Chad Fisher asked:


If you are finding you are needing your 1st mortgage modification, you are not alone. Take a look at this informative article about the 1st mortgage modification, and find out how this program can affect you.

A 1st mortgage modification will no doubt be a whirlwind of new information for you. Nevertheless, if it allows you to prevent foreclosure and to keep your house and possessions, it may well be worth it. Some of the things involved in 1st mortgage modification are; Capitalization & Re-amortization, a lowering of interest rates, extended amortization, a partial forebearance of the principal, and a test called an “NPV”.  The NPV is ” Net Present Value Comparison “, and has to do with the overall value of the loan modifications.

The 1st mortgage modification is determined by preset conditions outlined in the above attributes of this mortgage loan modification program. Such things as delinquent interest, taxes, lawyer fees, and other things are factored in. It is very possible that unpaid late charges can be waived, which is good news. The 1st mortgage modification will hopefully start a decrease in the interest rate to as low as three percent. This decrease is accomplished in increments, but will go up again after five years.

The 1st mortgage modification has the effect of delaying the payment of the principal when the loan itself is paid in full. This option is not currently available for those who have had a Freddie Mac or Fannie Mae loan. This year as the option arm loans start to balloon in their payments the 1st mortgage modification will more than likely need to be presented to many homeowners in the USA. Look at this as an option to avoid foreclosure and bankruptcy. Creditors are decreasing their desire to foreclose anyway because of the way the price of housing has fallen. This is good news and if you truly need a 1st mortgage modification, it will more than likely be a welcome option.



THURMAN

Jerry Cannon asked:


As I made my morning coffee,viewing out of my kitchen window at the rual road 1/2 mile from my front gate, a car passed at 5.58am.

Well you say, that is no big deal, yep everyone sees cars every day. Not here, the world must be growing beyond our bounds.

I then ,after viewing the rising sun and the cool morning,very unusual this september in Texas, I drove to nearby big city to see how other’s pursued their day.

What a mess, bumper to bumper traffic,women putting on makeup, men reading the morning paper,kids crying and young adults just going home after an all nighter with foggy eye’s.

I could already feel my blood pressure rising. After five miles of this I turned around and drove the twenty five miles back to my home and ordered the carpet cleaner my wife wanted from petsmart on my computer,having it shipped UPS for $6.95. Much less than the price of my presious diesel fuel at $4.39 a gallon for the one ton truck which is so necessary on our Ranch. Some how I just cannot grasp pulling a 12,000 pound trailer of hay for cattle with a golf cart sized truck powered by bass boat batteries like the one’s member’s of congress want us to drive. I guess they really do just flyover.

I know,what does your morning have to do with Residual Income you ask? I suppose nothing and everything. As much as I view this as aggrevation ,life in a big city must seem like an unscratchable itch, and I thank God every day I found the secret of Residual Income = Financial Freedom many years ago.

We retired and sold our Business 8 Years back ,believing I had made good investments and sufficient income to provide for my wife and I with the business we had built on the kitchen table back in the 70’s. Six years into our golden years my misfiguring revealed itself, first in the form of 2% interest rates so people could buy homes they could not afford, and business could borrow cheaply money to grow their business and keep alive the American dream,and of course keep paying foreign countries for oil.

As I returned to a monthly budget the need for outside income slapped me squarely in the face. If I don’t do something we might outlive our money, now that is a scary thought.

Today the U.S.Government has Nationalised the largest lenders for homes and the largest insurance company in the world,and talkes about buying the bad loans from mortage companies,that loaned on houses that people wanted but could not afford because congress wanted everyone to own a home,and mandated rules for lenders to lend money to people who could not pay it back.

Did common sense take a vacation?

Well any way, that’s the U.S. today,and you had better get on with learning how to create wealth or you will be in a boat smaller than mine and yours is going to have two big holes in it and sinking fast .

Residual Income, income that comes in every month for the rest of your life, is the best way to build wealth and financial freedom.

The pursuit of residual income comes in many flavor’s and is availabe in many businesses, but the one with the most promise for the average John Doe American is the Internet.

