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Smart Buying in Today's Market Buyers

The first thing that you need to realize is how many homes are actually on the market today. The market is flooded with homes that aren't selling, and new homes, distressed and foreclosed, are being added to the listings daily. This gives buyers a distinct advantage. First off, buyers can take their time; they can afford to be picky. Homes are lingering on the market for months before being sold for peanuts. Don't rush into anything! Browse all that Toronto real estate has to offer before making an offer.

In the past, it was very common for buyers to offer more than the asking price on the first offer. Not so today. Asking prices are taking a dive, and your offer should reflect the desperate times we are facing. Of course, you should never insult someone with a low-ball offer, but bidding a little less than the asking price is acceptable. In fact, it's expected. The longer a home has been on the market, the better deal you can get. So bid accordingly.

Since prices are so reasonable in the current market, you can afford more house in Toronto than you could five years ago. You might even be able to upgrade your neighborhood without having to upgrade your mortgage. So don't be afraid to look at more expensive looking homes; you might be surprised by how little they are selling for. Throw out your ideas of what you think homes will be priced at. Everything that you know about home pricing is antiquated.

With all of these things going for you, you might be tempted to go right out a buy a new home. However, you should not rush things if you are not ready. Just as this market can help you, it can also hurt you. Declining Toronto real estate values can leave you owing more on your home than it is worth if you don't buy low or have a good down payment.

Remember; however good for buyers, this market it not fail proof. You should never make an impulse buying decision. Plan, plan, plan, and be just as cautious as you would be under less favorable circumstances. It takes more than a good deal to make buying in this market takes you and a good strategy.

Home Equity Loan

There are at least two types of home equity loans.

The first is a term or closed end loan and the second is basically a line of credit. Most people prefer to refer to them as a second mortgage because they are secured against your home much like your first home loan or mortgage. Typically these types of home equity loans usually have a payback life of between 5 and 15 years.

The term loan is a one-time lump sum payment that is paid off over a set amount of time। There is a fixed interest rate which allows for the same loan repayment each month. After you get your money you cannot borrow further from the loan.

A home equity loan line of credit works more like a credit card। You are allowed to borrow up to a certain amount for the life of the loan. The time limit is usually set by the lender of the loan. During that time you can withdraw money as you require it to purchase items or pay for things that interest you. As you pay off the principal your credit revolves and you can use it again. This credit line gives you more flexibility than a term home equity loan.

Which ever of the two types of home equity loans that you should use depends on your unique situation. You can base your decision on some common questions such as how much money will you need, how long will you need the money for, how long will you need to pay the loan off and how much of a monthly payment can you afford.

Loan Modification Laws

Every state has different rules and regulations regarding who can do loan modifications and what licensing, if any, is required। Many states don’t have any restrictions whatsoever, though they’ll probably come up with something to regulate the industry in the next year or two. Other states have a lot of oversight, laws, and/or regulations. To confuse matters even more, nearly every state is in the process of creating, changing, or adding to the requirements. It’s a bit hard to keep track of, honestly.

It can be somewhat difficult to find the latest information for any given state। I’ve done a little homework loan modification laws in Oregon, and here’s what I’ve found:

The Oregon Mortgage Rescue Protection Act, passed last year, restricts the loan modification process in Oregon somewhat, requiring additional disclosure, which implies, but does not explicitly state, that only mortgage brokers and attorneys can do loan modifications। If there are other statues covering loan mods within Oregon, I was unable to find them.

You may want to try calling the Oregon Real Estate Commission for more detailed and up-to-date info. The Commission for any state usually knows, and they're often the regulatory body too. Another resource is to call the Oregon Mortgage Broker Commission, as the mortgage broker commission for any given state can also often be the regulatory body for loan mods. They should be able to provide accurate and detailed info regarding loan mod laws, oversight, and licensing as well.

Many Mortgage Types

If you are looking at the Real Estate market, you are looking at a market that requires a lot of capital. People buy and sell homes all day long, but from an investor's standpoint, it is their living. There are many ways you can go about getting a loan, and there are many resources you can get the loan from.

Conventional Loan:
These are not government backed loans. A conventional loan was the first loan type to come on the market. There are many pros associated with the conventional loan, as well as some cons.

