Michael A. Goldstein asked:




If you are behind on your mortgage payments or are struggling to stay current on your loan payments, you may have considered refinancing your loan. However, if you have been turned down for a refinancing, and your home is worth less then you owe on it, you may be able to modify your loan. Below are several tips to successfully modify your existing loan, even if you do not have good credit.

Prepare a detailed document listing all of your income, assets and debts both secured and unsecured. More specifically, you should list out any income from wages, investments, social security, etc. You should also list any assets you have, such as investments, stocks, bonds, money in any checking or savings account, 401K, and fair market value of any additional real estate. You should list out all secured debts, such as 1st and 2nd mortgages, car loans, and any credit cards that use property as collateral, such as jewelry. Finally, you should list your home expenses, such as utilities, credit card bills, educational expenses and any other monthly expense that you incur. Draft a short hardship letter. Every loan modification has a story behind it. You need to tell the most compelling story as to why you can not stay current with your mortgage, or why you need to modify the loan to enable you to conduct some other life necessity. Prepare all of your financial documents such as: two years of tax returns, six months of bank statements, three months of pay stubs, Proof of home insurance. Form your negotiation strategy You want the bank to believe it is in their interest to modify the loan. As such, you want to remind the bank that you do want to remain in the home, but should no modification be entered into, you may have to file bankruptcy and force the lender to foreclose on your home, thereby incurring all of the legal fees and financial losses of selling your home in a depressed market. Always ask for more then you expect or want (It never hurts to ask) You want to leave room to negotiate to your eventual goal Typically start at 70% of your goal. When forming your offer, make sure you have thrown in a few items, you do not need, but can use a bargaining chips by taking them off the table. When the bank makes their first offer, you want to counter without emotion. For example you can say “let me see if that number will work for me, I need to run my numbers and get back to you with in 48 hours. I will need to speak to my attorney or broker first.” As discussed earlier, when negotiating with a bank, you may want to imply that should the loan modification or short sale not work out at the walk away price, the bank will end up taking the property and incur all the foreclosure sale fees involved. This is especially important in a depressed market, where it is unlikely the bank will recoup their return on investment. Banks do not want to owe properties in this market.


If after talking with your lender you have not received the results that you need, please feel free to contact our law office.

Willie

Ivan A Cuxeva asked:




Anyone who has experienced problems clearing CCJ debts can apply for a mortgage. The product that may suit your circumstances is sometimes called a CCJ default mortgage. Although there are many products specifically designed for those with a bad credit history, a CCJ default mortgage scheme needs specialist professional advice. If you are incapable of clearing your CCJ debts, then mortgage lenders may see you as a high risk candidate especially when the loan amount is large such as a mortgage. You may find that lenders will apply higher interest rates or special restrictions on you. The easiest method of finding a product that suits your CCJ default mortgage requirements is to speak to a professional mortgage adviser that specializes in bad credit mortgages.

How Can I Get Professional CCJ Default Mortgage Advice?

If you have had any County Court Judgments against you, you are obligated to pay the debt as soon as possible. If you manage to pay the debt before it is registered on your credit rating, then you may circumvent adding the CCJ to your credit history. If you are unable to pay off the debt during this period, the CCJ will stay on your credit history for six years, whether you clear the debt or not. Defaulting on a County court judgment can be harmful to your credit rating, because the CCJ would have been issued for non-payment of debt in the first place. If you then neglect to attend to the CCJ, your credit rating can suffer.

If you are in CCJs default and you want to buy a property, mortgage advice is absolutely essential to your success. There are many specialist mortgage schemes available to CCJ default applicants, and because of the rise in the number of people who have CCJs issued against them the amount of products in the market is growing. It is estimated that every year over a million UK residents have County court judgments issued against them. Due to the increased demand for bad credit mortgage products, lenders have introduced a wider range of schemes for the various types of credit problems that now exist.

The best place to get CCJ default mortgage advice and information is by contacting a specialist bad debt mortgage broker. By law, mortgage brokers have to be professionally qualified, regulated and approved by the Financial Services Authority (FSA). These measures were introduced to protect consumers and all mortgage brokers must follow strict FSA guidelines. If you need a CCJs default mortgage, you should make sure that the mortgage broker you choose has experience of the bad debt mortgage market. These specialist products can be very complex so it is vitally important that the broker understands both your situation and all the schemes available before they recommend any products to you. Signing up for a CCJ default mortgage is a big obligation so you, the broker and the lender must be absolutely sure that you are able to meet the full criteria of the agreement before the loan is agreed.

Are CCJ Default Mortgages More Expensive?

