The Unlucky Many The Credit Crunch and the Mortgage Market

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How has the credit crunch affected you?’ is going to be one of the biggest and most often asked questions of 2008, and only a lucky few will likely be able to answer -not at all’.

More likely is you’ll receive an answer from one of the unlucky many whose finances have been stretched and tested – especially those with mortgages. In just a couple of years, the face of the mortgage market has changed dramatically, with banks and lenders desperate to pull something back in the wake of some reckless credit lending in recent years.

These changes are reflected in the results of recent studies into the mortgage market, in particular the facts showing the limiting of mortgage products available. March 2008 alone saw a drop of 2026 mortgage products (from 7726 to 5700) across the residential and buy-to-let markets, while home-loan deals have seen a fall from the 15,600 available in July 2007, to just 4,700 available today. Overall, then, mortgage lending has declined to an estimated 24 billion, a 6% decrease from February 2007, while February 2008 saw the lowest number of new mortgages approved since July 1995.

Though clearly foreseeable, one of the biggest products lost this year was the 100 per cent mortgage. In what has already been dubbed an end of an era, the last lender to provide a deposit-free loan withdrew the deal earlier this month. Buyers will now need to lay down a minimum deposit of 5% – an average of 10,000 – though one expert maintained that the withdrawal of the 100% mortgage from the market was a -sign of things to come’, and that it wouldn’t be long before the 95% mortgage followed in kind.

One of the beauty spots of the mortgage market that has seen an increase in products, though, is fixed-rate mortgages. Despite the two-thirds drop in the overall number of different mortgages available, the number of fixed-rate mortgages fixed for over 10 years has thought to have risen to a new high of 132. And with an estimated 1.4-million fixed-rate mortgage deals ending over the next twelve months, and customers looking to renew their packages, there luckily remains some choice in this area of the market.

Homeowners looking at fixed rate mortgages will, however, be hit by a sudden rise in payments when they switch to a new mortgage; the average to fix a mortgage for 10 or more years now being 6.14%, compared to an average 5.89% a year ago. With the future of interest rates uncertain though, fixed-rate mortgages still provide a more stable and secure payment plan – which is why the Chancellor announced his support for lengthy fixed deals in his Budget.

What is important for all homeowners or first time buyers thinking of going down this avenue of payment is that they compare fixed-rate mortgages and judge for themselves whether fixed-rate is the correct choice for them. A recent study showed that three out of four people didn’t know the difference an extra 1% had on mortgage payments, so if you’re unsure, also make certain you calculate the amounts you’d need to pay on different packages using an online mortgage calculator and be sure to speak to a professional beforehand.

Surat Peoples Coop Bank Ltd. Loans – Mortgage Loan

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Purpose: This loan can be taken for personal purpose.

Eligibility: y:

Purpose: This loan can be taken for personal purpose.

Eligibility: Any salaried individual can take this loan (businessman, employed, self employed or professional) on mortgage of property.

Margin: There is a margin of 20%.

Rate of Interest: The rate of interest is 10.5% per annum.

Repayment: Period of loan could be up to 5 years.

Documents Required:
Ownership paper of property
Proof of Ownership
Latest 6 months Bank Statement (where salary/income is credited)
Last 2 years ITR with computation of income / Certified Financials
Proof of Turnover (Latest Sales / Service tax returns)
Proof of Continuity current business or industries (IT Returns / Certificate of business continuity issued by the bank)
Proof of Identity (any one)Passport / Driving License / Voters ID / PAN card / Photo Credit Card / Employee ID card
Proof of Residence (any one) Ration Card / Utility bill / LIC Policy Receipt
Proof of Office (any one) Lease deed / Utility bill / Municipal Tax receipt / title deed
Proof of Qualification Highest Degree (for professionals and Government employees) Other features: Nominal processing charges. There is no prepayment penalty just as in the case of the car loan.

C A Reverse Mortgage Calculator – Clarifying Your Retirement Finance Picture

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If you are thinking of a CA reverse mortgage on your home as a means of assisting fund your golden years, you can remove some of the mystery about how much you can agreeably expect in the way of a reverse mortgage loan by making use of a reverse mortgage calculator. You can go for a reverse mortgage calculator from one of the dozens websites that are made accessible to you online. They all require you to input some data affecting your home’s judged worth, but are approximately easy to utilize and will be the speedy way you have of deciding if taking a reverse mortgage on your home will be a financially sensible and an effective move.

