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 | 
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September 19, 2009 | Posted by Staff
One of the simplest and yet most important thing you can do to protect yourself from losing your home is to keep up to date on the terms of your mortgage agreement. By reading your mortgage statement monthly you will be aware of your payment status and be able to quickly respond to changes. If you are unsure of how to read your mortgage statement or trouble understanding any aspects of your home loan you can contact your lender for help.
If you have never before looked at your mortgage statement or are confused by some of the terms you see there below is a quick introduction. All of the terms listed are important concepts in the mortgage industry and you should be familiar with them all if you wan to own your own home.
Escrow Account – this is a special account that holds a homeowners regular payments to be used for taxes and insurance until due
Fixed Rate Mortgage – a mortgage agreement with a fixed, or unchanging, interest rate for the entirety of the loan
Forbearance – this is when a lender postpones legal action in response to a borrowers delinquency and is normally issued only after the borrower and lender have agreed to reconciliation terms
Foreclosure – this is the term for the legal process whereby a property or home is sold and the money generated by the sale is used to pay down outstanding mortgage debt. This happens when a borrower stops making payments on the mortgage or otherwise defaults
Foreclosure Prevention - a process by which the lender and borrower work together to develop a satisfactory solution to present or future mortgage delinquency
Hazard Insurance – this is insurance that us usually needed with some mortgage contracts and serves to reimburse for damage to a property or home
Home Equity Line of Credit -this is a financial instrument that allows homeowners to borrow against the equity in their home, the proceeds can be used to pay for college expenses or remodeling
Interest Only Mortgage – this is a type of mortgage where the borrower is only required to pay the interest on the loan and not the principle for a set time period
Categories: Mortgage Relief | Tags: fixed rate mortgage, interest only mortgage, mortgage statement | No Comments »
September 19, 2009 | Posted by Staff
As the housing market continues to struggle amidst depressed prices and rising unemployment many home owners find themselves struggling to make regular payment on their homes. For many people the problem is twofold; just as home prices are experiencing a dip monthly payments are rising which can make it difficult to take out another loan. If you find yourself falling behind in your home payments the first thing you should do is take a close look at your mortgage statement.
If you do not already you should keep a careful watch over your mortgage statement every month to ensure you are completely up to date and compliant with all mortgage payments and requirements. If you are not familiar with your mortgage statement there are some basic terms below. These terms describe the mortgage process and home loan agreements. If you encounter and terms or policies in your mortgage statement or agreement that you do not understand contact your lender for a thorough explanation.
Adjustable Rate Mortgage – a mortgage loan with a rate of interest that may change at some point and does not remain fixed. This loans often start with relatively low introductory rates before increasing in the future
Amortization – this is the process of paying off a debt or loan by making regular payments over a fixed time period, at the end of the amortization period the balance of the loan is zero
Balloon Mortgage – this is a loan agreement which requires a significant payment upon maturity
Collections – the attempts by mortgage lenders to collect monthly payments
Convertible ARM – this is an Adjustable Rate Mortgage that is able to be modified into a fixed rate mortgage loan during a specified period
Deed – this is an official document that implies property ownership for the holder
Deferred Payments – these are loan payments that the lender has permitted to be postponed, usually used during loan workouts to avoid foreclosure
Delinquency – this is the failure to pay a monthly mortgage payment within the specified time, usually 30 or more days past due
Equity – a measure of ownership interest in a property
Categories: Mortgage Relief | Tags: ARM, convertible ARM, mortgage assistance, mortgage statement | No Comments »
September 19, 2009 | Posted by Staff
Many American home owners are currently experiencing economic distress because of the the current recession. For some people, the situation is so dire they risk losing their homes. To help ensure those people are able to remain in their homes the federal government has introduced a new Financial Stability plan with the aim of supporting them during these difficult times. A crucial component of the plan is the Making Home Affordable initiative.
