Do Nothing - The stress of facing foreclosure can push many folks into burying their head. Doing nothing may not be the best choice, instead research your options, or find a source that can help you and provide solid direction. One of the options may be doing a best loan modification to save your home. There are many options, so investigate the right one for you.
File Bankruptcy – There are new bankruptcy laws sitting in Congress to be voted on that would help the homeowner when it comes to principal balance reduction. These news laws have not been passed, but keep checking back to see if and when they are passed.
Currently, filing for bankruptcy may not relieve you of your obligation to repay your mortgage, the foreclosure may still proceed, and of course there is the negative impact to credit.
Short Sale - A short sale typically is executed to prevent a home foreclosure. It means that you are selling your home for less then what you owe on it. The impact to your credit is less severe then that of a foreclosure showing up on your credit.
Often a bank will choose to allow a short sale if they believe it will result in a smaller financial loss than foreclosing. The downside to a short sale is that it takes time to sell a home even at a bargain in this housing market, but it will also depend on your location. Keep in mind that the short sale process with the bank can be lengthy and usually takes 60 days or more for the bank to accept the short sale offer. Also, when the home is listed for sale, you are still responsible for your mortgage payment.
Loan Modification – A attorney loan modification an option that can save your home while putting you in a [mortgage|home loan|home payment|mortgage payment[/spin] you can afford. So how does a Loan Workout work and who is eligible for a Loan Modification? Below are some helpful tools and resources for you.
The most common Loan Workout are 'fixing' adjustable interest rates. A Loan Workout can help homeowners who can’t refinance or afford their current mortgage payments. Getting an approved loan modification for troubled home loans can help stop the foreclosure process.
Be very leery if your bank sends you a letter in the mail stating they will accept partial payments for three months and then after that period they tell you they MAY offer you a Loan Modification. This may be a scam by the bank just to collect money to help them. However, this does not help you in that the notice of default clock is still ticking. If the lender is not going to put you directly into a Loan Modification, call a professional for help immediately. Don’t get caught in their scam as they DO NOT promise the Loan Workout at the end of the three month period. Too many people have lost their homes because the banks did not put them into the Loan Modification after the three month period and started the notice of trustee sale shortly after that period.
We can offer free foreclosure help to homeowners that want to keep their home. Please use our short form to receive a free foreclosure assistance consultation. Our consultation is FREE. http://www.callalms.com
Wednesday, May 27, 2009
Wednesday, May 20, 2009
Frequent Questions About Federal Loan Mod Plan
Obamas plan to rescue the troubled housing market’s philosophy is based on helping struggling homeowners stay in their homes so that plummeting property values begin to taper off, thus forming a bottom. There are many who refute this idea based on the fact that over 50% of loan mod in the first quarter of 2008 re-defaulted within six months.
The fact is, these modified loans were based on the homeowner calling into the mortgage company directly and not an Attorney acting on behalf of a homeowner. It is a fact that servicer bullied homeowner back into bad loan terms once again as the homeowners didn’t know better and couldn’t fight these large institutions. That is one reason an experienced loan modification Attorney can help homeowners get into a better negotiated plan, as they know what to negotiate and won’t be bullied by these institutions. It is just like trying to complete your taxes on your own. A CPA is better as they know the ropes and can save you more money then if you did it yourself.
Many new details were released on Wednesday about the new restructure plan; let’s see how some of the questions on many homeowners’ minds were answered.
Will I get affordable monthly payments?
In his most recent letter to shareholders, the Oracle of Omaha himself, Warren Buffett, wrote, "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage. Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay." The Governments new plan seems to echo this belief and centers on making monthly payments affordable in order to keep people in their homes. Remember not all bank are signing up and supporting The Governments request! And did I mention, it is our tax money that most of these banks are using to bail us out, I believe that is called TARP – Troubled Asset Relief Program!!
What's the magic payment number?
Thirty one percent. Obamas plan requires participating loan lender to reduce payments to no more than thirty eight of the homeowners gross monthly income. The government will then put in money in order to lower payments further to no more than thirty one percent of the gross monthly income. Do keep in mind that there are additional programs that are not based on someone’s debt ratio’s and rather look at a household’s cash flow and base it on their ability to pay. Also, not all banks are participating in this program.
What about my interest rate?
The first thing the lender would do is lower the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the bank would forebear loan principal at no interest. The plan does not require lender to reduce mortgage principal, an important point to remember. It is also important to know that not all lender participate in the program and the ones that do may not go as low as 2%. As a homeowner, do not expect the 2% as it is not a for sure bet, it is only a suggestion. Most homeowners will likely see 3.75% to 5% as a final interest rate. If you are one of the lucky few that receives the 2%, then good for you!
