Housing Lot Online » mortgage payments

Will the HomeOwner Bailout Help those Currently in Foreclosure?

housing lot help — Wed, 25 Feb 2009 03:33:49 +0000

It’s not really too late to meet the criteria and have your lender or bank modify your mortgage loan(s). Many lenders have agreed to halt foreclosures in process until the property can be reviewed to see if the home can be saved with a simple new plan. Although, not everyone will receive help or be eligible for it. You need to show proof that you have enough income to cover the modified loan for you to receive adjustments to your mortgage loan.

The most common ways to do a loan modification is to lower your interest rate to the current market rate or stretch the mortgage payments over a 40 year period. You will still pay as much, but you will have longer to make those payment with the latter choice.

For those that have a higher adjusted rate, you may have be a good candidate for a new modified loan, even if you’re already in the foreclosure process. The overall goal of the bank is to calculate and meet a monthly payment that is no more equal to 31 percent of your monthly income. Thus, you will still need to meet this requirement for a loan modification.

In some rare cases, lenders may be willing to lower the principal on the property to a level of your home’s current level due to the fact that many homes currently have mortgages bigger than what the home is worth.

The program is entirely voluntary, so it is up to the lender or the mortgage company servicing the loan for the investors.

Foreclosure Assistance Programs

housing lot help — Tue, 24 Feb 2009 11:55:58 +0000

The federal government and many lenders or banks are offering many types of foreclosure assistance programs to minimize the amount of foreclosures occurring in the real estate market. The largest institutions have agreed to foreclosure moratorium but of course, that is only temporary.

For the time being, you will still need to figure out how make your mortgage payments and prevent losing your home. How to do that? Well there are a few loss mitigation programs that are available:

Repayment Plan: This program works for those that are experiencing short term financial difficulties. If you are not able to pay your mortgage for a month or two due to being ill or unexpected but important expenses have come up, this may be the program for you. Make sure to contact your bank or lender to know the guidelines for applying for this particular assistance.

Short Sale: This option may be ideal for those already considering themselves desperate and do not have the capacity to pay their home loan. The home will need to be sold at a discount. Approval needs to be given by the lender(s) holding the mortgage loan(s) as they are the ones taking the loss on the loan(s).

Loan Modification: The goal of this program is to make monthly payments for your property easier by negotiating for permanent changes in terms of the loan. You may consider asking your lender to modify your loan’s payment schedule, the amount of the monthly payments and even the interest rate if it is not equal to today’s market interest rate. In order to qualify for a mortgage modification, you need to prove to the lender that you can afford the new payment terms.

Rules of Short Sales

housing lot help — Tue, 14 Oct 2008 10:56:49 +0000

The homeowner is delinquent on their mortgage payments, which is typically a minimum of 2 months
The homeowner must provide proof of financial hardship
The homeowner must not net any money from the sale of the home
The seller must find a qualified buyer for the home, who is willing to buy the home as-is.
The homeowner must submit all required paperwork to the lender to start the process.
It is difficult for the homeowner to complete the sale on their own, without a Realtor
The lender pays the Realtor’s fees and closing costs
The Short sale must net the bank more money than a foreclosure sale
The homeowner is not responsible to pay taxes on the amounts discounted by the lender
The bank cannot sue the homeowner for losses, assuming they are under the Homestead Exemption Statues.

The buyer must have approved funding to convince the bank that they are serious about the transaction. They can still obtain an inspection, but the bank will not pay for any repairs. This is why most offers on short sales are far below the value of the home.

Short sales are a great solution to foreclosure and it’s important to hire a realtor who specializes in short sales and foreclosures to get your highest chance of getting it completed.