The AARP Reverse Mortgage Calculator :

The AARP — American Association of Retired Persons – It has an extremely Customer-friendly reverse mortgage calculator; it has a capacity to give rise to more traffic than any other type. The AARP reverse mortgage calculator needs that you supply facts on your age, the age of your spouse, your zip code, and the judged worth of your home. By inputting all these information into the reverse mortgage calculator, you will be taking the first steps to decide if you want to initiate the reverse mortgage process. The preciseness of the estimate you get will actually depend on the accuracy of the facts you give to the mortgage reverse calculator. CA reverse mortgages are a form of financing completely different from accustomed mortgages, and while the AARP reverse mortgage calculator gives an assessment which is based on the initial worth of your home, other calculators will confront for both the current worth of your home and the remaining balance on any existing mortgage you have. A cultured CA reverse mortgage calculator will be capable to determine in information like the total amount of money you would like from a reverse mortgage and the manner in which you would love to receive it–in cash, as regular monthly payments, as a line of credit, or as all three. After you have catered the requested facts and details, the calculator will necessarily run the figures and come up with a adequate good picture of what you can reasonably expect by taking out a reverse mortgage.

Limitations of CA reverse mortgage calculator that you need to understand A reverse mortgage calculator, no matter how complicated provides almost accurate amount of mortgage assessments for national reverse mortgage schemes and cannot determine in cost variables in your local area. Local mortgage lenders can add application, commencing, closing, termination amount to your reverse mortgage and some of them even will be accumulating for the time period of the loan. The amount of funds you actually get will be affected by such fees.

Today mortgages are common in the real estates and home owning procedures CA Reverse Mortgage

Is Mortgage = Konut Kredisi (home Loan) In Turkey

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Below is a list of important changes that are brought with the new mortgage law in Turkey:

New Mortgage Products
Before the mortgage law, it was only possible to lend home loans at fixed interest rates. The law introduced floating interest rates (or a combination of fixed and floating rates) as an additional mortgage type. In floating rate loans, the interest rate is determined from the sum of a fixed margin that is determined by the lender and the inflation rate as measured by the Consumer Price Index. This way banks do not have to face the interest rate risk on their own and may share the risk with the borrowers. In summer of 2007, some banks started to offer variable interest rate loans but so far there does not seem to be much interest in this new type of mortgages and more than 99.9% of the loans are still fixed-interest rate mortgages.

Tax Benefits
Before the law passed on March 2007, there were some plans about providing tax relief to borrowers, however, the only tax relief mortgage law provided was a minor 5 percent Banking Insurance Operating Tax (BSMV) exemption and abolishment of several other smaller operating fees. As an example, before the law passed a monthly mortgage interest rate of 1.30% would be actually 1.3965%. For a 10 year loan of 100,000 YTL, with BSMV exemption the new mortgage law reduced the monthly payment of 1,722 YTL to 1,650 YTL, about 4.2% reduction in the monthly payments.

Loan Length
Before the mortgage law, Turkish banks could offer only shot-term loans up to a few years. This had a very limiting effect on the real estate economy in Turkey. Because of short maturities and high interest rates, funding of houses was mainly done with savings (60+ percent) and relatives/friends (about 25 per cent). The home loans were only making less than 5 percent of the total housing funding.
With the new law in effect for about 6 months, this picture started to change dramatically. The introduction of the new Turkish mortgage law already made a few banks (e.g., HSBC, Sekerbank and Finansbank) give loans up to 30 years to finance. It is expected that the other lending institutions will offer similar mortgages in the near future as interest rates decrease further and demand for longer mortgages continue to increase.

Lending Institutions
Before the mortgage law, only deposit, investment and participation banks could issue home loans. Under the new law, however, consumer funding companies are able to issue home loans too. A few mortgage companies are in the process of starting their operations; it is likely that the growing competition will lower the interest rates, which are very high when compared to those of developed countries. Let’s also note that as these new lenders are allowed to invest in capital markets to create funds for the home loans, it is expected that the financial markets will develop and will have indirect positive effects on the rest of the economy.

