Haven't missed a house payment yet, but afraid you might?
Has your financial situation changed due to a mortgage payment increase, loss of job, divorce, medical expenses, increase in taxes or other reasons?
Is your credit card debt becoming unmanageable?
Are you using your credit cards to buy groceries?
Is it becoming difficult to pay all your monthly bills on time?
If it’s becoming harder to make your house payment each month:
Contact a SOS Home Mitigation counselor, or
Call Toll Free (866) 767-4663 to find a foreclosure counselor near you.
Watch our Tips for Avoiding Foreclosure.
Monday, December 22, 2008
Current mortgage rates lowest in nearly 40 years for Freddie Mac
The Federal Reserve once again slashed the federal funds rate on Tuesday from 1 percent down to .25, “aiming to free up lending and jolt the economy back to life,” according to an Associated Press report.
It’s a dramatic move, which caused Freddie Mac mortgage rates to dip to their lowest level since 1971. In fact, 30-year fixed home loan rates can now be locked-in at a staggering 5.19 percent.
That means that homeowners who are facing “balloon” or Adjustable Rate Mortgage (ARM) rate increases — and there is data out there that indicates this could still impact an alarming amount families very soon — can secure more affordable home loans.
In addition, prospective homebuyers can take advantage of the latest-money saving measure. It’s a great opportunity to more than likely get into a home at a reduced price (depending on the local market) and get a loan at a super low rate.
To search the Foreclosure.com nationwide database of more than 1.8 million distressed real estate listing click here.
This is great news that can put a lot of extra cash back in the pockets of so many people. And the way things are right now it appears that every little bit helps and could go a long way.
Therefore, take advantage of this current situation if you can, whether you are a homeowner or homebuyer. Opportunities like this do not come around very often.
To talk to a mortgage professional to possibly refinance click here: Mortgage Assistance
It’s a dramatic move, which caused Freddie Mac mortgage rates to dip to their lowest level since 1971. In fact, 30-year fixed home loan rates can now be locked-in at a staggering 5.19 percent.
That means that homeowners who are facing “balloon” or Adjustable Rate Mortgage (ARM) rate increases — and there is data out there that indicates this could still impact an alarming amount families very soon — can secure more affordable home loans.
In addition, prospective homebuyers can take advantage of the latest-money saving measure. It’s a great opportunity to more than likely get into a home at a reduced price (depending on the local market) and get a loan at a super low rate.
To search the Foreclosure.com nationwide database of more than 1.8 million distressed real estate listing click here.
This is great news that can put a lot of extra cash back in the pockets of so many people. And the way things are right now it appears that every little bit helps and could go a long way.
Therefore, take advantage of this current situation if you can, whether you are a homeowner or homebuyer. Opportunities like this do not come around very often.
To talk to a mortgage professional to possibly refinance click here: Mortgage Assistance
Tuesday, December 16, 2008
What Is Loss Mitigation?
Loss Mitigation is the art of helping delinquent homeowners, in or close to foreclosure, to save their home and of trying to stop a home foreclosure before it happens. It is an intervention program designed to help homeowners save their homes from foreclosure, through third party negotiations with the lender or investor. Although it seems as though Loss Mitigation is a new concept, it is a process that has been around for many years and can save homeowners and lenders tens of thousands of dollars (as well as a little heartache and time consumption).
Foreclosures and mortgage delinquencies are destroying the "American Dream" and are at an all time high right now and number in the millions. We could be facing the highest foreclosure rates in history and with option ARMs still adjusting, there is no significant ending in sight. Loss Mitigation is the most effective method of avoiding or stopping the foreclosure process which culminates in the sale of the property at a public auction. The goal of Loss Mitigation is to work out an agreement between the homeowner and the lender that will stop the foreclosure proceedings permanently. A truly successful Loss Mitigation workup will take the homeowners future ability to pay into account as well as their past arrears so that the homeowner does not get themselves into default again.
Homeowners are losing their homes at record rates with no end in sight. They often believe the answer to their prayers is refinancing their home and getting away from their current lender. However, they need to be very careful if they are relying on refinancing as the way to save their home from foreclosure. By the time their properties have gotten into default, they have missed at least 2 months of mortgage payments. Not paying a mortgage for 2 months or more is detrimental to a credit score and thus, they cannot qualify for refinancing the loan. The only viable option for most of these homeowners is Loss Mitigation.
