February 28, 2010 | Posted by L.J. James
I ask what is going on here in the USA? I am not a financial genius and I could be wrong but this is the way I see it. First we bailed out the banks because they gave out too many bad loans. These people who are financial geniuses gave out loans to people who could not afford them, hoping things would get better and the people could pay their Bills. Basically what they did was gambling. Its like me going to Las Vegas betting over and over on red figuring it will come up eventually and when it never does and I lose all my Money. I then go and ask for all of it back plus more!
The Banks who gave the Mortgages where given a bail out of around 600 Billion Dollars so they could stay in business. Now as I have read for around half of that the Government could have paid off all those bad loans and helped poor American Families keep their homes. If all the bad loans where paid then would not that take care of all the Banks problems? Instead they gave super rich bankers who mad bad choices lots of Money so they can continue to make the same decisions that failed before and live their incredible lives that most of us can only dream about.
Now we have the same thing going on with the Auto industry. I do not understand why we would bail them out. It seems to me that if you run a business and you fail, well then you fail. Aren’t these the same auto makers who over charge us for their cars? I can not believe none these manufactures can make a car that will last much longer and run on less gas or some other type of cheaper fuel. The Auto industry and the men who run it have been a major controlling factor in the world for many years. Aren’t these the same Auto Tycoons that we have heard stories about them keeping all the new smaller car companies from starting up or “buying up” any competitor who comes up with a better Motor Vehicle for over the last half century? The story of Tucker and his dream of making a better car for hard working Americans, Was that not a true Story?
If these Auto Companies where left to go out of Business many Americans who work at these Companies factories would lose their jobs. I do care and understand that it would be very hard on them. Right now is a tough time for all Americans. But I believe that before the dust could even settle from these companies collapse, We would have many small car manufactures starting up making much better cars at lower prices. These cars would last many years longer then the current ones we drive and I can only guess would run much further on a gallon of gas or some other cheaper fuel source. I would bet that fuel would be much better for the environment. Soon after with the huge super powerful big Three of the auto industry no longer in control and maybe crushing any small start up auto manufacturers, We would have hundreds of small car companies all across the Country and soon many more jobs for everyone along with much better automobiles to drive around in that burn cleaner fuels. Who knows maybe we could even get those dam flying cars we where all promised as Kids!
This is a hard time for this country. I think it is evident in the choices the American people have made as of recent, that we now know we can no longer have the same people in power making the same mistakes. These companies and the people that have been controlling this Country have lead us down this road. It looks to me that now that we have reached the end of the road and there is a cliff. Those that have been leading us are now asking us all to trust them and jump off that cliff and fill in the gap so they can walk over us and allow them to continue leading the way !
The idea of this country has always been if you can build a better Mouse trap you can become a Millionaire.What it looks like to me is these people did not allow any one else to build a better Mouse trap. Then they sold the only traps available making them so they would last only a short time, While charging a real high price for them. It has got to the point where the people can not afford to buy new Mouse traps when the old ones brake and have decided they will either try to fix the old ones or just live with the mice. They need their money for other things more important then new Mouse Traps. Now like in the case of the auto Companies they are asking the Government to give them the Money the people can no longer afford to spend on their products.
Now is not the Money they are asking to be given the hard earned Money the Government has taken from the same people in Taxes who can no longer afford to buy these products! These Companies are getting the hard earned Money of the American People who can no longer afford to buy these over priced Vehicles, That last a much shorter time then the ones made 50 years ago. Now our Government who has been over taxing us for years is thinking about giving away 15 Billion dollars of our money.
What charities and programs are we going to have to cut so these Auto tycoons who have houses all over the world, Their own private Jets and pretty much anything they have ever wanted continue to get richer? Will this money come from our Schools? What about the Hungry Children of the USA? What about all those people who are out of work and those that are going to lose their homes the banks are foreclosing on? I bet 15 Billion dollars could really help them out.
America is the land of dreams. It is the Country where a man can be poor one day and rich the next if he has a good idea. There is nothing that says if you have a great Idea and then you make a Mistake and lose everything the Government will bail you out! We are not helping the poor Auto factory workers here, They most likely will loose his jobs any way. We are only helping the Rich Auto Tycoons to be able to pay for all their many luxuries! Do I think our Government will bail them out? Well to that all I have to say is take a look at who funded many of today’s politicians campaign and then you will have your answer?
Again I am not a financial Genius and I may have this all wrong I am only Your Bro L.J. James AmericanBikerX.com
LJ James is a independant author working for many Websites doing reviews on Companies ! LJ James is a Member of a Motorcycle Club LJ James has gone many years reviewing programs like Sons of Anarchy Click here to get your own unique version of this article with free reprint rights.
