Upside Down Mortgage

Posts Tagged ‘Payments’

Mortgage Relief Help

Question: Does the Mortgage Forgiveness Debt Relief Act apply to short sales?

Hi - I am considering entering into a short sale of my townhouse, but I was wondering if anyone can advise me on if whether or not the Mortgage Forgiveness Debt Relief Act 2007, applies to the difference between what I purchased the townhouse for in 2006 and what it will ultimately sell for (much lower) in 2008? Thank you in advance!

Answer: Yes, the act would apply to you. However, the act applies to the amount of debt forgiven, which is not exactly the same as the purchase and sale prices.

For example, let's say you bought the house for $200,000 but took out a $195,000 mortgage. By now the mortgage has been paid down to $193,000. However, the house is now only worth $160,000 so that is how much you do a short sale for. So the amount of debt forgiven would be $193,000 minus the $160,000 the bank received, or $33,000.

Also, keep in mind that the act only applies to debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.

WOWING for 23 years: Delinquent Mortgage Relief and Help

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Loan Modification While In Foreclosure

Question: Can I get approved for the new Obama loan modification program while my house is listed for sale?

I will be applying for a wells fargo loan modification. I switched jobs about a year ago and make significantly less than when I purchased the home. Currently my monthly mortgage payment is much more than 31% of my gross income. Will I be denied because my house is listed for sale. The house is not in foreclosure. I know the question: "Is your house listed for sale or do you intend to sale your home?" is specifically asked in the wells fargo questionaire. What should I do?

Answer: You can't lie. Your house is for sale. If you apply for the refi and a buyer comes along you are screwed.
With a refi your principle, property tax and homeowners insurance are not reduced. Just the interest and a longer term. You do not realize much savings. It only pays if the rate is 2 points.

Loan Modifications, Loan Mods, Stop Foreclosure, Save your home, Forebearance, Deed in lieu

Mortgage Relief Program

Question: helper loan through my credit union.. what do you guys think?

Butters bank "is joining credit unions across the country to offer the Home Loan Payment Relief loan (HLPR), a home loan program focused specifically on helping lower-income borrowers purchase their first home. This loan's special rates and terms reduce monthly payments so more Members can qualify for a home loan. Nationwide, $1 billion in funding has been committed for making HLPR loans.

The HLPR loan is a 5-year adjustable-rate mortgage with a rate below the national average. At the end of the 5 -year term, the loan becomes a traditional adjustable-rate mortgage with rate adjustments capped at 2% per year, and no more than 6% over the life of the loan.

Members only need to make a very small down payment, and gifts or grants toward the down payment are permitted. The loan is available to borrowers whose household income is either at or below the area median income. Contact our knowledgeable Mortgage Lending Specialists to see if this loan is right for you"

dangerous? help

Answer: Most credit unions that offer HLPR loans also have a fixed rate option. This involves a fixed rate with a one percent discount for the first three years. Based on December rates, the current rate is 5.25%, rising to a fixed 6.25% in three years for the rest of the loan. Since interest rates have fallen so far in January, this rate is likely to drop a bit in the next few weeks. Check this out with your credit union.

A Mortgage Relief Program for US Homeowners