Upside Down Mortgage

Archive for October, 2009

Us Subprime Mortgage Market

Question: Are commercial real estate prices destined for the same fate as what's happened in the housing market?

The CMBS market is paralyzed and the CMBX says prices will fall 23 percent over the next three years. There are a lot of interest only commercial real estate mortgages in CMBS portfolios and many will begin amortizing this year. If a recession is upon us and those borrowers can't meet their debt service requirements under the new amortization - it seems to me we have a repeat of what is happening in the subprime universe.

Answer: The commercial real estate market is much broader and dynamic than the residential market. There are many property types, whose valuations seldom move in unison. The basic property types are: retail, office, industrial and multifamily residential. The health of each of these markets is determined, to a large extent, by supply and demand. Supply is measured by vacancy rates, while demand is a function of the underlying business climate.
A recession hurts demand, however these markets are very slow to react. In our current economy, the issues we have seen have been largely on the consumer side. Corporate borrowing tends to be more conservative and more heavily scrutinized by the banking industry.
I expect that the commercial market will remain stable through this downturn and not experience the foreclosures and value deflation that we've seen on the residential side.

Mortgage Meltdown - 44min. documentary

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Loan Modification Three Month Trial

Question: Do you know anyone who has been offered a loan modification?

We have just finished our three month trial payment plan and still no answer. The want us to keep paying that same payment each month. Our lender is Suntrust and I have yet to hear of a successful mod story.

Answer: Yes, recently homeowners are starting to see some results from President Barack Obama's ambitious plan to rescue the housing market. Mortgage servicers implemented 185,156 loan modifications during the first three months of 2009, up 55 percent from the previous quarter, according to data from the Office of the Comptroller of the Currency and Office of Thrift Supervision.

The bad news is not everyone can qualify for a mortgage loan modification. Loan modifications are designed to help homeowners who can still afford to pay a slightly modified mortgage. It is not supposed resolve all troubled mortgages.

The Federal Government has set up a website to educate homeowners about the loan modification process. See www.makinghomesaffordable.gov
Basically there are 5 requirements to qualify for a loan modification. They are:

1. The home needs to be the homeowner’s primary residence;
2. The mortgage must be less than $729,750;
3. The homeowner is having trouble making their existing mortgage payment;
4. The mortgage was established before January 1, 2009; and
5. The homeowner payment on their first mortgage (including principal, interest, taxes, insurance and homeowner's association dues) is more than 31% of their current gross income.

Homeowners don't need to pay a company to obtain a loan modification. However, sometimes it can be better to have someone, such as a lawyer or credit counselor, negotiate on your behalf. A good strategy is to talk to as many experts as you can prior to contacting your bank. Many of these services will give you a free consultation.

A good site to begin can be found www.credit-hub.net/loan-modification where I entered some details about my current mortgage and the company got back to me multiple loan modification proposals.

I ended up contacting the bank by myself, but knowing what was possible in advance helped me tremendously.

Bank Failing On Loan Promise

Underwater Mortgage Help

Question: Loan options for underwater mortgage?

I have a loan with Countrywide which is up to date but currently underwater. I am looking to make the payments more affordable. Do I have any options? I've seen the loan modification stuff but that seems to only be available if the mortgage is behind.

Answer: Approximately 7.5 million Americans are in a precarious position - their homes are worth less than the amount they owe on their mortgage.

If you are one of the homeowners identified by First American CoreLogic as being "underwater," you'd better think twice about putting a "For Sale" sign on your front lawn.

Even if you don't have plans to sell in the near future, the repercussions of having negative equity could be dangerous, particularly if you are struggling to meet your mortgage payments.

for more below site may provide some improtant insight for you

http://www.iloanshop.com

Good Luck..........!

Help with Mortgage Payments Video | Bills.com