Upside Down Mortgage

Archive for November, 2009

Mortgage Help Direct Gov Uk

Question: What is the pregnancy pay in the UK?

I read this piece on direct.gov.uk, and it said that pregnant women can take up to 39 weeks leave, however, you get paid 90% pay for first 6 weeks & for the next 33 weeks you get only £112.5 per week. That isn't very fair, is it? How would a single mother pay her mortgage at that rate? I'm not sure if this is the way it works.

Answer: hi
i work for NHS. this is what my hospital policy says,
you need to check with your employer for their policy, but it should not be very different

Eligibility and Entitlements for Maternity Leave
3.1.1 All employees are entitled to 39 weeks ordinary maternity leave (OML),
regardless of length of service.
3.1.2 Employees who intend to return to work1 after maternity leave are entitled to
take a period of additional (unpaid) maternity leave (AML) of up to 13 weeks.
They are therefore entitled to up 52 weeks maternity leave (39 weeks OML,
13 weeks AML).
Eligibility and Entitlements for Maternity Pay
3.2.1 There are two types of maternity pay as follows:
− Occupational Maternity Pay
− Statutory Maternity Pay
Entitlements to these will be dependent on a number of factors, including
length of service and intention to return to work after maternity leave. The
differences are outlined below.
Occupational and Statutory Maternity Pay and Maternity Allowance pay
periods can start on any day of the week aligning maternity leave and pay
start dates.
Please also refer to section 3.7 “Temporary Staff”.
3.2.2 Occupational Maternity Pay
Employees who have completed 12 months continuous service with the
Trust or another NHS employer at the beginning of the 11th week before
their Expected Week of Confinement (EWC)2, i.e. the 29th week of
pregnancy, may be entitled to the following:
− 8 weeks full pay (inclusive of Statutory Maternity Pay)
− 18 weeks half pay plus Statutory Maternity Pay (if half pay plus SMP or
Maternity Allowance exceeds full pay then half pay will be reduced
accordingly)
− 13 weeks statutory maternity pay or maternity allowance
Statutory Maternity Pay is paid at the rate of 90% of earnings for the first 6
weeks followed by a lower set rate for the remaining 33 weeks3
In order to qualify for occupational maternity pay, the employee must:
− Follow the procedure as set out in section 3.3
− Continue to be employed by Wrightington, Wigan & Leigh NHS Trust at
the 11th week before the EWC
− State on the application form their intention to return to work for the Trust
or other NHS Employer for a period of three months following the period
of maternity leave
− State on the application form the provisional date she intends to return to
work
3.2.3 Statutory Maternity Pay
Employees who have been employed by the Trust for at least 26 weeks
into the qualifying week (15th week prior to the EWC) will only receive
Statutory Maternity Pay.
The entitlement to Statutory Maternity Pay is provisional on their average
weekly earnings being above the lower earnings limit for National Insurance
purposes.
Statutory Maternity Pay is payable for a period of 39 weeks. It is paid at the
rate of 90% of earnings for the first 6 weeks followed by a lower set rate for
the remaining 33 weeks2.
If earnings are less than £100 per week, the rate of Statutory Maternity Pay
will be 90% of earnings for the full 39 weeks.
3.2.4 Calculating Full Pay
For the purposes of Occupational Maternity Pay, full pay is calculated on the
basis of your average weekly earnings over the 8 week period leading up to
the last pay day before the end of the 15th week before the expected week of
confinement. This will includes leads, allowances, overtime and
enhancements.
All payments that are taken into account for National Insurance contributions
are included in this calculation. Half pay is half the amount of full pay as
calculated above.
3.2.5 At no time will the combination of Occupational Maternity Pay and Statutory
Maternity Pay exceed the employee’s normal average weekly pay.

Hope this helps

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Hardship Loan Modification Bank Of America

Today the economy is bathed in the blood of homes that were taken either to foreclosure sales or idly set aside while depreciation eats their useful lives away. The ever worsening global financial crisis has deeply wounded the mortgage industry and has made far difficult the lives of homeowner borrowers. All feels the pain of higher interest rates, fluctuating fuel costs, and high levels of inflation. The unbelievable scale of the economic meltdown has given out quite a scare and the solution seems to be far from sight. People are finding it very hard to maintain their current lifestyle; moreover homeowners are finding it very difficult to keep their homes safe from foreclosure.

Home foreclosure in America to date is at its all time high and is expected to rise at exponential rates if things are left the way they are. Panic and fear is in the air, the hope of keeping homes seems to be lost and homeowners who have never thought there was the slightest possibility of losing their homes to foreclosure are now dumbfounded by the realization that foreclosure is upon them.

