sexta-feira, 12 de fevereiro de 2010

Short Refinance 2010 - The Newest Changes That Will Rock the Market

2010 will be known as the year that everything changed for the Real Estate market. Waiting for this to happen has taken some considerable time and patience but now that it is here it's time to take advantage of this situation. It has been talked about many times over, proposed in many forms but now the Short Refinance makes it possible to exchange an upside down mortgage into a right side up one!

Previously people had heard that a short refinance was possible but couldn't find a way to get it done. In 2010 the short refinance will become possible thanks to a new set of criteria handed down from above allowing this to all come together.

Here are some of the steps in the process:

1. The initial evaluation will need to demonstrate a need. This need will have to be income related so it is important to understand your debt to income ratios as it relates to your existing loan and your potential new refinance. There is a window of opportunity there that people need to squeeze into in order to qualify.

2. We will need to negotiate with your existing lender to get them to agree to a short payoff. Not just anyone will qualify for this, of course, as we will need to demonstrate a need based upon some level of hardship. It's important that this short payoff include both the first and the second mortgages and have a loan to value of approximately 95% of current appraised value.

3. To even qualify for the take out mortgage you cannot miss any mortgage payments. In other words, the refinance loan requires no missed payments so negotiating for a short payoff with missed payments will only result in a potential short sale NOT a short refinance. The new refinanced loan will be a traditional FHA loan so the FHA guidelines do apply.

Understanding the process and managing your expectation during this process will not only keep you sane but will keep those helping you sane as well. My best advice is to assume it won't happen and if it does BONUS!

Short sales can also be done in this manner as you can sell your home for less than what you owe and then turn around and buy another home without an issue.

Loan Modification Company Names - Things You Better Know

We give accolades to anyone who is looking for loan modification company names. Since you're here we can only assume you have to find help in order to save your home from foreclosure. Unfortunately, most people never reach this point and lose their home without a fight.

Over the years, loan modifications have become increasingly popular. The problem is when something flourishes over the course of a year; scammers start to surface and take advantage of the situation. It's an industry where people are desperate, and if these fraudulent individuals see a gateway to cash, they'll do it. You will see ridiculous upfront costs and many of them will never do what they initially offered.

So it's no surprise you should be looking for a reputable company to help save your home. Loan modification company names need to be researched just like everything else, and if any of them are unfamiliar to you, it will be wise to dig deeper into their background. Keep in mind, this process is still fairly new, which means more hours you are going to have to put into it whole heartedly.

In order to be safe, take a look at the information below. Any of them could result in a big red flag revolving around the company.

1. Large Upfront Fees- When dealing with reputable loan modification companies, you won't have to deal with large upfront costs. Granted, there is an initial fee, but you don't actually pay it until later on down the road.

2. The Pushy Sales People- If a company comes at you with full force and try to make a sale, you should shy the other way. The whole idea is to find a company that is trying to help you save your home. If you come across a pushy individual, just get up in leave.

3. No Physical Address- Sometimes you will come across companies that won't give you a physical address or even talk to you on the phone. The truth is you need to find loan modification company names that are professional. The good ones will offer you a phone consultation. Others will have an office you can visit. In the end, when dealing with an anonymous company you are only increasing your risk.

After you start searching you will realize that keeping your home from foreclosure can be difficult. We know you're going to run across all kinds of loan modification company names, but if you utilize the tips we've given you above, the situation will run smoother.

There are many ways to feel safe and secure after doing your research, but one of the best ways to find the right loan modification company names, you should go through a broker. Well, they are actually organizations that refer you to companies they have dealt with in the past. Most importantly, they are only the ones that were considered reputable. If there are complaints against the company they will not recommend them at all.

What it comes down to is you just have to take action. Now, if you don't have time to research all the loan modification company names out there, we highly recommend getting a referral from these organizations. Since they keep tabs on all of them, you will be able to get the help you need to save your home.

6 Things Every Struggling Homeowner Should Know About the Obama Home Affordable Modification Plan

What is HAMP?

When first announced the HAMP program was touted as the be all and end all that would solve the ills of the mortgage meltdown. To homeowners caught up in the worst housing collapse in recent history it was a welcome piece of good news.

I am in the camp that believes that loan modifications need to be properly designed to work. At risk homeowners needed some help and hope, the Obama administrations plan to restructure loans gone bad is suppose to help four million home owners prevent foreclosure.

