Monthly Archives: December 2008
5 Tips Every Loan Modification Firm Talks About
Posted December 29, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceOne of the biggest mistakes you can make in a loan modification is to ignore the rules. Although your Law Firm does the negotiating, it helps a great deal if you do your homework and arm yourself with the right information. After all, you’re dealing with lendersand at the end of the day, you still have to play by their rules.
Here’s a list of loan modification do’s and don’ts to help you avoid common pitfalls.
Do know your rights.
More than 80% of mortgage contracts violate one or more lending lawsand most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want.
Don’t wait too long.
The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.
Do work with your lawyer.
Your Home Loan Modification doesn’t rest in the hands of your lender, your broker, or your loan modification attorney. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.
Don’t file for bankruptcy, unless you really have to.
Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anywayso they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.
Do have a backup plan.
Not all people will qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.
If you can’t get your loan modified, talk to your lawyer about a short sale. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.
The Loan Modification Firm has all the experience and knowledge that is needed to get the job done. The Loan Modification Attorney can be reached at Law Offices of Marc R. Tow Just Call 800-738-1170 or visit <a href="http://www.cdloanmod.com" title="Home Loan Modification">Home Loan Modification</a>
No Comments | Tags:How to Get a Low Rate Second Mortgage
Posted December 28, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceYou can improve your chances of qualifying for a low rate second mortgage by following a few simple steps. Before you apply for a loan, you should ensure that your credit history is clean, confirm you have enough equity to qualify, and determine which second mortgage is the best option for your needs and financial situation. Next you can shop for a low rate second mortgage lender and compare offers. With preparation, you may be able to close on your second home loan in as little as two weeks.
Confirm Your Credit History Is Clean
Even though you already own your home, prospective lenders will check your credit history to verify that you’re paying your current loan on time, haven’t recently taken on any large debts, and haven’t recently been delinquent on any debts or filed for bankruptcy.
Before applying for a low rate second mortgage, check your credit reports to make sure they don’t list any errors. If you have legitimate recent black marks, do what you can to correct them. Recent dings on your credit can result in a higher rate home equity loan. You should also check your credit score to see what rate you’re likely to qualify for.
Confirm Your Current Mortgage Balance and Home Value
When deciding how much money to borrow, you should first confirm that you and your primary lender agree on how much you still owe. If your numbers don’t match the banks, make sure all your payments have been processed properly.
You can use a variety of real estate websites to assess your home’s current market value. It may not be as much as you think if the market is on a downswing. A lower market value will limit the amount you can borrow against your equity. The combined balance of your first and second mortgages should never be more than 80% of your home’s value.
Determine Which Second Mortgage Option is Best
Before applying for a loan; decide what you plan to use the money for. Total up all the expected costs and add a little extra to cover unanticipated costs if you’re using the money for remodeling or college tuition, but not so much that you’re tempted to use the money for unrelated purchases. Remember that you are risking your home, so borrow wisely. Only borrow an amount you can afford to repay and only for items that will directly improve your home’s resale value, your financial situation, or your child’s or your future earning potential.
Once you’ve decided how much to borrow, you can decide whether a home equity loan
Or home equity line of credit is a better choice. A home equity loan lets you borrow a single lump sum and pay it back over time at a fixed rate. A home equity line of credit (HELOC) allows you to borrow smaller amounts when you need them and then pay them back over a period of time at a variable interest rate. If you’re consolidating debt or embarking on a small home remodeling project that will be completed quickly, then a lump-sum loan is preferable. If your remodeling project will take several months or you’ll need periodic college tuition payments, then a HELOC is a better choice.
Choose a Low Rate Second Mortgage Lender
Don’t automatically accept a loan from the first lender you find. Instead shop around on the Internet to determine what kind of second mortgage rate you can expect. You should approach two to three reputable lenders for estimates of your APR, fees, and other costs. When choosing your lender, compare all those factors and decide which is best. Once you’ve selected a lender and begun the application process, your preliminary work should help the process go smoothly and quickly.
For more articles and suggestions, visit http://www.bills.com/low-rate-second-mortgage/
Justin narin has 5 years experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com
No Comments | Tags:Options to Refinance a Second Mortgage
Posted December 23, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceIf you have both a first and second mortgage, or a first mortgage and a HELOC, you have the option to refinance the second mortgage, the first mortgage, or combine both mortgages into a single loan.
