California Mortgage Loan Modifications-What YOU Need To Know
February 27, 2009 by admin
Filed under The Economy and YOU
February 27, 2009
Economic News and Information that Affects You
If you’ve been following the loan modification roller coaster for the past year, you know of the tremendous ups and downs in the programs.
The lows included home owners being hung up on, paperwork overloads, bogus loan modification scams and sudden foreclosures after a presumed modification. Does it hit home? Absolutely, in fact, 3 homes in my culdesac all attempted loan modifications only to fall to foreclosure. Our mail carrier even told me yesterday that he had 2 weeks to vacate a home he had owned for 25 years. He said he had an approved loan modification that the bank basically ignored and foreclosed anyway. Everyone has been affected either directly or indirectly.
The highs for loan mod programs are fairly new and are a result of some positive market forces but also the recently passed stimulus package.
Market forces have driven mortgage rates down to historical lows, currently ranging from 4.5%-6% depending on a variety of factors. The FHA is constantly adjusting their loan limits on a per-county basis. Recently, many of these limits have come up, allowing buyers to apply for more expensive homes. To check on your particular county, visit the FHA website for the most up-to-date limit information.
Another important high is that funds for refinancing have also become more available along with funds for loan modifications. Some of this is a result of the stimulus package that just passed. It allows for some homeowners that are under water to refinance. This means they owe more on the home than the market says it’s worth.
For information on modifying your existing loan or to refinance call (888) 233-3213, or fill out the short form below and a specialist will contact you to help:
U.S.-Bankruptcy Filed Every 30 Seconds-Why?
February 27, 2009 by admin
Filed under Credit Tip of the Day
In 2008, a bankruptcy was filed every thirty seconds in the U.S. this is about 1.4 million total bankruptcies for the entire year. How will this compare to 2009? It’s been predicted by most analysts that bankruptcies will continue to increase in 2009, but is it really necessary for most financial situations?
Bankruptcy is a financial tool designed to give people a second chance. The most common reasons for filing bankruptcy are divorce and medical bills but the recession has taken the lead in recent months as people lose their jobs and can no longer keep up with bills. It’s an effective tool, but could be too large a solution for some.
Cost to hire an attorney is typically between $1500$2500, not easy to come up with when you’re already struggling for money. Furthermore, bankruptcy will place a public record on your credit for up to 10 years, which can cause future lenders to deny you credit.
It’s also important to know that not all debts are discharged in bankruptcy. Child and spousal support will remain along with student loans. There could be additional debts that remain so it’s best to check with an attorney before you file.
Before you file bankruptcy, consider your situation because you could be a better candidate for consolidating your creditor debt. This process essentially cures your unsecured debt, the most common example being credit cards, through settlement or management. Settlement reduces the total amount due while management reduces interest and fees while also creating a path to having the debt at zero within 18-36 months.
Why is debt consolidation a better option in some cases? It’s extremely inexpensive (actually saves you money). It also protects your credit from a dangerous bankruptcy mark while stopping collection calls and letters.
To find out of you’re a candidate for debt consolidation, call (888) 233-3213 or fill out the short form below and a specialist will contact you to help. There are also options available now to have a mortgage modified or to refinance your home.
4% Home Loans Under Obama Stimulus Possible
February 26, 2009 by admin
Filed under The Economy and YOU
February 26,2009
Consumer News and Resources To Better Your Financial Position
4% mortgages have been all over the news but most of the reporting is too vague with no real answers provided. What you really want to know is if you can get this loan. The answer is, probably but a few things need to happen first.
To get the best rates on loans your credit needs to be clean. You also need to have a debt/income ratio that works for the bank. A good rule is that your debt/income should be about 50%. Obviously, the lower the ratio, the better you do.
The FICO (credit score) necessary will depend on the bank and whether or not you go through the FHA. Traditionally, the FHA doesn’t place as much weight on your credit score like a traditional loan does but it does still have some level of importance. A good rule would be to have a score of 650 or higher but that does not mean that you would be declined if your score is lower. It might just take some work on the other factors.
After knowing that you’re able to get a loan, the next piece is to time the best rate possible. Today, rates range from 4.5-6% depending on the number of points paid up front. In this economic environment, points aren’t that big of a deal because they can help insulate you from further decreases in the value of the home you purchase. This is effective in that you can limit the down payment and your potential losses of that up-front money.
