what are the odds of my bank giving me a lower payment in order to avoid going into default ??
My payments are $3100 per month, MY retirement is only $2000 per month , the money that I was recieving from baby sitting is no longer available to make up the difference, how can I get my bank to give me a payment reduction so that I can avoid defaulting ? what are some other options, I don’t have the money to update the house to sell , I had it on the market 3 times and it did not sell because it needs updating. thanks for your thoughts
The clear intention of Obama’s new stimulus package for homeowners is to prevent foreclosure on their homes. People facing problems when it comes to meeting their mortgage repayments can apply for either a loan modification or mortgage refinancing option in order to avoid foreclosure on their primary home and place of residence.
How the plan works
After refinancing or loan modification the percentage of gross monthly income that the total monthly mortgage repayments can represent is 31% although under certain exceptional circumstances this might be increased to 38%.
The qualifying criteria for mortgage refinancing is different to the qualifying criteria for loan modification but the objective of having affordable mortgage repayments that can be sustained is the same.
For loan modifications this is achieved through various means that may include reducing the interest made on payments, extending the period of the loan or potentially deferring a part of the loan until a later time (balloon payment). In exceptional circumstances there may even be a portion of the loan forgiven, i.e. written off but this is entirely at the discretion of the lender as is the balloon payment. One is called principal forbearance and the other principal forgiveness.
The balloon payment (principal forbearance) can only be applied to loan modifications and not to mortgage refinancing. This part of the loan basically just sits there with no interest or capital repayment being paid. The amount is still owed, but you would not be required to pay it until the rest of the loan is cleared.
Interest rates for the mortgage refinancing are governed by market rates and there are concessions available to help with payments for closing costs or perhaps a title report that can be rolled into the loan for people who do not have the ready cash to hand. These concessions are different depending on whether the loan is under Freddie Mac or Fannie Mae.
You need to assess whether the refinancing option works for you, it is possible that your repayments may not decrease but you may save money over the full period of the loan and you need to assess if taking this option is the correct decision. You can get free advice from a HUD approved housing counselor to help you asses the full financial impact.
The counselor will also be able to advise what other options you have if mortgage refinancing does not work for you e.g. the loan modification route or perhaps looking at the ‘HOPE for homeowners’ program administered by the FHA.
For help and advice on mortgage refinancing, loan modifications and loans visit Mortgage Refinance
You need to understand the qualifying criteria for the different aspects on offer so that you know if you are eligible and how you can benefit. Home Loan Mortgage Refinance provides detailed information on the stimulus package and what it offers.
refinancing mortgage
I had good luck here:http://all-mortgage-calculators.blogspot…
Due to the relaxed lending practices homeowners are finding that their home might not have the equity needed to sell their house this is all to often the case in Phoenix Az as well. Those homeowners need a solution to their rigorous problem and that solution is a short sale. Sellers across the country are using short sales to avoid foreclosure on their over financed house.
A short sale is when the homeowners lender will agree to take less than the homeowner owes on their house to keep the house to avoid foreclosure. Short sales are becoming very popular since homes have little to no equity and there are alot of those homes in Phoenix. A few years ago homeowners had their backs against the wall and had the ride the foreclosure all the way to end the court house steps because they had no other options.
Lenders are very likely to accept a short sale when a homeowner is behind on payments but there are cases when lenders will agree to a short sale if the owner can prove they are about to lose control of their financial situation. The condition of the Phoenix housing market will make it easier for a lender to agree. To qualify for a short sale the owner has to insolvent and show the lenders a financial snapshot of their income vs. debt.
One word of advice is to act fast when you first notice that thing might get out of hand, the worst thing you can do is wait until the last minute to contact your lender about your over financed house. Short sales can take up to 6 months to complete from start to finish, so if you start early your lender might be willing to postpone the foreclosure to avoid the hassle of taking your home back.
Donte Mazyck has been helping homeowners avoid foreclosure by doing short sales on their house and making solid offers to the owners and their lender. To find out more about the process go to Short Sales or if you have your mind made up and want to start the process to avoid foreclosure you can go to Sell my Phoenix house Fast! You can also call us toll free at 888-219-8619.
Your mortgage company does not want to foreclose on your home. Call them and tell them your problem. (Are you looking for a new job or health problem?) They may be able to add your missed payments on to the back end of your note, or help you arrange a “short sale” or anyone of dozens of ideas.
They will be upset that you are not making your payments and may suggest some bad ideas (like making your payment using your credit card). But do talk with them if you are wanting to avoid foreclosure.