Did someone say incentives?
There are quite a few incentives to both the homeowner and lender. mortgage company will be paid $1,000 for each modification and an additional $1,000 payout each year for up to three years, as long as the homeowner continues making payments. Homeowners can get up to $1,000 knocked off the principal of their loan each year for up to five years in reward for timely payments. Neither party can partake of these incentives until the modified loan payments have been made for at least three months on time.
Who is eligible?
The Presidents plan is an effort to help responsible homeowners —not speculators. Only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. The program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. Only loans originated on or before Jan. 1, 2009, are eligible.
What if I have a home equity loan?
The details on this are still unclear. While the Presidents plan does address the issue of second liens such as home equity loans by offering incentives to extinguish them, it has not spelled out how it intends to work with second lien holders specifically.
Why would my servicer take part in the new plan?
Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan "clever," arguing that it would work to ensure broad participation. "When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify," Glaser says. "The Governments subsidy for the payment on the modification…tips the scale toward loan mod as a better deal for the investor."
http://www.callalms.com
The fact is, these modified loans were based on the homeowner calling into the mortgage company directly and not an Attorney acting on behalf of a homeowner. It is a fact that servicer bullied homeowner back into bad loan terms once again as the homeowners didn’t know better and couldn’t fight these large institutions. That is one reason an experienced loan modification Attorney can help homeowners get into a better negotiated plan, as they know what to negotiate and won’t be bullied by these institutions. It is just like trying to complete your taxes on your own. A CPA is better as they know the ropes and can save you more money then if you did it yourself.
Many new details were released on Wednesday about the new restructure plan; let’s see how some of the questions on many homeowners’ minds were answered.
Will I get affordable monthly payments?
In his most recent letter to shareholders, the Oracle of Omaha himself, Warren Buffett, wrote, "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage. Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay." The Governments new plan seems to echo this belief and centers on making monthly payments affordable in order to keep people in their homes. Remember not all bank are signing up and supporting The Governments request! And did I mention, it is our tax money that most of these banks are using to bail us out, I believe that is called TARP – Troubled Asset Relief Program!!
What's the magic payment number?
Thirty one percent. Obamas plan requires participating loan lender to reduce payments to no more than thirty eight of the homeowners gross monthly income. The government will then put in money in order to lower payments further to no more than thirty one percent of the gross monthly income. Do keep in mind that there are additional programs that are not based on someone’s debt ratio’s and rather look at a household’s cash flow and base it on their ability to pay. Also, not all banks are participating in this program.
What about my interest rate?
The first thing the lender would do is lower the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the bank would forebear loan principal at no interest. The plan does not require lender to reduce mortgage principal, an important point to remember. It is also important to know that not all lender participate in the program and the ones that do may not go as low as 2%. As a homeowner, do not expect the 2% as it is not a for sure bet, it is only a suggestion. Most homeowners will likely see 3.75% to 5% as a final interest rate. If you are one of the lucky few that receives the 2%, then good for you!
Did someone say incentives?
There are quite a few incentives to both the homeowner and lender. mortgage company will be paid $1,000 for each modification and an additional $1,000 payout each year for up to three years, as long as the homeowner continues making payments. Homeowners can get up to $1,000 knocked off the principal of their loan each year for up to five years in reward for timely payments. Neither party can partake of these incentives until the modified loan payments have been made for at least three months on time.
Who is eligible?
The Presidents plan is an effort to help responsible homeowners —not speculators. Only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. The program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. Only loans originated on or before Jan. 1, 2009, are eligible.
What if I have a home equity loan?
The details on this are still unclear. While the Presidents plan does address the issue of second liens such as home equity loans by offering incentives to extinguish them, it has not spelled out how it intends to work with second lien holders specifically.
Why would my servicer take part in the new plan?
Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan "clever," arguing that it would work to ensure broad participation. "When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify," Glaser says. "The Governments subsidy for the payment on the modification…tips the scale toward loan mod as a better deal for the investor."
http://www.callalms.com
Downpayment Assitance on FHA Loans using 8000 tax credit
In what could be a huge boost to the housing market, HUD Secretary Shaun Donovan’s has decided to allow florida mortgage company to use the $8,000 home purchase credit to help cover their down payment and closing costs on Florida FHA mortgage loans.
One of the biggest challenges for first time home buyer is saving up enough money for a downpayment on their home. The FHA program in particular requires the borrower to come to closing with 3.5% of the purchase price as their downpayment. Often borrowers have to borrow these funds from work to supply home buyers with short-term or “bridge loans” of up to 10% of the purchase price, up to the amount of the $8,000 tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the home purchase credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.
The next step is to see how florida fha-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lending institutions to act promptly to put these provisions into place.
