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Posts Tagged ‘mortgage broker’

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Considering Foreclosure? Take These Steps First!

March 9th, 2009 by Matthew C. Keegan | 2 Comments | Filed in Home Buying, Home Financing, Home Selling

Don’t Give Your Home Up Without A Fight

Hundreds of thousands of homeowners are facing imminent foreclosure, one of the largest groups of consumers to be in this position at the same time. If you are more than three months late on a mortgage payment, then you may have already heard from your bank that foreclosure proceedings will soon be started. Continue down this path and you will lose your home, your credit will be trashed and it’ll take many years before a lender will offer a home loan to you. Even then you may be subject to onerous financing terms, taking the appeal away from homeownership.

Key WestInstead of allowing a foreclosure to take place without offering a challenge on your part, you may want to investigate several options available to you to help you avoid foreclosure. Certain options could help you buy some time and let you stay in your home for the long haul. Besides, a foreclosure could be a nasty blemish on your credit record which can make it difficult to secure a personal loan, rent an apartment, even land a job.

Four Options To Help You Avoid Home Foreclosure

Talk with your mortgage broker – An honest discussion with your lender may help you gain some time, perhaps even land you a loan deferment. You will probably have to prove that your financial situation is in the process of changing for the better, a tangible improvement over those months when you fell behind on payments. Ask your lender to modify the loan, by adding missed payments to the end of your mortgage. Your mortgage term will be extended, but it’ll allow you to keep your home and work toward improving your financial position. Importantly, you may be able to land a lower interest rate.

Plunder your retirement account – Your company retirement account, if it wasn’t decimated last fall by the stock market collapse, could help fund your home. Consider borrowing just enough money to cover your late payments, perhaps meet several future payments. Please note that you may have to pay this money back, but compared to losing your home to foreclosure, that is a comparatively small burden to bear!

Ask friends and family – Close friends and family members may be able to come to your assistance if you alert them to your plight. To keep things in order, put everything in writing just as you would for any kind of personal loan. If possible, spell out repayment terms or at least offer to repay once your financial crisis has passed. Keep in mind that any type of loan between you and those you love can strain your relationship — make sure that it is a solid one before pressing forward.

Get out now – Unless your local housing market has collapsed, you may find it worthwhile to contact a real estate agent and put your home on the market immediately. Work with someone who won’t tell the world that your property is distressed. She may be able to find someone who is willing to take over payments, perhaps arrange a short sell (or short sale) where a buyer will pay less for your house than what is owed. However, the lender will need to agree to this arrangement first. And, your credit rating may take a huge hit.

If you don’t have the financial means to make payments, then nothing will stop the foreclosure train from traveling down the track. However, if you have a plan of action in place where you can demonstrate to your lender that your financial position is on the mend, then you may be able to avert home foreclosure.

Adv. — Need recession coping tips? Visit SayRecession.com to help you manage your finances. Consider paying off your mortgage early too.

Photo Credit: Laura Leavell


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Mortgage Crisis? Beware of the Predatory Lender!

September 30th, 2008 by Matthew C. Keegan | 4 Comments | Filed in Consumer Tips
When shopping for a new home loan to balance your mortgage in your favor, take care to make sure that your lender isnt involved in predatory lending practices.

When shopping for a new home loan to balance your mortgage in your favor, take care to make sure that your lender isn't involved in predatory lending practices.

With the U.S. housing market experiencing one of its worst downturns in memory, consumers who are in a position to refinance their mortgages in a bid to improve their financial position need to be careful when seeking out a new loan.

While the overwhelming majority of lenders are knowledgeable, professional, and consumer friendly, there is a small pool of lenders who are operating just below the radar, predatory lenders who are looking out for #1. In this case, they’re the #1 and you’re only a means to an end – a way for the lender to sell you a loan that won’t improve your financial standing, rather quite possibly do the opposite.

The U.S. Department of Housing and Urban Development (HUD) continues to warn consumers of the predatory loan practices out there. We’ve taken a look at what they are saying and are including the following links courtesy of HUD to help you push back predatory lending:

Protect yourself from predatory lenders: For information about loan fraud and advice about preventing it, see Don’t Be A Victim of Loan Fraud.

Local information on predatory lending: Here are some Local Resources by state, that can help you avoid being a victim of predatory lending.

For FHA loans: For problems relating to origination, underwriting, or appraisals contact the FHA Resource Center.

Avoiding foreclosure on an FHA loan: Visit the HUD National Servicing Center web page.

Non-FHA mortgage loans: For complaints concerning practices which include disclosure of interest rates and finance charges (APR), prepayment penalties, credit life insurance, fraud, deception, etc. contact the appropriate agency from this list to complain about the mortgage lender or mortgage broker.

Lender threatening to foreclose or mortgage in default: HUD funds housing counseling agencies throughout the country. To find a housing counseling agency near you, call toll-free (800) 569-4287 immediately for free guidance or visit the web page.

Settlement Procedures: (FHA and non-FHA mortgages). Visit the RESPA web page for information on RESPA disclosure requirements such as the Good Faith Estimate, HUD-1 and escrow account statements, and how to file a complaint with your lender concerning the servicing of your loan.

