By Marcie Geffner - Bankrate.com
As if a borrower didn't face enough hurdles in the quest for a mortgage modification, now there is another. It's the required "trial period" of the federal government's Home Affordable Modification program, and it may be a feature of other mortgage modifications as well. The typical trial period lasts three months and allows the loan servicer to test the borrower's ability to make the modified loan payment before finalizing the modification.
Loan servicers have sent out more than 300,000 letters to homeowners who might qualify for a lower mortgage payment through the government's program, according to the U.S. Treasury Department. If you received such a letter or expect to participate in a mortgage modification program, you may be curious about the trial period requirement. Here are 10 questions and answers:
1. Is a trial period required to get a mortgage modification?
Read on:
http://www.bankrate.com/finance/mortgages/want-to-modify-mortgage-get-a-trial-run-1.aspx
Friday, June 26, 2009
Foreclosure-speak
Your guide to 'foreclosure rate' and other distressed terms.
By Marcie Geffner - California Real Estate
Short sales and bank-owned properties are likely to be a fixture in many California housing markets for the foreseeable future. That’s why REALTORS® need a better than-basic knowledge of facts and figures that relate to these properties, so they can obtain more listings, close more transactions, and differentiate themselves from their competitors.
“It is not inconceivable that in California, at least for the next year, virtually all of the opportunities for most agents will be some sort of distressed property sale,” says Rick Sharga, vice president of marketing at RealtyTrac in Irvine.
“Like it or not,” adds Sean O’Toole, CEO of ForeclosureRadar.com in Discovery Bay, “you have to come up to speed on this information.”
Read on:
http://www.car.org/newsstand/crem/current-issue/junejuly2009/foreclosurespeak
By Marcie Geffner - California Real Estate
Short sales and bank-owned properties are likely to be a fixture in many California housing markets for the foreseeable future. That’s why REALTORS® need a better than-basic knowledge of facts and figures that relate to these properties, so they can obtain more listings, close more transactions, and differentiate themselves from their competitors.
“It is not inconceivable that in California, at least for the next year, virtually all of the opportunities for most agents will be some sort of distressed property sale,” says Rick Sharga, vice president of marketing at RealtyTrac in Irvine.
“Like it or not,” adds Sean O’Toole, CEO of ForeclosureRadar.com in Discovery Bay, “you have to come up to speed on this information.”
Read on:
http://www.car.org/newsstand/crem/current-issue/junejuly2009/foreclosurespeak
Is the 40-year mortgage a joke?
By Marcie Geffner - Bankrate.com
It's true: A 40-year mortgage can make your monthly house payment more affordable. But mortgage brokers say such long-term loans generally aren't the best choice for most borrowers because they typically come with a higher interest rate and cost more in interest over the lifetime of the loan.
This trade-off between a lower payment and higher costs is so unattractive that Jeff Lazerson, president of online mortgage broker MortgageGrader.com, says the 40-year mortgage is "a joke."
"Amortizing a loan over 10 more years does very little to decrease the payment, and the industry has historically priced 40-year loans more expensively than 30-year loans, so the benefit that the consumer perceives they should get, they don't get," he says.
Read on:
http://www.bankrate.com/finance/mortgages/is-the-40-year-mortgage-a-joke-1.aspx
It's true: A 40-year mortgage can make your monthly house payment more affordable. But mortgage brokers say such long-term loans generally aren't the best choice for most borrowers because they typically come with a higher interest rate and cost more in interest over the lifetime of the loan.
This trade-off between a lower payment and higher costs is so unattractive that Jeff Lazerson, president of online mortgage broker MortgageGrader.com, says the 40-year mortgage is "a joke."
"Amortizing a loan over 10 more years does very little to decrease the payment, and the industry has historically priced 40-year loans more expensively than 30-year loans, so the benefit that the consumer perceives they should get, they don't get," he says.
Read on:
http://www.bankrate.com/finance/mortgages/is-the-40-year-mortgage-a-joke-1.aspx
Can you get an Obama loan modification?
By Marcie Geffner - Bankrate.com
Borrowers who can't afford their mortgage payment may want to take a look at the Home Affordable Modification program, which is part of the Obama administration's Making Home Affordable plan.
The Home Affordable Modification program creates a uniform process for loan servicers to modify existing mortgages for homeowners who meet the following two conditions:
• They spend more than 31 percent of their income on monthly housing costs.
• They already are delinquent or in imminent danger of default because of a major change in their financial situation.
The rules are complicated. The federal government has issued top-level guidelines, but Fannie Mae and Freddie Mac have their own specific guidelines. In addition, lenders, loan servicers and mortgage insurers may have their own requirements as well.
Read on:
http://www.bankrate.com/finance/mortgages/can-you-get-an-obama-loan-modification-1.aspx
Borrowers who can't afford their mortgage payment may want to take a look at the Home Affordable Modification program, which is part of the Obama administration's Making Home Affordable plan.