Early Payment Fee
Before the law, there was no penalty for early payment of the loan, however, due to the pressures from the banks, the new mortgage law included a penalty up to 2% if borrower pays before due date. This early payment fee is only valid for the fixed-interest rate loans. There is no penalty for the adjustable interest rate loans; they can close their accounts any time without incurring a charge.

Securitization of Loans
With the new law, banks are now able to bundle the loans into securities creating covered bonds and mortgage backed securities. Covered mortgage bonds and mortgage backed securities are debt securities backed by cash flows from mortgages and let the banks eliminate or share the mortgage risk with the rest of the world in a secondary market. Let’s also note that Turkey’s sub-investment grade sovereign rating may not be a big problem in the making good deals in the secondary market as covered bonds typically get higher ratings than the sovereign ratings of the countries. Therefore we expect that the secondary mortgage market is likely to stimulate the growth in the mortgage market substantially and decrease the interest rates when it starts to operate in early 2008.

How To Become A Mortgage Broker1

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How to Become a Mortgage Broker is a question many people ask. For knowing How to Become a Mortgage Broker one should be clear about the work of a Mortgage broker. A Mortgage Broker is a mediator between a mortgage buyer and a seller. How to Become a Mortgage Broker is simple as one’s work is to bridge the gap between the mortgage buyer and seller.
For knowing How to Become a Mortgage Broker one has to know what is the work of a loan officer. A Mortgage Broker gathers and processes all sorts of work related to mortgage real estate. So by knowing this one can know How to Become a Mortgage Broker. For knowing How to Become a Mortgage Broker one also has to do marketing to attract the clients, gathers all necessary documents, shops around for a loan product that fits the clients and processes the loan and submits all important materials to lender or company
If you are efficient in terms of your resullts then your question of How to Become a Mortgage Broker that also good one can be answered easily. How to Become a Mortgage Broker can be answered by referring to various Mortgage books or to Internet. There are some institutes, which offer information and course about How to Become a Mortgage Broker!
How to Become a Mortgage Broker is a question many people ask. For knowing How to Become a Mortgage Broker one should be clear about the work of a Mortgage broker. A Mortgage Broker is a mediator between a mortgage buyer and a seller. How to Become a Mortgage Broker is simple as one’s work is to bridge the gap between the mortgage buyer and seller.
For knowing How to Become a Mortgage Broker one has to know what is the work of a loan officer. A Mortgage Broker gathers and processes all sorts of work related to mortgage real estate. So by knowing this one can know How to Become a Mortgage Broker. For knowing How to Become a Mortgage Broker one also has to do marketing to attract the clients, gathers all necessary documents, shops around for a loan product that fits the clients and processes the loan and submits all important materials to lender or company
If you are efficient in terms of your resullts then your question of How to Become a Mortgage Broker that also good one can be answered easily. How to Become a Mortgage Broker can be answered by referring to various Mortgage books or to Internet. There are some institutes, which offer information and course about How to Become a Mortgage Broker!

Income Tax Deductions And Faster Mortgage Payments

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Copyright 2006 AAA Consumer Credit Solutions

Humans are predictable in behaviour because, behaviour patterns repeat themselves. Some will watch the huge tax deductions from salary recorded in the W2 and the T4 and T4A slips and will grudgingly resign themselves to pay these taxes deducted from their salary. I have seen Tax Deductions as high as $49,000.00. Indeed, the numbers fall all over the map, depending on your Income source or salary. The majority of these tax deductions fall in the $7,000.00 to $14,000.00 range with an annual salary around $60,000.00.

Three fundamental strategies reduce taxes on incomes and salaries. These tax deductions are: –
1. Contributions to a retirement or to Pension Funds: Such retirement savings are usually allowed as a legitimate tax deduction.
2. Self-employment expenses: These could include home, car and living expenses from the home budget that relate to business activities which are tax deductible.
3. Carrying Charges or using OPM: The secret here is that in business, the cost of money is a business expense allowed as a tax deduction by the IRS and CRA in different forms.