To qualify for the first time home buyer credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
Information about the details of exactly how this program will be rolled out are still forthcoming. We do know that there are many states such as Missouri that are already offering some type of bridge loan program utilizing the first time home buyer credit for down payment assistance.
For further information on the $8,000 first time homebuyer home purchase credit and how you can use it to help you get an FHA financed loan with no money down please either call us immediately at 800-871-2636 or apply online at http://www.fivestarsmortgage.com and a representative will go over your information with you in detail.
One of the biggest challenges for first time home buyer is saving up enough money for a downpayment on their home. The FHA program in particular requires the borrower to come to closing with 3.5% of the purchase price as their downpayment. Often borrowers have to borrow these funds from work to supply home buyers with short-term or “bridge loans” of up to 10% of the purchase price, up to the amount of the $8,000 tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the home purchase credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.
The next step is to see how florida fha-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lending institutions to act promptly to put these provisions into place.
To qualify for the first time home buyer credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
Information about the details of exactly how this program will be rolled out are still forthcoming. We do know that there are many states such as Missouri that are already offering some type of bridge loan program utilizing the first time home buyer credit for down payment assistance.
For further information on the $8,000 first time homebuyer home purchase credit and how you can use it to help you get an FHA financed loan with no money down please either call us immediately at 800-871-2636 or apply online at http://www.fivestarsmortgage.com and a representative will go over your information with you in detail.
Saturday, May 16, 2009
Mortgage Modification Information For The Average Person
Are you late on your payments?
Are you upside down on your house?
Is your rate adjusting?
Have you tried to refinance, but have been declined?
Do you fear foreclosure?
A loan modification company is the best tool if you are behind on your mortgage and are headed towards foreclosure. With a attorney loan workout, the mortgage loan is renegotiated to a more affordable payment then what you already have.
Here at http://www.CallALMS.com, our contracted Attorney’s negotiate successful mortgage loan mod on your behalf with your bank to save your house. Our Attorney’s are retained by you and have a 99% success rate in their negotiations, else your money back!
Here are some answers to questions that may help you:
What is a loan mod?
A loan modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. loan modification company typically involve a reduction in the interest rate. These loan workout sometimes take your arrears and forgive them or add them on to the existing balance of the loan. The key thing to remember is you are brought current and get a fresh new start with a payment that is more affordable. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.
How can I save my home from foreclosure?
If you and your family can no longer pay the mortgage due to higher interest rates or you can not refinance because you owe more than your house is worth, take action now! We can not only take the stress off your shoulders at a time like this, but also get it done. We have top negotiators and most importantly our Attorney’s know WHO to negotiate with at the lenders.
These three basic things are usually required in order to qualify for a loan mod:
1. Desire to Keep the House
2. Experienced a Financial Hardship
3. Income/Employment - Able to continue making lower payments
The actual loan modification company agreement itself will vary from servicers, but the key is getting a payment that is more affordable for you. Work with someone that is experienced that can get the best rate/program for you.
Most loans needing attorney loan modification are conforming loans put together by popular big banks like; HSBC, CitiMortgage, Wachovia, ASC, HFC, Countrywide, Household, IndyMac, JPMorgan Chase, Wells Fargo, Washington Mutual, Aurora and Bank of America and based on Fannie Mae and Freddie Mac guidelines.
If you are late on your mortgage or even if you’re current but it’s becoming a financial strain… http://www.CallALMS.com can help you! You can qualify online right now using our fast and secure loan modification form.
Are you upside down on your house?
Is your rate adjusting?
Have you tried to refinance, but have been declined?
Do you fear foreclosure?
A loan modification company is the best tool if you are behind on your mortgage and are headed towards foreclosure. With a attorney loan workout, the mortgage loan is renegotiated to a more affordable payment then what you already have.
Here at http://www.CallALMS.com, our contracted Attorney’s negotiate successful mortgage loan mod on your behalf with your bank to save your house. Our Attorney’s are retained by you and have a 99% success rate in their negotiations, else your money back!
Here are some answers to questions that may help you:
What is a loan mod?
A loan modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. loan modification company typically involve a reduction in the interest rate. These loan workout sometimes take your arrears and forgive them or add them on to the existing balance of the loan. The key thing to remember is you are brought current and get a fresh new start with a payment that is more affordable. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.
How can I save my home from foreclosure?
If you and your family can no longer pay the mortgage due to higher interest rates or you can not refinance because you owe more than your house is worth, take action now! We can not only take the stress off your shoulders at a time like this, but also get it done. We have top negotiators and most importantly our Attorney’s know WHO to negotiate with at the lenders.