You should be aware of the fact that that a CCJ default mortgage will cost more than a standard residential mortgage loan. From the lenders perspective there is more risk involved in loaning money to someone with a bad credit history than to people who have not had debt problems. However, interest rates and charges for bad credit mortgages are much more competitive than a few years ago, because the market is far more competitive. So although the cost to you will be higher than a standard mortgage, they may not be as high as you might think.

Samuel

Chris Borthwick asked:




It has never been harder than at the moment to get a mortgage with the current economic state. This guide has been created to provide practical tips to anyone looking to get a mortgage whether it’d be for a London or Aberdeen mortgage or anywhere in between.

Borrowing

First things first, you need to see how much you can borrow, generally mortgage lenders will allow you to borrow three times your salary or if you are buying with someone else it will likely be two and a half times of the joint salary.

There are other options to consider so don’t worry if you can’t afford to buy your ideal home using the above methods. One option lenders offer is to allow two people to buy together giving three times the salary of the larger salary and one times the lesser. Other options include if you want to rent a room out you can add this income to your salary before income assessments are calculated. It is worth searching the market to see what options lenders are offering as they often change, using a mortgage broker will help you search the market without the hassle.

Final tip for borrowing – been honest! If you hide information on debt or county court judgements held when you take a mortgage it can come back to affect you greatly, later on.

Deposits

Banks are being understandably more careful with their lending. The size of the deposit makes a huge difference not only in terms of being able to acquire a mortgage but at a decent rate. Larger deposits are needed to secure a mortgage so if you can hold on a little longer, save up a bigger deposit it will save you money in the long run. Many work overtime or take a second job and/or live at home to save money as quickly as possible. Bigger deposit -means a much better deal.

Although there are no 100% or 125% mortgages on the market as at time of writing (and unlikely soon) you do have the Family Equity Loan Plan mortgage where a parent or close family relative will take an equity stake in the property when paying for part of the home.

If you are in Scotland you also have the option of the new LIFT mortgage scheme were the government will take a stake in the property, allowing you to get that property of your dreams.

Mortgage Broker

Using the services of a mortgage broker is a good place to start. A good mortgage broker will search the whole of the market to ensure you find the best deal available whether it’d be for an Aberdeen Mortgage, London or anywhere else in the UK.

Walter

Louie Latour asked:




Many homeowners fall on hard times with their finances at one time or another. Loss of a job, divorce, illness, or the death of a family member can quickly put your budget under water. Fortunately, you have a number of options to reduce or even defer your mortgage payments. Here are several suggestions that could help manage an unwieldy mortgage payment until you are back on your feet.

I. Contact Your Mortgage Lender

Believe it or not, contacting the mortgage lender before you are behind and explaining the situation could be the answer to your financial problems. Mortgage lenders will generally work with you as long as you contact them before you’re in serious trouble. The mortgage lender may work out reduced or even deferred payments for several months simply by asking. It is usually in the best interest of the mortgage lender to keep your home out of foreclosure. Remember, you will find the lender much more accommodating if you ask before you’ve dug yourself into a deep hole.

II. Mortgage Refinancing Could Lower Your Payments

If the mortgage lender is unwilling to help you with reduced or deferred payments, consider mortgage refinancing. There are a number of loans that can significantly reduce your payment amount for a number of years. Interest only and hybrid loans are two options to consider depending on your tolerance for financial risk. Interest only mortgages allow the lowest payment amount because you are not paying any of the loan principle during the interest only period; this interest only period often lasts as long as five years.

If you have less tolerance for risk, consider a hybrid mortgage. Hybrid loans are a blend of fixed and adjustable rates that will give you a low payment like an interest only mortgage, without the same level of risk. Extending the term length of the loan type you choose will further reduce your payment amount. Traditional mortgages come with thirty year term lengths; however, there are now forty and even fifty year mortgage loans. By choosing an interest only or hybrid mortgage with the longest term length, your payment will be significantly reduced. This new, significantly lower payment amount will allow you to take back control of your budget.

III. Shop Around for the Best Mortgage Loan

Once you have decided mortgage refinancing is right for you it is important to shop around for the best lender. Homeowners often make the mistake of assuming the mortgage with the lowest interest rate is best; these homeowners neglect to factor in lender fees and closing costs, often overpaying thousands of dollars for the new loan. You can learn more about mortgage refinancing while avoiding costly mistakes by registering for a free mortgage guidebook.

