Posts Tagged ‘Mortgage Lender’

How Do You Negotiate With a Mortgage Lender Once Your House Is In Foreclosure?

January 26th, 2010

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Unfortunately our current economic crisis is causing many people to lose their homes to foreclosures. Banks and other mortgage lenders are struggling to stay afloat as foreclosures cost those hundreds of thousands of dollars.

The good news is that if you take initiative when you first detect financial strain, your mortgage company may be able to work with you to help you save your home. Mortgage companies do not like foreclosures because it can cost over $100,000 on average. Lenders use foreclosure methods as a last resort in order to cut their losses. If a client is willing to work with them, they may be able to re-negotiate the loan to affordable payments.

Hector Milla Editor of the “Best Loan Modification Companies” website — — pointed out;

“…There are a few options that mortgage companies may offer. First they may offer to lower your interest rate. This will lower your monthly payments, although minimally, to make them more affordable. They may also refinance the loan to extend it to thirty or even forty years. For example if you had a fifteen year mortgage for five years they would extend the rest of the loan over thirty years to reduce your monthly payments. They also may use a combination of both methods in order to get your mortgage payments down to an affordable cost…”

If your mortgage company allows you to negotiate the loan, make sure you read all of the fine print carefully. Many mortgage companies will allow you to lower the interest rate only for a certain amount of time. Once that time expires the interest rate may go up again, which will increase your payments. Also make sure there you do not have a balloon at the end of your mortgage term. A balloon is where they take a large sum of the amount you owe and tack it on to the end of your loan. For example, you have a mortgage of $350,000. They calculate your payments for $250,000 for a period of thirty years. Then at the end of the thirty years you will be responsible to pay the additional $100,000 in one lump payment. For most people this will be impossible and you will be forced to refinance that additional $100,000.

“…Remember that the earlier you begin researching your options, the more options you will have. Once you find out that your financial circumstances may be changing you should research all of your options. The option will differ from state to state and is dependent on your loan terms. Your best course of action would be to pull out your mortgage agreement and contact your mortgage company immediately. There are also many reputable foreclosure assistant programs that can help you in any stage of foreclosure. These companies will be able to negotiate with your mortgage company on your behalf…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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How Bad Will A Foreclosure Hurt My Credit?

January 25th, 2010

A foreclosure will virtually destroy your credit which is why you should avoid a foreclosure any way that you can. There are so many things you can do to avoid foreclosure that it is always advisable to avoid it.

For instance, you can make arrangements with your lender so that you can sell the house on a “short sale” where your lender agrees to take whatever the house will sell for and then you would get a “release of mortgage” to record at your county recorder’s office to show the termination of your mortgage.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — — pointed out;

“…You will need to have a Realtor help you do this as it is not easy at all. To do a short sale, typically the lender will want you to have the property on the market for at least 90 days before they will consider giving you a “Deed in Lieu of Foreclosure,” following the short sale…”

Under certain hardship circumstances you can work out a “Deed in Lieu of Foreclosure” with your lender where you give it back to them. Clearly they do not want properties back in these hard economic times but there again, you may have a good reason to go in this direction.

You should contact a real estate attorney and find out if you have a “Right of Redemption” on your mortgage which will give you up to a year to get caught up on your mortgage.

You have some potential solutions to avoid foreclosure. When you default on your mortgage payments and go into foreclosure, you will not be able to buy another house for at least 4 years or more. Why would a mortgage lender lend you money for a house if you stopped paying your payments on your present home? In order to protect the roof over your and your family’s heads you must always pay your mortgage first even if it means not paying someone else such as credit cards.

After a bankruptcy sometimes you can get a house loan as soon as two years after its completion but this is not the case on foreclosure.

“…A foreclosure is the worst credit reference you can have and it will stay on your credit for ten years I believe. This negative credit reference could also impede your ability to get other kinds of credit when you need it as well, to purchase a car for instance or get credit for other needs…” N. Osorio added.

Do whatever you can do to avoid foreclosure even contacting your Senator or Representative for direction since this situation is being dealt with on a national level.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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How Can I Save My Home From Foreclosure?

January 25th, 2010

If you are facing foreclosure and you are looking for an option to save your home there are a few options that are available to you.

