Posts Tagged ‘Mortgage Payment’

How Does A Home Foreclosure Process work?

January 25th, 2010

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If you are one of the hundreds of thousands of people that are currently facing a foreclosure today you may be wondering how the foreclosure process works.

Please keep in mind that this is dependent on a state by state bases and it could also vary depending on the terms of your mortgage agreement. I also cannot offer any legal advice. What I can offer is some generalities that may sum up how the foreclosure process works.

Natalia Osorio Editor of the “Stop Foreclosure Loans” website — — pointed out;

“…First of all one of the most commonly asked questions is when will your credit score be affected? Your credit score will be affected from the very first missed mortgage payment or partial payment, however you will not actually start the foreclosure process until after your third missed payment. A foreclosure will not be finalized until after the sheriff’s sale which takes place after your seventh missed payment…”

Once you miss three consecutive payments the foreclosure process will begin. Generally, you will no longer have the option to pay a partial payment, however this will be at the discretion of your mortgage company. A partial payment is considered to be anything less than the total amount that is owed to the mortgage company at that point. That means that even if you are able to pay the normal monthly payment at that point, it still may not be accepted. The only payment that will be accepted is the entire amount of all the missed payments as well as the amount of any late penalties or legal fees that have been assessed. There are exceptions that are at the discretion of your mortgage company.

Once you have missed your sixth payment you will receive notice of the date of the sheriff’s sale, typically scheduled at the end of month seven. You can save your home at point up to the sheriff’s sale by paying the total of the amount owed plus any fees that have been assessed.

“…Once the sheriff’s sale has commenced you will begin your redemption period. The redemption period varies from state to state but is typically between 3 and 6 months. Typically you can still save your home at any time during this period, however at this point you would have to pay the mortgage in its entirety. You are legally able to stay in your home during the course of the redemption period. Once the redemption period has ended you will be evicted…” N. Osorio 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 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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January 18th, 2010

There is a large amount of information to learn about refinancing a mortgage. Where do you get the best advice? Well, that is a loaded question. If you know a good mortgage broker, personally, this can be a great asset. Just be sure that you can trust the individual. Otherwise, look to family or friends for their connections. The best way is to do your own research, which you must be doing or you wouldn’t be reading this.

Mortgage refinancing allows for a reduction of a long term loan which translates into a significant reduction in interest costs. Mortgage insurance ensures payment in the event of death or disability. Proving that you have the proper mortgage coverage will allow most companies to decrease the down payment while others strike it off as a necessary thing. Mortgage interest is deductible.

Mortgage shopping for any length of time can be really frustrating. The rates are constantly changing, the refinance programs are constantly evolving and it’s hard to keep up. Mortgage debt comes with the cheapest interest rates of almost any consumer debt. The key is simply to make sure that the profits you will see from investing will be enough to compensate for the taxes on the initial sum.

Lenders will charge you higher rates than average and offer you a more limited range of mortgages if you choose to self-certify your income. In general it’s not a good idea to self-certify just to avoid some paperwork. Lender underwriting occurs between days 21 and 30 or sooner. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan.

You, as a borrower must contribute at least 1% of your own funds for 1-2 family homes and 3% for 3-4 family homes. Gifts, grants or seller concessions are allowed, with limitations set by SONYMA. You can optionally pay more than interest. You also need to make a risk-based assessment of whether extracting equity from a home is economical. You should also be aware that refinancing a mortgage has costs, including the fact that the lender may charge a higher interest rate on a cash-out refinance than a rate-and-term refinance. 

Good luck!

Peter Richard Johnson is webmaster for This site has lots of information about refinancing a mortgage.

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Loan Modification Requirements – A Resourceful Guide For a Complex Subject

January 16th, 2010

The new loan modification bill, which has been passed to vote by the US President, has offered hope to thousands of Americans who are burdened with mortgage loans that are continuously ballooning. The new bill offers options that are more malleable and generous; thus, ensuring the approval of more loan modifications than ever. The loan modification requirements are rendering a higher percentage of mortgage holders eligible for modified loan plans.

Qualifying for a modified loan plan requires proof of emergent financial problems. If you have recently lost a job or even had a cut off your monthly pay, you are eligible to a modification plan. Financial hardship should be documented with the appropriate papers that verify the monthly income. The new loan mod plan can secure financial aid to bring down the mortgage payment to less than 30% of the total monthly income of the borrower.

Modification funds are available for personal mortgage loans. In other words, if you live on the property, which you’re paying mortgage for, you’re probably eligible for a modification. Occupancy should be documented with proper bills and other required proofs.

The economic state of the lender is a decisive factor in determination of eligibility of modified loan proposals. A loan mod is an agreement between the lender and the borrower. If a lender has declared bankruptcy, it is legitimate to turn down loan mod proposals. However, the recent loan mod bill has offered incentives to lenders for each completed modified loan; hence, decreasing the overall cost of loan modifications as compared to the cost of foreclosure.

After the lender approves a modified loan plan, he assigns the borrowers to a ‘Trial Period”. The plan is not valid unless the borrower delivers three monthly mortgage payments on time. After the trial period, the plan is considered valid and the borrower would receive a federal incentive for each year of completed payments.

The new loan modification plan has made more Americans eligible for modifying their debts. Recent researches have proved that more than 6 million delinquent loans are the result of a disastrous economic recession. The federal government is offering financing solutions to save mortgage holders from foreclosure.

The economic recession has been passively reflected on the real estate business. Loan modification requirements have created the opportunity for more American to modify their debts. To sum up, financial hardness and occupancy are the two most important factors in eligibility for modified loan.

For detailed facts and essential tips about how you can be approved for a loan modification, visit this simple, easy to understand loan modification guide and resource: Home Loan Modifications.

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Obamas Economic Stimulus Plan Has New Mortgage Refinancing Options

January 15th, 2010

Homeowners all across the country can now refinance their mortgage using the Federal Governments Economic Stimulus Act. This stimulus plan will help many people qualify for a mortgage refinance even if they have bad credit, financial hardships, or have seen their home lose value. Here is what homeowners need to know about refinancing a mortgage with Obamas economic stimulus plan.

Millions of homeowners can now refinance into a lower interest rate, and a lower monthly mortgage payment. Other options for homeowners include the chance to extend the mortgages length, shorten the length, or can even get cash back from refinancing to use for whatever they want. Many options are now available for home loans that were typically only available with smaller loan types including:

-Better, lower, interest rates that will reduce monthly home loan payments.

-Easy to qualify for mortgage refinancing or modification options. Even for homeowners with financial hardships or other related problems.

-There will be no closing costs or fees for many mortgages that have a prepayment clause.

Homeowners should take action now and use this mortgage refinancing stimulus plan for themselves. The benefits of refinancing are bigger than they have ever been before. Also, right now, using the economic stimulus plan, more people can get help than was ever available before. Contact a mortgage lender or bank today and ask how President Obamas plan can help you. Do not lose your home, or pay more than you have to. The longer you wait, the worse your situation will get, take action now before the stimulus plan, and its big benefits, goes away.

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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