More and more Floridians are at risk of foreclosure and losing their homes as the U.S. economy seems to deteriorate on almost a daily basis. If its not banks shutting down, it's the unemployment rate increasing to rates not seen since the great depression.
Lenders are swamped with applications from florida home owners that are in default and don't have the man power to keep up with the demand from florida home owners that want to save their homes. The dream of florida home ownership seems to be withering away and is becoming more of a nightmare for florida home owners as their homes are losing value on a monthly basis and many have adjustable rate mortgages that spiked up and made the payments no longer affordable. Today the solution for many florida home owners that want to keep their homes is known as a Florida Loan Modification. A Florida Loan Modification is one very powerful tool that have helped the average Joe's and Jane's out there to save their home from florida foreclosure.
If you find yourself falling behind on payments because of an adjustable rate mortgage, reduced hours at work, divorce, illness or any other type of financial hardship, then working with a florida loan modification expert can be your saving grace. Although you can attempt to work directly with you lender to get a florida loan modification, it is highly recommended to have a professional handle your case as they know exactly what the lenders are looking for and can increase your chances of actually getting approved for a florida loan modification. If you attempt the loan modification yourself, you will find that the lender will normally try to take advantage of the home owners and not work out a mutually beneficial loan modification. Statistics have shown that most home owners that attempt a florida loan modification without a professional florida loan modification expert, usually end up back in default within the first 6 months.
The florida loan modification process is a very time consuming and frustrating process, as each lender has its own standards and procedures that makes it very difficult for many florida home owners to attempt on their own. To make matters worst, these lenders seem to change their guidelines and requirements almost on a daily basis to accommodate the ever changing real estate market.
A good Florida loan modification company can use TILA (Truth In Lending Act) and RESPA (Real Estate Settlement & Procedures Act), as leverage to get a speedy and beneficial florida loan modification that may include a rate reduction ( 0% -6%) and or principal reductions to today's current market value. These two ACTS were developed to protect borrowers from predatory lending.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
Monday, February 23, 2009
Thursday, February 19, 2009
Florida Home Owners Guide To The Stimulus Plan
The goal of the plan is to help home owners on the brink of Florida Foreclosure and also to help home owners that owe more than their home is worth.
Its important to note that this program will go into effect March 4th, 2009 and not until then will we have all the details about eligibility.
If you are like many home owners who pay their mortgage on time, but cant seem to get approved for a Florida Refinance because you don't have any equity, you will now have a chance to refinance into a 30 year fixed rate mortgage, that is if you mortgage is owned by Fannie Mae or Freddie Mac. Now how do you know if you mortgage is owned by these 2 giants? It will take some research, you will need to contact your current servicer or lender and ask them, who owns my loan?
Now the new loan can go up to 105% of the value of the property, which mean if you owe $210,000 and your property is worth $200,000 or less you will qualify, not sure how may people this will help, especially in states like Florida because Florida home owners are seeing drastic decline in values more like $50,000 to $100,000 compared to the last two years. If you are in Florida or any other state that has significant depreciation in your property, then there are still options outside of this stimulus plan, such as a Florida Short Refinance and or Florida Loan Modification.
Now lets discuss now this plan will help those that may be facing foreclosure:
The government will give lenders and incentive to actually work out a Florida Loan Modification with home owners that have fallen behind on payments.
In general, you may qualify for a Florida Loan Modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.
Now if you have two mortgages on your property, then only the first mortgage will be eligible under the plan, however second mortgages are usually more willing to do a Florida Loan Modification or even a settlement for pennies on the dollar, because of the risk of getting nothing if the property goes into Florida Foreclosure.
Since the goal of this plan is to make the payment more affordable and to avoid foreclosure, lenders will be encouraged to do whatever it takes, such as rate reductions, longer amortization periods and reduction in principal balances.
To encourage borrowers who work hard to retain homeownership, the plan provides payments to borrowers who make keep up with the payments on the modified loan. The incentive will be paid monthly and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.
Please keep in mind this program is voluntary for the lenders and the government is just offering incentives to encourage them to work out some type of Florida Loan Modification.
Click Here for more insider mortgage information to restructure your mortgage
Its important to note that this program will go into effect March 4th, 2009 and not until then will we have all the details about eligibility.
If you are like many home owners who pay their mortgage on time, but cant seem to get approved for a Florida Refinance because you don't have any equity, you will now have a chance to refinance into a 30 year fixed rate mortgage, that is if you mortgage is owned by Fannie Mae or Freddie Mac. Now how do you know if you mortgage is owned by these 2 giants? It will take some research, you will need to contact your current servicer or lender and ask them, who owns my loan?
Now the new loan can go up to 105% of the value of the property, which mean if you owe $210,000 and your property is worth $200,000 or less you will qualify, not sure how may people this will help, especially in states like Florida because Florida home owners are seeing drastic decline in values more like $50,000 to $100,000 compared to the last two years. If you are in Florida or any other state that has significant depreciation in your property, then there are still options outside of this stimulus plan, such as a Florida Short Refinance and or Florida Loan Modification.