File a housing discrimination complaint: Discrimination in mortgage lending is prohibited by the federal Fair Housing Act and HUD’s Office of Fair Housing and Equal Opportunity actively enforces those provisions of the law. Learn how the Fair Housing Act can help you fight predatory lending.

As always, if you believe that you’re being taken advantage of, taking action at the soonest possible moment will save you much headache and possible heartache later on. Local advocacy groups may be able to help you out, but your best course of action is the personal moves you make to counter predatory lending.


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4 Steps To Applying For A Consumer Loan

September 16th, 2008 by Matthew C. Keegan | 1 Comment | Filed in Consumer Financing

The news lately has been chock full of reports about Fannie Mae and Freddie Mac being taken over by the federal government while Merrill Lynch, Lehman Brothers, AIG, WaMu, and other investment banks and financial institutions battle for survival too. For the consumer who needs to borrow money, borrow money
wondering who will approve their loan and at what rate has some concerned.

Fortunately, the financial market is much bigger than these entities with some financial institutions in much better shape than others. Clearly, shopping around for a consumer loans these days involves checking on the health of the lender as much as finding someone who can approve your loan at a fair rate.

Before you submit your application there are four areas where you’ll want to educate yourself:

  1. Understand Your Options — Should you borrow now or should you wait? How much money do you need? How long of a loan term do you want? What interest rate are you willing to pay?
  2. Select Best Product – Should you take out a home equity loan or seek an equity line of credit? If an auto loan, will you get your loan through a bank, the financing arm belonging to the automaker, your credit union, or some other source?
  3. Learn to Negotiate the Best Deal — What fees are involved with applying for a loan? Or, will fees be waived or included in your loan? Will you do better with a fixed rate loan or an adjustable loan? Will you be penalized for paying off the loan early? Does the interest rate on the loan reflect your good credit?
  4. Save Money and Hassles — Do you want to deal with someone locally or would you consider finding a lender online? Do you want to mail payments off monthly or have the convenience of sending payments off via the internet? Are automated payments right for you?

Consumers should take their time looking for the right financing product, comparing offers to find the best deal available today. Banks, credit unions, savings & loans, and other financial institutions want your business, but not every lender is worthy of your business.

If you’re in the position to borrow money, then you’re in the drivers seat. Negotiate from a position of strength by doing your research before applying for any type of consumer lending option. Reject any offer that isn’t favorable for you or ask the lender for terms which are more favorable to you.


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Buying A New Home? Haggle!

August 27th, 2008 by Matthew C. Keegan | 2 Comments | Filed in Home Buying

The current housing market is a wonderful ally for home buyers, as home values drop and sellers are willing to negotiate. Home shoppers previously shut out of some local markets are discovering that the scales have tipped in their favor, potentially saving them tens of thousands of dollars over last year’s prices.

mortgage applicationStill, there are other ways for buyers to save, even beyond the cost of the house itself. Lets take a look at the three areas where home buying costs can be trimmed:

At the point of sale — Maybe you aren’t aware of just how depressed the housing market is in the area that you live. It can be easy to miss especially if you live in a metropolitan area where some neighborhoods are experiencing steep declines in housing values while others are stable, even rising. Get with a realtor who can supply the information that you need for the area you are considering. She’ll be able to go over the buying and selling trends including how long homes are on the market, recent sales, etc.

At the point of financing — Competition is fierce in the mortgage industry, especially as the number of mortgage companies suffering from the sins of their past (i.e., interest free and other risky loans) continues to rise. Even mortgage companies who aren’t saddled with a lot of bad loans are finding that their customer base has shrunk with many laying off workers. The remaining companies all want your business and, if your credit score is at least 700, you are the catbird seat. Negotiate the lowest rate and fees possible and get that information in writing — brokers would love for you to pay more for your mortgage (higher commissions for them), but if your credit is excellent you can avoid the heavy fees and higher interest rates.

At the point of closing — Closing costs can easily add up to $5000 or more, making the day that you buy your home one filled with mixed emotions: on the one hand you’re happy to get the home, but on the other hand, your wallet just took a huge hit. Some mortgage companies are absorbing most if not all of the closing costs to entice you to their product which is fine but only if you aren’t getting hit with a higher interest rate and other fees. You can also ask the home’s seller to pay for some of these fees too, perhaps making closing day pain free from a financial vantage point.

Take Advantage of the Market While It Lasts

Not everyone is in a financial shape to buy a home now, but if you are you just could find yourself owning a home that will appreciate greatly once the market rebounds. Buy at a price below market value, secure the best loan available, and have someone else pay your closing costs, to save tens of thousands of dollars on the price of your new home. Current market conditions will change — waiting for prices to bottom out could mean that you will miss a perfect opportunity to jump in.

Adv. — Once you buy your home, will you need to renovate it? If so, Let’s Renovate has lots of cool ideas and project information to ensure that your renovation goes according to plan. Stop by today to lay the foundation for your new home renovation project!


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