Loss Mitigation is a process in which lenders help borrowers that are in danger of default, avoid foreclosure. Every homeowner's situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure. Before a foreclosure or bankruptcy occurs after a one or two months default, a repayment plan may be proposed to the delinquent mortgage holder by a Loss Mitigation specialist to satisfy the amount owed to a bank or lender. Many banks and lenders want to avoid the foreclosure process since, on average; both homeowner and lender stand to lose tens of thousands of dollars. Lenders ultimately want to keep the home owner in their home and it is up to the home owner to show that they will be able to catch up or maintain the mortgage payment in the future. Borrowers must be encouraged to retain home ownership through scenarios that provide the borrower and lender/servicer with an optimal outcome. Often with the home owner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. By hiring a third party Loss Mitigation negotiation company, the homeowner's best interests can be fought for. In reality, a Loss Mitigation workup is in the lenders best interest as well taking into account the amount of money they stand to lose during the foreclosure process.
Loss Mitigation is the art of negotiating, on behalf of the homeowner, with the lender (or investor), stopping the foreclosure process, and coming to a settlement. Loss mitigation is often the better choice for the homeowner that is trying to save their home from foreclosure. When Loss Mitigation isn't a viable solution, other options are available to create win-win strategies with the homeowner and can be employed to help the homeowner avoid the foreclosure (possibly avoiding bankruptcy and 10 years of bad credit).
Chris Taylor is a Certified Loss Mitigation Consultant and mortgage broker in Denver, Colorado. He works primarily toward helping homeowners keep their home from foreclosure and to help first time homeowners purchase their very first home by using rent to own and owner financing techniques. To find out more information about Chris Taylor and what he is doing to help others stay in their home, check out his website http://www.866soshome.com/ or call him at 866-767-4663
More on Loss Mitigation
Back to Foreclosure Info
Foreclosures and mortgage delinquencies are destroying the "American Dream" and are at an all time high right now and number in the millions. We could be facing the highest foreclosure rates in history and with option ARMs still adjusting, there is no significant ending in sight. Loss Mitigation is the most effective method of avoiding or stopping the foreclosure process which culminates in the sale of the property at a public auction. The goal of Loss Mitigation is to work out an agreement between the homeowner and the lender that will stop the foreclosure proceedings permanently. A truly successful Loss Mitigation workup will take the homeowners future ability to pay into account as well as their past arrears so that the homeowner does not get themselves into default again.
Homeowners are losing their homes at record rates with no end in sight. They often believe the answer to their prayers is refinancing their home and getting away from their current lender. However, they need to be very careful if they are relying on refinancing as the way to save their home from foreclosure. By the time their properties have gotten into default, they have missed at least 2 months of mortgage payments. Not paying a mortgage for 2 months or more is detrimental to a credit score and thus, they cannot qualify for refinancing the loan. The only viable option for most of these homeowners is Loss Mitigation.
Loss Mitigation is a process in which lenders help borrowers that are in danger of default, avoid foreclosure. Every homeowner's situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure. Before a foreclosure or bankruptcy occurs after a one or two months default, a repayment plan may be proposed to the delinquent mortgage holder by a Loss Mitigation specialist to satisfy the amount owed to a bank or lender. Many banks and lenders want to avoid the foreclosure process since, on average; both homeowner and lender stand to lose tens of thousands of dollars. Lenders ultimately want to keep the home owner in their home and it is up to the home owner to show that they will be able to catch up or maintain the mortgage payment in the future. Borrowers must be encouraged to retain home ownership through scenarios that provide the borrower and lender/servicer with an optimal outcome. Often with the home owner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. By hiring a third party Loss Mitigation negotiation company, the homeowner's best interests can be fought for. In reality, a Loss Mitigation workup is in the lenders best interest as well taking into account the amount of money they stand to lose during the foreclosure process.
Loss Mitigation is the art of negotiating, on behalf of the homeowner, with the lender (or investor), stopping the foreclosure process, and coming to a settlement. Loss mitigation is often the better choice for the homeowner that is trying to save their home from foreclosure. When Loss Mitigation isn't a viable solution, other options are available to create win-win strategies with the homeowner and can be employed to help the homeowner avoid the foreclosure (possibly avoiding bankruptcy and 10 years of bad credit).