Why You say? It is the largest marketplace in the World, that’s why, it crosses all borderlines and culture’s,and is growing expotentially. How do I do it?

Learn and Learn fast, pick a good product that has long term growth projected and is reasonable in cost’s, learn how to market that product, then learn how to build a website, and most of all learn how to develop and generate leads to market your business .

All of these have been combined into one program and can be found on website’s operated by ethical internet marketer’s.



CARY

Kenneth Diesi asked:


It is a repeat pattern each year that Americans carry a mortgage on a home that they are selling.  Each and every year, the same question is asked ” How can I sell my mortgage note and get the cash I need?”  The following may help you when you have mortgage notes for sale.

It happens to many Americans, that when they sell their house they still carry a mortgage.  Each and every year, the same question is asked ” How can I sell my mortgage note and get the cash I need?”  If you are the holder of mortgage notes for sale, this information may be of assistance.

Real estate transactions of this nature occur in the millions each year and do not involve banks or real estate agents.  Many times a home owner can make far more money if he decides to do the financing himself.  Subpar properties can be sold for good amounts of money.  But when they do the financing, they sell to people that either don’t want to or can’t get bank financing.

A property note is formed once this is done.  The monthly payments that the new home owner is required to make goes directly to the person who has the cash flow note, therefore, the seller now becomes the bank.

In many cases after a certain amount of time the seller wants to cash out the real estate note.  Being the seller, you now have a couple of options available for you to select now that you have a cash flow note up for purchase.  You don”t have to sell the whole real estate note. You can just sell part of it to raise the cash you need.

To sell real estate notes you need to find a reliable private real estate investor who has the money to buy your real estate note.  When you find the right investor he will tell you exactly how much you can expect to get from your mortgage note for sale.

Mortage note buyers whose business is trading in these instruments will not charge you for an estimate of worth, particularly if this initial conversation is  a phone inquiry and not a meeting.  There is a lot of information available concerning how to get cash for a real estate note.

Always keep in mind that the note buyers have to buy the notes at a discounted price and that too it should be large enough to cover the inflation and the risk.   Of course, you have the distinct advantage of having money today.

Discovering the value of your real estate note is fairly simple, and private real estate investors compete for mortgage notes for sale, so peruse real estate investors’ websites if your finances require it.  Ask them for information on how to cash out that real estate note you have.  At times it is human nature to not ask questions and make things more difficult than they have to be.  Availability of internet has made the knowledge conveniently accessible in today’’s world.

If you are searching for mortgage notes for sale, eNoteWorld.com can help you attain high yield secure investments. eNoteWorld.com can also provide information on cash out real estate notes. To find out more, go to http://www.enoteworld.com



DENNIS

Bill Hudley asked:


Mortgage Bonds and The Importance of Class

Class in this discussion refers to both the asset and the market makers.

In 1988, I received my first orientation to Government National Mortgage Association(Ginnie Mae) and Federal National Mortgage Association (Fannie Mae). Emphasis was placed on the safety of investments issued by these agencies. I understood the distinction between the two institutions, meaning, GNMA was an agency of the U.S. Government and FNMA was sanctioned by the government and nothing more.

Several weeks of training followed, allowing me the time to understand the importance of a new era in the bond market. Mortage-backed securities, referred to as MBSs, were designed to provide 50 to 100 basis points more than U.S. Treasuries with similar maturities while enjoying the status of a AAA rating. These investments made a lot of sense when they were first introduced to the market. Investing in a security tied to the ownership of a single-family dwelling was probably one of the best ideas since the IRA was introduced in the ’70s.

Soon after I learned how the mortgage market worked, the Colleralized Mortgage Obligation (CMO) was born. This concept became the answer to the wide-spread dissatisfaction over the return of principal from standard mortgage bonds. Investors preferred to have their principal earning interest for as long as possible during the life of the bond. No problem.