Banks Urge the Practice of Loan Modification

As more and more homeowners realize the hope that lays on the process of loan modification more and more banks also come to the discovery that loan modification helps mitigate their losses. Banks have learned that having liquid assets like cash is always better than having idle property which periodically accrues fixed costs and have no assurance of generating profits. It has been determined that each delinquency and foreclosure is costly to administer, with a typical foreclosure estimated at $60,000, or about 20-25 percent of the loan balance (legal fees alone can cost $4,000), and those costs are expected to be even higher in times of home price depreciation brought about by crazy levels of inflation. Banks already have an overwhelming number of properties in foreclosure, lined up for foreclosure sales but have no assurance of being sold. The process of making loan modification as a bank’s primary loss mitigation solution has become widely accepted.

Now is the Best Time for Loan Modification

Every second counts on efforts to save homes from foreclosure. It is advised that homeowners consider taking loan modification measures at the earliest signs of foreclosure. The earlier loans are requested to be modified the higher the chances of loan modification agreements being granted. Banks would rather get paid a smaller sum than taking possession of property that is very hard to manage during these tough times. And lastly, taking the current economic condition into consideration, loan modification may as well be the only viable option left for homeowners to take.

There has been quite a boom in the number of homeowners trying to negotiate loan modifications with their banks on their own. Most of these homeowners have realized that arriving at terms agreeable to both lender and borrower can be very taxing and frustrating; getting your lender to simply listen and consider your proposal may already be enough of a challenge. The overwhelming count of homeowners vying for loan modification has pushed financial institutions to implement strict screening procedures on the granting of loan modification.

Loan modification specialists offer valuable assistance to immensely increase the probability not only of loan modification proposals being accepted by the lenders but also coming up with terms most convenient for the borrower. Caution though should always be taken as many scammers are roaming around trying to take advantage of the hardship of others and steal away their money.

24VIPINC offers the best loan modification available at very reasonable prices and its partner CallComLeads offers the best telemarketed loan modification leads in the industry today.

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Source - Loan Modification Helps

What Is a Hardship for Mortgage Modification

upside down mortgage bankruptcy

A loan modification is a renegotiation of your present loan on a property, e.g. your home. In order to put off a foreclosure due to a default on payment on a property, the lender and borrower have to compromise on the terms of their present agreement. How this situation came about will be discussed by means of an example of an average couple.

Suppose John and Sue took out a 7% mortgage rate on a home they wanted to purchase for $250,000. A couple of years later, as we are witnessing now, the home plummeted in value all the way down to $150,000. To compound the problem, Sue lost her office job and John's hours were curtailed at the factory. John and Sue would like to renegotiate their mortgage down to a lower interest rate, because due to difficult times mortgage rates have come down, and they are unable to pay the mortgage. However, there is a problem. John and Sue are in a situation where they have an upside-down mortgage, meaning they now owe the bank more than the home is worth. A short sale or bankruptcy are other options. Since they love the home or are unable to sell it, another method to resolve the situation is required.

John and Sue's payments have been late to the bank and now they have missed their last two payments, violating their loan agreement. The bank wants the money so it can make another loan. If the bank forecloses on the home, there will be expenses incurred by the bank and in the end when the home is sold by the bank, money might actually be lost. Depending upon the state, the bank must make some attempt at resolving the situation before foreclosure proceedings can be initiated. Perhaps, something can be worked out called a loan modification. John and Sue must meet basic requirements such as losing their jobs.

John and Sue notify the bank and enter into negotiations with the banker. Together they decide on what payment can be reasonably met, approximately 33% of the new income amount for the couple (lost job and hours). In order to meet this lower monthly payment, there are three options available to the bank.

The first option is to lower the 7% mortgage. This will obviously lower monthly payments. The second possibility is to lower the principal payment. The final method is to extend the life of the loan (re-capitalization of missed payments). A combination of all three loan modification methods is also to be considered. The bottom line is that if the bank will do better financially by not foreclosing, only then will they consider a loan modification.

The loan modification will not help your credit rating or FICO scores. The damage to your credit rating will not be as catastrophic as a foreclosure, but anytime there is a problem in meeting debt obligations, for any reason, expect a lower credit rating.

There are companies who deal with loan modification, but often don't bring any results. Often the services cost thousands of dollars which people can't spare. The solution is Do It Yourself Loan Modification. One such kit is 60 minute loan modification. It provides all the forms and teaches you how to grab the lenders attention for best results. Its a must have for people who are struggling to pay their mortgage and are in dire need of help.

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Source - What You Should Know About Loan Modification

Bankruptcy Update III - Spring 2008