Solving the Las Vegas Housing Crisis

Friday, July 31, 2009

Stop Home Loan Banks from Foreclosing Your Home

When confronted with the possibility of foreclosure, it is but natural that a person may feel disheartened and helpless. The thought of losing the home where you and your whole family lives can be unbearable. However, foreclosure should not be the end of your road. There are still some steps that can be done to turn the situation around. Banks Are Not Happy About Foreclosure The notion that banks are happy about foreclosing homes is a false one. In reality, banks would prefer to receive regular cash payments rather than house titles. This is the reason why banks usually have financial assistance programs to help those who are facing foreclosure of property.
A Back-Up Plan If you have been a good payer in the past months or years, there is no reason why banks shouldn’t extend a back-up plan to help you with your mortgage. A new payment arrangement can be made on your behalf to help you keep up with your bills. But in order to make this happen, you have to meet with your lender and inform them about your present financial situation. Yes, going through the details is necessary so that your lender can understand why you are having difficulty in keeping up with your monthly mortgage. If you have lost work or if you are in need of money due to a family emergency or a sickness in the family, you need to tell your lender.
Ask if you can avail of new arrangements with regards to submitting your payment. Reinstatement and Forbearance
Perhaps a reinstatement can be made so you can submit your payments at a later date. Your lender will also likely grant you forbearance due to the fact that you are taking steps to improve your current situation. Once the lending companies see that you are caught in a temporary financial crisis and that you are doing the necessary actions to get by your financial difficulties, they would be willing to make some arrangements for you. Mortgage Refinancing Another option would be refinancing your home loan. Perhaps you may avail of a new mortgage loan with lower interest rates as your existing loan. Ask your lending company if it is possible for you to refinance your existing mortgage loan without filing for a new application. Some lending companies give this opportunity for clients who are stranded in a financial crisis due to circumstances beyond their control.
Ask Assistance
If you want, you can also ask assistance from non-profit groups or credit counseling agencies to help you talk with your creditors. These groups are particularly knowledgeable and experienced on financial matters so they know how to deal with creditors. They can help you reach a new payment plan that will be more appropriate for your present monthly income. Find a reputable non-profit group or credit counseling agency in the internet and check its credibility from the Better Business Bureau. These associations should be willing to help you without asking for an expensive professional fee or service charge. Stop Foreclosure
When faced with the possibility of foreclosure, the first thing you would want to do is take a look at your present financial status. If the situation is much worse than expected, for instance, if your mortgage will eat up more than 40% of your monthly income, then perhaps you should consider selling your home property. But if your monthly earnings still allow you to pay at least 40% or less of your monthly mortgage, then it is very possible to save your home without turning back on your mortgage. The important thing to remember is to get in touch with your lender as soon as possible. Don’t wait until you’ve missed one or two monthly payments before notifying your lender. Don’t wait until your lender starts calling you about your balances. Have the initiative to inform your lender that you will not be able to submit your payment for the upcoming due date and explain why. In most cases, communication solves the problem.

