Mr. Anonymous asked:


Yesterday I got a letter from my bank, they are offering me to pay about half of my second mortgage loan and saying that, if I do it, “my loan will be considered payed in full”. They also say they will give me an IRS 1099-C form for the amount forgiven.

I have never been late in a payment but I have a terrible loan (balloon), I don’t trust my bank and I was considering refinancing soon (it might not be possible as my loan is higher than what my house is appraised for).

Should I take the offer? Will this inflate my income and kill me at taxes time? What questions should I be asking? Is it as good as it seems?

Professional advice is very welcome.
Ok, the answers up till now seem really good but I want to put a little bit more detail to see is it can help me get even better answers:

First Loan:
$189,000 30 years (5 years interest only)
6.5% APR for the first 5 year, then it will go up

Second Loan:
$45,000 30 years fixed
13% APR
***offered to pay only $20,000 to pay it off***

My loans total: $234,000
My house is now worth: about $220,000
My mortgage bank is Aurora Loan Services, just do a search for their company name online and you will know why I don’t trust them. I called them today and they said there was no more information that I could get, just the letter, that’s it. They were kind but not helpful at all and I have only 30 days to take the offer and send my money order… because they will not take a bank wire or any other more secure kind of payment.

Franklin

lookingforajob asked:


Help, my parents are in deep trouble and they need help, with our mortgage and other debt. Im doing this for my parents, because they dont speak English. They can no longer afford to pay for out house, and would like to consolidate loans/lines of credit/credit cards…are there any non profit company that can help us for some advice.

Thanks in advance

Shannon

Rob K. Blake asked:




You have to understand that refinancing your mortgage can offer a lot of benefits for you as a homeowner. Unfortunately, there is scant information about refinancing which makes this option seems too intimidating. There are also some techniques that you should know in order to further cut the costs and charges of obtaining new loans. The good news is that there are practical steps that you can do right now to guarantee success in mortgage refinancing.

Immediately Improve Your Credit Score

Your credit score plays a big factor when you apply for refinancing of your home mortgage. Unfortunately, there is little you can do to immediately improve your credit score. However, there is a good method to immediately see a change in your credit score and it does not involve complicated steps.

As you may notice, your credit score may be adversely affected if you have several active credit card accounts. If you do not have a very nice credit score, your capability to get favorable refinancing terms may be affected also. What you can do is to let credit companies know that you intend to close your accounts. You will be surprised that an immediate positive change in your credit score will become more apparent. Many people are not aware of this technique. You can try it so you can improve your score and get better refinancing rates.

Check Your Credit Report after Closing Your Credit Lines

One month after you make the request to close your credit lines, it is advisable to check your credit report. You should see a special line in the report indicating that your credit lines have been closed “at customer’s request.” You should let the mortgage refinancing company know that you have personally requested the closing of the credit lines in order to get better credibility. This will have a good impact on your application for refinancing.

There are also other benefits that can be enjoyed if you check your credit report. There are times that errors can manifest in your report. Look for such errors in order to further improve the score of your credit. A better score means you could easily secure better terms for refinancing.

Avoid Private Mortgage Insurance

As much as possible, you have to avoid getting involved in private mortgage insurance. This will surface if you apply for refinancing especially if the amount of the loan is more than 80 percent of the value of your home. What you can do is to simply pay-off your credit card debts and to make improvements to your property. These steps will help your get better deals from refinancing companies.

By following these tips, you will be able to improve your prospects of getting good mortgage refinancing. These tips could help you secure lower interest rates and better terms. Exploring your options therefore can really make a big impact on your refinancing application.

Duane

dan p asked:


am lost and felt like i have been lied too by my mortage company. In 04 we bought a townhome for 174k had 2 loans, 1 for 140k that is a ARM and other for 35k. august of 05 we were approached by Countrywide that has our 1st loan telling us we have a value of 220k and you have about 35k in usable equity. We had about 25k in medical debt for my kids hospital bill. They suggested to roll that in with my 35k second. The selling point was to clear those payments to get ready to refinance my 1st which is a ARM to a fixed plan. Now i am getting these rate hikes now have a 10percent on my first and the payments are killing us. I went to countrywide to refinance, check my credit was 700, my income was fine. Then they send out a apparisal,came in at 185k, countrywide told me i cannot do anything. I hired my own appraiser came up with the samething, but he told me the property should have never been appraised at 220k when i took out the HELOC should have been 183k?
we live in a townhome community so all homes are alike. My appraiser that i hired showed me the sales during that time frame that countrywide showed a value of 220k. All the comparable sales were between 181-186. No other lending company will not help us get out of this 1st loan too. I keep trying to talk to Countrywide i find them rude and unhelpfull

Lydia

sondrassssssss asked:


I fell behind in my mortgage payments and am now facing forclosure. I was advised to contact my mortgage company, they are required to work with me under some new laws. They are continuing with forclosure. Is there anything I can do? I am currently paying 11 % interest as I got suckered into one of those idiot loans. My house was appraised at $225,000.00 last November, and I refinanced at that same time for $140,000.00. I am currently working.

Agnes

randysoby asked:


To make a long story short I applied for a home equity loan and was declined by B of A. My credit scores are a 790, 812 and a 680. The 680 was so low b/c of an AT&T charge off that was never mine (the SS# was one digit off from mine). I had that removed already but after B of A declined me. I even sent a letter that the AT&T charge off was removed but it still didn’t help. I owe 93,000 on my house and it is valued at 189,000. My area didn’t get hit bad by the foreclosure issue. The lady at B of A told me that they will do 85 ltv. The only other bad thing that I had were 3 late Searscard payments mid last year. They were 15 dollar payments that I forgot to pay. I owe nothing on credit cards, 1 joint car payment for 200/month with my wife and my mortgage of 950/month. My house is only in my name (not joint with my wife’s). I make 55k/year. I thought that my situation sounded like a banks dream. Any opinions? Are loans really that tough to get with the real estate situations or does B of A suck that bad? Oh, did I mention that I have 46k in a savings account with B of A? What do you think? Am I better off going to a bank or a credit union? I don’t want to run my credit again unless I am sure that I will be approved. I value your professional opinion but please dont waste your time trying to get my business.
I cant use my wife because her name is not on the house.

Willie

itsallaboutobama asked:


I’m currently working for a mortgage broker as an assistant but I’m looking to start my own loans. I need a mentor who can at least give me some helpful advise in how to practice mortgage consultation and brokering within California. Personally, I not looking to become rich just self-employed.

It makes me sick when I see loan reps charge more points then they deserve. Is there anybody out there who can help me?

Bryan