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October 6, 2009 | Posted by Staff
If you are having trouble making mortgage payments or in danger of foreclosure their are several relief programs you could be qualified for such as mortgage refinance, mortgage modification, repayment plans, reinstatement, or forbearance.
With so many borrowers struggling to make regular payments many homeowners are searching for a solution. The combination of a weakened real estate market and larger rates is too big a burden for many borrowers to handle.
Because of the significant increase in mortgage defaults many lenders are willing to negotiate workout programs with home owners. If you are a home owner and in danger foreclosure you could be qualified for a change to your current mortgage agreement, this can happen with a mortgage refinance or home loan modification.
Home loan refinancing is when a mortgage holder takes out a fresh loan with improved conditions and utilizes the proceeds to repay the current mortgage. Depending on the value in your property this may be an option. Mortgage modification is an renegotiation between a lender and home owner to modify only certain elements of an existing home loan agreement. These modifications can be reduced monthly payments and usually make it easier for borrowers to keep up with their mortgage amortization schedule.
You can also find plans that are intended to help borrowers who are behind on their monthly payments get current without penalty. These options preserve the existing loan contract but alter it temporarily to accommodate hardship situations and are repayment plans, reinstatement, and forbearance.
A property loan repayment plan is a option that represents a grace period for late borrowers to pay back past due regular payments without penalties. The late payments are usually added to the monthly payments for a period of time at the end of which the mortgage holder is paid up. If a mortgage company allows a late home owner to repay the total owed amount in one lump sum it is termed mortgage reinstatement. This can be used in combination with forbearance if a borrower can prove to the lender that they will soon receive a large sum of money often this is a tax return or cash of a sale.A mortgage company may extend forbearance, or a temporary stopping of monthly payments, if a home owner is in significant distress. This is helpful if a borrower is experiencing financial troubles and is believed to recover with time. It is often granted with a home loan repayment and mortgage reinstatement programs.
If you are worried about the threat of foreclosure there are several mortgage assistance programs for which you could be qualified. Because there are so many people late in home loan payments many lenders have started working to help borrowers at risk of foreclosure. Talk to your mortgage company to find out what solutions may be available. They can help with the details of your mortgage situation that will dictate what relief programs for which you are qualified.
Categories: Mortgage Help | Tags: forbearance, loan modification, mortgage refinance, stop foreclosure | No Comments »
October 3, 2009 | Posted by Staff
Freddie Mac is a government sponsored enterprise created in the 1970’s to increase the rate of home ownership. If you have a home loan held by them and are having difficulty making payments you may be eligible for assistance.
Freddie Mac Headquarters
The Federal Home Loan Mortgage Corporation, often referred to as Freddie Mac, was established by the federal government as a way to encourage the domestic real estate market. Freddie Mac’s role is to buy mortgages or mortgage contracts on the secondary markets in order to increase the cash available to direct lenders. What this means is that Freddie Mac purchases or guarantees the mortgages that lenders issue to homeowners, this limits the lenders risk and frees up money for them to offer more loans. It was started primarily to compete with Fannie Mae, the government sponsored enterprise that has been around since the great depression in its mandate to improve the rate of home ownership.
In 2008 at the height of the housing crisis Freddie Mac was placed under the control of the US government. It was estimated at that time that Freddie Mac and Fannie Mae, the two semi public institutions, backed or owned more than one half of the $12 trillion US property loan market. In 2007 Freddie Mac reported a revenue of over $40 billion while experiencing an operating income loss of almost $6 billion. It’s net income in 2007 amounted to losses of approximately $3.1 billion while its total assets were values at a staggering $794 billion.
With all of their assets and business units linked to the real estate market the turmoil of 2008 had a devastating impact. The drop in real estate value left the institution scrambling for money. The US Government was forced to step in and back the troubled organization. In exchange for providing the much needed financial support of the taxpayers the federal government gained significant influence on the policies and programs of Freddie Mac.
To assist struggling home owners the government has implemented the Make Home Affordable Program. This program is funded by the economic recovery act passed by congress and is designed to provide mortgage relief to home owners who are behind in their monthly payments. In exchange for the fiduciary support of the government Freddie Mac is obligated to work with distressed borrowers to find mortgage restructuring solutions that reduce financial strain. Depending on the details of a borrowers situation there are several programs including loan modification and mortgage refinancing that my be used to change contracts and payment terms.
