Upside Down Mortgage

Archive for July, 2007

Loan Modification Rip Off

Question: Has anyone else been ripped off by Affordable Home Assistance out of Costa Mesa, CA?

This company took our money over 120 days ago and doesn't even have the courtesy to deliver a call back. They say they do loan modification but my lander is yet to hear from them. Can someone tell me if they are aware of this scam or others like it. Thanks

Answer: Have you called THEM back?
Usually you just go to the lender directly to request a modification. what happens if this company doesn;t save you enough in 5 yrs to even cover their fee. ALWAYS star with the lender themselves

Loan Modification Scams

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Define Subprime Lending

A mortgage loan is a loan secured by real property through the use of a mortgage (a legal instrument). Mortgage loans are generally structured as long-term loans, the periodic payments for which are similar to an annuity and calculated according to the time value of money formulae.

For borrowers with superior credit, government loans and ideal profiles, this securitization keeps rates almost artificially low, since the pools of funds used to create new loans can be refreshed more quickly than in years past, allowing for more rapid outflow of capital from investors to borrowers without as many personal business ties as the past. It may by law deal only with government-supervised lenders such as savings and loan associations, savings banks, and commercial banks; its programs cover conventional whole mortgage loans, participations in conventional loans, and FHA and VA loans. These loans may be useful for people who have a lot of equity in their home and want to lower monthly costs; for investors, allowing them the flexibility to choose which payment to make every month; or for those with irregular incomes (such as those working on commission or for whom bonuses comprise a large portion of income).

In the last case, mortgage insurance can be dropped when the lender informs the borrower, or its subsequent assigns, that the property has appreciated, the loan has been paid down, or any combination of both to relegate the loan-to-value under 80%. All of these methods are still compensating the lender as if they were charging interest, but the loans are structured in a way that in name they are not, but they share the financial risks involved in the transaction with the homebuyer. While often defined or defended as lending to borrowers with compromised credit histories, the Wall Street Journal reported in 2006, 61% of all borrowers receiving subprime loans had credit scores high enough to qualify for prime conventional loans.

Opponents alleged subprime lenders engaged in predatory lending practices such as deliberately targeting borrowers who could not understand what they were signing, or lending to people who could never meet the terms of their loans. Generally, the credit profile keeping a borrower out of a prime loan may include one or more of the following:Two or more loan payments paid past 30 days due in the last 12 months, or one or more loan payments paid past 90 days due the last 36 months;Judgment, foreclosure, repossession, or non-payment of a loan in the past;Bankruptcy in the last 7 years;Relatively high default probability as evidenced by, for example, a credit score (FICO) of less than 620 (depending on the product/collateral), or other bureau or proprietary scores with an equivalent default probability likelihood. In most cases, should these loans default, the Servicing is passed to “Special Servicers” who stand to reap significant “Workout”, “Foreclosures” and Real estate owned (REO) management fees.

To meet demand, lenders have seen that a tiered pricing arrangement, one which allows these individuals to receive loans but pay a higher interest rate and higher fees, may allow loans which otherwise would not occur.

About the Author:

Are you sick and tired of feeling the pressures of debt taking over your life and feel like there's no way out? Let our expert reveal the little-known secrets that will change all of this for you. Click here for FREE advice, and low-cost solutions to finally help you to become debt free!

Article Source: ArticlesBase.com - Mortgage Refinance Loan - the Facts and the Figures Explained

These Corporate Pigs Must be Stopped!

Loan Modification Regulations Arizona

Experts fear that over one million properties are likely to be added to foreclosures lists in 2009. Already this prediction has come true to quite an extent as 800,000 new foreclosures filings have been processed so far.

Around 259,085 homes have been giving notice about default or have been warned about an upcoming bid. The country did witness a seven percent decrease in foreclosure filings since October 2008 but that was only due to delays in processing by bank programs and state regulations. The result of this delay was that many defaulters were actually allowed to keep their homes until the procedures were completed. However in 2009 much of the procedures have been completed and the moratoria have been lifted resulted in a massive influx of foreclosures in the market. This along with rising unemployment is the major factor contributing to ever growing foreclosures lists.

Robert Hall, the Chairman of the National Bureau of Economic Research Committee and a professor at Stanford University states that rising unemployment is the biggest factors that contribute to rising foreclosure filings because it leads to default payments. Hall also stated that the price drop in the housing market would also continue during 2009 and despite the foreclosure prevention program initiated by the government there seems to be no stabilization in site. Loan modifications are not sufficient enough to let major lenders accommodate all of their borrowers. The crisis is likely to continue until the unemployment trend starts to change.

In a stark survey one of the leading foreclosure website revealed that one out of every 488 households filed for foreclosure just this last month. Nevada unwillingly boasts the largest increase in foreclosures with one out of every seventy six houses filing for foreclosures. This is more than six times the usual average. Florida comes next with one out of every one seventy three households being lost to the crisis. Florida also ranks second with 49,190 foreclosure filings besides making to most foreclosure lists. The third place is occupied by Arizona with one out of every one ninety households filing for foreclosure.

About the Author:

Joseph Smith has been educating buyers on the finer points of Foreclosures lists at ForeclosureListingsNationWide.com for over five years.

Article Source: ArticlesBase.com - Foreclosures lists

Loan Modification Branch Business Opportunity Tuscon AZ