by Florida Mortgage Expert on November 21, 2009
Have you recently lost your job or a major source of income involuntarily? Are your mortgage payments in arrears or do you think you will fall behind with your mortgage payments soon? Are your Option ARM or Alt A ARM getting ready to modify? Have your mortgage payments recently increased? If so, there may be solutions from your loan company to help you stop foreclosure that you are not aware of.
Mortgage loan workouts are mortgage options centered around preventing you from losing your house to foreclosure. There are several different ways that mortgage loan companies provide mortgage workouts to their clients.
Solutions To Prevent Home Foreclosure
- Deferment – Deferment is a settlement that your mortgage lender makes with you to allow you to make part of your mortgage payment at a later date. Basically, the mortgage loan company will make your [current payment smaller] by some amount and add that amount onto your principal that you will have to remit at a later date. This is a good option to halt foreclosure if you have some temporary loss in salary that has been resolved or will be in a short period of time and you just need some temporary relief.Student loans, which are normally deferred until sometime after the student graduates from college, are similar to this type of workout. In the same way, a mortgage can be deferred.
- Repayment Agreement or Forbearance Plan – Your mortgage lender might offer you a forbearance plan if your mortgage is behind due to some short term reduction in income that is now settled. Repayment agreements allow for the delinquent money that you owe from missing a few mortgage payments to be paid over a series of monthly payments. During the forbearance plan your mortgage payment will go up temporarily until the past due money that you owe is paid back. Once the money is paid back that you owe, your mortgage payment will return to its normal level.
- Partial Claim or Second Lien Mortgage – In this mortgage workout, another loan that you may or may not have to make payments on is taken out for the amount of the past due money that you owe. Once you are able to refinance or sell your property, this type of mortgage will have to be paid back.
Options If You Want To Move
Foreclosure on your home can be prevented by the following options.
- First, there is the short sale. A short sale is when you get your mortgage company to agree to let you sell your home for less than what you owe on it. If you plan to sell your home for less than you owe, you will have to get your mortgage company to agree, since they have a lien on your home. This process will take some time so get started early if you plan on selling your home.
- A Deed In Lieu of Foreclosure is the second option. A Deed In Lieu Of Foreclosure is where you would transfer legal custody, or title, of your property to your mortgage lender in exchange for the debt that you owe them. If you do give them legal ownership of your property you will want to make sure that they completely erase your loan. Making loan payments on a house you no longer own or live in is the last thing you want.
Get Help To Prevent Foreclosure
Your best option to prevent foreclosure is to get the help of your mortgage company. The faster you contact them and ask for their assistance the better off you’ll be. Putting in the effort to work out a good faith solution will make them more willing to work with you. Good luck.
by Florida Mortgage Pro on October 19, 2009
Now that home prices have leveled in many parts of the country, many first time homebuyers are looking for creative ways to move into the home of their dreams.It has become a little easier to purchase a home because of the Federal Housing Administration, or FHA.This helps home buyers enjoy the current ,000 tax credit being offered through the end of the year.How does FHA make home buying so attractive?
For starters, you can finance a new home with very little down. 3.5% of the purchase price to be exact.WIth a FHA loan, you can get into your new home with just 3.5% down compared to at least 10% with a conventional loan.5% down, and it doesn’t even have to be your own money.The money can be given to home buyers by a family member. Conventional loans for years have been the staple for purchasing new homes.First time homebuyers took advantage of 100% financing and many utilized 80/20 loans. Now, expect to pay anywhere from 10 to 20 percent down to get a conventional loan, and above 80% is going to require Private Mortgage Insurance.
FHA also allows first time home buyers the opportunity to purchase when conventional lenders issue a denial.The Federal Government insures FHA loans, and because of the state of affairs with the housing market, the guidelines are a little less strict compared to conventional.Perfect credit and a 680 credit score is going to be required by most lenders for conventional loans.A 620 credit score will be required by most lenders for an FHA home loan. Although some lenders will work with scores down to 580, expect your lender to require a middle score of 620 before you are issued a pre-appvoal letter.