These three basic things are usually required in order to qualify for a loan mod:
1. Desire to Keep the House
2. Experienced a Financial Hardship
3. Income/Employment - Able to continue making lower payments
The actual loan modification company agreement itself will vary from servicers, but the key is getting a payment that is more affordable for you. Work with someone that is experienced that can get the best rate/program for you.
Most loans needing attorney loan modification are conforming loans put together by popular big banks like; HSBC, CitiMortgage, Wachovia, ASC, HFC, Countrywide, Household, IndyMac, JPMorgan Chase, Wells Fargo, Washington Mutual, Aurora and Bank of America and based on Fannie Mae and Freddie Mac guidelines.
If you are late on your mortgage or even if you’re current but it’s becoming a financial strain… http://www.CallALMS.com can help you! You can qualify online right now using our fast and secure loan modification form.
Thursday, May 7, 2009
Loan Modification Facts Vs The Myths
Myth: Do you have to be late on your payments to get approved for a loan modification company ?
Fact: No, you do not have to be late, but it helps. You will get more attention and help from your servicer if you’re late.
I have seen it done many times when a home owner was not behind, but it is a lot more difficult.
If a person plans on trying it themselves get a thick skin to do this, as persistence is key. It’s not unusual for the mod process to take 3-6 months of calls, faxes, emails, letters and more to get help before you get relief. On average expect to spend 25 to 30 hours of your time and frustration.
If a person doesn’t have the time or energy to tackle the ever changing minds of the mortgage company, contact an Attorney Backed mortgage modification Company as they can complete this process quicker and get better rates then you as a home owner could ever negotiate. The money is well worth it, as well as the sanity to know a professional with a team of loan mod blog will be acting on your behalf and harassing the bank for you!
Myth: Hope Now programs are here to protect your best interests.
Fact: Kind of.
I say “kind of” because they help mostly with counseling but they only go half way with their assistance for the struggling homeowners. This program does not yet have servicer participating and it was rolled out in 2008. So the reality is that you talk to a government employee that is really going to refer you out to talk to someone else. In the end, the home owner may be better off contacting professional help in this area since the program is not fully functioning.
Myth: Your mortgage company will give you a principle reduction on your loan.
Fact: Yes, this is true but not necessarily guaranteed.
This is usually done when a borrower has a 1st and 2nd mortgage and the 2nd is negotiated down or settled for less than is actually owed on the note. Obtaining a principle reduction on the first mortgage is much more difficult and there are no guidelines that state when one is warranted. The banks are being to do more of these reductions; however, there has been no word from the Obama Administration to enforce a principal reduction guideline at the lender.
These negotiations are very tricky and the best way to get it negotiated is to hire a professional that knows the in’s and out’s of the bank modification. Just remember there is no guarantee of a principal reduction.
Myth: bank are doing everything they can to assist struggling homeowners.
Fact: That is not true at all!
They are giving the media, our government and the people of this great country nothing but lip service. The same employees that made these loans are now laid off, and now these millions of loans are going bad. The bank that sold you this bad loan is not really there to help you with a mortgage modification or really analyze your current financial position to see if you can afford a change in payment. First of all, bank don’t have the staffing for it or the qualified staff to handle the business, nor do they really want to.
In most cases, the mortgage company denies the home owner the loan modification or barely lowers the interest rate. In turn, 5 to 6 months down the road the homeowner will re-default on that loan that was just modified. Now, this should make every home owner think, what is going on. It is obvious that the servicer are protecting themselves, only to keep the home owner paying so that the mortgage company is not flooded with foreclosures and crash the banking system. However, the price for this is millions of people hanging on for dear life, unable to afford their payments, and the lender taking the last few dimes from the home owner. The home owner is then left with nothing at the time of foreclosure to move and is then found on the streets or calling family and friends for help.
ALMS have contracted with Attorney’s that have experience and will represent you with your servicer. These Attorney’s have the relationships and have been conducting modification business with these mortgage company for years and know how to get the best modification possible. All modifications are 100% guaranteed! No money is collected up front! We are always more than happy to provide documentation of successful loan workout to potential clients. For immediate assistance, please fill out our loan modification inquiry form (http://www.callalms.com/secure-online-application). This will provide us with the basic information we need to evaluate your situation and begin the mortgage workout process for you.
Fact: No, you do not have to be late, but it helps. You will get more attention and help from your servicer if you’re late.
I have seen it done many times when a home owner was not behind, but it is a lot more difficult.
If a person plans on trying it themselves get a thick skin to do this, as persistence is key. It’s not unusual for the mod process to take 3-6 months of calls, faxes, emails, letters and more to get help before you get relief. On average expect to spend 25 to 30 hours of your time and frustration.
