Stop Foreclosure, Save Your Home, Refinance at 90 LTV of Current Market Value Using FHA Financing

I have been approached by a swarm of homeowners who are currently facing foreclosure. It saddens me to see so many people in this situation, and how they have been deceived into thinking they can afford these homes. Even until now I hear stories about homeowners being promised false hope that they can be saved from foreclosure by paying a short sale fee, loss mitigation fee, or just being striped totally of their equity by scrupulous professionals.The fact of the matter is that you can save yourself from foreclosure; because you don’t have many options.
The first thing homeowners in trouble have to come to realization is to separate their emotional attachment to their home if they have owned it for less than four years. I say that because if you bought your home within the last four years most likely you bought really high priced and most of these homeowners bought with a 100% financing with no income verification. If this is the case you must realize you have no equity and your house isn’t worth keeping. What I recommend is a family meeting putting together a budget; net Income minus all expenses and if you’re in a negative forget it! cut your loses and move on its not too late to start over.Refinance may be an option with the new FHA guidelines that go into affect October 1, 2008 this where homeowners that are behind on their mortgage can refinance only if they can prove that their income is sufficient to pay the mortgage at 29% of their income, and only if their current lender agrees to take a loss (short Pay) on the current mortgage FHA will purchase the current mortgage up to 85% of current Fair market value with closing cost and debt all bagged together not to exceed 90% of current fair market value. You can visit their website at and search for the HR 3221 housing bill for full description of bill. Please remember this is a full documentation loan it will not work for people who cannot prove their incomes!After you realize you can’t afford it and refinancing couldn’t help you call your lender don’t be afraid bottom line you can’t afford it. your lender must see that you can’t afford it so you have to lay the cards on table with them period give them all the truth once they see you can’t afford it obviously a payment plan won’t work. The lender may offer you loan re-modification if your income proves that you can pay the new loan terms so you see why I say sometimes its better to come to reality and forget the emotional attachment we have for homes. Most lenders offer forbearance which is deffer payments for up to six months but again if you still have the same income in six months it defeats the purpose.Option 4 is to put the house on the market to sell at current market value hire a Realtor to give you a free market data analysis if you list with them most likely your home won’t be worth what you bought it for, so its important that you maintain communication with your lender during this process, so they can at least see that you are trying to get yourself out the hole, plus they will pause foreclosing procedures during this time. Once the Realtor gives you the market value send a copy to your lender as they have to agree to take a loss; this is called a short sale. During this time make sure you save your money to start looking for accommodations to move out don’t get too comfortable. It surprises me how many people wait til the sheriff is knocking on their doors before they reality actually hits home.If after a few months the property doesn’t sell you have the right to claim Chapter 13 Bankruptcy. Just keep in mind that if you file chapter 13 its only temporary, if you can’t afford your current mortgage chapter 13 won’t help you as now you will have to pay your regular mortgage payment and all of your debt consolidated in another payment to the state trustee so now you will have two payments. Notwithstanding the enormous fees you will pay an attorney. Chapter 13 is for individuals who can prove they will be able to pay their current mortgage plus all arrears in a payment plan over 5 years.If Chapter 13, Selling, Refinancing, short selling, forbearance, payment plan, loan re-modification, don’t work out for you just give it up ask your lender if they have cash for keys ask for a couple of months to move out and you will voluntarily give them the deed in lieu of foreclosure, it’s certainly less embarrassing than the sheriff forcing you and your family out.Just remember during these tough times we fail to think straight and anyone who offers us a sign of hope will look like a god; but reality is you can save your own home if you just talk to your lender and come to realization if you can truly afford to keep this home even if the lender works with you.I can’t stress to how important it is to communicate with the lender, they will offer the options that they will offer any body else you hire to do it for you. Don’t fall into a trap just tell your lender the exact truth be bold and un-embarrassed tough times could happen to any one of us and it’s never too late to start over. Take it from me I have walked the path and I have helped hundreds some I saved their homes and the others just gave them up gracefully and started a new chapter in their life.After all is said and done just educate yourself on credit repair as your starting point.

