Archive for Interest Rate
Dec
30
Should I Refinance Loan To Avoid Foreclosure When Payment Resets?
Posted by: | CommentsSituation:
-Purchased new home built less than 2yrs. ago in Pittsburg,Ca.
-loan amount for 400k after 20%down payment.
-loan program is a 5/1 option arm,interest rate fixed for 5yrs. @8.25%.
-i’m only paying minimum payment from the 3 payment options.The minimum payment is a negative amortization.
-start rate is 2%…so the monthly payment is very low but the interest is compounding at 8.25% to the balance of the loan.
-FICO score is 729
-renters has given 30 day notice.
-loan balance is now 430k and same home is selling for less due type of loan and recession.I know it’s gonna take some time before home values start to incline on the graphs.I just want to be prepared during the housing market healing process.
Based on this information can someone give me any helpful advice.It’s my first rental property and i want to do this right,Economy sucks right now and i’m not gonna be a victim from it.I worked very hard to get this far and being a single parent w/ two daughters makes it more challenging.Thanks to those who respond.
Dec
29
Make a Game Plan Then Take Action to Avoid Foreclosure
Posted by: | CommentsFirst, you need to understand how you got into trouble in the first place. This is something you want to have thought about before calling the lender or crafting a hardship letter. Have you had a loss of a job? Is your interest rate climbing in your adjustable rate mortgage? Have property values declined in your neighborhood making it difficult to sell. Once you put your finger on the problem, you need to face it head on. Ignoring the letters and phone calls from your lender won’t make the problem go away. In fact, it can make it much worse.Second, as soon as you realize you have a financial hardship, or problem that will prevent you from making timely mortgage payments, you need to contact your lender. If you’re in the position right now of being in trouble, contact your lender immediately. Most banks aren’t excited about having to resell your home. They’d rather work with you in most cases to keep your home.Third, determine if there’s a way for you to increase your income in order to put more money toward your mortgage payments. Can someone work a second job? Can you search for a job that’s higher paying?Fourth, it’s also important to see if you can refinance your mortgage at a fixed interest rate. This will keep your payments the same over the entire life of your mortgage. If you can refinance, you may be able to set up reasonable payments.Fifth, don’t be afraid to do a bit of thinking, “out of the box”, an option for your family, may be to rent your home if you can get enough rent to cover the cost of the mortgage. You may also want to consider allowing someone to rent a room to bring in extra income for your home.Sixth, if you can’t bring in more money and refinancing isn’t an option, you need to try to sell your home. As difficult as it may be to let go of it, it’s better to sell it than have a foreclosure. If you owe more than your property is worth, you should contact your bank. Many lenders will allow you to perform a “short sale” that will allow you to sell the house for somewhat less than its value and have the difference forgiven. Many banks allow this because in the long run it’s still less costly for them than trying to sell your home.Finally, if you’ve exhausted all of the possibilities and you can’t find a way to pay your mortgage payments and get out of trouble, you may have to walk away from your home. A foreclosure will be a dark mark on your credit for many years; however you should remember that you’re not alone. You simply have to take with you the lessons you’ve learned about home financing.K. Patrice Williams has a BA in Economics as well as a law degree. She has successfully managed both residential and commercial multi-million dollar income producing assets and budgets for more than 10 years. As a 1st year law student, Patrice established a real estate development and consulting business and acquired over 30 rental properties. As the housing market values decreased- like millions of other Americans-her properties were negatively impacted by shifting ARM’s, combined by a sluggish economy. Patrice has researched and personally implemented almost all of the pre-foreclosure techniques detailed in the book: “6 Simple Steps to Avoid Foreclosure”. http://www.avoidforeclosuremanual.com
K. Patrice Williams has a BA in Economics as well as a law degree. She has successfully managed both residential and commercial multi-million dollar income producing assets and budgets for more than 10 years. As a 1st year law student, Patrice established a real estate development and consulting business and acquired over 30 rental properties. As the housing market values decreased- like millions of other Americans-her properties were negatively impacted by shifting ARM\\\\\\\’s, combined by a sluggish economy. Patrice has researched and personally implemented almost all of the pre-foreclosure techniques detailed in the book: \\\\\\\”6 Simple Steps to Avoid Foreclosure\\\\\\\”. http://www.avoidforeclosuremanual.com
Dec
28
The Foreclosure Series Part 3: What Your Lender Can Do to Help You Avoid Foreclosure
Posted by: | CommentsYou’ve got to act fast the moment you feel that you are at risk of foreclosure. One thing you must prevent from happening is the filing of a Notice of Default. This notice is basically a shout out to everyone that you are behind your mortgage payments, and if not dealt with accordingly, lenders can seize your home.
As soon as you see trouble looming ahead, call your lender and work out some home-saving methods. You don’t have to be scared or embarrassed because lenders are more than willing to help homeowners figure out a way to avoid foreclosure, as long as you let them know early. Lenders can give you options according to the kind of financial situation you’re in like:
• Forbearance – gives you more time to settle your mortgage payments. Lenders or mortgage companies will, for the meantime, allow you to pay less than the full amount of the mortgage. If you’re lucky, they may even allow you not to pay anything at all, as long as you prove to them that you will have the resources (salary bonus, tax refund, etc.) to pay them sometime in the future. • Repayment plan – you can ask your lender to allow you to carry over unpaid amounts to your monthly payments. Let’s say your monthly rate is $1,000, and you’ve been delayed for two months already, you can add $100 each month until you pay the amount in full. • Loan modifications – as the name implies, you make certain changes in the agreement. Here, lenders can freeze or adjust the interest rate to make it more manageable for you. You can extend the number of years in which you are to pay them; go from an adjustable-rate mortgage to a fixed- rate mortgage; or add neglected payments to your current loan. • Refinancing – if you meet certain requirements from your lender, they can help you increase your loan balance so that you can include back payments to it. • Partial claim – as long as you meet the specific criteria, lenders can help you get an interest-free loan from the Housing and Urban Development that you can use for delinquent payments. • Debt forgiveness –simply means that the lender waives your obligation to pay, which is something that happens very rarely. With the numbers of evicted people continually rising, more people are putting the blame on lenders, when ironically, these are the first people who can help you save your home.Next on the Foreclosure Series: Fight for Your Homes, Stop ForeclosureHousing Assistance Network ( http://new.housingassistancenetwork.com ) – is a site that aims to help those who are in the low to moderate income brackets find financial assistance for housing, help in acquiring a new home, or grant programs from both state and non-government institutions.