Chris Taylor is a Certified Loss Mitigation Consultant and mortgage broker in Denver, Colorado. He works primarily toward helping homeowners keep their home from foreclosure and to help first time homeowners purchase their very first home by using rent to own and owner financing techniques. To find out more information about Chris Taylor and what he is doing to help others stay in their home, check out his website http://www.866soshome.com/ or call him at 866-767-4663
More on Loss Mitigation
Back to Foreclosure Info
Mortgage Loan Modification - HOW TO's
(Source: Ron Stephens)
These are incredibly challenging times for American homeowners. More people than ever before are considering mortgage loan modification as an alternative to the possibility of losing their homes. The need for banks to consider loan modifications for homeowners has come about because of various reasons:
- Adjustable rate mortgages that have adjusted up and increased monthly mortgage payments beyond their ability to pay.
- Some homeowners took out adjustable rate mortgages, expecting to refinance at a better rate later, only to find their home's diminished value won't support a sufficient loan amount to qualify for refinance, and therefore they can not take advantage of new lower rates.
- Many have lost their jobs, some having worked for the same company for many years, and now can't afford their payment.
- Retirement income that would have helped pay off the mortgage, lost in the stock market crash.
If any of these situations describe you, there is hope. Because of the tremendous number of people facing foreclosure, banks are more willing than ever to work with homeowners in several ways. They know that the epidemic proportions of distressed homeowners, has created a bigger challenge than foreclosing the loans of so many people who are in default, can overcome. Here are some possibilities for you if you need answers:
Short refinance: Your lender may be willing to lower the balance on your home mortgage, create a new loan at the lowered amount, and thus give you a lower payment.
Short Sale: If you just need to get out of your house, your lender may be willing to let you sell the home to another party, for an amount that is less than what you owe, and forgive you of the difference.
Loan Modification: Your lender may restructure your loan, add any late payments to the balance, create a new loan amount with new parameters.
Whichever one of these options that your bank may be willing to consider, depends on your personal standing with them, and your financial situation. Here are some things that you must do if you want your bank to consider a mortgage loan modification on your behalf:
Communicate with them early on...DO NOT avoid talking to them about your hardship.
Keep a proper perspective...They are not the enemy. You owe them the money, having borrowed it with the promise to pay it back. Don't get angry with them for your difficulty. Respect them, and you have a better chance of them working with you.
Ask them for help. If the person you talk to is not willing to help you, keep calling and asking for a supervisor until you get someone who will listen and try to help.
Consider enlisting the help of a professional "loan mitigation service". You may have to pay a small fee, but these people are very good at what they do. They have the know how and the resources, and the credibility that will get your bank's attention and cause them to be more willing to work with you.
The bottom line is: banks are more willing than ever to enter into mortgage loss mitigation with their customers. And if you do enough research, and you are patient and stick to the process of filling out many forms and making many phone calls, and being put on hold for long periods of time, you may be able to get a mortgage loan modification, and save your home and your credit.
If the thought of doing all of that causes you to break out in a cold sweat, and feel like giving up before you even start, than you should consider a loan mitigation specialist. They are available online, in the yellow pages, or you may be able to get a good one referred to you by a realtor or mortgage broker.
Back to Foreclosure Information
Thursday, December 4, 2008
FDIC's Bair: Hopeful for her mortgage plan
written by: Ronald D. Orol, Market Watch Dec. 2, 2008
WASHINGTON (MarketWatch) -- Federal Deposit Insurance Corporation chairwoman Sheila Bair said Tuesday she hopes the Obama administration will support a mortgage foreclosure mitigation plan she introduced last month.
"We're encouraged by the president-elect statement on foreclosure prevention," Bair said at a conference in Washington. "I'm hopeful that the future administration will find funding to launch it because we are behind the curve and falling behind every day."
Bair is seeking $24.4 billion of the federal government's $700 billion Troubled Asset Relief Program to modify loans. She argues that such a package is authorized under the Emergency Economic Stabilization Act approved by Congress and the Bush administration on Oct. 3, and contends the program could avert 1.5 million foreclosures while encouraging lending by mortgage servicers.
Bair expressed disappointment that Treasury Secretary Henry Paulson hasn't agreed to allocate TARP funds for the package, but she still was hopeful that he would implement it. "I don't know that he said he would oppose it," Bair said. "Paulson has said he thinks it's a good program but he doesn't want to fund it with TARP funds, but we think the authority is there under the statute."