The Home Affordable Modification program creates a uniform process for loan servicers to modify existing mortgages for homeowners who meet the following two conditions:
• They spend more than 31 percent of their income on monthly housing costs.
• They already are delinquent or in imminent danger of default because of a major change in their financial situation.
The rules are complicated. The federal government has issued top-level guidelines, but Fannie Mae and Freddie Mac have their own specific guidelines. In addition, lenders, loan servicers and mortgage insurers may have their own requirements as well.
Read on:
http://www.bankrate.com/finance/mortgages/can-you-get-an-obama-loan-modification-1.aspx
Monday, May 11, 2009
Making Home Affordable Refinance: The Rules
By Marcie Geffner • Bankrate.com
The federal government's Home Affordable Refinance program is designed to help homeowners refinance their mortgages even if they owe slightly more than the current value of their homes.
The program could be a boon for some borrowers, though its many layers of rules may resemble one of those maddeningly complex contests that offer valuable prizes to people who complete a maze of special offers.
The program is complicated because the federal government has a top-level set of rules; Fannie Mae and Freddie Mac have their own separate sets of rules; and lenders, loan servicers and mortgage insurers generally have their own rules as well.
Borrowers may well wonder where to begin. Here's our guide to help you navigate through this labyrinth of rules.
Read on: http://www.bankrate.com/finance/mortgages/do-you-qualify-for-refi-plan-1.aspx
The federal government's Home Affordable Refinance program is designed to help homeowners refinance their mortgages even if they owe slightly more than the current value of their homes.
The program could be a boon for some borrowers, though its many layers of rules may resemble one of those maddeningly complex contests that offer valuable prizes to people who complete a maze of special offers.
The program is complicated because the federal government has a top-level set of rules; Fannie Mae and Freddie Mac have their own separate sets of rules; and lenders, loan servicers and mortgage insurers generally have their own rules as well.
Borrowers may well wonder where to begin. Here's our guide to help you navigate through this labyrinth of rules.
Read on: http://www.bankrate.com/finance/mortgages/do-you-qualify-for-refi-plan-1.aspx
Should you skip your mortgage payment?
By Marcie Geffner • Bankrate.com
If you've been tempted to skip a few mortgage payments to try to convince your lender to modify your loan, you may want to resist that temptation. Whether your goal is to stave off foreclosure or just make your payments more affordable, experts say deliberate delinquency is not as smart an idea as it may seem.
The bottom line is that:
•If you can make your payment, you should do so.
•If you can't, you shouldn't.
•If you're in between, you should get help to assess your situation.
"Back in the day, (lenders) would only provide modifications to people who were significantly behind because that evidenced that they truly needed the loan modified. They were of that mindset, and they didn't realize the enormity of the problem," says Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling in Silver Spring, Md. "But now, they've realized that the logic of making someone become delinquent and dig a deep financial hole before you help them was really not good for anyone."
Read on: http://www.bankrate.com/finance/mortgages/should-you-skip-your-mortgage-payment-1.aspx
If you've been tempted to skip a few mortgage payments to try to convince your lender to modify your loan, you may want to resist that temptation. Whether your goal is to stave off foreclosure or just make your payments more affordable, experts say deliberate delinquency is not as smart an idea as it may seem.
The bottom line is that:
•If you can make your payment, you should do so.
•If you can't, you shouldn't.
•If you're in between, you should get help to assess your situation.
"Back in the day, (lenders) would only provide modifications to people who were significantly behind because that evidenced that they truly needed the loan modified. They were of that mindset, and they didn't realize the enormity of the problem," says Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling in Silver Spring, Md. "But now, they've realized that the logic of making someone become delinquent and dig a deep financial hole before you help them was really not good for anyone."
Read on: http://www.bankrate.com/finance/mortgages/should-you-skip-your-mortgage-payment-1.aspx
Assist-2-Sell Adds Office in Canada
By Marcie Geffner - Assist-2-Sell
Lyle and Sandy Longridge were no different from countless other real estate agents who sell property across Canada. That is, until last August, when the dynamic husband-and-wife duo decided to open up the country's newest Assist-2-Sell® franchise. Their new company, in New Westminster, B.C., opened for business in October, and today, Sandy Longridge calls the couple's choice "the most exciting and fulfilling" decision of their careers.
"We wanted to run our own show and be our own boss," she says. "We wanted to do something that we could believe in."
The Longridges settled on Assist-2-Sell after almost a year of research because they admired the company's business model, which is built around giving home sellers and buyers exactly what they want in today's housing markets: Flexible commissions and superior service.
"Real estate is changing," says Lyle Longridge. "The traditional model is not going to survive in the same form as it is now. Assist-2-Sell is a great way for us to position ourselves for that future and those changes."