These are the 6 things you should know about the program.

1. Value: To qualify for HAMP a loan servicer will perform what is called a Net Present Value Test. This test simply compares the expected cash flow that the loan would generate after modification to the expected income if the loan is not modified. This means that if it makes more sense to modify economically the servicer is supposed to make that choice. To further entice servicers to modify loans the government has instituted subsidy payments to them for modified loans.

2. Payment Reduction: HAMP counts on the idea that struggling homeowners will keep their homes regardless of current value if they can make their monthly payments. Homeowners who are upside down when given the choice will keep there homes as losing as they can afford to make their payments. Most people will not "walk away" from their primary residence because it's worth less than they owe. Rather, people "walk away" from their homes when they can't afford to keep up with the payments. HAMP is designed to achieve lower payments in comparison with loan modifications early on in the mortgage meltdown which brought mortgages current but left payments alone or even increased payments.

3. Debt-to-Income: The Obama administration's plan forces servicers who have signed on to reduce monthly payments to between 31% and 38% of the borrower's gross monthly income. The servicer is required to get the payments down to 38% and then the government subsidizes a further reduction down to 31%. The steps of the program guide the servicer to begin the payment reduction by first reducing the interest rate to as low as 2%. If that does not bring the payment down to a debt-to-income ratio of 31% the next step in the process is to extend the amortization up to 480 months. The last step in the process is completely voluntary and as of the date of writing this article most servicers have resisted it. This step in the process asks servicers to reduce the principal balance of the loan in one hundred dollar increments until the 31% threshold is met. I believe that making this part of the program voluntary has slowed the effectiveness of HAMP in slowing foreclosures and hampered efforts to help at risk homeowners.

4. Valid Hardship: HAMP is designed to help homeowners who have been hurt by the recession. Only primary residences are eligible for participation in the program. Investors and speculators can't take advantage of HAMP. Some of the hardships considered to be valid are loss of income due to job loss, illness, divorce, military service etc.

5. Income Verification: Many borrowers who were able to obtain mortgages during the housing boom without having to provide income documentation may be surprised by the level of income verification that comes along with HAMP. Banks that wrote sign and drive or liar loans without as much as a job listed on the loan application now require complete documentation for a HAMP payment reduction. Some of the items an at risk borrower will need are pay stubs, bank statements, tax returns, profit and loss statements, SSN statements, pension statements etc.

6. Trial Period: One part of the plan that has caused problems and unnecessary delays is the trial payment period. The trial payments are designed to "train" borrowers to make on time payments. There is a strict requirement that payments being made during the trial period must be on time. There is no "grace period" for the borrower to stretch out the payment date. A borrower who plays games during this phase is playing with fire. If you are one day late with a payment the servicer can cancel your modification with no questions asked. Many servicers have been unable to submit the paperwork and process HAMP modifications efficiently enough to complete the modification during the trial period. Many homeowners have had to make 6 or 7 trial period payments while waiting for their modification to go permanent. If you are in the trial period make absolutely sure you make very single payment on time and comply with every request for documents.

Homeowners who are able to qualify for and obtain a HAMP payment reduction will be rewarded by saving hundreds of thousands of dollars in interest over the life of the loan, along with being able to continue living in the home for years to come.

For more information on HAMP visit:

A Few Suggestions on How to Find a Reliable Mortgage Refinance Lender

In these troubled times, most people are facing economic uncertainty. They are worried about having the ability to pay their bills. Some of them are looking for a way to simply just lower their monthly payments that are going out. If you are looking for a reputable company that offers mortgage refinance, there are a few things you can do to locate a lender that can help you in your particular situation.

There are many companies out there that you can find that can help you with your home loan. In fact, locating a company that has been around for a long time that can offer you the services you need is actually very easy to locate. The first step is beginning to shop around for a corporation that offers loans on the terms that you are comfortable with.

The best way to find these companies is to begin with the Internet. When you turn on your computer, by simply going to a search engine and typing in the type of mortgage company that you are looking for, several will come up. By choosing a website that offers a comparison of the different companies, you can make an educated guess on which one is best for you.

Websites that offer customer testimonials are even better. You can of course find these on the home pages of the corporations that offer refinance services, but you can truly find out if they are telling the truth sometimes by looking at the genuine responses of other people that are giving a testimonial about their experience after using the company.