All of these tax deductions are available to just about every Taxpayer in various ways. Religiously, these tax strategies deliver 50% to 75% of the Taxes many a Taxpayer hand over from their salary, needlessly, to both the IRS and to CRA. The reason these tax deductions are not used more often is that as a Taxpayer, you may not yet have the knowledge to apply them to your individual circumstances. For example, you may be able to claim carrying charges or you could set that up for your next year’s tax report. If you don’t know, you will not understand that this refers to you too. Many finance professionals and Advisors, apply these strategies in the affairs of Clients who receive tremendous, financial benefits all the time. This should make the case that you could afford to use some of those tax dollars to pay for a competent Financial Advisor who would get your money back to you many times over.

The main message here is that the money your Employers send on to Uncle Sam, the IRS and to CRA (Revenue Canada) is not salary money lost to you forever. You still have some time to recover those dollars. Usually, a good Financial Planner will recover around 50% of those dollars. A seventy five percent recovery rate is not unusual. Just think about it. Lets say your numbers fall right in the middle. If your Employer sends over $10,000.00 from your salary paycheques every year you could recover $5000.00 year after year. That sum $5000.00 could do a lot including: —
Buying a yearly $5000.00 vacation
Making a retirement Savings Contribution of $5000.00
Making a $5000.00 contribution to your Childrens Education
Making a $5000.00 Extra Mortgage Payment contribution Year after Year.

You dont need any help with the vacation planning. Your private Financial Advisor will help with your education and retirement Plans. As for the fast Mortgage payment option, these tax refund dollars will stretch in ways you would hardly dream of. If you pay down your mortgage with new money as extra mortgage payments, then the benefits are exponential. Unfortunately, more Home Owners, from Seniors to working professionals to Young Couples with a tight home budget, must become more acutely aware of the exponential benefits of extra mortgage payments. Too often, such fast mortgage payment dollars exist in the home budget. We just dont know where to look to find them. In addition to Brian Costellos book: Making Money From Your Mortgage, only a limited few specialize in giving specific details on the huge savings to be found in your mortgage payments.

Additional or faster mortgage payments immediately gain a return of whatever the mortgage interest rates are. If for example your mortgage is written at a 5% interest charge, then you gain an immediate 5% return on your tax Reund money. Saving Accounts at the bank pay less than 3.00%. In addition, the $5000.00 tax refund cheque, if paid to your mortgage every year, will pay the mortgage off entirely maybe two years, may be five years faster. Here is where some startling, but hidden savings apply. Most People fail to understand this because few understand the finer points of how mortgage payments really work. As a rule professionals are not involved in this field since the focus is on placing mortgages not repaying them. Your total Tax Refund Savings would then include those months and years of mortgage payments you would not have to make because of the earlier fast payments. So, if your monthly, mortgage payments were $1000.00 then, five years of mortgage payment savings would deliver real cash savings of:

$1000.00 X 12 Months X 5 Years = $60,000.00

A $60,000.00 benefit is the result for each $1000.00 of tax reduction!! That sum of $60,000.00 are dollars you are contracted to pay as regular mortgage payments. Here is one powerful reason that many working professionals find it hard to make ends meet while many Business Owners and a few Employees-with-the-Knowledge enjoy a life of luxury. This year, make yourself a wealth promise to get your 50% share of excess tax dollars. Dont just make this an empty promise, but do something about it.

Mortgage Audits- What Can They Do For Me

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When you don’t have the knowledge necessary to filter through the legalese in your mortgage (that some people tend to relate to as a foreign language) it can be next to impossible to figure out exactly what went wrong along the way or whose fault it is that you’ve defaulted. Loan audits are a simplified way of viewing all the information that is contained in a mortgage and they prove whether or not illegitimate practices took place because they detail the terms and conditions and show if they are illegal or weren’t followed legally.

Some people don’t know where to go or what they can do when they need help with home foreclosure. They blame themselves typically when in fact there are circumstances in which it was caused by something the brokerage or lender did illegally. This is where critical thinking and being open-minded are necessary because everyone needs to learn at some point about what to do if they ever happen to encounter this particular problem. Supportive services can be acquired on the internet for a loan doc audit.