On Monday, Paulson said he could support a new approach to mortgage foreclosure mitigation, but he didn't go so far as to back Bair's proposal. "We are continuing to examine potential foreclosure mitigation ideas that may be an appropriate and effective use of TARP resources," Paulson said. "We're continuing to work on it."
Paulson had previously expressed opposition to Bair's proposal, but his comments on Monday indicate he might be willing to change his mind. House Financial Services Committee chairman Barney Frank said last month that he continues to have discussions with Paulson on the Bair proposal.
Some regulatory observers speculated Paulson could authorize $2 billion of the funds made available by Congress as part of the Emergency Economic Stabilization Act passed Oct. 3 to implement the first part of Bair's program. Those securities would be used to pay an upfront servicer administration fee of $1000 for 2 million loans.
Bair is seeking to use another $22.4 billion as part of a loss sharing program between mortgage servicers or investors and the FDIC for loans that fail six months or longer after being modified.
Ronald D. Orol is a MarketWatch reporter, based in Washington.
WASHINGTON (MarketWatch) -- Federal Deposit Insurance Corporation chairwoman Sheila Bair said Tuesday she hopes the Obama administration will support a mortgage foreclosure mitigation plan she introduced last month.
"We're encouraged by the president-elect statement on foreclosure prevention," Bair said at a conference in Washington. "I'm hopeful that the future administration will find funding to launch it because we are behind the curve and falling behind every day."
Bair is seeking $24.4 billion of the federal government's $700 billion Troubled Asset Relief Program to modify loans. She argues that such a package is authorized under the Emergency Economic Stabilization Act approved by Congress and the Bush administration on Oct. 3, and contends the program could avert 1.5 million foreclosures while encouraging lending by mortgage servicers.
Bair expressed disappointment that Treasury Secretary Henry Paulson hasn't agreed to allocate TARP funds for the package, but she still was hopeful that he would implement it. "I don't know that he said he would oppose it," Bair said. "Paulson has said he thinks it's a good program but he doesn't want to fund it with TARP funds, but we think the authority is there under the statute."
On Monday, Paulson said he could support a new approach to mortgage foreclosure mitigation, but he didn't go so far as to back Bair's proposal. "We are continuing to examine potential foreclosure mitigation ideas that may be an appropriate and effective use of TARP resources," Paulson said. "We're continuing to work on it."
Paulson had previously expressed opposition to Bair's proposal, but his comments on Monday indicate he might be willing to change his mind. House Financial Services Committee chairman Barney Frank said last month that he continues to have discussions with Paulson on the Bair proposal.
Some regulatory observers speculated Paulson could authorize $2 billion of the funds made available by Congress as part of the Emergency Economic Stabilization Act passed Oct. 3 to implement the first part of Bair's program. Those securities would be used to pay an upfront servicer administration fee of $1000 for 2 million loans.
Bair is seeking to use another $22.4 billion as part of a loss sharing program between mortgage servicers or investors and the FDIC for loans that fail six months or longer after being modified.
Ronald D. Orol is a MarketWatch reporter, based in Washington.
Wednesday, November 19, 2008
Paulson: Bait and Switch
By: Chris Taylor, Foreclosure Specialist
Once again your government who lobbied for you to support the bailout has lied again.
Secretary Paulson, whose net worth has almost doubled to 750 million is siding with the other industry leaders (Bank CEO's, lobbyist, etc) and has clearly stated that if you are in trouble with your lender, FEND FOR YOUR SELF!
The current system, which rewards the failing banking system by paying huge bonus's at the tax payer's expense is turning their back on the consumer. Currently,banks are pursuing foreclosure activity and opting to discontinue to loan modification programs because they believe the re-default rate is too high and that loan modifications don’t work.
Paulson has stated over the last two weeks that the treasury has decided to abandon the acquisition of troubled assets in exchange for buying bank stock. Paulson believes that if the government buys bank stock that it will shore up the bank’s balance sheet, thus unlocking the credit markets. The banks will be better stewards of T.A.R.P. (Troubled Asset Relief Program aka: Bank Welfare program) than the homeowner in foreclosure.
