Homeowners are rushing to refinance or modify their mortgages because of President Obamas “Making Home Affordable” plan. This $75 billion mortgage bailout will help millions of homeowners get a refinancing or loan modification into a better, more affordable, monthly payment. This plan will also help people who are in foreclosure or who are at risk of losing their home. Here is why so many homeowners will benefit from these new programs.

The thinking behind these mortgage programs is that if a homeowner can afford there monthly payments, they will make them. With the high rate of foreclosures and mortgage defaults occurring right now, this plan is a great way for homeowners to save money, their home, or both. With this plan, a homeowner will be able to refinance or modify a mortgage into a payment that is no more than 31% of their gross monthly income. This 31% also includes taxes, home dues, insurance, and other costs. This will be a drastic reduction in payments for homeowners all over the country. Even homeowners with bad credit or an upside down mortgage will find it much easier to get help than it has ever been before.

The help is easy to get because of the $75 billion in Government funding. This money is being given to lenders and banks who help homeowners by following the guidelines of the mortgage bailout programs. This money acts as a financial back up and an incentive to help the lenders and banks help even more homeowners. With this money, homeowners with all types of financial hardships will get the help they need. An estimated 8 million people can use this plan for themselves, and save their home, get a better mortgage, save money, or all three.

Help is available for homeowners. Getting it though is up to you. Contact your mortgage lender or banks and see what options are available to you. The help is there if you need it.

About the Author:

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source: ArticlesBase.com - President Obamas Mortgage Bailout

refinance upside down mortgage obama is a post from: Upside Down Mortgage

Question: upside down mortgage?

I am currently in a mortgage with an interest rate of 9.9 %. My FICO is much higher from when I started with this mortgage. I want to refinance for a better rate, but I’m upside down by 35k. What to do, what to do.

Answer: Your interest rate is pretty high---believe me--you are not alone in being up-side down on a property. I would go for it.. Chances are your deprecation on your property will be made up over the long term of your loan if the interest rate is right. Even if your payment stays the same if they work the loss in and cut a few years off your mortgage-you are a winner.and sooner or later the market has got to level out.Property will never become worthless. Give it a shot--sit down and crunch the math before you sign anything.

Upside Down Mortgage Home Loan Negative Equity

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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.

About the Author:

If you want to learn more about Loan Modification and 60 Minute Loan Modification visit http://www.squidoo.com/discoverloanmodification

Source - What You Should Know About Loan Modification

Bankruptcy Update III - Spring 2008

upside down mortgage bankruptcy is a post from: Upside Down Mortgage

Question: Why does it matter if you are upside down on a home loan? Why is that a cue to stop making payments? Or is it?

I mean if I owed more on a car than it was worth, I'd still pay for it. This is a common thing, at least somewhat. Why is it different with a home?

Answer: It's belived that whenever the bottom is reached in the housing market, it could be many years before the home is at a value to resell it. With a car one is replaced within 5 yrs in most cases.

Upside Down Cucumbers - Home Vegetable Garden

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It can be exciting to purchase a new vehicle. It doesn't matter if the vehicle is brand new or slightly used -- it is new to you. However, unless you have faithfully saved, you will need an auto loan. That isn't quite as exciting.

However, you can make the entire process go smoothly. By being prepared, you eliminate a lot of the stress from the lending process. You know that you can afford the car you pick out before you sit down in the dealer's office. That is a good feeling.

First, you need to know where you stand credit-wise. Know what your credit report says and where your credit score is. If there are any inaccuracies on your report, you want to fix them before you try to borrow money. A lower score will result in higher interest rates.

Years ago, I had a dealer tell me that I didn't have very good credit, so I didn't qualify for the best rates. But I knew that I had a near perfect credit score, so I took my business elsewhere and got the prime rate. If I hadn't been aware of my credit situation, I may have paid thousands of dollars in unnecessary interest.

The chances of finding a lender or a dealer that tries to make you take a higher rate loan are not as small as you may think. I have encountered national lenders (some that advertise their products quite heavily) who offer the "best rate possible." This best rate actually turns out to be much higher -- up to 4% higher -- than the current rate for borrowers with perfect credit. The assumption is that you won't be shopping around for your loan and will take whatever they quote you. Don't be fooled into thinking that lenders must give your a quote for the best rate you apply for. Many lending agents get bonuses for getting you to accept a higher interest rate than you qualify for. It is essential that you shop around.

You need to know exactly how much you can afford to spend on your new vehicle. Don't forget to consider the additional insurance costs, gasoline costs and maintenance bills. And don't forget tag, title and tax. Use an online car payment calculator to figure out what your monthly payments would be. If it doesn't fit into your budget, you have to spend less. One quick way to tell if you can afford a vehicle is to compare it with what you have right now. If you are already financially strained, you can't afford a higher vehicle payment.

You need to look at the big picture, not just the monthly payments. Look at what you are paying for the vehicle and at the overall costs of the loan. Getting a good deal on a vehicle doesn't mean that you won't pay for it in the long run.

Many borrowers choose to make a low downpayment or none at all. It is easy to fit into their current budget -- nothing up front. However, the total cost of your loan is increased because you are paying interest on a larger amount of money. In fact, the choice means that you will probably be upside-down on your vehicle for years to come -- you owe more than it is worth. A downpayment is also a wonderful way to get a good interest rate. It shows that you will not default on the loan.

Check around with different lenders before you even visit a car lot. Call your local credit union and bank. Look at a few online lenders -- though be cautious in giving out information to anyone you don't know. Many times, the car dealer won't offer you the best auto loan. Have outside financing, let the dealer know you have outside financing and ask if they can beat the rate. Despite what I've always heard, in the past three auto loans I've received, the dealer was able to beat the bank's rate every time. Having outside financing shows that you have your ducks in a row and gives them something to compete against. You have the added security of knowing what is fair and bargaining power is always a good asset.