Their teams and departments consist of experienced attorneys, paralegals, loan auditors, underwriters, mortgage/real estate professionals and hardship analysts that work in tangent, focusing on every aspect to get you the help you so desperately need. Once a free consultation is completed with a loan modification specialist, you will completely understand whether or not illegal terms and conditions are parts of your mortgage as well as if the lender/broker followed all of the laws that are applicable. Home buyers who are in foreclosure or who are having trouble keeping up with their payments can commit to a forensic loan audit just as these services will commit to them the very best opportunity for determining what went wrong along the way.

What is really wonderful is that these teams will meet with you for nothing in order to evaluate your mortgage and establish a plan that is constructed to suit your individual needs. After that, the loan audits will be used in a court of law in order to adjudicate justice. Usually the lending firms will try to settle out of court in order to protect their integrity as well as not have to pay fines and penalties imposed by a judge. And during litigation, the mortgage payments are suspended, which means you get a nice break while your mortgage payment amount and lawful rules are being reestablished.

Mortgage audits play such an important role in liberating people from the improper notion that if they can’t pay their mortgage and they are having issues due to the way their mortgage was set up that there is nothing they can do about it. Take the time to really investigate what can be done instead.

Why Being A Loan Officer In The Mortgage Business Is Horrible

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Why Trying to Be a Loan Officer (that is, Sell Mortgages) Is Especially Grim

… and why pursuing a career in home loans is pretty much doomed to failure.

I gave the mortgage industry — the whole loan originator gig — a serious go of it a few years back. That was just before the entire real estate market melted down.

But even then, I knew after about six months that it just wasn’t for me. And as it worked out, I ditched just before thousands of loan officers were driven out by the economic collapse.

It’s odd, really, that I even gave it a whirl. I already had a great freelance sales gig in place, and that was earning me a great income. But I’m the kind of guy who is always out there looking for something new and more exciting. It was right when I was moving to Dallas, and the whole “mortgage consulting” thing seemed as if it could be fun, and I had buddies in the industry pulling down $25K a month routinely. So I thought what the hell, and I gave it a go.

But it didn’t take long for me to realize I was in the WRONG PLACE.

Because there was no way it was ever going to create the lifestyle I wanted for myself.

Even leaving aside all of the stuff I’m about to cover here, (even leaving aside having to pander to real estate agents, and what that does to your soul), at the end of the day, trying to sell mortgages — working in that industry — is just nowhere near capable of creating the kind of life I’ve got going on and had come to get used to.

The hours, the office, the boss, the stress, the tedium, the grief … It’s enough to make you want to jump off a bridge. Seriously.

But even leaving that stuff aside. Even assuming you’re a glutton for misery and your idea of a good time is a life of constant, bitter struggle and mind-wracking tedium … Fundamentally there are three main reasons why I think trying to sell in the mortgage industry is a really bad idea, especially right now.

FIRST –
The gravy train is over. It has become harder than ever to close deals.

There are several reasons for that. I’ll list a few of them:

The housing market has tanked, taking with it a lot of the people who used to be in the industry. The ones who are left are desperate for business. This has the effect of not only putting you on a crappy level with the client (since it’s get the deal or eat Ramen noodles all next month, you end up begging for business, cringing under anything a client says or demands), but it also has the effect of making the whole mortgage racket more and more a rate game.
And that’s the second reason for why it’s harder than ever to close deals. Rate are too damn high, they’re fluctuating all over the place because of all the government interference in the economy, and your prospects are OBSESSING over rate, ready to cut your throat and run to the guy down the block and leave you high and dry with nothing, over an eighth of a point.
What else is making it hard to close deals is the fact that they’ve taken away all but a small handful of programs — I think you’ve got THREE now; used to be dozens. Everyone needs to put money down, and everyone is stuck in a fixed rate. Like it or lump it. (Problem is, a lot of people are choosing to lump it.)
And finally, one other thing making it harder to close deals is the increased difficulty of getting lenders and proposed loans to fall in line with the new guidelines. Used to be, deals could be slam-dunks and you knew it. You could bury three points in the YSP and still slam-dunk it. Nowadays nothing is a slam-dunk, even at par, and underwriting can kill a deal sixteen different ways before sun down, and leave you feeling you’ve been mugged in a back alley.

So those are some of the reasons why it’s become harder to close deals. And that’s assuming you can even find prospects and get the deals into processing and submitted to begin with. That takes me to the second reason I think trying to sell mortgages as a loan officer is a bad idea:

SECOND REASON –
It is just flat out hard as hell to attract attention anymore, much less differentiate yourself from all of the other loan guys out there.