So what about the 4% loans? Mortgage rates are tied to bond markets. When the Fed (government) buys up mortgage backed securities, mortgage rates drop. The interest rate cuts you hear about often really have no effect on mortgage rates.
With Obama’s new stimulus package, these securities are due to be bought up in huge sums, in turn, lowering mortgage rates. This can happen at any time. The window for the best rates could be short, but good rates will likely be available for some time as the Fed continues to put resources behind improving the home market.
To acquire immediate information on refinancing your mortgage or obtaining a loan modification fill out the short form below and a specialist will contact you. You can also call (888) 233-3213.
Debt Management Programs and The Obama Stimulus
February 26, 2009 by admin
Filed under Credit Tip of the Day
February 26, 2009
Updates, News and Resources on the Economy
Most consumers are dealing with 2 primary debt problems in this recession, mortgages and unsecured debt i.e. credit cards.
Fixing Your Mortgage Problem
If you tried before to get a loan modification or to refinance and got frustrated, you’re not alone, but the process and availability of funds have changed. It’s worth trying again. However, if your home has already gone through the foreclosure process or it has gone to auction, it is too late. If you fall in this category and you still want to get in a home, consider using a third party signer to help acquire an FHA loan. Typically, the FHA requires 2-3 years after a foreclosure is reported to allow a loan to be accepted.
If you are behind on payments by a month or two, but the house has not yet gone through foreclosure, you are a good candidate to get a loan modification. It is also possible that those who have not yet missed a payment yet feel it is imminent will be able to get a loan modification.
Refinancing is also available now that credit markets have loosened. Per the Obama stimulus, restrictions on required equity have also loosened. Formerly, 20% remaining equity was required, which was almost impossible for the majority of struggling homeowners.
If you want information on how to refinance or to modify your existing loan quickly, fill out the form at the bottom of this page and a loan specialist will contact you to help.
Settling Your Unsecured Debt
Unsecured debt is not secured by any type of asset. The most common example is credit card debt, which is only supported by your good credit. Economic conditions have forced many to depend on their credit cards for immediate cash. However, almost all credit card companies have reduced credit lines, increased rates or cancelled cards altogether. Whether you were a good paying customer or not, you probably received these changes. It’s a direct result of losses credit card companies are attempting to recoup from their more creditworthy customers.
*note: reductions in credit lines will affect your FICO score because the algorithm used checks for percentage of credit available relative to the line amount.
If you are struggling with credit card debt, realize the amount can be consolidated. This means it can be managed or settled. Debt settlement is where the card company agrees to take a lower amount as payment in-full. Debt management is more common. This process can reduce payments, interest and fees while protecting your credit and creating a path to being debt free within 18-36 months.
If you need immediate assistance with debt relief or your existing mortgage, fill out the short form below and a specialist will contact you to help. You can also call (888) 233-3213.
Obama Stimulus and Debt Consolidation-How?
February 25, 2009 by admin
Filed under Credit Tip of the Day
Market factors and the recently passed Obama stimulus package are helping consumers and home owners in a variety of ways to consolidate debt and to refinance homes or to gain much needed loan modifications.
You now have options that can help keep your home, save your credit and keep you out of bankruptcy.
Debt Consolidation can be the first line of defense against bankruptcy. Filing bankruptcy can damage your credit for 10 years with cost to hire an attorney ranging from $1500-$2500. For some this might be the only option, but for many it’s too big of a solution for the financial problem.
Unsecured debts, like credit cards can be negotiated through a debt consolidation program. In the end, this process can lower payments, waive fees, protect your credit and create a path to paying off the debt within 18-36 months. This can actually strengthen your credit score from where it is today.
Market conditions have brought down 30 year mortgage rates significantly. Today they range from 4.5-6%, dependant on the number of points paid up front. These low rates have prompted many to attempt a refinance or loan modification only to find that they were denied by banks that were at best, inconsiderate and in many documented cases, rude.
Today, however, credit markets have begun to ease making funds more available. The recently passed stimulus package allows some to get a loan modification even if the mortgage is under water meaning you owe more than the house is currently worth. This is a huge change from the former requirement that home owners must have at least 20% equity to even apply.
If your home has already fallen to foreclosure or it has been sold at auction, loan mods and refis are not available. However, if you have a third party whose credit was not affected by the foreclosure, consider working with an FHA backed loan to get into a new home.