Refinance a Second Mortgage Only
The simplest option for refinancing a second mortgage with a high adjustable or fixed rate is to contact your current lender about refinancing to a lower fixed rate loan. If you’re payments have been on-time and you have good credit, your lender may offer you a streamlined loan that requires less paperwork and time and includes fewer costs. If your lender doesn’t agree to a streamlined loan, you should be able to find other lenders who are willing to offer you good terms and a good rate.
Refinance a First and Second Mortgage Together
If you’d prefer the convenience of a single payment and combining both loans into one would save you significant money, you can refinance both loans together. In order to qualify for the best rates, some lenders require you to wait a year after receiving the second mortgage before refinancing it. Your home may also accrue additional equity during this time, which will help ensure that your new loan and settlement costs don’t exceed the value of your home.
You can refinance a first mortgage and either a home equity loan or HELOC into a single new first mortgage. Before you do, compare your potential savings to your costs. If your first and second both have low fixed interest rates and there isn’t a large gap between those rates, refinancing may cost you more than you’d save.
You should also consider how much time you have left on your first loan. If you’re less than ten years away from paying off the first loan, refinancing could actually cost you more because most of your payments are going toward the principal balance rather than interest. Unless you can afford to complete paying both loans in the same time frame as your original loan, this may not be a good option.
Refinance a First Mortgage Only
If you have both first and second mortgages, it is possible to refinance just the first, but it isn’t easy. Your first mortgage is the mortgage listed first with the registrar. When you refinance a first mortgage, any other home loans move up in line, so your second automatically becomes your first. In order to refinance your first as a new first, your second lender must agree to continue subordinating their claim. Some lenders refuse. If your lender refuses, your only options are refinancing both mortgages into one new loan or refinancing both mortgages separately into two new loans.
Before refinancing any mortgage, carefully consider your options. Use refinancing calculators to compare costs and savings from all three options and then make the most financially beneficial decision that your lenders will permit.
For more article on Refinancing Second Mortgage, visit http://www.bills.com/refinance-second-mortgage/
Justin has 5 years experience as a financial adviser, his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com.
No Comments | Tags:10 Major Mistakes In Bill Payment
Posted December 21, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceIf you are one of the many people who think bill payment is such a nightmare, you may be committing one or more of the 10 major bill payment mistakes. So what are the biggest mistakes in bill payment?
1. Scattering bills everywhere inside the house. Most people just place household bills anywhere inside the house. You can see bills posted on the fridge. Some are sitting still in bedside drawers. Others are on top of the television. It is just so easy to forget or lose bills if you don’t have a single place to keep them.
2. Not organising bills. If you just keep on putting bills on top of each other regardless of their due dates, you will surely miss at least a couple of due dates. And you will spending several minutes as well, scanning over the pile to see which one is due.
3. Paying the bills just when you want it. This makes bill paying a stressful activity. you should just assign a particular day of the month to pay for all the bills.
4. Not applying for online bill payment. It is so stressful to go from one place to another just to pay bills. If you can just pay for all your household bills online, it will be so much easier and you can do it at the comfort of your own home.
5. Not keeping records of all the payments made. When things get bad and your company is asking you to pay for bills that you have already paid for, it pays off to have a record of all the receipts and payment reference number (when you’re doing it online). They will serve as proof of payment.
6. Not keeping receipts. Receipts should be kept altogether in one place just like the household bills.
7. Not keeping account statements. All account statements should be kept together. They will enable you to keep track on all your payments and the remaining amount that you have to pay for.
8. Not applying for auto debit. Through auto-debit, you won’t have to worry about your household bills anymore as the amount of the bill will just be deducted from your account automatically.
9. Not hiring a bill paying and management service. If you are not an expert on handling household bills, it saves more to get help from bill paying and management services.
10. Not paying bills. For sure, you will loads of problem if you don’t pay your bills!
Homepayments.ie is Irelands leading household financial management company. It offers successful finance management solutions that help you save money, time and effort. See <a href="http://www.homepayments.ie" title="Financial Planning Ireland">Financial Planning Ireland</a> to get a free finance consultation with one of Homepayments.ie qualified consultants.
No Comments | Tags:Phoenix Arizona FHA Hope for Homeowners Refinance Program
Posted December 16, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThe Housing and Economic Recovery Act of 2008 authorizes a new FHA mortgage refinance program called HOPE for Homeowners (H4H) program effective from October 1, 2008 through September 30, 2011. The FHA H4H is a program designed to assist borrowers at risk of default or foreclosure in refinancing into an affordable 30 year fixed rate loan. Any type of loan the borrower currently has is eligible for refinancing under the FHA H4H program, including conventional prime Fannie Mae, Freddie Mac, Alt-A, sub-prime, and government — backed FHA, VA and USDA rural home loans. Also, loans that have a variety of payment characteristics like, adjustable rate, interest only, payment option, option arm, negative amortization and/or any other exotic loan features.
