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

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

Brian K asked:


Here is the run down; A friend bought a home in 1980 for $45,000, he put $15,000 down. The mortgage was perfect for over two decades, the payment was not even $300 a month. he thought the mortgage would be over in 2010. Within the last 5 years things have made a turn for the worst. His wife has done things to the mortgage and he does not understand what has been done, nor is he being told what has happened. Essentially, the mortgage debt now stands at $73,000 and the past two years has paid very little off the total debt, it seems all that is being paid is interest and a small amount at that. So what has happened, what has she done? What amount likely was taken out in a Equity Loan and was a refinance done? What can I tell him to help him and what can be done. This is in New York State as well.
She did trick him into signing docs once, he is a man who doesnt know english well and just goes to work everyday, this is all he has known for the last 35 years. Now he has this BIG problem at age 63 and wonders how to fix it.

Mike

Andre Savoie asked:




Mortgage Takeover of Fannie/Freddie: Good For Borrowers?

Government officials dropped a bombshell last week when they announced the seizure of mortgage giants Fannie Mae and Freddie Mac. Wall Street rallied, interest rates dropped and the politicians and pundits are claiming this will mark the end of the suffering brought on by the mortgage mess.

This is good news, right?

In the short term yes but everyone should stop and consider what the long term implications are of the government running the mortgage industry.

What’s Really Going On?

In a nutshell – Uncle Sam just co-signed for all of our loans.

Officials announced the move would involve placing these mortgage operations into a “government conservatorship” in hopes of stabilizing the housing / credit markets. In a conservatorship, like bankruptcy, common stockholders are expected to lose their investments.

Essentially this is the equivalent of a giant “bail out.” Investors have been scared to death of a worsening “meltdown” and this move basically puts the governments money (your and my money) behind the mortgage industry to make sure it doesn’t fall down.

With the housing and credit markets continuing to slump and with fears of the “meltdown” getting worse this move was the governments best bet to shore up markets.

Impact For Borrowers:

Good News:

1. Lower interest rates in the short haul. Who doesn’t like lower rates?
2. Investors get a shot of confidence. Now that Uncle Sam is the co-signer investors feel more confident that the mortgage backed debts will remain solvent.
3. The government owns your loan. How bad can that be?

Bad News:

1. The government owns our loan – uh, oh. Ever tried negotiating with the IRS? While the government has had FHA, VA and other programs it does not have experience managing the type of operations that Fannie and Freddie run.
2. Future uncertainty about management / guidelines. Our inside sources are telling us that the future of guidelines……
3. Long term implications…..

What Should Borrowers Do?

Borrowers should be looking to capitalize on the temporary drop in rates and stabilization of credit markets. In the week since the announcements rates have steadily declines as investors are feeling the relief of the government bailout.

Our suggestions:

1. Make sure your mortgage in process can drop down to the new rates
2. Make sure your loan officer is fully educated about the changes and how it might impact your loan.
3. Check your Good Faith Estimate (GFE) and Truth in Lending (TIL) to make sure your mortgage company is not “up selling” your loan to take advantage of the lower rates to make a higher commission.

What Does the Future Hold?

We believe that the housing market recovery will probably determine when the credit markets regain their health. Why? Because decreasing home values resulted in the inability of homeowners to sell or refinance their house to get out of financial trouble – which is how this mortgage issue all got started.

Here are some recent facts:

Maybe the housing marketing isn’t so bad in many areas. The Office of Federal Housing Enterprise Oversight’s (OFHEO) House Price Index (HPI) reported in May that 35 states saw a positive home value price change in the first quarter of 2008. In addition, 164 MSAs showed positive first quarter appreciation when compared to the same quarter of 2007.

California, Florida, Nevada, and Arizona are still the largest statistical problem areas for home prices. Industry experts acknowledge that these markets were the most speculative during the 2000 – 2005 mortgage mayhem. And because the values in these areas are very high relative to the rest of the country it has a larger impact on the overall numbers.