If you feel it is imminent that you will miss a mortgage payment or you are already behind a payment or two, you can call (888) 233-3213 to learn more about your options and to get started. Assistance is also available to consolidate unsecured debt, which will have an effect on your ability to refi or modify a loan. Assistance can also be gained by filling out the short form below. A specialist will contact you to help.
The Obama Mod Program-Resources, Links, Sign-Up
February 25, 2009 by admin
Filed under The Economy and YOU
February 25, 2009
Financial News, Information, and Help Resources
Loan modifications and refinancing are now available. These newly available options are due to several factors including market forces and the recently passed Obama stimulus package, which included help for under-water home owners.
Market Forces: For months the Fed has been buying up mortgage backed securities. These efforts cause mortgage rates to decline. Currently rates rest between 4.5-6%. The differences in rates you’ll see are largely due to the structure of the loan, points and other fees. This means the lower the interest rate, the more points and fees you pay up front, which might be a good idea in an environment where housing prices are not yet stable. Over time, you’ll pay much less with the lower interest rate.
Obama Stimulus Package and Loan Modifications-Refinancing: The recently passed stimulus package is also providing much needed help for frustrated home owners. One provision helps owners that are under water on the loan (most are) so the standard 20% equity is no longer necessary to be approved. Essentially, the government is backing a large portion of these loans and insulating banks from being sued by bond holders. Bond holders are the ones who bought the loans as an investment and will likely take the brunt of this new measure.
Moving Forward: If your home has already gone through foreclosure or has been sold at auction (bought back by the bank or a 3rd party), there is nothing that can be done. However, if missing mortgage payments is imminent or you are already 1-3 months back on your payments, you could be eligible to refi or to modify your loan.
For more information on modifying or refinancing your loan, call (888) 233-3213 or fill out the short form below and a specialist will return your call. Given changes, there are no long waits, lost paperwork or other frustrations that have been experienced in the past.
Obama-The Mo Mod, Loan Modification Program
February 24, 2009 by admin
Filed under The Economy and YOU
The new loan modification programs are due to help tired homeowners finally get the help they need to refinance or obtain loan modifications.
The Obama Mo Mod program is actually a computer program designed to modify Fannie Mae and Freddie Mac loans in the thousands per month. Little is known about this program but it is intended to expedite the loan modification process. The Mo Mod program was part of the recent stimulus package that was passed by Congress.
Before the recent incentives and help programs arrived, homeowners were left on the phone waiting for hours with their banks and government agencies that were supposed to help. The paperwork was endless, faxes were often lost and hang-ups became the norm. This type of environment exacurbated the situation for homeowners that were in dire need of immediate assistance.
How To Qualify for a Loan Modification or Loan Refinance
If your home has already been lost to foreclosure or it has gone to auction, refinancing and a loan modification will not be available. If you are currently making your mortgage payment but know that missing payments in the future is imminent, or you’ve already missed 1-2 payments, you could be a good candidate for a loan modification or loan refinance.
The restrictions have loosened somewhat. Formerly, only homeowners with 20% remaining equity could consider a refinance. Most people who still have this type of equity aren’t in trouble and don’t need to refinance nor do they need a loan modification. Today homeowners can be under water on their mortgage and still have opportunities available to them.
Interest rates have also dropped to historic lows ranging from 4.5-6% depending on the points paid up front and a variety of other factors.
To find out more about obtaining a loan modification or to refinance your mortgage call (888) 233-3213 or fill out the short form below and a specialist will contact you to help.
Update-Homeowners Finally Refi and Modify Loans in California
February 24, 2009 by admin
Filed under The Economy and YOU
February 24, 2009
Recent changes have once again empowered homeowners to refinance their loans or to obtain much needed loan modifications.
Market restructuring coupled with the recently approved stimulus package have opened up funds for many. Generally, refinancing can bring adjustable rates back down to earth with a range of 4.5-6% depending on a variety of factors from FICO score to income and equity. The new stimulus even allows for restructuring up to 105% of the home value. Formerly, it was required that homeowners have 20% equity to refinance. In the current economic environment, that is unattainable for most.
Loan modifications will have some requirements. If your home has already been repossessed or sold at auction, it is too late for a loan modification. If missing your loan payments is imminent or you are already 1-2 months behind on the mortgage, a loan modification could be available to you.
Though loan modifications and refinancing are now available, the red tape in dealing with banks and federal assistance programs remains. Lost paperwork, numerous faxes, hang-ups, and hours on hold are common and frustrating but not necessary. For assistance with a loan modification or to refinance your mortgage call (888) 233-3213 or fill out the short form below and a specialist will contact you to help.