FHA is a very strong option for purchases. Although 3.3.5% down payment is required, however, 100% of this down payment can be gifted to the home buyer. What this means is that you can have your down payment gifted from a family member, and walk into your home without having to put any of your own money down.
Up to 6% of the purchase price can be in the form a seller concession. Conventional loans limit the seller credit to 3%, while you can go as high as 6% through FHA.The concession can be used to buy down the rate for the homebuyer, or cover any of the other closing costs.A great way to take advantage of the seller concession is through the 2-1 buydown. By taking advantage of this concession, buyers can get an interest rate 2% below market in the first year, and 1% below market the second.
You can also expect the appraisal process to be a little smoother with FHA compared to a conventional appraisal.A conventional loan requires that the appraisal is ordered through the home valuation code of conduct, while FHA can be ordered directly by the broker or lender.
FHA has been around since 1934, and now represents almost 50% of the purchase market.The growing popularity is not surprising among first time homebuyers. To find out more about how to qualify for an FHA home loan, visit http://www.timmarose.com
by Florida Mortgage Pro on October 6, 2009
Once your offer for your dream house has been accepted, there is still so much to do before you can call the house trully yours. {In the following article, an experienced realtor will familiarize you with the most important steps of the process.}
After your offer has been accepted, the next thing to do is to meet with your legal adviser and have her/him explain you all your obligations following from the contract. The attorney should also advise you as to what expenses you are likely to incur with respect to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
Letters are sent by your attorney to all municipal or regional utility departments to verify that there are no arrears or outstanding charges, such as gas, water or hydro expenses. The utility departments will also be informed if the equipment on the property is rented or owned, and also about the planned closing date, the name of the new owner and the vendor’s attorney. Details about the billing type and whether the billing is metered, all this is also requested by these letters.
TAXES
A Tax Certificate is asked by your lawyer to verify the amount of the current year’s taxes and to inquire as to arrears and outstanding charges for taxes for the current year and any previous years.
BUILDING & ZONING
The Building and Zoning Department will need to get involved as to the particulars of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your solicitor to this department, along with a copy of the survey to reveal all this.
TITLE & EXECUTION SEARCH
Another important part is to determine whether the vendor is the property owner and whether he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not revealed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that realizes the Search of title to the property. Also an execution search is done in the appropriate Sheriff’s Office to confirm that there are no executions against the vendor or previous owners of the property that would affect your title.
FINANCING
All the initial searches we have just outlined are taken care of by your attorney. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will require to finish the transaction. There are a number of fees that you may not be aware of on the day of closing that relate to mortgage financing. Your legal adviser can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.
BEFORE THE DAY OF CLOSING
You will be invited to show up at your solicitor’s office a few days prior to closing to sign all necessary documents and to provide your solicitor with the balance of closing funds by way of certified cheque.
CLOSING DAY
Your attorney will arrange a meeting with the vendor’s solicitor at the appropriate Land Registry Office to subsearch the title and finish the execution searches. Documents, keys and cheques will be exchanged and your attorney will supervise the registration of all necessary documents. Once the documents have been registered the vendor’s solicitor may release the finances to his clients and your attorney may release the keys to you.
AFTER CLOSING
Now your lawyer will provide you with a reporting letter that certifies your title and explains all the transaction aspects. After moving in to your new home, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are indeed left on the property by the vendor. In case you find out anything is absent, get in touch with your lawyer as soon as possible.
by Florida Mortgage Pro on October 5, 2009
Even after your offer for the home you decided to buy has been accepted by the seller, there’s plenty left to do before you can rightfully move in. {In the following article, an experienced realtor will highlight the most important pitfalls of the process.}
After your offer has been accepted, the next thing to do is to meet with your attorney and have her/him explain you all your obligations following from the contract. Your lawyer should help you to understand all the expenses connected to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
The solicitor will also send letters to all the concerned municipal or regional utility departments, in order to validate there are no arrears or outstanding charges for gas, water or hydro expenses. The utility departments will also be informed if the equipment on the property is rented or owned, and also about the planned closing date, the name of the new owner and the vendor’s legal adviser. Information about the billing type and whether the billing is metered, all this is also asked for by these letters.