If a person doesn’t have the time or energy to tackle the ever changing minds of the mortgage company, contact an Attorney Backed mortgage modification Company as they can complete this process quicker and get better rates then you as a home owner could ever negotiate. The money is well worth it, as well as the sanity to know a professional with a team of loan mod blog will be acting on your behalf and harassing the bank for you!
Myth: Hope Now programs are here to protect your best interests.
Fact: Kind of.
I say “kind of” because they help mostly with counseling but they only go half way with their assistance for the struggling homeowners. This program does not yet have servicer participating and it was rolled out in 2008. So the reality is that you talk to a government employee that is really going to refer you out to talk to someone else. In the end, the home owner may be better off contacting professional help in this area since the program is not fully functioning.
Myth: Your mortgage company will give you a principle reduction on your loan.
Fact: Yes, this is true but not necessarily guaranteed.
This is usually done when a borrower has a 1st and 2nd mortgage and the 2nd is negotiated down or settled for less than is actually owed on the note. Obtaining a principle reduction on the first mortgage is much more difficult and there are no guidelines that state when one is warranted. The banks are being to do more of these reductions; however, there has been no word from the Obama Administration to enforce a principal reduction guideline at the lender.
These negotiations are very tricky and the best way to get it negotiated is to hire a professional that knows the in’s and out’s of the bank modification. Just remember there is no guarantee of a principal reduction.
Myth: bank are doing everything they can to assist struggling homeowners.
Fact: That is not true at all!
They are giving the media, our government and the people of this great country nothing but lip service. The same employees that made these loans are now laid off, and now these millions of loans are going bad. The bank that sold you this bad loan is not really there to help you with a mortgage modification or really analyze your current financial position to see if you can afford a change in payment. First of all, bank don’t have the staffing for it or the qualified staff to handle the business, nor do they really want to.
In most cases, the mortgage company denies the home owner the loan modification or barely lowers the interest rate. In turn, 5 to 6 months down the road the homeowner will re-default on that loan that was just modified. Now, this should make every home owner think, what is going on. It is obvious that the servicer are protecting themselves, only to keep the home owner paying so that the mortgage company is not flooded with foreclosures and crash the banking system. However, the price for this is millions of people hanging on for dear life, unable to afford their payments, and the lender taking the last few dimes from the home owner. The home owner is then left with nothing at the time of foreclosure to move and is then found on the streets or calling family and friends for help.
ALMS have contracted with Attorney’s that have experience and will represent you with your servicer. These Attorney’s have the relationships and have been conducting modification business with these mortgage company for years and know how to get the best modification possible. All modifications are 100% guaranteed! No money is collected up front! We are always more than happy to provide documentation of successful loan workout to potential clients. For immediate assistance, please fill out our loan modification inquiry form (http://www.callalms.com/secure-online-application). This will provide us with the basic information we need to evaluate your situation and begin the mortgage workout process for you.
Sunday, April 26, 2009
NY FHA Loan
First time home buyers face many challenges. Often times their credit is not as strong as current homeowners. The NY FHA allows these borrowers with less robust credit histories to still obtain financing for their home purchase in New York. New York FHA Loans is "common sense underwritten" and the main thing they want to see on a NY FHA Mortgage is that the borrower can afford their payment and has a relatively good history with making their payments on time. Another advantage for NY First time home buyers is that the NY FHA Loans does not require reserves in their account in order to be approved for a New York FHA Mortgage. Most conventional financing requires several months’ payments in reserves at least. Often times they want to see up to six months of their mortgage payments in reserves to be qualified. With NY FHA Mortgage first time home buyers can get a loan without having to save up for years to get approved.NY FHA Loan Down Payment:In order to get a [NY FHA Mortgage, borrowers only need to put down 3.5% of the purchase price of the loan. This down payment does not necessarily have to come from the borrower themselves. They can receive the 3.5% NY FHA Loans down payment from a family member, their church, their job, or from another quailed source. In addition the closing costs can be gifted from the seller of the property up to 6% of the sales price. This means that a first time home buyer looking to purchase a home in New York with no money out of their pocket can actually accomplish this feat with a New York FHA Loans!The New York FHA Mortgage allows not only first time home buyers but also existing home owners to get access to safe and secure 30 year fixed rate mortgage loans. These loans have lower mortgage insurance requirements than conventional financing which means that NY FHA Mortgage holders can enjoy much lower monthly mortgage payments than borrowers with other types of financing that have high mortgage insurance premiums. In order to obtain financing for a NY FHA Mortgage, all one needs to do is apply with an FHA approved mortgage company such as us. You can apply for a NY FHA Mortgage on our website and one of our NY loan specialists will follow up with you immediately to go over your options and pre-qualify you for your new loan.As you can see the New York FHA Loan program is excellent for many types of borrowers. In future articles we will discuss the various NY FHA Mortgage programs in detail such as the NY FHA Streamlined refinance loans and the NY Rehab loan.http://www.the123mortgage.com
Financial Statements For Loan Modifications
One of the leading factors used in applying for a attorney loan modification is a change in your financial situation that makes paying your current mortgage a hardship. The financial statement you provide to your lender during a loan workout request is the single most important document to prove your case.