Author: Liz N. Roberts

Get help now, Avoid Foreclosure

Tuesday, July 21, 2009

Government Programs Mean Easier Refi's

=When John Jordan and his wife went to refinance the mortgage on their Washington, D.C., townhouse, their appraisal came in too low. But thanks to a new government program, that didn't kill the deal. "We're quite happy the program was there, or else we would not have been able to proceed with the refinancing," says Jordan, who purchased the home in 2004.
Home Description: Select One Single Family Multi-Family Condominium Townhouse Mobile Home Manufactured Home Your Credit Profile: Select One Excellent Good Fair Needs Improvement Poor
AdvertisementAppraisals have always been key to refinancing. Traditionally, the mortgage amount could not exceed the property's current market value. Those with Adjustable Rate Mortgages stuck with unaffordable mortgage payments, or those tempted by historic low interest rates have good reason to want - or need - to refinance their loans. Luckily, the federal government has introduced programs to help.
The Obama Administration's Home Affordable Refinance Program, launched early this year, allowed refinances for those whose first mortgage was as high as 105 percent of a comparable market analysis (CMV). A July expansion now allows participation by borrowers current on payments, but up to 125 percent "underwater." This especially helps those in down markets, such as Las Vegas, where about two-thirds of current mortgage holders owe more than the worth of their homes. Nationwide, 4 to 5 million homeowners whose mortgages are owned or guaranteed by Fannie Mae or Freddie Mac might reach more affordable monthly payments through the program, which falls under the broader Making Home Affordable initiative.
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Select One Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Those with government-based Federal Housing Administration (FHA) loans also have new refinance opportunities thanks to the American Recovery and Reinvestment Act of 2009. The revised single-family loan limits now reflect the higher loan limits set by the Economic Stimulus Act of 2008 or the Housing and Economy Recovery Act of 2008, all determined by county or metropolitan area. Effective through the end of 2009, those limits range from $271,050 to $729,750 and permit FHA to insure loans on amounts up to 125 percent of the 2007 area median house prices.
Additionally, this past May, the Helping Families Save Their Homes Act removed some administrative and technical hurdles that made last summer's HOPE for Homeowners Act so difficult to implement that most people didn't bother trying. The bill helps homeowners with FHA or USDA rural housing loans to modify or refinance their mortgages.
Jorge Gomez, president of the Illinois Association of Mortgage Professionals (IAMP), says, "In theory, [new loan limits] will open up many new opportunities for people to refinance." Still, borrowers with a second mortgage may not benefit, since the law doesn't require second lien holders to comply by subordinating their debt.
Regarding the program for Fannie Mae and Freddie Mac loans, Marve Stockert, executive director of IAMP, urges anyone who can't sell their home to use it, "because this type of program may not come around again." Home Affordable Refinance expires on June 10, 2010.
Dan Milstein, CEO of Gold Star Mortgage Financial Group in Ann Arbor, Mich., notes that while "extra room in terms of value will be helpful in the refinance process," the true impact of the change from 105 percent to 125 percent "remains to be seen." Besides the second mortgage issue, he explains that loan guidelines remain the same, with verification required for all information. There's a slight increase of getting an appraisal waiver, but full appraisals are often still required for these transactions.
Those best suited for these programs, says Milstein, are homeowners "who originally had 20 percent or more equity in his or her home and then lost that equity not due to increased borrowing, but rather to the slump in the housing market."
The bottom line: The refinancing rules are changing everyday. As the Jordans can attest, there's no reason to let a decrease in your home value hold you back from attempting to refinance. Be proactive and investigate how new stimulus programs might help you lower your interest rate and save on your monthly mortgage payments.
By Melissa Ezarik

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Wednesday, July 1, 2009

Homeowner Debt Consolidation Loan: Showing The Right Way

If you are homeowner and looking for an external finance to consolidate the numerous debts then click on to homeowner debt consolidation loan. Any individual w
ho is a homeowner is eligible for the loan and can borrow amount easily to disburden the pile of debts. The loan is offered and can be approved in both traditional and online procedure by filling the form with details of personal and credit history.
It matters less how and from which sources you have accumulated the debts, but homeowner debt consolidation loan concentrates on how you can discontinue them by offering loan and services. All your miscellaneous debts can be nullified in a single amount and result in a positive impact by providing relief from all the irritating phone calls and comments of the creditors.
Advantages and benefits of homeowner debt consolidation loan can be obtained by placing property as collateral. Because of this secured feature homeowner debt consolidation loan carry a low rate of interest and long repayment tenure which makes the monthly repayments easy and affordable. The less monthly payments cut down the variable rate of interest, which you might be paying to different creditors for your debts. Such a slash in the interest rates will definitely empower your financial condition and can directly create an atmosphere to rebuild or restore it.
Any debtor is eligible to borrow homeowner debt consolidation loans by placing collateral and can borrow amount from £5,000-£75,000 for 5-75 years. Having a reliable and satisfactory credit profile and placing of higher equity might facilitate debtors to borrow more amount than mentioned. Numerous lenders exist in the market that are ready to advance loan instantly and at reasonable rates. But collecting and comparing the various offers and quotes will lead him to get a rational and according to budget loan. Homeowner debt consolidation loan designed after speculations and assumptions which are entirely committed to erase the debts and improve the financial score of debtors.

Author: Antonio Vargas

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