Read on: http://www.assist2sellblog.com/my_weblog/2009/03/index.html
Lyle and Sandy Longridge were no different from countless other real estate agents who sell property across Canada. That is, until last August, when the dynamic husband-and-wife duo decided to open up the country's newest Assist-2-Sell® franchise. Their new company, in New Westminster, B.C., opened for business in October, and today, Sandy Longridge calls the couple's choice "the most exciting and fulfilling" decision of their careers.
"We wanted to run our own show and be our own boss," she says. "We wanted to do something that we could believe in."
The Longridges settled on Assist-2-Sell after almost a year of research because they admired the company's business model, which is built around giving home sellers and buyers exactly what they want in today's housing markets: Flexible commissions and superior service.
"Real estate is changing," says Lyle Longridge. "The traditional model is not going to survive in the same form as it is now. Assist-2-Sell is a great way for us to position ourselves for that future and those changes."
Read on: http://www.assist2sellblog.com/my_weblog/2009/03/index.html
Foreclosure Prevention Counseling, the Law, and You
What you need to know before you offer your services
By Marcie Geffner - California Real Estate magazine
REALTORS® might seem perfectly positioned to offer foreclosure prevention counseling and loan modification services to homeowners who can’t afford their mortgage payments. After all, many of these struggling homeowners naturally turn to the trusted REALTOR® who helped them purchase their home to ask for such assistance. But while you might be willing to help, you also should consider a number of risks before you decide to tackle this type of activity.
Why It’s Risky
The potentially risky areas include real estate licensing law, advance fees, the Foreclosure Consultants Law, and errors and omissions (E&O) insurance coverage.
Read on: http://www.car.org/newsstand/crem/current-issue/aprilmay2009/300646/
By Marcie Geffner - California Real Estate magazine
REALTORS® might seem perfectly positioned to offer foreclosure prevention counseling and loan modification services to homeowners who can’t afford their mortgage payments. After all, many of these struggling homeowners naturally turn to the trusted REALTOR® who helped them purchase their home to ask for such assistance. But while you might be willing to help, you also should consider a number of risks before you decide to tackle this type of activity.
Why It’s Risky
The potentially risky areas include real estate licensing law, advance fees, the Foreclosure Consultants Law, and errors and omissions (E&O) insurance coverage.
Read on: http://www.car.org/newsstand/crem/current-issue/aprilmay2009/300646/
Wednesday, April 8, 2009
Do you have enough equity to refinance?
By Marcie Geffner - Bankrate.com
If you'd like to refinance your mortgage but don't want to shell out hundreds of dollars to find out whether you have enough equity to qualify, you're not alone. Plenty of other homeowners share your dilemma, and good solutions aren't easy to find.
"A lot of people have called, got the application, locked that great rate, and then it's down to the appraisal and the deal falls apart," says Joe Metzler, a mortgage specialist at Mortgages Unlimited in St. Paul, Minn.
Read on: http://www.bankrate.com/brm/news/mortgages/20090305-enough-equity-to-refinance-a1.asp?prodtype=mtg
If you'd like to refinance your mortgage but don't want to shell out hundreds of dollars to find out whether you have enough equity to qualify, you're not alone. Plenty of other homeowners share your dilemma, and good solutions aren't easy to find.
"A lot of people have called, got the application, locked that great rate, and then it's down to the appraisal and the deal falls apart," says Joe Metzler, a mortgage specialist at Mortgages Unlimited in St. Paul, Minn.
Read on: http://www.bankrate.com/brm/news/mortgages/20090305-enough-equity-to-refinance-a1.asp?prodtype=mtg
New 'code of conduct' for appraisers
By Marcie Geffner - Bankrate.com
If you want to buy a home or refinance your mortgage, you might not be all that concerned about how your lender selects the appraiser who figures out how much your home is worth. But new rules intended to reduce appraisal fraud and curtail undue pressure on appraisers could have some dramatic repercussions for homebuyers and homeowners.
Proponents say the new rules will result in more reliable appraisals, less fraud, lower costs and minimal disruption. But critics expect less accurate appraisals, delays in loan processing, higher costs and general misery for all concerned.
Read on: http://www.bankrate.com/brm/news/mortgages/20090316-new-appraiser-code-a1.asp?prodtype=mtg
If you want to buy a home or refinance your mortgage, you might not be all that concerned about how your lender selects the appraiser who figures out how much your home is worth. But new rules intended to reduce appraisal fraud and curtail undue pressure on appraisers could have some dramatic repercussions for homebuyers and homeowners.
Proponents say the new rules will result in more reliable appraisals, less fraud, lower costs and minimal disruption. But critics expect less accurate appraisals, delays in loan processing, higher costs and general misery for all concerned.
Read on: http://www.bankrate.com/brm/news/mortgages/20090316-new-appraiser-code-a1.asp?prodtype=mtg