This is the “make or break” document that for the most part is one of the main documents that the lender bases their decision on.There are many documents that you will have to provide to your lender when you receive your loan mod package. One of the most important will be the financial statement. Often times the lender includes a simple one page financial form in your loan mod paperwork. Pay special attention to this document and complete it with great care because more often than not this will be the first document the lender will review when they are attempting to consider your worthiness for a loan modification!
The financial statement is a complete breakdown of all of your household income is NOT like getting approved for a normal home loan. When you applied for your current loan your lender looked at your last two years income history. They compared this against only the minimum payments for any debt reporting on your credit report to determine if you could afford the mortgage payment. With a loan modification it is quite different. They are going to look at all sources of your household income. For W-2’s employee, last two paychecks for borrowers are fine. One major difference in how a lender evaluates a loan modification versus the original loan is how expenses are treated.
The lender will request a complete picture of your monthly expenses. In the original loan the lender evaluated your minimum payments for accounts reporting on your credit report. With a loan mod, all household expenses are evaluated, such as child support. The list of your expenses is quite detailed. There are no exact guidelines that the lenders have written in qualifying expense ratios. That is why it is important to find a company that has experience in dealing with your particular lender. However, If the homeowner has plenty of income and can afford the current payment, and then a loan modification is not warranted. The lender is not about to tell you how to complete this section and help the homeowner adjust this section to help qualify for a loan mod. It many cases, the homeowner may need to cut expenses or figure out ways to increase income.
The best way to get help in this section is through a loan modification company that is experienced with each lender, and can show a track record of working with that lender. Remember, the lender does not have any written guidelines for this section and thus puts you as the homeowner in a disadvantage with the lender.Contracting the services of a qualified attorney backed loan modification company can help you ensure that you have properly filled out your financial statement so that you have the maximum chance of receiving a loan modification. You can apply for a free loan modification consultation now and we will be happy to review your financial situation with you in detail. http://www.callalms.com
This is the “make or break” document that for the most part is one of the main documents that the lender bases their decision on.There are many documents that you will have to provide to your lender when you receive your loan mod package. One of the most important will be the financial statement. Often times the lender includes a simple one page financial form in your loan mod paperwork. Pay special attention to this document and complete it with great care because more often than not this will be the first document the lender will review when they are attempting to consider your worthiness for a loan modification!
What is the financial statement?
The financial statement is a complete breakdown of all of your household income is NOT like getting approved for a normal home loan. When you applied for your current loan your lender looked at your last two years income history. They compared this against only the minimum payments for any debt reporting on your credit report to determine if you could afford the mortgage payment. With a loan modification it is quite different. They are going to look at all sources of your household income. For W-2’s employee, last two paychecks for borrowers are fine. One major difference in how a lender evaluates a loan modification versus the original loan is how expenses are treated.
The lender will request a complete picture of your monthly expenses. In the original loan the lender evaluated your minimum payments for accounts reporting on your credit report. With a loan mod, all household expenses are evaluated, such as child support. The list of your expenses is quite detailed. There are no exact guidelines that the lenders have written in qualifying expense ratios. That is why it is important to find a company that has experience in dealing with your particular lender. However, If the homeowner has plenty of income and can afford the current payment, and then a loan modification is not warranted. The lender is not about to tell you how to complete this section and help the homeowner adjust this section to help qualify for a loan mod. It many cases, the homeowner may need to cut expenses or figure out ways to increase income.
The best way to get help in this section is through a loan modification company that is experienced with each lender, and can show a track record of working with that lender. Remember, the lender does not have any written guidelines for this section and thus puts you as the homeowner in a disadvantage with the lender.Contracting the services of a qualified attorney backed loan modification company can help you ensure that you have properly filled out your financial statement so that you have the maximum chance of receiving a loan modification. You can apply for a free loan modification consultation now and we will be happy to review your financial situation with you in detail. http://www.callalms.com
Thursday, April 16, 2009
The loan mod process can be cause for much frustration for homeowners that are looking for help. If you are considering contacting your lender about a loan modification to save your home from foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light. With the current economic crisis many lenders are gaining additional programs to help modify loans for their clients. To help you understand how the process works, here are the Top 10 Questions and Answers about loan modifications:
1. Can the loan mod include late payments that are due? Per HUD, the accrued late charges should be waived by the lender at the time of the loan modification. Lenders handle this differently, which is why it’s important to know the tactics of each particular servicer
2. What Is A Hardship? Each situation for each homeowner that caused them to fall behind on their home loan is different, but generally the lenders consider divorce to be acceptable reasons to consider a loan workout. It’s critical to include a complete and detailed hardship letter along with your loan modification request.