I joined the charge in touting the superior performance of CMOs over U.S. Treasury Bonds. My clients learned enough about this opportunity to earn from 7% to 8% on their money during the unforgettable period between 1991 and 1998 without losing one dime of principal! How could they lose in an environment of falling interest rates? It was a wellspring of capital appreciation.

Deja Vu All Over Again!

It is mind boggling to think both Congress and Wall Street have each contributed to a dilemma that would be devastating to our economy. There was never a way to avoid a financial crisis if curbs were not placed on the kinds of mortgages that could be underwritten and sold to the bond market. Similar to the infamous junk bond market that reaked havoc in the late 1980’s, the mortgage industry which presented a golden opportunity to investors during for almost two decades only to take back its rewards in a devastating scenario.

One can become enraged when studying the reasons this crisis has occurred. Greed, among other things allowed a few individuals, both in politics and in business, to capitalize on the rise and fall of the mortgage bond market. I won’t spend the energy to cite cases and individuals here, but readers can certainly learn from recent reports on the character of the financial world.

Two respected sources of detailed information about our economic status are Bloomberg and Forbes Inc. Rather than take the easy route and accept the confusion from so-called economic pundits on television, you might want to search for the answers to your personal financial security, independently. After all, you are probably just as smart as anyone you see in a pin-striped suit.

In God We (should) Trust!

Bill Hudley 



MATTHEW

Gbeminyi asked:


When the easy money was flowing, you could get a great deal on a mortgage from just about anyone. But in today’s credit-challenged world, all the avenues for finding a mortgage come with their own set of problems.

Many banks have tightened lending standards and scaled back offerings. Some banks are no longer working with mortgage brokers, who are under fire for pushing bad loans during the boom.

And while online lending sites hold the promise of one-stop shopping, some have developed a reputation for playing bait-and-switch on rates and not fully disclosing fees.

All this adds up to a major shopping hassle. If you want to get the best rate, you’ll need to tap at least two of the sources below.

Scour the Web Shopping

for a mortgage online has come a long way from the days of one-size-fits-all rate listings. At some sites, including Bankrate.com, Mortage marvel.com, Zillow.com,you can now shop anonymously and get accurate rates. Keep in mind that all these sites act as referral services, so eventually you’ll have to close the deal with a bank or mortgage broker.

Best for: If you know what kind of loan you’re looking for, the Web should be your starting point; getting a handle on the current rates and fees will help you know whether you’re getting a good rate when you sit down with a broker or bank officer later on.

If you’re not sure what kind of mortgage you need, however, you’ll want to seek counsel from a real person right away.

What to watch out for: Sites that ask for your Social Security number and address upfront. They might pull your credit report, which could hurt your score if you don’t end up getting a mortgage.

Also make sure that all the fees are clearly disclosed on a site’s rate quote. Otherwise you may get a sorry surprise when you receive the paperwork from a lender.

How to get the best deal: When inputting data into the online mortgage tool, don’t guesstimate your income, your credit score, or other key stats. If you submit incorrect information, you probably won’t get the rate that you’ve been quoted.

Go directly to a bank

At the height of the credit crisis, there seemed to be little point in asking a bank for a mortgage. But banks are lending these days, albeit with some caution.

Best for: Borrowers who are looking for a conforming loan (less than $417,000 in most areas), since some lenders have stopped underwriting jumbos. Also, if you’re refinancing, call your current lender first: To keep you as a customer, it may be willing to undercut the competition.

What to watch out for: Novice loan officers. “In the heyday, underwriting was a matter of pushing a button,” says Steve Curnutte, a former mortgage broker. “Now you have to know what you’re doing.” To prevent your financing plan from fizzling out midway, ask to work with a loan officer who has been in the business for five-plus years, or since before the credit boom took off.

How to get the best deal: Shop locally. A loan officer who’s familiar with the housing stock and the players in your area may have greater latitude to offer you a lower rate than one based elsewhere. Try the local branches of big-name banks as well as community banks and credit unions, which may be using the crisis as an opportunity to snag business from their larger brethren.