Eva

Michael Petrone asked:




Although it can be confusing and seem hard to figure out, it is important you understand the terms and standard procedures which will occur when you get a home loan modification. Federal loan modification programs will require that you meet certain requirements for eligibility when applying for a modification and hoping to use a Government plan, such as the “Making Home Affordable” plan. For the absolute best chance of being approved for a home loan modification, it is necessary that you know the basics.

Home Loan Modification Terms.

These are the guidelines, terms, conditions, as well as methods, which will allow you to modify your home mortgage loan into a much more affordable payment, with better interest rates. Generally, terms of a home loan can changed to reduce the interest, deferring some of the principal, or extending the length of the home loan. Every different mortgage lender and bank will have slightly different requirements for who will be approved for a home mortgage modification through the Federal plans that are available. Make sure you know exactly what is required prior to applying for home mortgage loan modification. This way you ensure you will be approved for the best refinancing or modification deal possible.

The Standard Procedures of a Home Mortgage Loan Modification.

When applying for a home mortgage modification, their will be certain steps which must be followed depending on the type of modification, and the lenders requirements. Most certainly, a part of this procedure will require financial statements such as pay stubs, tax returns, bills, expenses, monthly budgets, bank statements, or other paperwork relating to your monthly and future financial situation. Next, pending you meet the requirements from your mortgage lender or bank, you will interview with the mortgage lender. They will basically review your documents, discuss your options, and give you the appropriate mortgage modification package for your financial situation.

If you are one of the many homeowners who is at risk of losing your home, do not wait any longer. Take action now and get a home mortgage modification through Obamas “Making Home Affordable” plan and start seeing the savings add up.

Vicki

Dennis Estrada asked:




The mortgage underwriter understands the mortgage loan qualification, approval, and pre-approval. He makes the decision if the borrower qualifies for the mortgage. If the mortgage application fails to meet the qualification level, he determines the best mortgage loan options for the borrower.

To qualify for the mortgage, the mortgage underwriter basically looks at the credit history, credit score, down payment, equity, income, and outstanding loan. So, he also understands how to repair bad credit rating, and increase the credit score.

The credit history tells how the borrower pays off loan obligation. As you pay off the mortgage, the Credit Score increases. A high score is a positive indicator. The borrower will possibly be approved for the mortgage.

The income and debt ratio helps the mortgage underwriter prove that the income is enough to cover the mortgage, and outstanding loan. To prove, the mortgage underwriter verifies all the different source of income.

First, the loan officer prepares the necessary documents for the mortgage application. Then, the loan officer enters the personal and credit information into the underwriting system. The system checks the qualification of the information. Eventually, the loan officer gets the qualified application. Then, the loan officer sends the qualified application to the mortgage underwriter. The mortgage underwriter verifies the documents including pay stubs, and bank statements. If there are missing documents and unsatisfactory documents, the mortgage underwriter asks the borrower to provide the documents. This makes sure that the borrower has enough income to pay off the mortgage. Finally, the mortgage underwriter gives the final approval.

All these steps ensure that there is absence of fraud, and meets the standards in which the mortgage are insurable, and serviceable. So, the mortgage underwriter knows the good and bad practice on mortgage application. The standards are set by the company and government.

Margaret

Cyrus Zahabian asked:




For the average person who does not work in the mortgage industry, the mortgage jungle is very overwhelming. Mortgages are complicated! This article is a small collections of tips and advice of what an average person should know when looking for a mortgage. We kept it simply, but informative.

Reverse Mortgage Funding

As we grow older, living expenses seem to increase drastically, it is for this reason a great number of elders choose to seek a reverse mortgage to provide help with these expenses. This option typically works well for those who have fully paid for their home, and have no mortgage upon it. Simply speaking, when you take advantage of a reverse mortgage you will receive a monthly stipend from the equity that your home carries. This is especially useful to the elderly, sometimes securing a reverse mortgage aides them with living expenses, that alone could help in allowing them to remain within their own home. It is wise to request to a mortgage broker that the cost of closing should be paid out of the money received from the reverse mortgage loan. Essentially meaning, no expenses directly out of pocket.

Mortgage Options – Interest Only

Interest only mortgages are specifically designed to substantially decrease your payment amount over the first years of the mortgage term. The way this program works is that for these first few years you are only making payments towards the interest of the mortgage. This keeps the mortgage payments lower than other mortgage options because you are not required to pay on the principal of the loan. Eventually the time will come that you will be required to pay both the interest and the principal. It is wise to fully investigate this mortgage option prior to choosing it. Very carefully make some calculations and determine rather or not you will be able to afford the payments once both interest and principal are required.

The Right Mortgage Broker for you.