Banks are actually tightening credit standards , and freezing current credit lines.. They are taking a conservative approach to the management and extension of credit because they believe credit performance will continue to decline
Imploding Economy
It doesn't take a Harvard educated economist specializing in the Great Depression to understand that if spending continues to decline, unemployment will increase. If unemployment increases loan losses will also increase. A bank will not continue to lend in this kind of economic environment when they know that the default rate is increasing. This is why we are seeing banks increase their rates on credit card portfolios. This trend will continue thus adding to the trend of limiting access to affordable credit in the market.
Let’s review the most recent events to support this claim:
* Citibank increased rates on their credit card portfolios by 3%. (they are also cutting 53,000 jobs)
* Circuit City to close 20% of all stores causing thousands to be let go
* Lowes Stores report 25% reduction in sales
* Intel reports unexpected decline in sales and cannot predict the future of microchip sales and 3,000 job cuts
*Dupont, 30% decline in sales
*State budgets are all being reduced and taxes are being raised
These results demonstrate the power of the American consumer and if we don’t support from the ground up the problems will continue.
Loan Modifications, and special loan programs insured by the Federal Government need to be implemented immediately. These programs should be available to all current homeowners current and delinquent. These changes will begin the flow of money into the economy that will stop the hemaraging and begin the healing of the economy.
Please let your local congressman know your concerns about why the government is taking the wrong direction.
In our economy will continue to fall for the 10% of homeowners in distress. This lack of spending is causing major job reductions around the world. Imagine if this number increases to 15% -20%? Where will unemployment be then Mr. Paulson? We will be happy to know that the banks will be well capitalized, hoarding their money and not putting it to use.
For the rest of us little people we can only hope that the incoming administration and congress will actually work for the people.
Once again your government who lobbied for you to support the bailout has lied again.
Secretary Paulson, whose net worth has almost doubled to 750 million is siding with the other industry leaders (Bank CEO's, lobbyist, etc) and has clearly stated that if you are in trouble with your lender, FEND FOR YOUR SELF!
The current system, which rewards the failing banking system by paying huge bonus's at the tax payer's expense is turning their back on the consumer. Currently,banks are pursuing foreclosure activity and opting to discontinue to loan modification programs because they believe the re-default rate is too high and that loan modifications don’t work.
Paulson has stated over the last two weeks that the treasury has decided to abandon the acquisition of troubled assets in exchange for buying bank stock. Paulson believes that if the government buys bank stock that it will shore up the bank’s balance sheet, thus unlocking the credit markets. The banks will be better stewards of T.A.R.P. (Troubled Asset Relief Program aka: Bank Welfare program) than the homeowner in foreclosure.
Banks are actually tightening credit standards , and freezing current credit lines.. They are taking a conservative approach to the management and extension of credit because they believe credit performance will continue to decline
Imploding Economy
It doesn't take a Harvard educated economist specializing in the Great Depression to understand that if spending continues to decline, unemployment will increase. If unemployment increases loan losses will also increase. A bank will not continue to lend in this kind of economic environment when they know that the default rate is increasing. This is why we are seeing banks increase their rates on credit card portfolios. This trend will continue thus adding to the trend of limiting access to affordable credit in the market.
Let’s review the most recent events to support this claim:
* Citibank increased rates on their credit card portfolios by 3%. (they are also cutting 53,000 jobs)
* Circuit City to close 20% of all stores causing thousands to be let go
* Lowes Stores report 25% reduction in sales
* Intel reports unexpected decline in sales and cannot predict the future of microchip sales and 3,000 job cuts
*Dupont, 30% decline in sales
*State budgets are all being reduced and taxes are being raised
These results demonstrate the power of the American consumer and if we don’t support from the ground up the problems will continue.
Loan Modifications, and special loan programs insured by the Federal Government need to be implemented immediately. These programs should be available to all current homeowners current and delinquent. These changes will begin the flow of money into the economy that will stop the hemaraging and begin the healing of the economy.
Please let your local congressman know your concerns about why the government is taking the wrong direction.
In our economy will continue to fall for the 10% of homeowners in distress. This lack of spending is causing major job reductions around the world. Imagine if this number increases to 15% -20%? Where will unemployment be then Mr. Paulson? We will be happy to know that the banks will be well capitalized, hoarding their money and not putting it to use.
For the rest of us little people we can only hope that the incoming administration and congress will actually work for the people.
Subscribe to:
Posts (Atom)