Call on a broker

Mortgage brokers doled out plenty of bad loans during the boom. But a good broker can give you more hand-holding than you’ll get online and will scour the market more thoroughly than you’re likely to do on your own.

When it makes sense: If you’re in the market for a jumbo mortgage or financing for investment property, or you just don’t fit the conforming mold, a broker will identify lenders who underwrite unconventional loans. “The more exotic your needs, the harder it is to find a loan right now,” says

Keith Gumbinger, vice president of mortgage information site HSH. “Finding that little niche is what a broker does best.”

What to watch out for: Fees. Most brokers make money on the difference between the rate you could get and the rate you actually pay, and they aren’t required to disclose their cut. One way around it: Work with a fee-only broker (you can find one in your area at upfrontmortagebrokers.org

How to get the best deal: Obtain rate and fee info from banks and Web sites before you talk to a broker. After all, a good broker can more than make up for his cost if he finds you a better rate than you’d get on your own. But if he can’t, there are plenty of others who would love to have your business



DALE

Tomas Boyer asked:


Lenders assign you a credit score any time you apply for credit. This is there way of them determining whether you are a likely candidate to give credit to, or not.

The credit score is a 3 digit number, typically in the range of 300 to 850. At the low end 300 means you have very bad credit and would be unlikely to receive a loan, and on the other end of the scale a credit score of 850 would have the lender salivating at the opportunity to loan you a heap of money.

Although there is no hard and fast rule about the way the credit score is calculated (and indeed many institutions have their own formula’s which are adapted from the standard way of calculating) here is a general guide to how it is determined (these figures are approximate).

35% of your score will be based on how on time your payments are (or how late they are/have been).

30% of your score will be based on the total amount of debt you currently have versus how much available credit you have. You would add up the total balances of all your debt to get the first figure, and then add up the total credit limits of your cards, and other loans to get the second figure.

15% of your score will be based on the amount of credit history on file.

10% of your score will be based on the type of credit (this area is a little vague and can be adapted by each lender).

10% of your score will be based on the amount of credit recently obtained and/or the number of recent applications for credit.

Again, these figures are a rough guide and there would also be a number of overrides built into the systems by each lender. For example if you had a number of very overdue payments this could drop your score well over 35%. Also things like bankruptcy, foreclosures, and judgments would dramatically decrease your score.

There would normally be a process where the lender would enter your details into their computer system and if the score came out lower than the minimal they have decided on for a particular loan, your application would get rejected.

When considering a poor credit home loans; we suggest you do some careful research first.

So what can you do to improve a bad credit rating?

1. If not already doing so, ensure you are making all payments on time, or even a little early. Paying a little extra can also help in some cases.

2. Get any judgements you may have on your credit report for unpaid accounts sorted out. Either pay the account, which will in some cases get the item removed from your credit report (if it is not removed, at least the lender will see that it has been paid), or double check it is correct (sometimes incorrect information gets put onto your report). It is sometimes possible to get your credit repaired by using a credit repair company. Be sure to do your homework and find reputable companies.

3. Cut down the amount of applications you are making for credit.

4. Consolidate your debts. For example if you have three items of credit, get rid of two of them, and just use one.

Or get the credit limits reduced on your credit cards. Sometimes a lender will look at the total amount of credit you have available and decide not to loan you money because that number is two high! Reducing your credit limits on each card, or reducing the number of cards would assist here. Unfortunately this can sometimes work against you as well, if the lender believes you have done this purely to obtain the loan.

5. Savings - Sometimes, showing a decent amount of money you have saved over a period of time will give the lender confidence in your ability to manage money.

6. If you have overdue accounts now, get them current now, and contact your creditors immediately to discuss - Don’t wait till the situation gets worse.

The problem of a bad credit rating does not go away quickly of it’s own account (generally an item on your credit report can last up to seven years), so prevention i.e. the best cure is paying your accounts on time.

If you are stuck with a bad credit rating now and need a loan, there are bad credit lenders who specialize in lending funds to people in your situation. Usually you will pay a higher interest rate but this can be an excellent way to start improving your credit score.



ANDREA