Upside Down Mortgage

Archive for November, 2007

Subprime Auto Loans Rates

Question: Usury laws: do they NOT apply to subprime auto loans?

I am in the market (unfortunately) for a bad credit AUTO loan. My score is horrendous thanks to a messy divorce (400!) I am aware that this score will qualify me for the state MAX interest rate.

I was told that the interest rate here in NEW YORK will be 30-35%, but when I looked up New York's usury laws, they said the state max is 16%. I'm confused, can local auto dealers charge me 30-35% interest for an auto loan or not??

Thanks a bunch

Answer: Although New York's usury laws may state 16% as a maximum, National Banks (se if there is an N.A. after the bank's name) are governed by the state in which they are registered. For example, if the bank you are dealing with is based/chartered out of Delaware, they in essence can charge whatever they want, since Delaware has no law pertaining to usury.

Try applying for a car loan at a local bank chartered in New York, who would be regulated by the state and subject to New York's usury laws.

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Mortgage Forgiveness 2009

Are you in the middle of a mortgage nightmare? Your income has changed, and you can't afford your house payment any more. You don't know what to do. Your family has to eat, but they won't have a kitchen to eat in, if something doesn't change. You could get your mortgage changed if you qualified for a Federal Loan Modification.

A modification takes your old loan, if your situation qualifies, and alters it so that it is a totally different loan that you can afford. This is a government program, but the work is done by your lender. They get financial incentives and tools to work with from the government, and they can straighten out your mortgage mess. They can even forgive your late fees that have piled up. You come away with a new house payment, less than 31% of your gross monthly income.

One of the main requirements of this program is that you have suffered from financial hardship. This means that an event has caused you to lose income or incur expenses that wasn't your fault. You had no control over it, and it wasn't just financial irresponsibility. It could be losing one job because of a plant closing and having to take a much lower paying job. Or you might have incurred medical bills. Maybe your spouse died, and you are strapped for money due to that sad event.

It is easy to get into a mortgage dilemma and not so easy to extricate yourself from one. If you qualify for mortgage modification, you will be given a very unusual second chance for home ownership. This federal program is through the 2009 Stimulus Bill, and it is a welcome relief for millions who are facing foreclosure.

December 31, 2009, is the deadline for a federal loan modification, and they won't be available in this format any longer. If you are struggling with your mortgage, get the change you need. You owe it to yourself to see if you might qualify.
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Click here to learn how to get qualified for a mortgage modification loan

Article Source: ArticlesBase.com - Federal Loan Modification - Changing Your Mortgage Around to Fit Your Budget!

Short Sale Summit 2009

Loan Modification Of Income

Question: How can I get qualified for a loan modification of a WAMU home equity line of credit?

I need to submit an application in order to be considered for a loan modification. Does anyone know what Debt/income ratio they look for? Please help!

Answer: They are not looking at your D/I. They are looking at your housing ratio. Modifications aren't generally given in regard to other bills, but to your total p & i payment, any escrow, home owners assoc. fees, etc; compared with your gross income. They will ask you for proof of any income reported. Most mortgage companies now qualify anyone with an H/I of >30%. They reduce interest rate on a temporary basis to get the H/I within an acceptable 30% H/I.

If you're H/I with honest gross income is <30% you're very lucky, and you don't need a modification.

Modifications are temporary, keep that in mind, and are meant for mortgage holders with reduced income, unemployment income, disability, etc., so that they can have 4+ years to sort out income shortages (hopefully!).

Be patient through the process. It's very tedious, and long, and frustrating. If you qualify they'll let you know.
Good luck!

Loan Modification, Income & Expenses