Homeowners program runs from October 1st, 2008 until September 30th, 2011.

Criteria that must be met:

1. The mortgagor must occupy the property as a primary residence

2. The mortgagor must have been originated before Jan. 1st 2008

3. The mortgagor must certify that it has not intentionally defaulted on the debt

4. The mortgagor must have a DTI (debt to income) greater than 31%

5. The new mortgage must be determined to be payable by the mortgagor and not exceed 90% of the appraised value(current lender must take loss to accomidate 90% mark).

6. The lender must waive all penalties related to prepayment and fees related to default or delinquency.

7. The refinancing must include extinguishment of all leins on the property thus requiring the participation of all lien holders.

8. The refinanced mortgage must be a fixed rate product with a minimum of 30 years.

9. The mortgagor may not add a second mortgage within the first 5 years of the loan unless the Hope Board determines that a second is required to maintain the property. In that case the CLTV will be capped at 95%.

10. The mortgagors income must be verified with the 2 previous years tax returns.

11. The mortgagor must not have been convicted of fraud within the past 10-year period.

How can you apply?

1. You can apply here: www.denver1stmortgage.com (Colorado residents only)
2. If you are not in the state of Colorado we can still help!

Many people don’t agree that federal intervention is a good thing but I think it’s the only possible solution. With the economy struggling this program fills a gap that will hopefully help put the US economy back on track.

*I’m always looking for ways to connect with homeowners who need my services. If you are in the Real Estate industry or regularly connect with people who are having trouble making their mortgage payments please contact me so we can help.

Michael Shotnik

Hope for Homeowners Program Specialist

Summit Home Mortgage

303-800-4595

mshotnik@summit-mortgage.com

www.denver1stmortgage.com

Michael Shotnik - Mortgage Banker with Summit Home Mortgage
I have 4 years of Mortgage experience in the Denver Metro area. My timing wasn't perfect, I got into real estate as the last real estate bubble burst.
Even though the US market isn't doing so well I'm very excited as to what we'll see in Denver over the next year and a half!!

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Interest Rate Ease Looks Set to Benefit Homeowners

Posted September 17, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinance

With interest rates having remained steady for the last five months Greenhill Finance says there are now optimistic signs of an easing of interest rates that could soon see the start of a return to more affordable loans and remortgages for homeowners.
(PRWEB) August 29, 2008 — Fact: Interest rates have remained the same since April 2008 and experts are now predicting a decrease in 2009.
An end might be in sight to the ‘credit crunch’ and economic downturn that has dominated the news for much of 2008 and depressed the housing market with its corresponding effect on borrowing.
Talk of a recession has encouraged the Bank to England to maintain its base interest rate at a level that has kept overall interests rates high - good for investors but not so good for borrowers.
But a growing mood of optimism is now being detected, with a number of experts saying that Britain should follow the American example and drop interest rates to stimulate both the housing market and economy generally.
The result, says Greenhill Finance, is that lenders are starting to get behind the fact that interest rate rises are behind us and are looking for a competitive edge by cutting interest rates on loans and remortgages.
Among a number of leading UK experts confidently predicting a return to lower interest rates in 2009 is the British Chambers of Commerce (BCC) and Greenhill Finance, one of Britain’s leading finance brokers, is optimistic that the days of more affordable loans and remortgages are on the way back.
BCC forecast that interest rates will be cut over the next six months to help counter the effects of the credit crunch, while two other independent financial commentators also predict an easing of the economic downturn in 2009.
BCC economic adviser David Kern was quoted on Aug 18 as saying that UK bank rate ‘will be cut to 4.75% in quarter four (Oct-Dec) 2008, followed by an additional cut to 4.50% in quarter one (Jan-Mar) 2009.’
Property expert and presenter of Channel 5’s ‘How to Be a Property Developer’ Gary McCausland also believes a cut is due.
‘A positive rate cut of at least one per cent would go a long way to underpin the UK’s struggling economy’, he said.
More recently, prominent analyst and government adviser Tim Congdon, who set up Lombard Street Research, too confidently forecast that oil prices will come down next year.
This, he said, could produce an inflation figure of less than one per cent by autumn 2009, leading to a significant decrease in interest rates.
Greenhill Finance has been prominent among those who have poured scorn on talk of recession, pointing out that the majority of homeowners in the UK are still in a very healthy financial situation, with their homes retaining on average an equity value in excess of £160,000.
Senior Greenhill advisor David Reid said: ‘For the most part homeowners have done very well from property, and many may now prefer to invest by making their homes nicer through remortgaging or taking our secured loans.’
Greenhill Finance can help select the best secured loan with money in the bank within 21 days. For more information call 0800 916 4148 or visit www.greenhillfinance.co.uk.
Useful links
Interest Rate Cuts 2008: http://www.walesonline.co.uk/business-in-wales/business-news/2008/08/18/cut-rates-sooner-business-warns-91466-21550721/
Interest Rate Dilemma: http://uk.biz.yahoo.com/07082008/140/uk-interest-rates-stick-twist.html
Inflation Fall in 2009: http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/17/cncpi117.xml

Justin Mason - Author