Now lets discuss now this plan will help those that may be facing foreclosure:
The government will give lenders and incentive to actually work out a Florida Loan Modification with home owners that have fallen behind on payments.
In general, you may qualify for a Florida Loan Modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.
Now if you have two mortgages on your property, then only the first mortgage will be eligible under the plan, however second mortgages are usually more willing to do a Florida Loan Modification or even a settlement for pennies on the dollar, because of the risk of getting nothing if the property goes into Florida Foreclosure.
Since the goal of this plan is to make the payment more affordable and to avoid foreclosure, lenders will be encouraged to do whatever it takes, such as rate reductions, longer amortization periods and reduction in principal balances.
To encourage borrowers who work hard to retain homeownership, the plan provides payments to borrowers who make keep up with the payments on the modified loan. The incentive will be paid monthly and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.
Please keep in mind this program is voluntary for the lenders and the government is just offering incentives to encourage them to work out some type of Florida Loan Modification.
Click Here for more insider mortgage information to restructure your mortgage
Wednesday, February 18, 2009
Is There Really Florida Mortgage Help In The Stimulus Plan?
We all here the bells and whistles of this new stimulus plan, but a few questions are yet to be answered, such as;
How exactly will this work? When will it work? and will it really affect each and every home owner?
The details have yet to be unveiled and I am sure there will be some type of help for home owners, but how much and who exactly will it affect is yet to be determined.
Now you have to ask yourself, why hasn't there been more details? because how did they come up with a number (billions of dollars later) which is suppose to fix the housing crisis without the how, when and who.
The answer is simple....The mighty congress is still not sure of the correct approach to fix this housing mess. We just hope they figure it out before spending billions to say oops, that didn't work so we need another $500 billion.
In all fairness, here is the logistics:
It is not an easy task to determine which borrowers need help just by looking at each loan out there. And this is especially tough because these mortgages are owned by several different investors and they have to make it attractive for this investors to go along with the plan.
Now its important to note that the bailout plan is designed for home owner in default, the problem with that is the home owners that pay on time are being affected as well, with such problems as declining market value and as a result believe they need a bail out as well. The problem with that is, some homeowners that are currently on time will purposely go late to be part of the bailout and some may see the rational if they can get their principal balance down and and better rate. But we will see once all the details are ironed out by the new administration.
How exactly will this work? When will it work? and will it really affect each and every home owner?
The details have yet to be unveiled and I am sure there will be some type of help for home owners, but how much and who exactly will it affect is yet to be determined.
Now you have to ask yourself, why hasn't there been more details? because how did they come up with a number (billions of dollars later) which is suppose to fix the housing crisis without the how, when and who.
The answer is simple....The mighty congress is still not sure of the correct approach to fix this housing mess. We just hope they figure it out before spending billions to say oops, that didn't work so we need another $500 billion.
In all fairness, here is the logistics:
It is not an easy task to determine which borrowers need help just by looking at each loan out there. And this is especially tough because these mortgages are owned by several different investors and they have to make it attractive for this investors to go along with the plan.
Now its important to note that the bailout plan is designed for home owner in default, the problem with that is the home owners that pay on time are being affected as well, with such problems as declining market value and as a result believe they need a bail out as well. The problem with that is, some homeowners that are currently on time will purposely go late to be part of the bailout and some may see the rational if they can get their principal balance down and and better rate. But we will see once all the details are ironed out by the new administration.
Monday, February 16, 2009
Here is Why You May Need Help With A Florida Loan Modification
It is important to understand that, you as a homeowner can work directly with you lender to work out a Florida loan modification.
However, when lenders reach out to homeowners, their main goal is "an attempt to collect a debt”, what this means in plain english is to take as much money from the home owner as possible, so they can to keep the payments current.
Many florida home owners become frustrated with the process and give up, and the only recourse is Foreclosure,deed in lieu (signing over your home to the lender), or just walking away.
The sad part is that many homeowners are ill-equipped to negotiate, or use the bank-backed debt collectors to “negotiate”.
The other thing to keep in mind is that most lenders only give a home owner one chance per year to do a florida loan modification, so if you don't feel up to the challange, which including being left on hold for 30 - 60 minutes at a time to get hung up on while on hold and after you faxed a document to them 10 times, they turn around and tell you they never received it.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
However, when lenders reach out to homeowners, their main goal is "an attempt to collect a debt”, what this means in plain english is to take as much money from the home owner as possible, so they can to keep the payments current.
Many florida home owners become frustrated with the process and give up, and the only recourse is Foreclosure,deed in lieu (signing over your home to the lender), or just walking away.
The sad part is that many homeowners are ill-equipped to negotiate, or use the bank-backed debt collectors to “negotiate”.
The other thing to keep in mind is that most lenders only give a home owner one chance per year to do a florida loan modification, so if you don't feel up to the challange, which including being left on hold for 30 - 60 minutes at a time to get hung up on while on hold and after you faxed a document to them 10 times, they turn around and tell you they never received it.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
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