For one, people are jaded and afraid of getting screwed. They’ve become insanely suspicious — in part because they’re being flooded every day with offers for free credit reports, refinancing opportunities, doom-and-gloom horror stories of foreclosures and mounting unemployment.

Try marketing yourself as a loan officer. Good lord. You’re competing against fifty thousand other hungry mortgage guys. You’re competing against huge banks and desperate net branches. And everyone is selling on price, price, price. Selling on having the “lowest rate.” Everyone is fighting to make a buck. They’re running ads, they’re running banners, they’re sending out useless mailings, they’re falling over each other trying to get someone –anyone — in town to refer them some business.

Not a pretty sight.

And to make it worse, the big advantage you USED to be able to have was in specializing in something, some niche. The guys making the best money were framing themselves as “mortgage consultants,” and trying to stand somewhere between being a loan officer and a financial advisor.

And it worked for long time. The guys who were good at it made a fortune.

But things have changed. Back in the day, you had dozens of programs to choose from. You could customize a mortgage solution for a client, and really bring value to that interaction. You could build a plan for them, around their goals and dreams, and show them how the mortgage you were structuring for them would help them and their families get where they wanted to go.

Well … That’s all gone now.

You’ve got THREE programs you can offer nowadays. Conventional, VA, or FHA. Fixed, fixed, or fixed. That’s it. That’s all.

No more no-money-down programs. No more stated-income or stated-asset programs. No more negative amortization loans with investment plans behind them.

Increased restrictions on investment properties.

Massive reduction of new-construction loans, and the effective extinction of jumbo (much less super-jumbo) loans.

There’s no way to “consult” or offer “mortgage-planning” when it comes down to a fixed rate. People have been trained to focus exclusively on price.

And there’s always someone willing to cut your throat for an eighth of a point.

So the second reason why I’m against selling in the mortgage industry came down to how hard it is to find good leads, and how hard it is to differentiate yourself, or in any way rise above price.

The third reason is more personal:

THIRD –
It just takes so much damn WORK to try to close a mortgage deal.

Even leaving aside the effort it takes to bring in a qualified lead. (And “qualified” has a whole other meaning when it comes to home loans. Someone can want a new home loan all he wants. Whether he qualifies, under the new guidelines, however … That’s a completely different story.)

Even leaving aside the effort it takes to get the prospect to want to work with you.

That still leaves all of the endless documentation required to get the deal closed and a commission check in your pocket.

There is the appraisal, the sales contract, the gigantic loan application, the credit check, the required bank statements and pay stubs, the verification of employment and income, the verification of bank funds, the home-owners insurance, the mortgage insurance, and on and on and on it goes.

Then the client has to actually get approved.

And come up with the down payment.

(And somehow, during all this, manage to avoid the hoard of hungry banks and mortgage companies and other loan officers out there trying to steal your deal out from under you before you can get it to closing.)

And even THEN it’s not over. Because it takes time, you see. And you have the pure joy of sweating under the stress of endless underwriting grief, where nothing is easy anymore, and every closing is precarious and uncertain.

So let us try to sum up …

At the end of the day, trying to sell home loans in the mortgage industry is hell on wheels. It is getting harder and harder, to earn less and less.

This year the industry is predicted to take another slug in the head, and thousands more will end up unable to close enough loans to pay their bills, or see their mortgage companies chain their front doors closed, without so much as a severance check from commissions on deals that had already funded.

I predict that we’re headed toward complete and utter commoditization of mortgage lending, with mounting government controls, where everything becomes cookie-cutter and in the hands of a few gigantic banks.

So unless you want a future in a cubicle, taking down loan applications over the phone and entering them into a computer for eight bucks an hour (assuming things don’t go completely automated, and they still need someone to at least type the stuff in) …

Here’s my recommendation:

– Forget the mortgage industry.
– Find something different.
– Find something better.