With the vast presence of the internet, obtaining the proper mortgage broker has never been easier. Additionally the internet allows you to locate mortgage brokers from all over your area. You are not limited to using a local broker or company in any way. The mortgage brokers you can find on the internet are in great competition with each other. What does this mean for you? It is simple because they are so competitive, you will win with excellent program and competitive rates. To choose the proper mortgage broker for you, you first must be comfortable in choosing them. Choose a mortgage broker that gives you confidence in their guidance. Take your time in finding the perfect mortgage broker for you; make sure their goals and your goals match, thoroughly research all your options before making a choice.

Obtaining a Mortgage Loan the Fast way.

Obtaining a mortgage loan through the internet is easier than ever before. The benefit of an online mortgage broker is that generally, they have a wider spectrum of lenders and various programs that a typical mortgage broker might have. More often than not, they have the ability to process request more quickly, as well. Online mortgage brokers can even aid you if there is urgency because of a fast approaching closing date or you are in need of speedy refinancing. All of this is thanks to the technology of automated credit checks, verification of income and online loan applications. You can find mortgage brokers through various measures such as using a popular search engine like Google, simply type in mortgage broker and you will be amazed with the results. A better option is to search for reviews about the mortgage broker or seek the advice and referrals from your friends and family. The best mortgage broker will possess the seal of the Better Business Bureau.

Adjustable Rate Mortgage and What you should know about it.

If you opt for an adjustable rate mortgage ensure that you are fully aware of these facts , this will help you be ready when the time comes for your fixed rate mortgage ceases.

1) You should know when the first rate adjustment will occur and how much the adjustment will be. Knowing the specific date will prepare you for the event.

2) You should know that the adjustable mortgage rate fluctuates with the changes of interest rates. Find out what index your rate is associated with, so you can investigate the interest rates on your own.

3) Know all of your options when it comes to refinancing. If a adjustable rate mortgage proves to be unbeneficial for you, you have the option of refinancing with a fixed rate mortgage. To get a good interest rate on a fixed mortgage you should watch the rates closely and if you choose to refinance, do so when the rates are comfortable to you.

Obtaining Flexible Interest Only Mortgages

For those that practice self-discipline, a flexible interest only may be practical. This option provides a payment arrangement that is flexible in regards to the payments that you make. This does not mean they are flexible on the timely manner in which you pay them, this simply means when your payment date arrives you are required to make a minimum payment of at least an amount towards the interest on the loan. However, with this flexible option you can opt to pay an additional amount towards the principle of your mortgage. Generally, your flexible interest only coupon book will include an area that determines the amount needed to be applied towards the principle if you should choose to do so. This is where that self-discipline comes in handy, it is wise to apply as much as possible towards the principle, bringing the amount down and coming that much closer to paying off your mortgage.

Dora

Louie Latour asked:




A well known author named Theodore Sturgeon once said “Ninety Percent of Everything is crap.” This became known as Sturgeon’s law and is even quoted in the Oxford dictionary. Sturgeon’s law is alive and well when it comes to the Internet and the mortgage advice you find online is no exception. Here are several tips to help you separate the wheat from the chaff when it comes to online mortgage advice.

I recently read an article online offering suggestions on how one could save money when refinancing. The article suggested that you should concentrate your efforts on finding a mortgage broker that worked on a non-commission basis. The author stated that non-commission loan representatives are less likely to overcharge you and have your best interest at heart when refinancing. While this sounds like good advice, it’s actually complete rubbish. If a mortgage company or broker tells you they work on a non-commission basis, you are guaranteed to pay too much refinancing with that company. Calling someone a “Non-commission loan representative” is just a slick marketing trick to gain your misplaced trust.

Here’s what that author doesn’t understand about the mortgage industry. Mortgage loans are simply retail products, just like televisions. Just as an electronic store marks up the price of your TV, the mortgage company or broker marks up your interest rate without telling you. This is in fact, how mortgage companies and brokers make the majority of their profits. It’s not commission; they make money from retail markup. You’re already paying origination points to this company for the new loan, so why should you pay double?

Here’s a summary of how it works. You qualify for an interest rate based on your credit and the details of your application. That interest rate is not set by the mortgage company; it comes from the wholesale lender. The mortgage company receives a written guarantee of your rate from that wholesale lender. Your mortgage company turns around and provides you a separate written guarantee for a higher interest rate. This markup by the mortgage company is called Yield Spread Premium. Homeowners that learn to recognize Yield Spread Premium when refinancing their mortgage loans can avoid paying it.

Can you see how the advice this author gave in their article could result in overpaying for a new mortgage loan? To learn more about mortgage refinancing while avoiding bad advice, costly mistakes, and Sturgeon’s law, register for a free mortgage guidebook.