3. Do the new Government programs make it any easier to get a loan modified? The Federal government has allocated $75 billion dollars to subsidize lenders who offer a loan workout to their clients. The Federal Government is offering incentives to homeowners to modify loans and make payments on time. The short answer is YES
4. Can I get pre-qualified for a loan modification? In order to find out how likely it is that your lender will modify your mortgage it’s important to understand your financial situation. We must look at your income before being able to say with any certainty that we can get your lender to modify your loan. Often people try to make themselves look destitute which is not good because then the lender will assume you cannot afford any payment no matter how low. Also showing too much surplus of income will trigger the lender to think you do not need a loan modification. It’s important to strike a balance between the two
5. What is a loan modification anyway? A loan modification is a change in one or more terms of a borrower's mortgage note in the long term.
6. Is it worth it to pay someone to do the loan modification for me? You can definitely try to get a loan modification as a home owner, however, the success rate and negotiations for the best terms is not as successful as an Attorney negotiating on your behalf. The Attorneys know what can be negotiated and if need can do a site legal violations that force the banks
7. For a modification is it required to be behind on the loan? Most lenders are now doing loan workouts for their clients that are not behind, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. If you have some other type of hardship it’s important to be starting the process with your lender as early as possible
8. Can I Stop Foreclosure If I get a loan modification? The short answer is YES. The entire point of doing a loan modification is to get a homeowner into a payment that will be sustainable in the long term for their particular situation.
9. What happens to my arrearages? The payments you are currently behind on can be added to the back of the loan to bring you up to a current status.
10. Do I need An Attorney to negotiate better terms. A great example is that if you go to court, would you bring an Attorney, and the answer is yes. Again, the strength in negotiations is by far in the hands of an Attorney. The cost is minimal, less then a refinance and is recouped usually in two to three months.
11. What is the first step to getting a attorney loan modification? Definitely spend time educating yourself. Go to www.ripoff.com to see what Attorneys or Companies have been “black” listed! Do as much research and ask as many questions as possible. Do not feel rushed; if you’re talking to a modification company that is rushing you, it is a red flag. This about finding a Company that really cares about helping you and is in good standing.
You can get the help you need to find out if you qualify for a attorney loan modprogram by using our easy online application form. We will Find out if you meet the approval guidelines and how to increase your chances of getting a loan mod for you. Don’t waste any time since the further you fall behind the more difficult it will become to turn things around. Stay in communication and stay educated about your options!
1. Can the loan mod include late payments that are due? Per HUD, the accrued late charges should be waived by the lender at the time of the loan modification. Lenders handle this differently, which is why it’s important to know the tactics of each particular servicer
2. What Is A Hardship? Each situation for each homeowner that caused them to fall behind on their home loan is different, but generally the lenders consider divorce to be acceptable reasons to consider a loan workout. It’s critical to include a complete and detailed hardship letter along with your loan modification request.
3. Do the new Government programs make it any easier to get a loan modified? The Federal government has allocated $75 billion dollars to subsidize lenders who offer a loan workout to their clients. The Federal Government is offering incentives to homeowners to modify loans and make payments on time. The short answer is YES
4. Can I get pre-qualified for a loan modification? In order to find out how likely it is that your lender will modify your mortgage it’s important to understand your financial situation. We must look at your income before being able to say with any certainty that we can get your lender to modify your loan. Often people try to make themselves look destitute which is not good because then the lender will assume you cannot afford any payment no matter how low. Also showing too much surplus of income will trigger the lender to think you do not need a loan modification. It’s important to strike a balance between the two
5. What is a loan modification anyway? A loan modification is a change in one or more terms of a borrower's mortgage note in the long term.
6. Is it worth it to pay someone to do the loan modification for me? You can definitely try to get a loan modification as a home owner, however, the success rate and negotiations for the best terms is not as successful as an Attorney negotiating on your behalf. The Attorneys know what can be negotiated and if need can do a site legal violations that force the banks
7. For a modification is it required to be behind on the loan? Most lenders are now doing loan workouts for their clients that are not behind, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. If you have some other type of hardship it’s important to be starting the process with your lender as early as possible
8. Can I Stop Foreclosure If I get a loan modification? The short answer is YES. The entire point of doing a loan modification is to get a homeowner into a payment that will be sustainable in the long term for their particular situation.
9. What happens to my arrearages? The payments you are currently behind on can be added to the back of the loan to bring you up to a current status.