I’ll be talking a lot more about that “something better” here real soon …
At MaverickSalesGuy (dotcom)

Can You Get More Than One Modification On A Mortgage Loan

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A loan modification is nothing more than an agreement between two parties to modify the terms of an original contract. In the case of a mortgage loan modification, the contract in question is a mortgage contract. Since the agreement is between two private entities, the borrower and the lender, the terms of the contract may be modified as many times as both parties are willing to agree to.

Since the answer to the question can you get more than one modification on a mortgage loan is yes, many borrowers have some hope if they are trying to save their home from foreclosure a second or third time.

A persons chance of being approved for a second or third loan modification increases as the time between modifications increases. This means that a person will have a better chance of being approved for another loan modification after a decade from their first loan modification than after a year. This does not mean that a person wont be awarded a second or third loan modification shortly after their original modification, it only means that the borrower will have to have one good reason and one good lawyer to get the modification approved.

One way to avoid the hassle of asking for another modification is not to agree to a first loan modification that doesnt do anything to fix ones problems. For example, if the borrower requests a loan modification and their lender makes an offer to modify certain terms of the original contract, but those terms do not make payments as low as the borrower needs them to be, then the borrower should refuse to accept the terms and should attempt to negotiate via a trained foreclosure attorney. If the borrower accepts bad modification terms, only to turn around and ask for another modification shortly after their first one goes into effect, the lender could use the fact that the loan modification terms have already been agreed to as a reason to deny further requests to modify.

Borrowers who were approved for their first or second loan modification several years ago will have a much easier time being approved for an additional loan modification since there is no guarantee that a person will not fall back into financial trouble once they climb out of it. It is reasonable to believe that a person could lose their job more than once or be affected by an injury more than once.

If a borrower wants to avoid having to go through the loan modification experience more than once over the life of their loan, they are urged to secure the services of a foreclosure attorney who can fight for the best terms possible for the borrower the first time around. If the terms of the borrowers first loan modification make monthly loan payments low enough, the borrower will have to worry less about getting another loan modification in the future if more payment trouble arises. If the lender has already made an offer to modify certain terms, the borrower should have that offer reviewed by an attorney to ensure that the offer serves the best interests of the borrower.

The Difficulty Of Taking Out A Second Home Mortgage

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Good news: the current scenario for second home mortgages is now more relaxed than the previous years. The boom in real estate has made the bank rush on the second home market once again. Thus competition for this area is heightened, which gives the buyers more chances to take on a second home mortgage. Lenders would want to explore the second home market since most people who want to buy one are more affluent and has more capacity to pay.

Here are easier ways to get second home mortgages:

HOME EQUITY LOAN

You could turn your home equity into cash and allow you to finance your second home mortgage. The two types of home equity liability are home equity lines of credit and home equity loans. Both are also called as second mortgages because your first property is given as collateral.

DOCUMENTATION

Like purchasing your first home, you must be able to prove that you have the financial capability to buy a second home to may it easier for you to get a second home mortgage. Basically you need to prove that you can afford to pay two mortgage payments.

Example, instead of taking on a 15-year term on your first mortgage, you can refinance it to a 30 year term to lower the monthly amortizations and have excess funds to cover the second home mortgage payment.

CREDIT HISTORY

A credit score of 700 or higher is a good number for you to increase your chances of getting a second home mortgage without a hitch. A credit score lower than 700 may enable you to take on a second home loan but at the risk of higher interest.

SECOND HOME ON A LEASE

If you rent out your second home, you have to prove to the prospective lender that it will give you ample cash flow, especially if you want to highlight that other source of income in your second home mortgage application.

But many lenders are wary in giving you a second home mortgage if you’re going to lease out your property. They have encountered difficulty disposing of mortgaged properties on lease. You can get a second appraisal for this but this will be costly on your part since you have to show the prevailing occupancy rates. And even though you can prove rental income on lease property as other source of income, your lender might not still take that into consideration.

Taking the above things into consideration, the bottom line is, getting a second home is easy as long as you can pass the 3 C’s of credit:

Character- if you are trustworthy of being given a second home mortgage

Capacity – if you have enough funds to pay an additional loan

Capital – if you have other assets than can be used by lender as payment for your loan in case of payment defaults.

All in all, if you are reasonably credit-worthy, getting a second home mortgage shouldn’t be terribly difficult. Do your homework and due-diligence, mind your credit history and information, and shop around for competitive mortgage lenders and banks.