TAXES
Your attorney will ask for a Tax Certificate to verify the current year’s taxes amount and to find out any arrears and outstanding charges for taxes, both in the current year and in any previous ones.
BUILDING & ZONING
Your legal adviser will also send a letter to the Building and Zoning Department, along with a copy of survey for the property. The purpose of this is to find out all the details of zoning by-laws and restrictions concerning the distance from the street and side and rear lines, construction type, lot and building areas, lot frontage and depth requirements and permitted uses.
TITLE & EXECUTION SEARCH
Another important part is to establish whether the seller is the property owner and whether he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that manages the Search of title to the property. Also an execution search is made in the appropriate Sheriff’s Office to verify that there are no executions against the seller or previous owners of the property that would affect your title.
FINANCING
While your legal adviser is completing his initial searches, it is your responsibility to make necessary arrangements for financing. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will need to finish the deal. On the day of closing, you might not know of all the costs related to mortgage financing. Again, it is a good idea to ask your lawyer about these expenses, when you get the Mortgage Commitment Letter from the financial institution that you have selected.
BEFORE THE DAY OF CLOSING
A few days before the closing, you will need to visit your lawyer’s office to sign all the necessary documents and to produce a certified cheque to confirm the balance of closing funds.
CLOSING DAY
Your solicitor will arrange an appointment with the vendor’s legal adviser at the appropriate Land Registry Office to subsearch the title and finish the execution searches. They will exchange documents, keys and cheques and your attorney will make sure all the necessary documents are registered. Once the documents have been registered the vendor’s attorney may release the money to his clients and your legal adviser may release the keys to you.
AFTER CLOSING
After closing your lawyer will prepare a reporting letter to you certifying your title and explaining all aspects of the transaction. When you move in to your new home check to see that all items in the Agreement of Purchase and Sale specified as included in the purchase price are left on the property by the seller. Let your lawyer know without any delay if you believe something is absent.
by Florida Mortgage Pro on September 28, 2009
It is likely that you think of a number of things when you hear the words real estate investing. You may think of real estate investing as real estate portfolios and real estate retirement plans, or you might focus on short sales, bulk reo investing and virtual real estate investing. You may also wonder what type of role these things can play in your life as a real estate investor in different types of economy.
There is a lot of information out there on real estate investing. Getting the most out of real estate investing education involves being familiar with basic RE info. Whether your target is short sales, bulk reo sales, virtual real estate or improving real estate investor abilities, you need to know some real estate investing basics. Here are three main real estate investing concepts that many experts do not even know:
1. You will always get a positive yield with real estate investing education. Each real estate deal can represent thousands of dollars in potential wealth. Understanding how to get that wealth will be the key to your success. Knowing more about real estate betters your odds of success when you do a real estate deal. A small investment in education has the ability to yield big results when it is implemented.
2. Any economy allows for success in real estate investing. Many people think that you can only succeed in real estate when the economy is booming. Actually a poor economy is not a bad economy for real estate investors. You can often buy properties at deep discounts. You might also find deals that simply would not exist in a booming economy. Real estate investing may also turn the tide for a poor economy. When the economy is not thriving, short sales, bulk reo sales and virtual real estate can all thrive. You can save yourself from financial difficulty along with others by knowing how to do these deals.
3. You do not need lots of your own cash to be a successful real estate investor. You can make real estate investing a success regardless of how much money you have. There are lots of types of deals that you can perform with the money of other people. Private lenders will lend you their money if they think you are a good investment. A good investment will know as much as they can about real estate investing. This will help you show private lenders that you are a good investment if they do not know about real estate investing themselves.
Real estate investing is a great way to create a good amount of wealth. You can create an income in any economy. Using knowledge of real estate investing, short sales, bulk reo sales and virtual real estate you will be able to create success for yourself. Real estate investing basic knowledge will help you succeed as a real estate investor.