First of all the only way that you will be able to negotiate with your mortgage lender is to prove that you have steady employment. There are a few reasons why someone that has employment would be facing foreclosure. Some of the most common reasons are if the person has lost their job and had to take a job with less pay, if someone works on commission that has been affected by the economy, or if the mortgage payments have gone up exponentially due to a variable interest loan or loan with an arm.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — — pointed out;

“…If you are in a situation such as the above, however you can prove that if your mortgage payments can be met if they were lowered, you may be able to qualify for a refinance or loan modification. Both of these options would lower your interest rate; extend the life of your loan or both in order to make the loan payments affordable…”

If you are able you should seek to do a loan refinance. The difference between refinancing a loan and doing a loan modification is the affect that it will have on your credit. A refinance will go on your credit as nothing more than taking out another loan. A loan modification will read on your credit report that you were unable to fulfill your loan agreement and the bank granted you the modification in order to cut their losses. However you will only be able to qualify for a refinance if you have not yet missed a mortgage payment and you have a good credit score.

If you have to try to do a loan modification it will adversely affect your credit, however it will not look as bad as a foreclosure on your record. If you are able to achieve a loan modification it will only mildly blemish your credit report and you will be able to rectify the damages within a couple of years.

“…The scenarios above are only available if you want to keep your home and you are able to prove that you have gainful employment. If this is not the case you may want to consider doing a short sale to minimize the damages to your credit report. Although you will still lose your home it will not look as bad a foreclosure and it will get you out from under your home to give you a chance to stabilize your finances…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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How To Get 2% Interest Rates by Mortgage Refinancing or Modification with Obamas Stimulus

January 23rd, 2010

Millions of homeowners can now get approved for a mortgage refinance with 2% interest rates thanks to President Obamas stimulus plan. This is easy to do and designed to help homeowners in nearly any financial situation. Here is how homeowners can easily use this stimulus program and get a 2% mortgage refinance for themselves with President Obamas stimulus.

This program gives cash incentives to mortgage lenders and banks every time they help a homeowner with a mortgage refinance or modification and follow the Obama stimulus plan guidelines. This means that not only are mortgage lenders and banks able to help more people than ever before, they are also happy to. The money they get allows them to take on more risks and take on more people in worse financial situations than ever before.

This money is the reason that mortgage refinancing or modification can be extremely beneficial right now. To get the money, the plan must be followed. Some of the benefits include low interest rates, the ability to get approved if the homeowner has bad credit or an upside down mortgage, and really easy to qualify for requirements. Millions of people can easily save hundreds of dollars per month by using Obamas plan for themselves and prevent their homes from being lost.

Homeowners need to contact their mortgage lender or bank and see if they are able to provide Obamas stimulus plan options for you. This program will help millions of people get a more affordable monthly home loan and save a lot of money. Take action now before things get worse, or more expensive and harder to qualify for.

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

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How to use the Better Business Bureauto check out your Hard Money Lender

January 23rd, 2010

With more folks turning towards private money lending in Florida, it’s sensible to check with the Better Business Bureau (BBB) before doing business.  The BBB keeps track of all sorts of companies, like a roman guard of compliance.  Before getting a private mortgage loan always check with the BBB to make sure you’re working with a quality mortgage lender.

If you’re not in the know, private money is a loan from an private lender compared to a bank.  With the economy in a mess and banks not lending money, people are moving towards hard Money lenders to get the money they need.  To help keep building on the rise, higher populated areas are turning towards hard money and private lenders with increasing numbers.

Hard Money is not regulated the same way as bank loans, which is a blessing and a curse.  With some private mortgage brokers you can get a loan without a credit or employment check, which is great if you are self employed or have poor credit.  On the other hand you must be sure you’re dealing with a responsible broker.

I recently worked with a hard money broker named Franklin Karr and I’ll use this company as an example.  This is the same process I used when deciding on a Hard Money loan to purchase an investment property in Miami, FL.  After viewing their website, I went to the BBB and researched the company.  I saw that he has the highest rating available (A+), no complaints, and also had a good review.  I felt good about a company with such a great rating, so I contacted Frank personally and started working with him.

There is no better way to check your hard money broker’s record then with the Better Business Bureau (BBB).  The first step is to open the Better Business Bureau’s national database at .  On this page, towards the middle, you’ll see an orange button that says “Check out a Business or Charity”.  Click this button, type in the name of your mortgage broker’s company and click enter.

Below you’ll see a list appear of possible matches.  A new window will open after you click the name of your mortgage company.  In the center of the page is a clear letter rating, just like your favorite science teacher would give you.  These grades are based on a number of factors, the most important of all is customer satisfaction.  To the right of the letter grade is an explanation of the grade and below that more information on the business.

Always keep the BBB in mind before making a decision to work with a hard money lender in Miami.  A good rating equals out to many factors including proper licensing and government compliance.  Keep in mind that any business with a bad rating or not listed could potentially cause you problems.  Finding a business with an A+ rating, such as Franklin Karr, is a true treat and should be preserved like a golden ring.

Private Money Broker Dade is a great sourse to find information on Hard Money Lending. You can find resourses and information to help you get a loan today.

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