As a caveat, it is not recommended that you go to an online forum that offers anyone the ability to login and post nonsense about any company that they want to attack. Make sure that the forum is moderated and that it is focused upon this particular area of interest. Only in this way can you be somewhat guaranteed of reading reliable information.

Before you take the plunge to do any kind of second mortgage or redoing your financing, you need to remember there is a fee that is associated with such an action. This can usually be between 5% and 10% of the actual value of the amount you are taking out so be careful as you may end up paying more than you are now.

The last place to check is the Better Business Bureau to make sure that there are no complaints against the company. You can also see their rating and also how long the company has been in business. By taking all of these factors into consideration, you will be able to make a very educated decision.

Once you have found the right mortgage refinance company for you, go ahead and fill out their application and get the process started. Only by doing your homework ahead of time can you be confident and feel safe that your finances are in the right hands on that soon your payments will be much lower and more affordable.

If you would like more information on finding a mortgage refinance lender, go to:

The Next Mortgage Crisis 2010 is Coming

The next mortgage crisis 2010 is on the horizon. This could be as bad as the United States sub-prime mortgage crisis 2009. Most people feel that the economy is recovering. The U.S. stock market reflects that opinion. The housing market has improved as sales increase and home prices stabilize. We are not seeing as many foreclosures as we saw a few months ago.

The gross domestic product grew in the third quarter at a 2.8% rate, the first increase in several quarters.

The Leading Economic Indicator (LEI), published by the Conference Board, increased at a rate of 4.2% in October. This was the seventh month in a row that there has been an increase. These LEI numbers give a good indication that the economy will continue to grow.

Federal Reserve Chairman Ben Bernanke proudly asserts that the worst is behind us thanks to his wise manipulation of the economy. It's interesting that Bernanke and the Fed feel they can bring us out of the recession when they had no clue that their low interest rates and extremely stimulative policies were a major factor in putting us in a recession by causing the housing real estate bubble.

When the housing real estate bubble burst, the Fed had no idea just how severe the crisis was. Bernanke assured everyone that the housing market disturbance was contained and would not be a problem going forward. He later claimed that the losses from the housing market issue would be less than $100 billion. Total losses far exceeded that amount. Unfortunately, many people followed his advice and had major losses in their stock market portfolio.

The federal government bank stress tests were concluded earlier this year. Bernanke assured us all by saying that "most U.S. banking organizations currently have capital levels well in excess of the amounts required to be well capitalized." But as of today, banks continue to hold onto the money given to them by the federal government and aren't willing to loan it out.

How can we trust the Fed and Bernanke to lead us out of this recession when they have such a horrible track record? Bernanke feels that his policies can control the financial markets. Bernanke feels that he is smarter than the market. He is not willing to trust the natural economic forces to help solve our problems. History shows that he is wrong.

If the economy is improving, as Bernanke says, why is the Fed keeping interest rates near zero and maintaining such accommodative policies?

We have moved beyond the United States sub-prime mortgage crisis 2009. The period between September - December, 2009, is the lowest point of the mortgage resets. Therefore, the housing market and foreclosure problem should be improving today, just like it is.

But another mortgage crisis is soon coming. In the second quarter of 2010 through the fourth quarter of 2011, there will be a significant number of mortgage rate resets in Alt-A and Option-ARM mortgages. Most of these mortgages were established during the peak years of the housing real estate bubble. As a result, these mortgages now have an extremely high loan to value ratio and will further aggravate the foreclosure problem.

This new foreclosure problem will cause further writedowns on the books of U.S. banks. This is the reason that the Fed and Bernanke are keeping such accommodative policies. They are very well aware that the next mortgage crisis 2010 will cause major problems for the banks. Most Americans are completely unaware that this event is on the horizon.

A strong economic recovery is important to many corporate professionals. Some have lost jobs, and a strong recovery will help them find employment. Others are feeling job insecurity and hope that a recovery will improve the financial picture for their companies.

President Obama feels that all of his stimulative policies have had a powerful impact on the economy. Although he remains cautiously optimistic, he feels that the economy will continue to grow. The statements made by the Federal Reserve indicate their belief that their policies have worked.

I hope that what they are saying is correct. But I feel that we still have major problems to overcome. Because of our very uncertain economy, I recommend that employees set up a job backup plan that can protect them in the case of loss of income of a family member. The internet marketing industry is a recession proof alternative that needs to be considered.