College Parents Benefit From “Kiddie Condo Loans”

Despite its relative obscurity, a great investment tool for college bound students is growing in popularity among savvy college parents. The FHA loan program, affectionately nicknamed “Kiddie Condo Loans”, is one of the best programs out there to help jump start a student’s credit and provide a low down payment option for cash strapped parents to purchase a home for their son or daughter.For details on the loan program, I went to Steve Beecham, President of Hometown Mortgage in Alpharetta, Georgia. Steve’s excitement over the program is evident as he explains, “There are few programs, if any, left in the market place where a co-signer doesn’t have to live in the property.” The bottom line is a college bound student can qualify, with a parent’s help, for as little as $500 down.The FHA program actually requires three percent down. However, that three percent can come as a gift from several different places, such as:1. A relative by blood, marriage, or law2. The borrower’s employer3. A charitable organization4. The seller (can give up to six percent)One easy source for the funds might be the Nehemiah Down Payment Grant. This is a charitable organization that will fund up to six percent for the purchase; three percent of which can be used for the down payment and three percent which can be used for closing costs. Your mortgage lender would fill out the paperwork on your behalf. Six percent would be written into the purchase price as a contribution to Nehemiah. The organization in turn, at closing, gives all of it back to the seller, less a $500 contribution from the buyer. So, the net out of pocket from the buyer is the $500.Obviously, there are some ground rules for the program, some of which are:1. At least one of the buyers (usually the college student), must occupy the home. But extra bedrooms can be rented out to help defray the costs of the mortgage.
2. Qualifying guidelines are based on the student’s and the parent’s credit and income. Generally, both parties must have a credit score of at least 580.
3. If it is a condo, then a majority of the condos in the complex must be owner occupied.Also, don’t let the nickname fool you. This program can be used on virtually any property, not just condos. And, it can be used up to a maximum loan amount of $346,000 for homes inside Metro Atlanta.

To Refinance a Mortgage Learn About Obama’s Mortgage Stimulus Plan Versus “Hope For Homeowners”

Obama has signed off on a new mortgage stimulus plan that should in theory give millions of homeowners the opportunity to refinance their mortgages at a lower rate with options to fix the mortgage at the new lower rate.The ‘HOPE for homeowners program’ is a program introduced by George Bush which looks at mortgage refinance for lenders that are in difficulty and are struggling to make their repayments but have sufficient income to meet the payments on a new loan insured by HUD’s Federal Housing Administration also known as FHA.This program clearly pre-dates Obama but is being revisited in order to better meet the current circumstances surrounding home ownership, this program should not be confused with the ‘Making Home Affordable Program’ that has different rules and criteria to the ‘HOPE for homeowners program’ and until legislation has been passed that aligns the 2 programs you need to be aware of the differences.So what does this program currently offer:

a 30 year fixed rate mortgage
the possibility of refinancing to more affordable payments
voluntary basis for both the lender and the borrower

home must be your only house and primary residence
your mortgage pre-dates 1st January,2008
can’t make existing mortgage payments without help
from March 2008 your total monthly payments have been more than 31% of your gross monthly earnings
You have not been convicted of fraud in the last ten years, deliberately defaulted on debts and haven’t obtained a mortgage by deceptive means.
Must maintain a fully documented record of income and employment.
must be prepared to agree to positive equity sharing both current and future
If you take this option you will not be able to take out a 2nd mortgage under the program for the first 5 years of the loan and you will have to agree to share the value of the positive equity, both current and any future increases for your home on a sliding scale over 5 years, after 5 years the amount of your share in the positive equity is 50% which is the most you can attain. This may sound a lot but versus losing your home it is probably a better option.To be eligible for the ‘make home affordable’ program:

you need to own and occupy a 1 – 4 unit home
you need to be up to date on your mortgage repayments
You must have a mortgage with or securitized by Freddie Mac or Fannie Mae
The mortgage amount can be no more than 105% of the house value
It is immediately apparent that the requirements for the make home affordable program appear to be less stringent than the ‘HOPE for homeowners’ program and you do not have to commit any of the equity of your home this program.