Just because four states are still falling, and 11 other states continue to try and stabilize doesn’t mean the entire market will continue to take the plunge. According to PMI Mortgage Insurance Company’s “Economic & Real Estate Trends” recent report, almost 68% of the nation’s 322 remaining MSAs experienced positive appreciation everywhere other than California, Florida, Nevada, and Arizona.

So while no one has a crystal ball it appears things are not quite as bad as the media would have us believe. If the credit markets can begin to stabilize and home prices hold steady we may yet see the end of this “mortgage crisis.”

Joe

Dispirited asked:


I am 20 yrs old I bought a duplex 4 months ago for 147,600 its appraised at 148,000 so I got it at top dollar. I got financing on 80/20 80%@7.5 adjustable rate (will go up in 2 years guaranteed) and 20%@10.75 fixed rate. I will be paying interest for the first 2 months. I am losing $200 on this monthly w/ tenants living there. It’s suppose to be my primary residence. Refi penalty for the 80 loan is $3600 and no penalty for 20%. So my question is I got a loan on stated income, I figured I am losing $200/month*24=4800 in 2 years interest only from my own pocket. If I refi now $3600 penalty and maybe $3000 closing cost (estimation) so that’s $6600 loss which I can live with 6600-4800=1800 difference I can live with that. But if I refi 30 yr fixed rate I have very low income i am a college student can I get possibly better rates to lower my down payment, I want to refi 0% down fixed 30yr rate is that possible? I want some advice plz I don’t want to go bankrupt in 2 yrs when rates go up!
I’v been reading lately on the internet about
the dangrous 0% down ARM loans mortgage companies
give out so easily, I thought I was just a lucky one
pft, no way, I got caught into it. But I want to keep
the property I don’t want to sell. Are my numbers correct
or am I just a bad dreamin investor wannabe? My credit
score when I got the loan was 700, I’v been paying
everything on time so it should have gotten up there
I hope I can get the fixed loan. I deeply appreciate
your advice. Thank You in advance

Ron

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

michelle asked:


I would like to purchase my first home within the next 9 months. I have saved for the down payment and have increased my credit score to 654 with new accounts that I always pay on time and I never carry a balance on my cards. However I have 8 accounts that are about 5 years old that have all been charged off. Combined the charged off accounts total around $2000. I have read that paying these now will damage my credit score. So if I don’t pay them is it still likely for me to get a mortgage loan? Any advice on what my choices are?

Howard

Dispirited asked:


I am 20 yrs old I bought a duplex 4 months ago for 147,600 its appraised at 148,000 so I got it at top dollar. I got financing on 80/20 80%@7.5 adjustable rate (will go up in 2 years guaranteed) and 20%@10.75 fixed rate. I will be paying interest for the first 2 months. I am losing $200 on this monthly w/ tenants living there. It’s suppose to be my primary residence. Refi penalty for the 80 loan is $3600 and no penalty for 20%. So my question is I got a loan on stated income, I figured I am losing $200/month*24=4800 in 2 years interest only from my own pocket. If I refi now $3600 penalty and maybe $3000 closing cost (estimation) so that’s $6600 loss which I can live with 6600-4800=1800 difference I can live with that. But if I refi 30 yr fixed rate I have very low income i am a college student can I get possibly better rates to lower my down payment, I want to refi 0% down fixed 30yr rate is that possible? I want some advice plz I don’t want to go bankrupt in 2 yrs when rates go up!
I’v been reading lately on the internet about
the dangrous 0% down ARM loans mortgage companies
give out so easily, I thought I was just a lucky one
pft, no way, I got caught into it. But I want to keep
the property I don’t want to sell. Are my numbers correct
or am I just a bad dreamin investor wannabe? My credit
score when I got the loan was 700, I’v been paying
everything on time so it should have gotten up there
I hope I can get the fixed loan. I deeply appreciate
your advice. Thank You in advance

Jessie