The Main Advantage of the H4H program: Due to the fact that many home loans are higher than the value of the home, the borrower and current lender are required to participate in the initial 10% equity and future appreciation equity. The initial 10% equity is defined as the FHA H4H program will only lend 90% of the new current appraisal, hence the 10% equity in the home. The future appreciation is defined as; it is assumed over time the home should go up in value, hence future appreciation. If the home is sold with in the first year, 100% of the equity will go to FHA & the previous lender and nothing to the borrower. But, after five years 50% of the equity will be shared with the borrower and 50% with FHA and the previous lender. Years 2 through 4 are prorated as well. Hopefully, this will create a win-win situation for the borrower and the previous lender.
Borrowers Eligibility: Borrowers who are current or delinquent on their mortgage payment at the time of the refinance eligible for the H4H program, if they have not intentionally defaulted on their mortgage payment and have made a minimum of six (6) full mortgage payments during the current loans existence’s. All loan must have been originated prior to January 1, 2008. Borrowers must live at the residence being refinanced and have no other real estate ownership in any other properties; like 2nd homes and rental property. Having been or being in bankruptcy does not preclude a borrower from participating in the FHA H4H Program. Also, no convictions for fraud under state and federal laws within the last 10 years is required.
In conclusion, this article is a brief synopsis of all the guidelines required by the FHA H4H program, but to serve as a quick guide to see if you need to consult with your Mortgage Loan Professional to answer any addition questions from the homeowner.
Joel McLaughlin / Michael 'Mani' Bongiovanni
Contact me at (480) 390-2123 or mani555@aol.com
Get a free credit report with a no hassle loan application today. Visit our <a href="http://www.fhaloanaz.com">Phoenix Arizona FHA Loans, Mortgage Rates & Refinancing</a> website. <a href="http://www.fhaloanaz.com/Scottsdale_20_Home_20_Loans_20_Mortgages_20_FHA_20_Refi.html">Scottsdale Arizona FHA</a>. Submitted by <a href="http://www.dataflurry.com">Phoenix Arizona Online Marketing</a>.
How to Find a Great Mortgage
Posted December 10, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThink the first on-line loan you come across can offer you the best rate? Think again! There are literally hundreds of programs out there, and they all favor different kinds of borrowers. Find and compare the best loan programs out there. Did you know there are things only a loan officer can explain to you about the hundreds of loan programs available to you? Did you know that a loan officer can be paid a commission based on how much you pay in fees? Many factors can make the rate you’re receiving on a mortgage more attractive. Be sure you know what they are before you sign the lender’s fee sheet.
First off, your credit rating certainly has something to do with the rate you’ll receive. Do you know your credit score? To find out, let a loan officer pull your credit record. You may be thinking that you want to shop around and that lots of different pulls to your credit will lower your score, but you can rest easy. Any credit pull performed by a mortgage loan officer within 30 days of the first pull will not negatively affect your score. The credit reporting agencies understand that you would like to shop around, and you won’t be penalized under these conditions.
That said, shopping around is a step you shouldn’t skip, either. You will likely find that loan officers working for companies with access to the greatest number of lenders can give you the loan with the best rate.
Bottom of Form
You may do all your business with one bank, but if you go to your bank for a mortgage, it may have access to only the few loan programs it can fund. A loan officer working for a company more dedicated to mortgages with a greater number of contacts to different lenders will have the most options available, making it more likely that he will have a program just right for you.
Once you know your credit score and have chosen where to get your mortgage, your loan officer can tell you which programs offer you the best interest rate. Either the loan officer or a financial counselor can also guide you as to how to improve your credit score if you know that it is standing between you and a better rate.
Are you applying for a loan with 100% financing? If so, your interest rate is likely to be higher. Before you sign for a 100% financing loan, carefully consider your options. Can you settle instead for a home in a lower price range? Could a friend or family member give you the money to make a five- or ten-percent down payment? Either of these options could save you a lot of money over the term of your loan as you pay less interest. Lenders know that 100% financing is a hot commodity, and they will charge you a higher rate for it.
Know your credit score, shop around for the right lending institution, and select the best program for your personal financial situation. If you follow these guidelines, the lowest rate you can receive on your mortgage loan will be printed on the documents at the closing table.
For more articles and suggestions, visit http://www.bills.com/find-great-mortgage-article/
justin narin has 5 years experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com
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