Jo

Louie Latour asked:




If you are shopping for a mortgage loan you have probably seen the acronym PITI in many of the loan offers you receive. PITI stands for principal, interest, taxes, and insurance. Here is what you need to know about PITI.

Principal

Mortgage principal is the total balance of your loan. When you make your monthly mortgage payments you are gradually paying down this balance along with the interest due for that month. Mortgage loans are front loaded with interest so in the early years of your mortgage you will find very little of your mortgage payment is being applied to the principal loan balance. The interest paid on any given month is based on the outstanding principal balance; as the years go by more of your payment is applied to the principal balance and less is paid to the lender as interest.

Interest

Interest is what you pay the lender for loaning you the money to pay for your home. The interest is a percentage of the principal balance due. Interest rates come in two flavors: fixed rates that do not change over the term of the loan, and adjustable interest rates that change at regular intervals set in your loan contract. If you have an adjustable rate mortgage your interest rate is tied to some financial index plus the lender’s markup. When the lender periodically updates your interest rate the amount of your monthly mortgage payment will change with it.

Taxes

Property taxes are often included in your monthly payment amount. Lenders do this to protect their investment in your home; if you allow your property taxes to lapse, your State or local government could put a lien on your home. If this happens the lender would be unable to foreclose if you fall behind on your payments.

Insurance

Your homeowner’s insurance policy protects your home from damages. Insurance premiums can be rolled into your monthly payment like property taxes; again, lenders do this to protect their interest in your property. Most homeowner’s insurance policies only protect your home against fire, vandalism, and certain other damages. If you live in an area prone to flooding the mortgage lender could require you to purchase flood insurance in addition to your homeowner’s policy. Mortgage lenders may require borrowers with poor credit or low down payments to purchase Private Mortgage Insurance in addition to their homeowner’s policy. Private Mortgage Insurance protects the lender from loses in the event of foreclosure. This insurance does nothing to protect you, the homeowner.

To learn more about shopping for the right mortgage and avoiding common mistakes, register for a free mortgage guidebook using the links below.

Ryan

Susan V. Gregory asked:




What, a mortgage loan modification is easy? I know, it may sound hard to believe, especially with all of the ads and hype about how you need an attorney or loan mod company to help you-but the fact is that getting a mortgage loan modification is getting easier than ever. The average homeowner can successfully modify their loan themselves if they spend just a little bit of time and effort to learn the basics. Did you know that the Obama plan has a standard 4 step formula that all lenders must use to determine which homeowners qualify? In fact, you can learn this very same formula and use it to prepare your own acceptable loan workout proposal.

It’s easy to feel intimidated or overwhelmed about the prospect of dealing with your bank yourself-after all you owe these people a lot of money. If you are behind in your payments you may even be getting some not-so-nice phone calls demanding payment or else. Here’s a little secret that the professionals know about mortgage loan modifications-you don’t have to talk to those people! That’s right, hang up and only speak with the loss mitigation department. That is the only department that can help you to modify your loan. The collections department gets paid to get your very last dime, the loss mitigation department gets paid to find a loan workout solution for you.

To get a mortgage loan modification is easy-if you know the basics. Fortunately, learning the basics is easy too-this isn’t rocket science-all you have to do is invest a few hours of your time to learn a few important steps to success. You do not have to be an expert to get the results you want. You do not have to pay thousands of dollars to get the results you need either. That’s just the truth-what you do need is motivation and persistence. Are you willing to dedicate a few hours to save your home?

A mortgage loan modification is getting easier than ever-why? The Federal modification programs offer a standardized plan for all qualified homeowners. If you can meet the approval criteria you get a standard loan workout-no negotiating involved. No expertise needed-you just need to know how to complete your application so that it meets those approval guidelines. Again, you can learn this in just a few hours and be able to prepare your own application correctly. Follow the same 4 step formula your bank will use and you will have the inside edge you need to make sure you have the best chance of approval.

If you are unsure about this 4 step formula or do not know how to figure your debt ratio, new target payment, disposable income or asset ratio, then you can use a software program that does all these calculations for you automatically. Just input your own monthly income and expenses and you will see immediately if you may need to make some adjustments to your monthly budget in order to meet the Obama approval guidelines. Save hours of frustration, confusion and avoid mistakes.

It’s time to get serious about saving your home-no one is going to work harder than you will-you have the most to lose and the most to gain. You can be successful with a do it yourself mortgage loan modification. Get started today to learn, prepare and then work with your lender to get the lower payment you need. Thousands of homeowners just like you have already gotten the help they needed-you can too!

Julie