Freelance writer, part-time photographer and editor.
Dec
18
How You Can Get The Government To Help You Pay Your Mortgage And Avoid Foreclosure
Posted by: | CommentsApproximately 2.2 million Americans have an adjustable-rate mortgage (ARM) that is due to adjust this year. For many homeowners these newly adjusted rates will significantly increase their mortgage payments and lead them into foreclosure. If you are facing foreclosure or believe you will have difficulty paying your mortgage because of an ARM reset then the Federal Housing Administration (FHA) has a new program designed just for you.
The program is called “FHASecure” and it gives homeowners with ARMs and “interest-only” loans the ability to refinance up to 97.75% of their home’s appraised value into a FHA-insured mortgage. By refinancing into a FHA-insured mortgage, you can expect to pay lower monthly mortgage payments. Under the FHASecure program the lender will not automatically disqualify you for any late or non-payments on your existing loan. Moreover, the lender can offer you a second mortgage to make up the difference between the value of your property and what you owe.
As long as you are current on your mortgage, you are eligible for an FHASecure refinance. If you are delinquent, the default must have been due to the payment shock of an interest rate reset or, if you have an Option ARM, the “recasting” of the mortgage to fully amortizing. If you are delinquent because of job loss, divorce, medical issues, or any other hardships you should explore your other options. There isn’t a limit on how far behind you can be on your mortgage or how many payments you’ve missed. Whether you’re current, one month or multiple payments behind the amount you can refinance will depend on the value of your property and how much you owe and if the lender, or another eligible source, is willing to take back a second mortgage to help bridge the gap between what is owed and your home’s value.
If you do not have enough equity in your home to refinance you should speak to your lender about a second mortgage or a “short payoff” to make up the difference. However, these options are at the discretion of the lender. To find out what the value of your home is you should check http://www.Zillow.com or speak with a local real estate broker about appraising your home.
The FHASecure program may also help those already in foreclosure but each situation is different and is dependent three factors: the value of the home, the amount owed, and if the lender is willing to offer a second mortgage. Homeowners facing foreclosure should first educate themselves and then speak with their lenders or seek counseling from HUD-approved counseling agencies.
Both first and second mortgages can be included in FHASecure so long as the combined amount is within the FHA loan limit. If the combined amount exceeds the FHA loan limit or the loan-to value limit, you should ask the lender for a second mortgage to make up the shortfall.
People will still have to qualify for a FHA insured mortgage, based on their capacity to make the monthly mortgage payments. Unfortunately, those who shouldn’t have gotten a home loan in the first place will not be able to qualify for FHASecure or other FHA refinancing options. Fortunately there are other options that will allow them to avoid foreclosure and/or save their credit.
If you believe the FHASecure loan can help you avoid foreclosure, then dial 1-800-CALL-FHA or visit http://locator.fha.gov to locate the nearest FHA-approved lender in your area.
Nov
15
How to Avoid Foreclosure?
Posted by: | CommentsIf you want to avoid foreclosure the first thing that you should do is meet your Lender. Lenders foreclose by filing a Notice of Default to protect their interests. If you’re not in a position to make your mortgage payment on time, just call your lender and tell them your problem. They may give you some time. If a lender sends you a letter don’t ignore them as it may worsen the situation. On knowing about your hardships, lender may provide you some options which may be of help to you.Forbearance: Forbearance means lenders postpone foreclosure by giving time to the borrower to make up for overdue payments. Before taking any legal action, lenders may wait for some time and make a repayment plan that may work for you. In Forbearance, your lender may postpone your mortgage payments for a limited period of time. Your lender will add the missed home loan payments to your mortgage-extending your loan period but allowing you to keep your house and your credit card in better standing. Your lender may want you to stick to your payment schedule in order to avoid foreclosure.Debt Forgiveness: Debt Forgiveness means lender writes off a portion of outstanding debt. If you agree on paying the mortgage payment on time after a certain period, lender may forgo a payment or two. He may give you a break and waive your obligation. But this situation rarely arises. Repayment Plan: If your payment is, say, $1200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up. This is called a repayment plan. Note modification: Note modification can prevent foreclosure and bank repossessions. If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable rate for you. A lender might also extend the amortization period.Refinance: Many homeowners find it difficult to pay mortgage amount on time which leads to foreclosure. In order to avoid foreclosure, refinance method can be followed. A homeowner can take a new loan and pay off the original loan.Partial claim: A partial claim is an option available to homeowners with FHA loans who meet the Department of Housing and Urban Development (HUD) guidelines for a partial claim. With this option, homeowners are given an interest free loan, guaranteed by HUD, to pay off the arrears and reinstate a delinquent loan. This loan must be repaid when the first mortgage is paid off, or when the property is sold. After a partial claim is completed, the homeowner does not need to worry about foreclosure or losing their home.
Shijina is an expert author for stop foreclosure and buy houses online. She written many articles like we buy houses, selling your home and we buy houses cash. For more information visit our site www.homeoffersusa.com Contact me at shijinaseo@gmail.com