If you are a struggling home owner and your mortgage is backed by either Freddie Mac or Fannie Mae you should be qualified for assistance. Contact either of those organizations to find help. If they are not the guarantors of your loan then can assist you in determining what company is and guide you in the right direction for assistance.
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October 1, 2009 | Posted by Staff
Fannie Mae is the common name for the Federal National Mortgage Association, a stock holder owned corporation that was recently placed under the control of the government due to extreme financial distress. There is a good chance they are the holder of the title of your home and if so you may be entitled to government assistance.
Fannie Mae Headquarters
Fannie Mae was founded by government charter in 1938 during the Great Depression. Its purpose was to increase the home mortgage availability for low income families by purchasing and securitizing home loans. This was done to make sure that there was a stable supply of money to the institutions and companies responsible for issuing home loans to home buyers. In 1968 the federal government converted the once public institution into a privately held corporation under the control of shareholders. As a government sponsored enterprise its existence has been criticized for its relationship to the government and semi public status.
In September of 2008 the collapse in the US mortgage market forced the Federal Housing Finance Agency (FHFA) to place Fannie Mae into conservatorship. Once again the organization was returned to the control of the the federal government. It was estimated that at that time Fannie Mae and its sister corporation Freddie Mac guaranteed approximately half of the United States $12 trillion dollar property loan market. It had revenues of over $51 billion in 2008 though experienced and operating loss of a little more than $5 billion in 2007. The organization had more than $880 billion in assets at the end of 2007. With all of the companies assets closely intertwined in virtually all aspects of the US real estate market the mortgage crisis forced the government to intervene with public money.
There had long been suspicion that Fannie Mae and Freddie Mac were guaranteed by the government and once those suspicions proved true the federal government gained significant control with those organizations. That government influence is being used to implement programs and policies to assist struggling home owners. If you are a homeowner with a mortgage owned or guaranteed by Fannie Mae you may be eligible for assistance. In exchange for public assistance Fannie Mae is mandated to offer mortgage relief to struggling borrowers including mortgage refinance and loan modification programs. These programs restructure and alter mortgage contracts to lower interest rates or monthly payments. If you are behind in your mortgage payments you can contact Fannie Mae directly. They can help you determine who is the holder of your home loan and how to get assistance.
Categories: Government Agency | Tags: fannie mae, loan modification, mortgage refinance | No Comments »
October 1, 2009 | Posted by Staff
Mortgage refinancing is the replacement of a valid mortgage contract with a new mortgage agreement with brand new terms. Loan refinancing is a term used to describe to the replacement of any loan obligation with a new obligation with new terms. It is normally used to describe replacement property loans. The proceeds of refinanced agreements is generally used immediately to pay off the existing debt. If you would like to learn more about refi programs regarding your mortgage you should contact your mortgage company. In the event that your lender is unwilling to discuss terms you can also receive refinancing from a different lender.
Mortgage loan can be used to alter any of the terms of a current loan agreement. Many borrowers use it to reduce financing costs, payoff other debts, or alter interest rate calculation methods. During the present housing situation many struggling property owners have used refinancing to modify aspects of their home loan contracts generally making them simpler to stay current on. Perhaps the most common use of home loan refinancing is to reduce regular payments which provides support to mortgage holders. Property owners who have fallen behind in their mortgages and may experience foreclosure can gain from lowering their regular home loan obligations. Loan refinancing is heavily used as a way to help borrowers’ cash flow. With the ongoing housing slump many households are also dealing with additional hardships including unemployment or high medical costs. For these individuals refinancing can provide much needed assistance from the incessant demand of crippling monthly payments.
The altered aspects of a refi contract must work to the benefit of both parties. Lenders will only sign off on a lower monthly payment in return for changing some other terms of the contract. Usually the amortization schedule of the mortgage or the rate is also modified. The refinancing eligibility review also takes into account your current economic profile and how it may have changed since you secured your initial loan. Your mortgage company will help you review your current borrowing situation to determine if you may be a candidate for refinancing.
Mortgage refinance has been used by borrowers for many years but it is only recently that many struggling mortgage holders have used it to rid themselves overwhelming loan contracts. The US congress, as one facet of the economic stimulus plan, has decided to provide mortgage relief programs in a bid to curtail defaults. Through the Home Affordable Refinance Program the government has budgeted resources to promote home loan refinance for underwater homeowners. The cash from the program is given to lenders who work with distressed home owners create easier amortization schedules. If you would like to educate yourself about the Home Affordable Refinance Program or think you may be qualified for relief you should speak with your mortgage company. They should have all the important information regarding public funding for mortgage loan refinance.