10. Do I need An Attorney to negotiate better terms. A great example is that if you go to court, would you bring an Attorney, and the answer is yes. Again, the strength in negotiations is by far in the hands of an Attorney. The cost is minimal, less then a refinance and is recouped usually in two to three months.
11. What is the first step to getting a attorney loan modification? Definitely spend time educating yourself. Go to www.ripoff.com to see what Attorneys or Companies have been “black” listed! Do as much research and ask as many questions as possible. Do not feel rushed; if you’re talking to a modification company that is rushing you, it is a red flag. This about finding a Company that really cares about helping you and is in good standing.
You can get the help you need to find out if you qualify for a attorney loan modprogram by using our easy online application form. We will Find out if you meet the approval guidelines and how to increase your chances of getting a loan mod for you. Don’t waste any time since the further you fall behind the more difficult it will become to turn things around. Stay in communication and stay educated about your options!
Tuesday, March 31, 2009
Florida private money
Florida hard money (private money) loans are filling the gap for many investors looking to take advantage of a low housing prices.
Many experts are predicting that the home values are nearly bottomed out. This is great news for not only the US economy but also the major economies around the world.
What this also means is that real estate investors are looking to get in before the doors slam shut on a historic buying opportunity in not only Florida but the entire U.S. One of the main reasons that the financial downturn has lasted this long is because conforming lenders have all but forgotten about the real estate investor. Last year conforming lenders implemented a guideline stating that anyone with more than 4 properties financed are no longer eligible for conforming financing. It doesn't matter how much money you make or how good your credit is, banks WILL NOT lend to investors with more than four properties. This has left many investors stuck between a rock and a hard place.
Investors realize that now is the time to be buying properties. Most investors are picking up bank owned properties for pennies on the dollar however a huge percentage of these investors don't have enough capital to purchase these properties cash.
Read the rest of the article on Florida hard money.
Many experts are predicting that the home values are nearly bottomed out. This is great news for not only the US economy but also the major economies around the world.
What this also means is that real estate investors are looking to get in before the doors slam shut on a historic buying opportunity in not only Florida but the entire U.S. One of the main reasons that the financial downturn has lasted this long is because conforming lenders have all but forgotten about the real estate investor. Last year conforming lenders implemented a guideline stating that anyone with more than 4 properties financed are no longer eligible for conforming financing. It doesn't matter how much money you make or how good your credit is, banks WILL NOT lend to investors with more than four properties. This has left many investors stuck between a rock and a hard place.
Investors realize that now is the time to be buying properties. Most investors are picking up bank owned properties for pennies on the dollar however a huge percentage of these investors don't have enough capital to purchase these properties cash.
Read the rest of the article on Florida hard money.
Wednesday, March 18, 2009
Chris Swartz and Edward Fitzpatrick Launch New Website National Future Mortgage
Prospect Park, PA - March 18, 2009 – In an effort to increase company visibility on the interent, Chris Swartz and business partner Edward Fitzpatrick of National Future Mortgage in Prospect Park, PA have teamed up with Chris Burns of BurnSEO to build a more robust and functional web site for their clients.
This new site is more functional and offers a more user friendly layout then the company’s previous site. Clients now have the ability to logon to the site to view current mortgage interest rates, use the mortgage calculator to calculate payments, apply for a mortgage, and read the latest mortgage news. There is also some very useful information on the site regarding FHA loans, Purchase and Refinance Loans, Reverse Mortgages, and the increasingly popular Loan Modification programs. The newly remodeled site can be seen at http://www.nfmmortgage.com/ the next time you are surfing the web.
National Future Mortgage is a direct mortgage lender licensed in 26 states across the country. Their main products include Conventional and FHA loans, Commercial Loans, Reverse Mortgages, and Loan Modifications. Chris Swartz and Edward Fitzpatrick opened the Prospect Park Branch of National Future Mortgage in Dec 2006.
This new site is more functional and offers a more user friendly layout then the company’s previous site. Clients now have the ability to logon to the site to view current mortgage interest rates, use the mortgage calculator to calculate payments, apply for a mortgage, and read the latest mortgage news. There is also some very useful information on the site regarding FHA loans, Purchase and Refinance Loans, Reverse Mortgages, and the increasingly popular Loan Modification programs. The newly remodeled site can be seen at http://www.nfmmortgage.com/ the next time you are surfing the web.
National Future Mortgage is a direct mortgage lender licensed in 26 states across the country. Their main products include Conventional and FHA loans, Commercial Loans, Reverse Mortgages, and Loan Modifications. Chris Swartz and Edward Fitzpatrick opened the Prospect Park Branch of National Future Mortgage in Dec 2006.
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