Upside Down Mortgage

Archive for May, 2009

Loan Modification Hawaii

In addition to the national government’s tax credit for first time buyers, many states are offering programs designed to help with the purchase of a home. These programs provide savvy, informed buyers a way to save significantly when buying a home, particularly for first time buyers or those in the lower to middle class. Assistance in these programs ranges from financing terms help to state income tax credits to assistance with down payments. The programs are intended to supplement federal programs like the loan modification program and the $8,000 tax credit available to first time buyers who purchase before December 1st.

Most of the state programs are subject to change based on funds available. One program in California, for example, offered a tax credit for homes purchased this year. The $100 million earmarked for the program was depleted by the end of February. Many of the state programs require buyers to attend education programs to become eligible. Some deny eligibility to those above a certain income or thos purchasing a home for more than a certain amount. Fifteen states are now offering zero or low interest loans against the $8,000 federal tax credit to help buyers make their down payments.

There are some dangers with the state programs. They may entice people to buy a home when they really aren’t ready. Buying a home is a decision that should only be made after careful examination of one’s finances. It is a good idea to consult with debt counselors when deciding whether or not to buy a home. For those in adequate financial shape to buy, several states are offering Mortgage Credit Certificates, which allow homeowners to recoup 20%, generally, of their annual interest from a home loan as a federal tax credit. The details of these certificates vary from state to state, but generally remain active as long as the home remains the primary residence of the homebuyer. Lenders do not generally advertise this program, so potential buyers should ask their lender if there is a certificate program in their state.

Some states that are offering various tax credits to residents purchasing a home are: Arizona, Colorado, Hawaii, Indiana, Kentcucky, Michigan, Mississippi, New York, North Carolina, Ohio, and West Virginia. Anyone looking into buying a home in these states should consult with their lender about the details of any programs available to them.

About the Author:

Ron Parks is one of the top real estate agents in Marin County. His website features facts, figures and home search capabilities for the Marin real estate market. His website also features the infamous Marin monthly real estate report which receives thousands of visitors per month, as does his Marin News Blog.

Article Source: ArticlesBase.com - State Programs Can Save Homebuyers Significant Cash

Loan Modification announcement from Pres Obama

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Second Housing Bubble Burst

Question: How bad will things be when gas prices reach $4/gal this summer in the US?

Gas prices are shooting up right now and analysts believe they will rise to at least $4/gal within the next few months.

Americans are already losing their homes at an alarming rate due to the Housing Bubble Burst.

Inflation is quickly rising as the Fed is scrambles to lower interest rates to keep the economy from collapsing.

Unemployment is on the rise for the second time in Bush's presidency even though American have already had to settle for lower wage jobs after his first recession.

How will America fair now that Bush's war is driving gas prices to $4/gal and beyond?

Answer: It is bad NOW between the price of gas, food, utilities, medical care and housing. Gas has hit $3.67 in upstate New York, that is up 12 cents overnight!

Where I live there is no public transportation. I have cut corners every place I can. I drive an economy car and it still cost me 40 dollars to fill it up. I make only necessary trips, and I combine errands.

Farmers HAVE to have gas to operate their machinery. Truckers HAVE to have gas to deliver products to the stores. Prices are going up and we consumers are getting the trickle down effects of it.

It is only going to get worse!

Peter Schiff-ite predicts auto bubble (economy, Ron Paul)

Loan Modification Spreadsheet

Loan modification is the most requested solution to prevent foreclosure in this disturbed economy. Loan modification is the process of altering the original terms of a loan the borrower is finding difficulty in paying, changing them into ones more affordable to the borrower. The homeowner’s full effort, however is vital to the success of any loan modification.

The homeowner has to know all he can about loan modification. Provided below are seven helpful stuff a homeowner wanting to take loan modification should remember about how loan modification works.

1. Review Your Financial Status

Prepare your set financial statements including as they are the most viable reference of your current financial condition. Don’t forget to include a detailed list of your expenses like food, gas, credit cards and other financial obligations and input them in s spreadsheet and compute the average cost you incur on each item monthly and quarterly. Such is important not only for knowing your own financial position but it will also help you in answering the lenders questions on initial negotiations for your loan modification.

2. Hardship Letter

Ready a hardship letter of one or two pages wherein you will state clearly the reasons why you can no longer sustain making the payments based on the original terms of the loan and how a loan modification will help both you and the lender. Make sure you can prove whatever claim you put on the hardship letter.

3. Collect Necessary Documents

Gather all documents the lender may possibly require in reviewing your eligibility for loan modification. Such documents are but not limited to the following: paystubs and bank statements for past the 2 months;  W-2 Form for last 2 years for the employed; Form 1040 for last 2 years if you're self employed; Rental Agreement if the loan is not on your primary home; most recent mortgage statement; and property tax statements.

4. Contact Your Lender

Call your lender and inform him of your current situation and your desire of getting a loan modification and paying up your loan. Borrowers a few months behind payments are preferred but even those who are not yet late on their payments can qualify for loan modification provided that they can prove a probable future financial difficulty.

5. Fill Out Paperwork

Once your request for loan modification is recognized, your lender will send you an information packet and a financial worksheet you can use to compute for your expenses. Attach the documents you have gathered to serve as proof. All these are necessary for your lender to be able to assess your financial situation and determine whether you are eligible for loan modification and if your are indeed eligible, come up with the loan modification scheme that suits you. Just remember that the paperwork should be able to prove that you will be able to make your payments on time after loan modification.

6. Written Agreement

Once review of your paperwork is complete, your lender will inform you whether a loan modification will be granted to you or not. If it will be granted, he will send you a document explaining the details of his loan modification offer and then you are required to answer whether you approve of it or not.

7. Stop Gap Repayment Plan

Once you accept your lenders loan modification offer you will be asked to start off a gap repayment plan and keep doing such until the loan modification goes through. The stop gap repayment plan may go on up to a maximum of 60 days during which your lender reviews your status, financial statement and documents to be able to ascertain the risks involved in modifying your loan.

While in the stop gap period, you should be able to provide proof that you will be able to afford the modified payments along with the other expenses incidental to loan modification. Only after completing such task do you have a chance of finally getting a real loan modification.

24VIPINC will assist you in your loan modification attempts and CallComLeads will supply you with high quality loan modification leads.

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24VIPINC Loan Modification

CallComLeads Loan Modification Leads

Article Source: ArticlesBase.com - Seven Things to Loan Modification