Categories: Mortgage Relief | Tags: HARP, Home Affordable Refinance Program, home loan relief | No Comments »
September 30, 2009 | Posted by Staff
The mortgage crisis has rocked lots of households. As foreclosures begin to
grow the financial situation looks as if it could be slipping into recession. Most experts think a economic recession has already been under way for months now. In a bid to save the economy the U.S congress has implemented a recovery plan.
The rescue plan is to support the domestic real estate market by providing cash to loan holders who are having difficulty getting the cash for monthly payments. Experts say the strategy is predicated on the assumption that many of the nation’s financial problems are rooted in a depressed home loan market. By supporting failing home loans and making sure people stay in their houses it is believed the economy at large will also strengthen. With consumer confidence and construction spending lower than they have been in decades it is clear that a type of impetus is necessary to jump start the domestic economy. If experts are right the mortgage relief programs they’ve created could be the key to rejuvenated financial growth.
The program also calls for home loan lenders that are willing to revisit the mortgage agreements they have made in the past. They are urged to council struggling homeowners to try and workout easier regular payments. Many borrowers are unable to make their monthly payments because of contractual obligations such as larger payments and interest rate hikes. Some mortgage holders have fallen victim to the reduction in property prices which has significantly limited the opportunities for many home owners. Whatever the cause for home owner anxiety home loan relief programs can help limit home foreclosures.
The government mortgage assistance program enacted by the US congress earmarks much needed funds for people to remain in their houses. If you find yourself currently at risk of defaulting on your home loan and feel you are eligible for assistance you should contact your lender. The federal government is instructing all homeowners to speak with their lender. Lenders have all the important information regarding payment relief. If your mortgage company is unable to help you with mortgage refinancing get in touch with a public housing agency.
Categories: Government Assistance | Tags: home loan relief | No Comments »
September 29, 2009 | Posted by Staff
If you have fallen behind in your home loan payments or are scared of default you could qualify for a home loan relief program. Due to the high amount of struggling mortgage holders most mortgage companies are willing to talk about loan refinancing and mortgage modification. Both of these initiatives have allowed loan holders to reduce monthly payments allowing millions to keep their homes. To facilitate these home loan assistance plans congress has created two programs; the Home Affordable Modification Program (HAMP) and Home Affordable Refinance Program (HARP). These programs are run through home loan companies and creates incentives for them to work with struggling mortgage holders to lower monthly payments. These programs all have basic eligibility requirements.
If you want to get a property loan refi through the Home Affordable Refinance Program Eligibility you should comply with several qualifications. There are many details of your mortgage situation that are reviewed when calculating your qualifications for a mortgage refi. You must own a residential house. Your mortgage should be guaranteed by one of Fannie Mae or Freddie Mac. If you do not know if your home loan is guaranteed you should speak with those agencies as soon as possible.
If you are current on your home loan and how much you owe has an impact on whether or not you are eligible refinance. To qualify it is important that your present loan doesn’t exceed 125% of the current value of your house. For instance if you owe $400,000 on a house that is valued at $350,000 you may qualify. To learn if you are a candidate for home loan refinancing speak with your lender.
If you would like a home loan modification with HAMP their are a few requirements you must meet. These qualifications including whether or not your house is your primary residence and what you owe. Program guidelines also consider reasons why you might currently be having difficulty with regular payments such as sudden increases in monthly payments. The percentage of your total income that your monthly payment represents is also taken into account when deciding your eligibility for government mortgage assistance.
If you are having trouble with mortgage payments and are afraid your house may be taken away you may be eligible for mortgage relief in the form of mortgage refinancing or mortgage modification. To learn more information about qualification requirements and if you are a candidate contact your mortgage company.
Categories: Government Assistance | Tags: HAMP, HARP, Home Affordable Modification Program, Home Affordable Refinance Program, home loan relief | No Comments »
September 28, 2009 | Posted by Staff
Mortgage modification describes the process by which the borrower and lender work together to alter the original terms of a mortgage contract. Generally any type of loan can be modified with certain terms altered but it is mostly utilized with mortgage loans. Home loan modifications have over the last year jumped in usage as a result of the current home value situation. Loan modification has been used to aid home owners who have stopped paying monthly mortgage loan payments because of unemployment or increasing loan costs. Mortgage modification has been such a relief that congress has recently passed a mandate to lenders to offer more modification plans to distressed borrowers.
Mortgage modification alters the original loan agreement to assist the borrower in 1 or several ways such as; lowering interest fees or reducing penalties for late payments. Lowering monthly mortgage costs is probably the most popular aspect of loan modification. Many home owners have found themselves unable to make payments after experiencing a substantial jump in the monthly costs. Either because of a known increase or interest rate readjustment lots of home owners have unexpectedly found themselves with a mortgage payment they are unable to afford. Loan modification makes it possible to control exploding payments.
