Texas |Home Loan | Mortgage | Refinance

Archive for January, 2010

The Congressional Budget Office says the budget will top $1.3 trillion this year. We look at a unique mortgage loan workout program in Chicago and at Japan’s deflation problem.
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Website Dedicated to Helping Floridians: Find Mortgage Solutions, Avoid Foreclosure, Modify Adjustable Rates and Save Their Homes

Miami Beach, Florida — March 31, 2008 — The current mortgage and financial meltdown is still young; but relief is in the works for Floridians at Upside Down Florida. With its combined 50 years of business and real estate experience, Upside Down Florida is working with homeowners to avoid the foreclosure epidemic that is sweeping America and especially Florida. According to co-founder and Florida real estate attorney Aaron Resnick, the company works with mortgage service providers to help mitigate loan losses and keep Florida families in their homes when “possible and appropriate.”

Resnick suggests that homeowners should not panic just because they are facing foreclosure or because their home is worth less than their mortgage. “Walking away or simply allowing your home to be foreclosed upon is not the right decision as there are plenty of options out there to assist a homeowner in these trying times” states Resnick. According to Resnick, “that would be a big mistake” as “loss mitigation is generally less costly for banks, particularly when undertaken early in the process.”

Employees at this new company, which services owners in Florida and nationally, help their clients implement such strategies as loan modifications, deferral of payments, extension of existing loan terms, short sales, and conversion of adjustable rate mortgages into fixed rates.

“A foreclosure on your credit report is sometimes worse than a bankruptcy and there is a better way…a short sale,” noted co-founder and company President Lauren Atlas. A short sale can be the saving grace for many Florida homeowners facing foreclosure due to the tightening credit squeeze and falling home values.

The fact is that banks are highly motivated to short sale properties that are worth less than the mortgage especially if they are currently behind because foreclosure proceedings cost them money that they may not be able to recoup. “Banks are in the business of lending money, they have no desire to be landlords or own your home,” concludes Atlas.

Visit us today to receive free information on how a short sale or loan modification may save your property from foreclosure.

For a free consultation, please contact (904) 374-4473 or visit us for more information at www.upsidedownflorida.com

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Let me first explain that the Adjustable Rate Loan is designed with two parts the first and most important part is the Index that the loan is tied to. (This is the part of the loan that adjusts monthly giving it the adjustable name) The second part is a margin. This margin stays constant over the term of the loan and a simple way to think of this as the lenders profit. Add the index plus the margin and you get the fully indexed rate.

For example: 11th District Cost of Funds Index = 3.347 Margin = 2.500 Fully Indexed Rate = 5.847

To have the most stable loan you want to have the index tied to a stable source like that of the 11th District Cost of Funds (COFI) or perhaps the Cost of Savings Index (COSI) a World Savings exclusive that very closely follows COFI

Today’s ARM’s are much safer than older “variable mortgages” as they have safety features built in called Caps. There are two kinds of caps:

1. Payment Caps= which means your payment can not increase year over year by more than this amount. With World Savings that amount is 7.5%. This is based as a percentage of the payment NOT of the rate. 2. Lifetime Cap= which is the highest that the rate can go up over the life of the loan. Most of the Loan Programs from World Savings have a Lifetime Cap of 11.95%

World Savings ARM program is also known as the Pick-A-Payment Loan because you can simply pick your payment from four different options each month.

These options include: 1) Low Payment-This is a lower than interest only payment and allows you the most monthly cash flow. Also causing differed interest.

2) Interest Only Payment-This is the amount of payment that covers the interest only part of the loan. It does not pay any principal off but you also do not get any differed interest. (Basically it is like treading water)

3) The Fully Indexed Rate- which as I explained earlier is the amount that you need to pay to reduce principal and cover the monthly interest. (Sometimes called the 30 year payment)

4) Fifteen Year Payment-This is the amount you need to pay so the loan is paid off within 15 years.

The great thing about this loan is that you have the ability to pick and choose any of the four payments each and every month. As you can tell the benefits to the loan are huge.

What if you made the minimum payment in December and took the extra money that you saved that month and paid cash for Christmas instead of using a credit card?

What if you have the extra income and you want to pay the loan off sooner?? Make the 15 year payment. Now you decide to start a family and your wife gets pregnant and your income decreases? No problem back down to one of the other payments that are more manageable for you.

The World Savings Pick-A-Payment loan puts you in control of your Mortgage instead of your Mortgage in control of you.

Joel Versh is a Regional Loan Origination Manager for World Savings and Loan He enjoys golfing with his son and successfully leading his Sales Team to perform to the best of their abilities.

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All loan modification applications will request that you prove to the lender that you are having a very difficult financial time. You must make your case compelling enough to convince your lender that, because of what is happening in your life right now, your monthly mortgage bill must be lowered.