How to Get a Miami Home Equity Line of Credit

Home equity lines are an extremely beneficial way of borrowing a loan, wherein one takes a loan against their Miami home. The home serves as security, against the loan amount. To have a home in a popular city like Miami is an added advantage. The lenders are assured that their credit is safe as Miami is a hot favorite with tourists from all over the world. The buyers too are assured of high returns on their investment, owing to the sound economy of Miami.Advantages Of Home EquityHome equity lines of credit have many advantages over a regular loan. It gives you the flexibility of borrowing a large sum of money according to your need. You can easily access the funds, as and when you need them. This way you and other Miami home owners can save money by paying interest only on the amount borrowed. Most of the times, the interest is also tax deductible, which means, you save more money.Home Equity Lines – Some DrawbacksHome equity lines also have some shortcomings. As this is not a fixed loan, the rate of interest can change anytime. Thus, the payments also change. Interest rates are high as compared to a fixed loan, but that is the price you pay for the flexible nature of this loan. This may make it difficult to refinance your first mortgage.You must also know that the amount that you can borrow on your Miami home is calculated in a certain way, which may differ marginally from lender to lender. A percentage (set at 75% to 80%) of the assessed value of the house is taken. From this amount your remaining dues in mortgage are deducted. The amount reached at, is the available line of credit for your Miami home. This available limit varies from one client to another in accordance with their capacity to pay back the loan.Before deciding to opt for home equity lines, you must ascertain whether the cost you are paying is well-worth it, in terms of the benefits that you are getting. The conditions laid down by the financial organization should fulfill all your requirements and at the same time, not pose excessive financial burden on you. If these things are not taken care of, you will fail to make your payments on time.Your Miami home is your most precious asset, don’t lose it.

Understanding the Advantages of FHA Refinance Loans

The refinancing of your home mortgage isn’t something most people find as fantastic or interesting. Most people merely opt for the best solution given so that they can get on with the process of organizing and finishing the home loan. Well, FHA Refinance Mortgage loans do that for borrowers. FHA Refinance Home Loans will give you a solution that is almost perfect to your particular home loan needs and will give you exactly what you’re looking for when you want it.FHA, (Federal Housing Administration) can provide all the required help so you are able to refinance your current home mortgage. This type of loan has specific benefits and guarantees the lender in case of default. As a result, mortgage companies and lenders can offer you a better mortgage rate than if it was not government insured.Typically, the loans are made under conservative underwriting guidelines to borrowers who have an established credit payment history, and in some situations those who are not your average borrowers are also granted approval for an FHA Loan. This can include borrowers who have had past credit issues but have not filed bankruptcy in the previous five years, as well as applicants with one income, or who have never had any history of credit.An FHA refinance loan can assist you with the funds you need to make the type of repairs necessary for your home. It can also help you with the money you need to expand your home or make renovations. For there type of rehab loans, it will be required that all repairs are approved are completed in a cost and energy efficient manner. This will make certain that natural resources are preserved while the construction is being done and later.So, why choose an FHA Refinance Home Loans over the conventional mortgages?The reason is the fact that an FHA Refinance Home Loan offers you a way to do things that many typical mortgage do not allow.FHA loans guarantee repayment for lendersA 3% down payment is all that is required to purchase a home; even the closing costs can be financed into the mortgage.You can purchase a home that is in need of rehab and finance the repair costs into the new mortgage.An FHA loan is also available to purchase manufactured housing or mobile homesThere you have it. Now that you probably agree let’s understand something. The FHA doesn’t do the lending themselves. Rather they guarantee your loan to the lenders who are willing to get you approved. In return, lenders are sure that their money will be returned to them, even in the event of borrower default.

