Need Mortgage Refinance

The latest press release on the Obama mortgage package has revealed the actual number of transitions  under way and the actual number converted so far. This information relates to the HAMP (Home Affordable Modifications Program) and not the HARP (Home Affordable Refinance Program).

The goal for the HAMP program is to offer assistance to between 3 to 4 million homeowners who meet the eligibility requirements for the program (see link at the bottom of the page) over a 3 year period, the program ends on the 31st December 2012.

There were 728,000 loan modifications being progressed as of the end of November 2009 with 31,382 having reached the permanent stage.

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How to get a suitable mortgage loan

You can follow these 4 steps to getsuitable mortgage loans.

• Check your credit score: At first, you should check your credit score as your mortgage interest rate will depend on it. If you have a good credit score, then it’ll be easier for you to findmortgage loans with suitable terms and conditions. In the present situation(2009), your score is excellent if it is between 750-840. Your credit score will be regarded as a good one if it falls between 660 and 749. Thoughyou will face problems if your score is between 620-659, yet you may qualify for a mortgage loan. However, it will be really difficult for you to get a
  mortgage in this present situation if you have a credit score below 620.

• Assess your financial condition: After you know your credit score, it is the time to examine your financial
  condition. It is one of the most important steps as you need to determine whether or not you’ll be able to afford a mortgage. Even if lenders approve your loan request, you may face problems later if your not able to afford your mortgage payments. It is advisable that you assess whether or not you’ll be able to make payments for the entire loan term. Make sure you take into consideration additional spending, such as, taxes, insurance premiums, homeowners association dues along with other expenses that are rolled into your mortgage payment.

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There are things you can do yourself to avoid foreclosure but it is likely to take some determination and drastic measures on your part. To save your home you must set your mind to finding all possible ways to salvage your financial situation and come up with your mortgage payments.

There are some possibilities in negotiation and making adjustments to your mortgage agreements with your lender. Lenders do not want homes on their hands that they must sell. They do not want bad loans hurting their businesses. The government wants people to stay in their homes and there are government programs such as the Make Home Affordable program that has been introduced as part of Obama’s new stimulus package that may be of assistance if you are in or near foreclosure.

But if your home mortgage is in default and you have been served notice of foreclosure the most effective way to resolve the situation is to get serious about finding additional cash to clear your outstanding payments. The more you are in arrears the harder it will be to catch up, however, catching up is possible. (more…)

Hardship Letter and Key Questions to Evaluate

Many people are finding it difficult to explain why or how they came to be in a position of struggling to meet their mortgage payments, problem is if you are applying for a loan modification then this part of the requirement and you have to provide a reasonable and honest explanation for why you are struggling.

You will find a template for putting together a hardship letter in one of the previous posts on this site called Hardship letter template for a loan modification request.

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How a Short Sale Can Prevent a Foreclosure

In a nutshell a short sale allows you to sell your house for less than the value of the mortgage on it and pay off as much of your mortgage as you can with the agreement of the mortgage lender. On some occasions the mortgage lender may write off the outstanding amount but this is not always the case and you may have to make arrangements to repay the balance at some point in the future or through reduced payments.

Find out more about Short Sales and how they work.

‘Reverse Mortgage Calculators’ such as the AARP reverse mortgage calculator help you to find out the amount of money you can raise against your home if you are 62 years or older, this is a different kind of mortgage aimed primarily at Americans who have retired and have some equity in their home that they want to release in order to make life a little more comfortable for themselves financially.

The principle behind a reverse mortgage is fair enough, it gives you access to funds without having to sell your house or having to take out another loan against your property for which you would then have to make monthly payments. With a reverse mortgage there are no monthly repayments to make.

But be aware that the mortgage lenders would not be offering the mortgage unless there was something in it for them. In this case what happens is, because you do not make any payments, the capital value of the loan increases year on year as the interest you would have paid is added to the amount you borrowed.

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Why refinance instead of taking a second mortgage, find out what the different options are for home loan mortgage refinancing. For instance you may be able to avoid the need for a second mortgage, consolidate credit card debt or if you are one of the lucky ones you may be able to release some of the equity in your home to finance some long awaited requirement.

Whatever the reason you still need to know the advantages, the consequences and where there are potential pitfalls. Watch the video below to see if refinancing your mortage is an option you need to pursue.

To be eligible for the loan modification program under Obama’s new stimulus package the criteria included the maximum loan amount for a single unit which was set at $729,750.

Recent information now states that the maximum loan amounts for 2, 3 and 4 unit homes has been set as follows: -

• $934,200 for a 2 unit home
• $1,129,250 for a 3 unit home
• $1,403,400 for a 4 unit home

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The first thing your loan servicer will do to see if you are eligible for the loan modification program is establish if the loan you have meets the terms for loan modification and if it does:

They will ask about your current income, what assets you have, if any, and any ongoing expenses. What they want to know is whether you will be able to make any new payments that will be due after loan modification by understanding your specific circumstances. Anything you tell them will eventually need to be supported by documented evidence i.e. tax returns, pay stubs etc.

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If you are having trouble keeping up with your home loan mortgage repayments you are likely to receive a letter from your lender asking you to get in touch.

If you are serious about avoiding foreclosure the worst thing you can do is ignore the letters and the problem. The more payments you miss the more difficult it will become to resolve the problem and loosing your house will become more likely.

So make sure you contact your home lone mortgage lender as soon as you become aware that you have a problem. There will be options available to you to help you through your financial difficulties and mortgage lenders really do not want your house, they would prefer that any financial problems are resolved. Some of the options are home loan mortgage refinancing and loan modification but there may also be alternative options.

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