About the Author:

RateEmpire.com, http://www.RateEmpire.com , an internet consumer banking marketplace is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com;and online shopping portal #1 Shopping Online http://www.1ShoppingOnline.com

Source - Preparing to Apply for an Auto Loan

Woman With Weird Writing ! [ Amazing But Useless Talents ]

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Question: How can I get my modified Home loan?

I have good (over 700) credit. I am not behind on my mortgage. I have a fixed rate on my house. But I hear all the advertisements for loan modifications for people in trouble. I am upside down on my mortgage,, How can I get my loan amount reduced?

Answer: If you want to protect your credit, try to refi.

Loan mods will damage your credit and add years to the term of the loan.

Upside Down Mortgage - Loan Modification - Refinance - California

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Question: Foreclosure: Walking away from my house?

This is the last thing I want to do, but I'm afraid I'm out of options. I live paycheck to paycheck and have enough debt to dip into credit cards monthly to pay utilities. My wife just lost her job and there's no way we can pay our credit card bills and mortgage. We bought our home in Colorado in 2001 and we're now nearly $100K upside down with our 1st and 2nd together making it impossible to refinance. If we walk away, I know her mom will let us stay at her house until we're back on our feet. I understand many of you will judge me for bad decisions, but I'm really looking for constructive responses. Here are my questions.

1. Can the lender come after my assets or garnish my wages?

2. What happens to the 1st and 2nd mortgages?

3. The other drastic option would be a credit card relief company. Is this worse than walking away from my house?

Thanks in advance.

Answer: If the house is worth less than you owe then yes they can come after you for the remaining amount. I would look into a consumer credit company before walking away from your house as long as you can still pay your mortgages. Also you have to think about how long you will be staying at your moms if you walk away. You won't be able to buy another house and some apartments might not take you either. Or you could lastly talk to an attorney and see about filing bankruptcy.

Refinance Upside Down Mortgage- Fannie Mae's New Program to Help Homeowners

upside down mortgage refinance options is a post from: Upside Down Mortgage

He's gonna call me back tomorrow, but until then I just want to know what charge off means in mortgage term.

What is a mortgage charge off? is a post from: Upside Down Mortgage

I have gone to Austin, Tx twice and really would like to move there. What should I do?

I am a teacher with a Master's Degree, but this is all that I could afford. I don't want to be a slave to the mortgage company and pay for something that is not worth it. I also am not above dinging my credit.

I don't feel sorry for ditching this place. The banks were bailed out of their poor choices. I am simply a school teacher who thought I was doing the right thing by buying a home. I will not continue the cycle of being a middle class person living in poverty...I'm going to take the advice of seeking legal council. The originator of my loan sold it to ( I'm quoting someone from their own company) pennies on the dollar. If they don't negotiate with me jut because I pay my bills, I'll take the 7 year mark and live in a tent in the friggin forest.

It makes me sick looking at people in my neighborhood that have like 8 kids and live in my same building on section 8 and I work like a dog and come home at 5:00.

Rant rant...boo hoo.. for real thanks for the advice everybody.

By the way, I tried calling and telling the police about the noise laws. They almost laugh at you. No joke.

What would you do if you want to walk away from your mortgage? is a post from: Upside Down Mortgage

Should I walk away from my Mortgage? is a post from: Upside Down Mortgage

Do you still owe late payments on a mortgage after the home sells? is a post from: Upside Down Mortgage

Long story short, my mortgage payment adjusted through the roof and I can't afford the new payment amount, plus we're upside down on the value. Any success stories? Basically the attorneys are trying to negotiate a lower principal and lower rate, 30 year fixed.

I'm so worried that we may end up losing our home, yet optimistic because I'm hearing a lot of lenders are working with their customers. Again, any success stories are appreciated. Please advise. Thx!

Loss Mitigation Question is a post from: Upside Down Mortgage

Is this only a one time tax? This is in Missouri. Thanks for your answers!

Defaulted and Foreclosed in Missouri is a post from: Upside Down Mortgage

I find it interesting that some people can be so judgmental as to generalize and call everyone irresponsible for being in the position of owing more on their house than what its worth.

Not everyone made stupid choices. Luckily we aren't in that position but I feel bad for the people who work hard, make their payments on time, had equtiy in their home then watched it slowly go down the drain. If you live in Michigan, especially the Detroit area, you know what I'm talking about.

Have you ever considered walking away from your mortgage? is a post from: Upside Down Mortgage

Buy How to Save Your Home: Your Guide to Loss Mitigation (Paperback) at Amazon

How to Save Your Home: Your Guide to Loss Mitigation is a post from: Upside Down Mortgage

The agreement was that he can live there as long as he makes the payment on time until he finds something else or the market gets better. Everything looks good on paper until payments are late and communication becomes poor.

My question is can a person just call the mortgage company and say " I no longer want the house you guys take it" realizing there is probably $20,000 in equity in the house?

I realize that walking away from that much money is hard to do but my sister has decided that peace of mind and a clean start is worth it. Any advise would be greatly appreciated.

Can I Walk Away from Mortgage and Give Bank Back the House? is a post from: Upside Down Mortgage

Is it wise to stop making payments and let the bank restructure our loan?

Do we have to go that route to get help?

We have never been late before and we both have good credit, but we are having a very difficult time making our mortgage payments - probably like a lot of people today.

Does anyone have any suggestions?

Thank you for your help and advice.

Can we just stop making payments? is a post from: Upside Down Mortgage

This is my question: Can they leave the house to go into assisted living and simply let the mortgage company have the house? What would happen? Also, the taxes and insurance have increased to the point that they can no longer pay them.

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