FHA Streamline Refinance – Finally, A Simple Way to Refinance Your Home Mortgage

The Home Refinance RushIf you’re like many smart homeowners today, you’re thinking of refinancing to a lower rate to take advantage of some of the most attractive loan rates in decades.It’s true, rates are being kept artificially low with government incentives. And they are guaranteed to rise when the economy goes into solid recovery. So financially savvy mortgage holders are acting now to shore up their debt by cashing in on today’s low rates.The bottom line is that refinancing in today’s market is a smart move that will pay off for years to come.FHA, Refinancing, and Economic RecoveryWe all know the economy is lagging. Because our economy is so dependent on the health of the housing market, part of the government’s complex recovery plan includes fortifying home values. Naturally, the government wants homeowners to stay in their homes. For many people this requires refinancing to a lower payment.Where does FHA come in? An FHA home loan is federally insured. To a bank, that means it’s a safer asset than many other types of home loans. Because of the stability of the FHA loan, and because the government wants to make refinancing as easy as possible for citizens, certain requirements have been relaxed to encourage refinancing and to provide for quicker qualification.In the mortgage industry the new, faster process is called the FHA Streamline.Good News for FHA Loan HoldersWith an FHA Streamline refinance, homeowners are often allowed to skip the appraisal process, one of the biggest snags for homeowners trying to refinance. In some cases they may even be able to skip the income verification.And all types of current FHA loans qualify for the program. This means 30- and 15-year fixed-rate FHA loans, as well as all ARM FHA loans.Do You Have an FHA Loan?Maybe you’re not sure if you are currently in an FHA Loan. To verify, you’ll need to locate an FHA case number associated with your loan. The case number is usually a 10-digit number, but it can be as many as 13 digits.Here are some places to look for verification of your FHA loan case number:

Your mortgage statement: On your mortgage statement there should be a breakdown of escrow and your next payout estimate. Often you can find your FHA case number there.

Your loan note: Look on the upper right corner for the case number.

Your home loan appraisal: If you have a copy of your home’s last appraisal, look on the cover page. The case number should be on the upper margin of the first page of the report.
Do You Qualify for an FHA Streamline?If you’ve determined that you are currently in an FHA insured loan, you may be the perfect candidate for an FHA Streamline. But what else would you need to start rolling toward a refi?According to the Housing and Urban Development website, the basic requirements of a FHA Streamline refinance are:
The mortgage to be refinanced must already be FHA insured.
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.
If you think these guidelines describe your situation, it’s probably a good idea to speak to a home loan expert or mortgage broker to find out how refinancing can improve your personal finances. Considering the current interest rates, it’s likely refinancing can enhance your bottom line.A simple example is to look at the numbers on a $200k home loan. At 7% interest, that’s a monthly payment of $1,330. Refinancing to a rate of 5% would lower the monthly payment to $1,074. That’s a monthly savings of $256, and a yearly savings of $3,072. Over a 30-year loan, that’s a savings of over $92,000!The truth is, the cost of borrowing may never be lower in our lifetime. Qualifying for a refinance now could mean hundreds of dollars per month back in the pockets of homeowners. And with the FHA streamline simplifying the process for millions of qualified homeowners, it could be the most painless savings ever.

Unable to Refinance Your ARM Home Loan? An Adjustable Mortgage Loan Modification Can Save Your Home

Many home owners that have ARM home loans are unable to refinance their mortgage for a variety of reasons. If you are one of these home owners take the time to read this article because it will give you some valuable tips on how to save your home from your adjustable loan.Why You Are Unable To Refinance Your ARM Home Loan
Programs that you once used are now gone. This is especially true for people who used sub prime loans and or stated and no doc loan programs to purchase their homes

Your property values have dropped and you now owe more then the house is worth. This is true for many areas around the country especially on the east and west coasts.

Your credit score is to low. Lenders to day require good to excellent credit in order to approve a loan. Even the FHA which at one time did not have a credit score requirement now wants to see a score of 620.
What Can You Do If You Are Unable To Refinance Your MortgageIf refinancing your ARM home loan is not an option that you can qualify for the best chance you have at saving your home is by working with your current lender on a loan modification.A loan modification will change the terms of your loan making it either a fixed rate or a making the fixed rate period of your ARM longer.A loan modification works good for people who are unable to refinance their ARM home loan for the reasons listed above. If you are in a home you simply cannot afford then you want to consider selling it.