Loan Modification Attorneys in California

Posted by admin on March 8th, 2010

The state of California has witnessed its own share of house-owners struggling to keep foreclosure at bay because of the economic crises. A foreclosure leaves you without a house; choosing between a foreclosure and bankruptcy is like having to choose between the devil and the deep sea. A better way out is to try and get the loan modified via a loan modification program.

Loan Modification Lawyers in California

Loan modification attorneys can be of valuable assistance in convincing your lenders that your financial need is genuine. This is the single most important requirement in getting your loan modified – getting the lender to believe that you just cannot continue with the present rate of interest and term of loan; if there is no change in the loan terms then a foreclosure is the only alternative and it is not very pleasant or smooth for both, the lender and the borrower. Experienced loan modification attorneys know how to deal with lenders, particularly sub-prime lenders that can often get a little rough over delayed payments.

Lawyers are also better placed to ensure that the lender does not make you sign away your rights to anything and everything and also relevant claims that you may have. What you need to remember is that the lenders are in the business of making money and not resolving every borrower’s financial problem unless you can really persuade them to.

Because lawyers know how mortgage lending works, they can run a fine-toothed comb through your loan papers and if they find out that the lender has violated the law in any way then you have a strong negotiating leverage. Lawyers can also help you benefit from the provisions in the bankruptcy code. Here is a nice detailed piece on loan modification lawyers in California.

Download Free Mortgage Refinance Calculator

Posted by admin on March 5th, 2010

How does a mortgage refinance work?

Having information on how refinancing works can stand you in good stead should you ever wish to take advantage of low interest rates and refinance an existing mortgage. And in order to understand how the facts and figures related to mortgage refinancing work, you can download a mortgage refinance calculator at the end of this post. A refinance is often termed debt restructuring.

Basically, a refinancing implies replacing an existing mortgage debt with another one that has new terms and conditions that you are more comfortable with. Your old loan is paid off by the new lender that grants you the refinance. A refinance lets you take advantage of lower interest rates, consolidate high interest loans or get cash out of your equity in your property. You can also refinance a variable rate loan into a fixed interest loan and eliminate the risk associated with adjustable rate loans.

Before considering a refinance on your existing mortgage, calculate and see if there are any true savings once you have paid the penalty for early loan payment plus the costs of transactions and closing cost. Decide upon a refinance only after finding out the upfront, ongoing, and potential costs over the life of the loan.

Alternatives to a mortgage refinance include a home equity line of credit or a second mortgage.
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Does a House Refinance Qualify for Tax Credit

Posted by admin on March 4th, 2010

Yes, a mortgage refinance qualifies for tax credit; in fact it is one of the couple of other tax breaks that you can get if you are refinancing an existing mortgage. The tax breaks revolve around you paying “points” with the closing costs of your first mortgage. A point equals one percent of the total loan amount and is also termed loan discount or origination fee.

A first mortgage on your primary residence will let you enjoy deductions on the points in the very year that they are paid. However, when you refinance a mortgage loan you are allowed to avail deductions of the life of the term of the new mortgage. Then again, if you feel that the rates have fallen down and you wish to refinance again you may be eligible to get a full deduction on the unamortized amount carried over from the earlier refinance.

The IRS sets certain conditions for the deduction of unamortized points. So, if you choose to go for a refinance with the same lender then you cannot get a deduction in the same year, it has to be over the term of the refinance loan. Refinancing with the same lender is not a very common happening, it occurs only 20% of the time.

A very obvious benefit of a refinance is the lower interest rate. If you use your refinance amount to pay off the earlier mortgage and also for home improvement then the percentage of the mortgage value used for home improvement acts as a base for calculating the percentage of points that attract a tax credit.

An important thing to remember is that you will enjoy tax breaks only on your primary residence and not vacation homes. If it is a second home then you have no option but to have the points amortized over the term of the loan.

If you pay off your mortgage early you will be able to deduct any unamortized points in the year you pay off the mortgage. However, if there is a penalty for early repayment then that fee is deducted. Similarly, late payment fees are also deductible.

Here are some good points on tax deduction and refinance.

Qualifying for Mortgage After Foreclosure – Dos and Dont’s

Posted by admin on March 3rd, 2010

If you are looking for a mortgage loan to buy a new house after a foreclosure event; you should know how to qualify for a mortgage after foreclosure. There exists an entire industry which caters to high-risk borrowers that are challenged for credit because of issues such as foreclosure and bankruptcy. This aforementioned industry consists of subprime mortgage lenders that will lend you money at slightly higher rates; however still competition in this category of lenders means that with little research you can get good rates for your mortgage loan.

It is best that you spend at least twenty four months in rebuilding your creditworthiness. Use your credit responsibly, make your payments on time, and do all the small little things you can to add to your credit score. Give up superfluous credit cards, cut down on needless purchases, etc, focus on credit repair. If you rush into a mortgage loan without rebuilding your credit then be prepared for higher interest rates. Aim to achieve a credit score of at least 620.

A very simple rule of thumb is that higher the downpayment you make, lesser is the loan amount. Try and save at least 20% of the total value of the new property you are interested in purchasing. It also helps in another way. After foreclosure you cannot expect to get a 100% LTV, you need to have some money of your own to pay.

Set your target on a home that is affordable. Download a free home affordability calculator at the end of this article.

If the market is declining and you make up your mind to purchase a house, then be very sure that you are going to be in a position to make timely mortgage payments, because if you don’t and you have to sell your home, you may not be able to recover the cost of the house in a declining market.