Home owners who are late on their current payments or are in foreclosure can apply for mortgage modification assistance. Depending on the particulars of your financial situation the options open to you may vary. Mortgage modifications are a product of negotiations between the mortgagor and mortgagee and are required to be agreed to by both sides. Normally lenders are amenable to talk about altering loan terms when their is a likelihood the borrower will default. Often a lower monthly payment is more than your mortgage company may get from a foreclosure sale of a house making mortgage companies willing to accept smaller monthly amounts. Depending on the details of your mortgage including repayment status and current property value your mortgage company could be willing to discuss your account.
The government has also gotten involved and is providing incentives mortgage lenders to extend mortgage modification opportunities to their borrowers. With a few federal plans such the Home Affordable Modification Program the government is allocating record sums to create home loan relief programs for loan holders. The money is used to create incentives to mortgage companies to work out loan modifications with borrowers and offer smaller contracts. Because the funding is reaching the individual homeowners via lenders themselves, if you think you may be a candidate for relief you should talk to your mortgage company. They should have everything you need regarding qualification guidelines and will guide you through the process if you are eligible.
Categories: Mortgage Relief | Tags: HAMP, Home Affordable Modification Program, home loan relief, loan modification | No Comments »
September 25, 2009 | Posted by Staff
If you are thinking about refinancing your home mortgage or find yourself behind in payments it is important you understand the basics of how mortgages and home financing works. A home mortgage is one of the most important contracts you will enter into as it likely represents a significant portion of your income for a long time to come. Unless you are able to pay a large amount of a home price upfront, which is not a reality for many people, the specifics regarding your mortgage contract will have a significant effect on your financial situation down the road.
The first key to securing a mortgage contract you can afford is understanding exactly what a mortgage is. Below are several basic terms to help get you started if you have not already educated yourself on home financing.
Investment Property - this is the term for a property that is not the primary residence or home of the owner but what bought for expected financial gain either due to increased property value over time, to generate income through rents, or for tax benefit.
Lender Placed Insurance - insurance put on the property by the lender or mortgage company as a means to protect their investment
Mortgage Insurance - this refers to insurance that provides protection for the lender in the event that the borrower defaults on a loan. Mortgage insurance is often mandatory on loan where the down payment represents less than 20% of the total price of the property.
Mortgage – this is the legal contract that sets up the borrowers obligation to repay their lender money used for purchase of a house or property
Refinance – this is the process of taking out a second mortgage or loan then using the proceeds to pay of the initial obligation, normally done to secure different loan terms
Repayment Plan – this term is used to describe the general process of paying back loan balances and accrued interest through regular payments over time
Servicer – this is a company that works in the serve of the bank or mortgage company and performs management of the loans in their portfolio including billing and collecting payments and fees, administering insurance and tax paymennts managing escrow accounts, customer relations, and foreclosure when situations warrant it
Title – this is the name of the document that a person owns a real estate property
Work Out -this is a method to rework or restructure an a loan or mortgage agreement to avoid foreclosure. There are several ways to do this including forbearance, loan modification, and short sale.
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September 25, 2009 | Posted by Staff
If you are behind in your monthly housing payment and are afraid your mortgage lender may foreclose on your house you should be aware there are options you can use to lean on when money is tight. There are many mortgage assistance programs created to help underwater mortgage holders reduce their monthly payments. Preventing foreclosure does not stop with a public relief plan and reduced payments. Once you are on solid financial footing you must also think out and follow a sensible financial plan.
There are many public programs intended to work with borrowers to avoid foreclosure. With the help of assistance programs such as mortgage modification and mortgage refi struggling mortgage holders may be able to reduce their mortgage payment. Loan modification is a special agreement you negotiate with your mortgage company to alter specific aspects of your mortgage agreement.
Home loan modifications are often used to modify the repayment terms of mortgage contracts, usually making them smaller to reduce pressure on homeowners. The alternative type of government mortgage relief program is mortgage refinancing. As opposed to mortgage modification mortgage refinance is an entirely new mortgage. Depending on the specifics of your home loan agreement and financial situation you may be eligible for aid.
In the case that you are eligible for help and take advantage of the programs to get back on your feet there are several things you still must do to complete the stop foreclosure program. It is crucial that you closely adhere to a sensible financial plan. By getting yourself over your head in debt there is a good chance you will find yourself dealing with foreclosure again in the future.
Categories: Mortgage Help | Tags: foreclosure | No Comments »