Other helpful links include:
FHA-HUD: The FHA is paving the way to home ownership and recovery for many. This federal agency provides affordable loans with low down payments and other assistance. If you have recently lost a house to foreclosure, it typically takes 3 years to become eligible for a FHA loan. However, there may be options depending on whose name the house was in when it was repossessed if you’re a couple. Check with the FHA to be sure then use this link to find loan limits for your area.
White House Presidential Address: The President will be addressing the nation live tonight, with an obvious emphasis on the economic recovery. This address will be streamed live.
California Home Modification Programs-Information, Support, Links
February 23, 2009 by admin
Filed under The Economy and YOU
California has been hit hard by the recession. Foreclosure rates top the nation while unemployment is around 9% and marching higher. Coincidentally, 9% is the unemployment rate many analysts believe the entire country will experience during the peak of the recession.
In recent months loan modification programs have done little for homeowners who have been left under water as housing values continue to fall off a cliff. The restrictions on the loans were simply too high leaving many without options. Most loan modifications required that the homeowner have at least 20% equity left in the property. In this economic environment that is almost impossible to find and those that do have the necessary equity likely don’t need a loan modification.
With the difficulty in obtaining a loan modification, people became more desperate and turned to options that weren’t really options at all but rather, loan mod scams. These scams are run by opportunistic people wanting to take advantage of a difficult situation. Though there are some companies that want to help, there are just as many willing to take your money and run.
But things are starting to change. The recent stimulus package that passed in Congress will provide much needed relief to homeowners that want to refinance, which can change a family’s financial position significantly.
Today many homeowners have sub-prime, alt-a or adjustable rate loans all of which either have reset to higher payments or are due to reset soon. Refinancing or gaining a loan modification can change these loans to the more desirable and most popular fixed rate loans. We’re also experiencing the lowest 30 year mortgage rates in decades so the time is right.
However, with new government policy comes a tremendous amount of red tape. Many have already experienced the dropped calls, lost faxes, hang ups and waiting on the phone for hours to get an answer. This isn’t necessary with what’s available today.
If you need assistance with a loan modification or refi, simply call (888) 233-3213 or fill out the form below and a debt relief specialist will contact you. There is no obligation and the consultation is free.
Card Companies Hammer Consumers-100 pt. FICO Drops?
February 23, 2009 by admin
Filed under Credit Tip of the Day
-Interest rate jumped from 5.37 to 13.9%
- Interest rate jumped from 14.3 to 17.9%
-Some BofA cards going up 10-20 points (that’s just the increase)
-Other cards moving rates on an “individual basis”
-Card canceled altogether
-Credit lines decreased
We’ve written before about the increased rates, canceled cards, add-on fees being imposed by credit card companies. These tactics are nothing new but they’ve recently gotten out of hand.
The fallout from the recession has caused many credit card customers to default on their unsecured debt. To return the favor, credit card companies are hammering their customers with outrageous fees, some increasing the interest rate 10-20 points. For many these new charges are not sustainable.
To increase frustration, several of these banks have received a government bailout with taxpayer money so effectively, you’re paying for it twice. Officials have stated that the bailout money was more directed at improving the balance sheets of the banks, not to directly help consumers.
The stimulus that passed recently will help with regulation but not until mid 2010, which will likely be too late for some consumers who are already too far behind.
The typical knee jerk reaction when there is an interest rate increase is to cancel the card BUT, this might be a really bad idea. Cancelling your card can cause your credit score (FICO) to drop 100 points. Furthermore, you’re obviously not out of the debt, you just can’t use the card for additional charges. Monthly payments will still be due on time.
If you receive a rate increase notice, you should have the opportunity to opt-out. This basically means that you’re no longer going to use the card and you plan to pay off the balance. Balance transfers are an option but the credit reporting agencies are not fond of that strategy.
If you’re stuck with credit card debt, negotiate. Yes, it’s possible. If you’re not comfortable doing it on your own, have the debt consolidated, which can lower the rate, eliminate penalties, stop collection calls (if you’re receiving them), and get the debt paid off in-full within 18-36 months.
Free debt relief consultations are available by calling (888) 233-3213 or by filling out the form below.
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Use the credit card debt calculator below to find out how long it will take you to pay off your debt with the increased rate.