Find out the worth of the house, do not take the lender’s appraisal on face value, he may inflate the amount so that you end up borrowing more than what you should.

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How to: Find the Best Mortgage Rates in America

Posted by admin on March 2nd, 2010

Finding the best mortgage rates in America requires two things – knowing where to look and being prepared in terms of eligibility and documents for the mortgage application.

Here we discuss where to look for the best mortgage deals in America and how to go about it.

In terms of preparedness, nothing comes close to having a good credit score. It is perhaps the single biggest influencer in deciding mortgage rates for you. Sort out any errors in your mortgage report and do it early so that you can work on boosting your credit ratings for some period of time before you start hunting for mortgage.

Look up the different types of mortgages, for example fixed and variable rate. Find out the term best suited to your present and future mortgage repayment capacity. Compare different mortgage providers. It can help your cause if you go to a mortgage broker with a reference from a reputed person or company.

Be sure to discuss in detail the rate of interest and your repayment schedule; it is not uncommon for mortgage lenders to raise the rate of interest and kind of renege on the rates they advertise online.

Builders often offer to introduce lenders and home buyers, and the lenders may offer attractive freebies but you need to do the math and see how it works out in the long term. Negotiate with them and don’t settle for a deal that does not reasonably satisfy you.

Credit unions will offer provide you with a more competitive rate than what you can hope to get in the open market. Remember that credit unions help their members unlike banks that are businesses. Here is a nice piece in praise of credit unions.

Download Negative Amortization Calculator

Posted by admin on November 2nd, 2009

This post explains the concept of negative amortization loan or NegAm and at the end of this post you can download a free negative amortization calculator. Negative amortization takes place when the payment made for a loan is less than the interest due during that period. Since amortization means a reduction in the loan balance, a negative amortization implies that the loan balance actually increases.

Basically, with a negative amortization loan you get some breathing space in the beginning of the repayment period to pay less but the drawback is that the shortfall keeps getting added to the loan amount. So if you are planning to use NegAm as a strategy to get into that home that you otherwise may not have been able to afford – think twice. There is an element of speculation to going for a negative amortization loan. Most lenders have a 5-year limit on the NegAm period. After this the loan reverts or is recast to the full amortization schedule. Negative amortization loans are adjustable rate mortgages and the borrower can be exposed to “payment shock” wherein he has to face an unexpected rise in monthly payments. Negative amortized loans on a fixed rate are called graduated payment mortgages or GPMs.

An “option ARM” or “flexible payment ARM” is a type of negative amortization loan in which the borrower can choose from a fully-amortizing payment, an interest-only payment, or a “minimum” payment that did not cover the interest.
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Download Remodeling Cost Calculator

Posted by admin on October 9th, 2009

Before you even begin a remodel, it is important that you be aware of the remodeling costs that you will incur and have an idea of how to estimate remodeling costs. You can download a free remodeling costs calculator at the end of the post.

Factors that influence the cost of a remodel include the extent of remodel, the cost of materials and fixtures, whether you wish to hire a remodeling expert or do the remodel yourself. How you choose to finance your remodel may also affect the cost; if you pay for the remodel from your pocket then you are not paying any interest as you would if you went in for a home improvement loan or a personal loan.

Estimated cost of a remodeling project

You are in a position to start the remodel only when you have an estimate of what it is going to cost you. Here is a good page listing estimated costs of almost all the remodeling jobs that you can think of.

The cost per square foot method – Take the total square foot area to be remodeled and multiply it by the per sq. ft remodeling rate prevalent in your area. The rate could be anything in the range of $150 to $750. A lot depends on the room that is being remodeled and the kind of finish that you desire. However, this estimate has a large range and may not give you the level of accuracy that you desire in your remodeling cost prediction.

Estimate for a contractor – A contractor or an architect can narrow down the range of estimates for you because of their experience in working on similar projects. You can get free online quotes by filling in the required fields in online calculators. You can get multiple quotes from different contractors and then compare cost

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More Road Signs Toward Foreclosure

Posted by admin on October 9th, 2009

Housing Market in Delicate State

The news has been increasingly unanimous lately on foreclosure triggers. Loan modification programs are struggling to keep people in their homes. Unemployment is causing other, once-solvent homeowners to fall behind with their payments. Even auxiliary components, like ACORN, are imploding into themselves with disorder.

By and large, loan modification efforts are not translating into sustainable, affordable home loans for those who are at risk of foreclosure. Blame seemingly cascades back and forth between unwilling banks and unsalvageable homeowners, while the state and federal governments attempt to bridge the two sides.

Effects in areas of high unemployment are gaining momentum. Many rural towns, especially, are simply isolated from quick solutions, like new business moving into town to hire or workers or non-profit agencies that assist those in danger of foreclosure.

While ACORN has been on the receiving end of jokes for the past year, other agencies have remained in the trenches, slugging it out for troubled homeowners. Meanwhile, other third-party hucksters have surfaced in the form of refinancing scams, creating situations where people not only are not receiving help, they are also being pick pocketed very, very slowly by white-collared criminals.

Opportunity:

One of this summer’s nagging questions has been, “Has housing hit bottom?”

Certainly, a lot of homes changed hands this summer, but then again, there were a lot of homes available at lower than usual prices, made even more affordable by low interest rates. And to top it off, August came in lighter than expected, and the $8,000 tax credit is for all intents and purposes off the table by now.

Home prices should remain low, and properties available via foreclosure are likely to increase in the coming months.

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