Some homeowners find the process of writing a hardship letter very difficult. Remember that your lender wants offer you a loan modification right now due to the new Obama guidelines. A hardship letter is your way of letting the bank know you story, how you got to the situation you are in now, and how a modification will help you. Here is a sample letter that your can use to frame your own.

Date

Lending institution name

Lending institution address

Your name, address, and loan number.

Dear [blank]:

I am writing this letter to explain my present financial situation and request a loan modification from your institution so that I can keep my family home. We absolutely do not want to lose our home and are willing to do whatever it takes to keep it.

We have fallen behind in our mortgage payments since my husband has lost his job due to layoffs. This was a job he had held for five years, but four months ago he became unemployed. For these last four months we have had to spend our savings to feed our family and pay our basic bills just to make ends meet. We cut every expense we could. Now our savings are gone and we are using our credit cards just to get by.

We are looking forward to better times; recently my husband found employment and has started his new job. His pay is less that it was before, but we have made the changes necessary and if we could have our monthly mortgage payments reduced, we can manage to pay all our bills and keep our home. As I am sure you are aware, property values have been decreasing and our house is no exception. Our home has declined in value to the point where it is not possible to refinance it or sell it to pay off our mortgage. Our only option is a loan modification.

Please consider our family as a candidate for President Obama’s home affordable plan or any other plan that your think might help us. I believe our circumstances warrant some consideration. We are a hard-working, respectable, responsible family who only ask that we be given the chance to keep our home. Please take the time to review our enclosed application and consider giving us a rate reduction to 2% and an extension to a 40 year term. Thank you so much for you time, consideration and help. We are anxiously awaiting your reply.

Respectfully,

[Your name].

Naturally you will just use this letter as a guide, add your own information and personalize it as you see fit. The important thing to remember is to be descriptive, providing enough details to elicit an emphatic response. You will also need to show that you are going to be able to pay the modified mortgage. Accompanying your letter should be a budget that shows all your income and expenses. Prove to your lender that you will be able to afford the new terms of your mortgage. Make sure you include an amount for emergencies to show that you are hoping to prevent such circumstances from happening again.

After you have learned to write an effective loan modification hardship letter, you have a very good chance of being accepted for a loan modification that will let you keep your home. Start by gathering all the required paperwork because you will have to complete a financial statement. Be prepared and be thorough so you will have the best chance of keeping your home using this one time only plan.

For essential tips and facts about how to get approved for a Mortgage Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

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If you are in need of a mortgage and are heavily laden with excessive debt and have less than perfect credit, you may want to consider a bad credit mortgage loan. To know whether this type of mortgage is right for you, you need to get the facts.

Bad credit mortgages are loans that are designed for people who due to their poor credit rating or high debt are considered a risky candidate for a loan. A this type of mortgage works much the same as a regular mortgage; the main difference is that a borrower may pay a higher interest rate than that of a standard mortgage. The reason that the interest rate can be higher on a bad credit mortgage loan is due to the risk involved in making a loan to someone that does not have a good credit rating or someone who is loaded down with debt. There also may be certain restrictions, and certain repayment terms that accompany a bad credit mortgage loan. Since these mortgage loans are designed with people with poor credit in mind, they are usually easier for borrowers to acquire.

There has recently been an increase in the demand for loans for people with poor credit. To meet this demand mainstream lenders as well as specialized lenders have started offering these types of loans. With several lenders offering them, borrowers considering a poor credit mortgage have plenty of options from which to choose.

You may be wondering if a poor credit loan is right for you, and how can it benefit you. If you have a poor credit rating and are having trouble getting a standard mortgage, then this kind of loan might be what you need. There is a possibility that you may be able to acquire a bad credit mortgage despite your bad credit rating. An added benefit to a bad credit mortgage loan is that if you make your required payments on time you can boost your credit rating.

A bad credit mortgage loan can also be used to consolidate your debts. If you are sinking in debt from credit cards, and other liabilities a this type of loan can be a good way to narrow your payments into one payment. This can help you to be on the road to being debt free.

If you think this type of mortgage may be for you, then you should speak to a broker who specializes in these types of loans. By speaking to a professional, you can get all the facts to help you make an informed decision about the time of loan that is right for you.

7 months of city road construction outside Owen Kellogg’s specialty retail shop meant that he had to close his doors – with substantial dings to his credit. Determined to find out everything about credit repair and loans for people with bad credit, he spent a great deal of time researching. He rebuilt his credit and was able to successfully buy a new home and start a new business. He has written articles particularly on bad credit mortgage loans.

The information at Bad Credit Loan Resource is the result of his experiences and investigation.

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WASHINGTON – Homeowners seeking relief under the Obama administration’s mortgage aid program will be required to provide proof of their incomes upfront, a significant reversal for the problem-plagued effort to stem the foreclosure crisis. Borrowers …
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When Peter and Neal discover that an estate judge committing mortgage fraud is also connected to Fowler, they devise a plan to bring them both down.
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