This plan is designed to improve the foundation of the economy by quickly boosting the housing market. The goal of the plan is to help between 6 and 10 million home owners stay in their homes by reducing monthly payments. The program utilizes two types of mortgage restructuring programs; mortgage refinance and mortgage modification. The government has committed up to $75 billion dollars to fund these programs.
The mortgage refinancing will be administered according to the terms set forth by the Home Affordable Refinance Program, or HARP. Mortgage refinance is when a borrower renegotiates and entirely new mortgage and uses the proceeds to pay off the balance of the current mortgage. The HARP program will give up to 5 million mortgage holders with loans guaranteed by Fannie Mae or Freddie Mac the chance to refinance their mortgages. By refinancing borrowers receive lower monthly payments, allowing them to keep their homes.
The loan modifications will be organized through the Home Affordable Modification Program, or HAMP. This program is estimated to help up to 4 million American home owners get their existing mortgage agreements modified. Loan modification is when borrowers and lenders agree to alter only specific aspects of an existing loan agreement. Unlike refinance which is a whole new loan, modification changes only one or at most several terms of a contract. This is often simpler with less requirements and paperwork to complete. By modifying loan agreements to include reduced monthly payments foreclosures can be prevented.
If you are a homeowner there is a good chance that you are eligible to receive government funds. You may be able to reduce monthly payments and improve the terms of an existing loan through refinancing or modification. To find it if you are eligible for either HARP or HAMP inquire with your mortgage lender. They will have all the relevant information regarding those programs and how to access public funds.
Categories: Government Programs | Tags: HAMP, HARP, Home Affordable Modificatin Program, Home Affordable Refinance Program, Making Home Affordable, mortgage assistance | No Comments »
September 19, 2009 | Posted by Staff
During the current recession there has been no sector hit as hard as the housing market. Home prices in many parts of the country have taken tumble and many homeowners struggle to keep up with their mortgage payments. The problem has become so widespread that the government and many agencies have decided to offer support to the many mortgage holders in this country at risk of losing their homes. There are two main types of programs intended to help home owners; mortgage refinancing and loan modification. They both are designed to help people with mortgage payments but work in slightly different ways.
Refinancing is when you take out a new loan and use the proceeds to pay off your existing loan. When you refinance you are taking out an entirely new loan and must follow the same requirements as when you took out your initial loan. The requirements may include inspections, attorneys fees, appraisal fees, and insurance. Mortgage refinancing normally happens when the borrower’s financial situation changes. The types of change to a homeowners financial prospects that may warrant refinancing include updated interest rates, improvements in credit score, or increased income. You may also refinance your existing mortgage in order to renegotiate payments terms with your lender. The government is presently supporting mortgage refinance initiatives through the HARP program, Home Affordable Refinance Program.
The other solution to mortgage problems is loan modification. Loan modification is in many respects a simpler alternative to refinancing because you are only changing particular aspects of your existing loan agreement. Instead of taking out a completely new loan with fresh terms and conditions you enter into an agreement with your lender to amend certain aspects of your current contract. For instance, if you are having trouble making your mortgage payments due to financial hardship you may be able to speak to your mortgage lender and negotiate a lower monthly payment. You may be able to do this by changing the length or other terms of the loan to compensate for the reduced regular payment. Many home owners prefer loan modification because they do not have to go through the hassle of taking out an entirely new mortgage. The government has promoted loan modification for struggling homeowners through the HAMP program, Home Affordable Modification Program.
If you have fallen behind your monthly mortgage payment you are not alone. Due to the current economic crisis millions of Americans are in danger of losing their homes. Fortunately the federal government has decided to act to help keep home owners in their rightful houses. Speak to your lender to find out if you may be eligible for one of the government’s mortgage assistance plans.
Categories: Mortgage Relief | Tags: HAMP, HARP, Home Affordable Modification Program, Home Affordable Refinance Program, Making Home Affordable Program | No Comments »