1. More flexible with loaning money; Can finance appliances as well.
2. Do not have to adhere to strict government guidelines such as FHA guidelines.
3. Allow for more creative financing flexibility.
1. Come with a larger down payment
2. Usually more costs incurred from lender.
Basically, a conventional loan is typically kept by the lender in their portfolio whereas other loans tend to get sold to the secondary market.
FHA Loan:
When you look to FHA financing, you are looking for a government backed loan. This is the most prevailing loan around in these times. The FHA loan requires the borrower to adhere to strict requirements. If these requirements are not met, they will deny the loan and stop further processing.
An FHA loan is great for:
1. First time home buyers
2. Someone who does not have a large down payment
3. Less than perfect credit.

Although FHA is strict, they do offer some programs with different financing options, such as those looking to purchase a home that needs to be fixed up.
The above two are the two most common types of loans. You can obtain these loans from many sources, even from sources online. The best way to go about getting a loan is to first visit your bank you currently have. Talk to them about getting a home loan and what their requirements are.

If you do not qualify for a home loan through your bank, you will have to look other places. You can go through brokers, other banks, and many other third party lenders. Most people do not have excellent credit, and can still own a home. Although they might not get the best interest rate on the market, they will still qualify for a home. Always make sure you check your rate before you sign. Bad credit does not mean you can be taken advantage of. It is also recommended that if you choose to use a third party, make sure they are reputable and knowledgeable. Being that they will be dealing with your personal information and credit, you do not want it to get into the wrong hands.

If all else fails locally, you can reach out to national lenders online. This is becoming more popular of a tactic to use when securing financing. The internet also comes in handy for the financing that might take just a little more effort than some.

Loan Modification Lender Contact Info

Many people often ask me if I can send them an exhaustive list of lender contact info to help them with their loan modification business. Unfortunately, I don't have that, and it%u2019s likely that no one will ever have that. There are literally thousands of different banks out there, many with multiple numbers and departments depending on the specific investor or region for any given loan.

To confuse matters more, lenders change numbers, create new departments, change processes and go out of business from time to time, especially these days as banks are cutting jobs and dealing with high volumes of defaults and mod requests. Plus banks get bought by other banks, sometimes keeping the old department and numbers, and sometimes not.

Long story short, compiling an accurate, up-to-date, and exhaustive list would be extremely difficult, if not impossible. You're better off just keeping your own current lender list and updating it as you go. Add to the list every time you have a client with a new lender. All the info will be on the mortgage statement and the website, and you can get specific department (i.e. Loss Mit, or Loss Mitigation, department) contact info from there. You should keep a lender contact spreadsheet to help you keep your files and communications organized.

All that said, however, here are a couple websites that have lists of contact info for many common banks. I've personally checked the links and called some of the numbers on these lists; some still work, while some don't. These links can be a good start for compiling your own list.

3 Things to Know Before You Go For Loan Modification

If you're falling behind on your mortgage and cannot qualify for a refinance or an alternative payment plan, it's time you negotiate for a loan modification (mortgage modification)। This is where you can work with the lender and get your loan terms and conditions modified so that you pay off the loan comfortably. The lender may either lower your mortgage rate thereby reducing your monthly payments or extend the loan term and make sure your dues are added to the loan balance.

The very first step in loan modification is to contact your lender or the current mortgage servicer to whom your lender has conveyed the servicing rights। But prior to contacting the lender/servicer, make yourself aware of the 3 things that decide whether you'll qualify for loan modification. These are:

1. Your affordability: Lenders want to make sure that borrowers aren't taking advantage of loan modification, that is, they are not applying for it even though they can still pay. This is why you need to prove that you simply can't keep up with the payments. So, you need to explain your exact financial situation and provide data on your property value and how much you can afford to pay on your home. Here's what you will need to have with you:

1. Monthly income and source
2. Paystubs
3. Monthly expenses in detail
4. Bank statements
5. Loan agreements

What you need to do here is, prove that you cannot afford the payments and it is certainly going to help your situation if you opt for a loan modification।

2. Your home equity: This is an important factor based on which the lender may or may not modify your loan. If you have enough equity in your home to pay off mortgage dues and foreclosure expenses, then the lender is likely to consider foreclosure as a low-cost solution.

However, there are some lenders who inflate your home appraised value when home prices are on a decline। But if you're aware of property values or recent home sale trends in your area, you can get an idea of your home equity and thus avoid inflated appraisals.

3. Modification costs: Lenders prefer to minimize the costs when it comes to modifying one's loan. However, mortgage modification is carried out by experts and lenders have no other option but to spend more when it comes to expanding their number. This is why some lenders do not respond quickly when they receive a loan modification request. So, here's where you need to be active and negotiate in the best possible way.

With loan modification, you can avoid a loan default as your payments become affordable. However, make sure you understand the modified terms and conditions in order to avoid further problems in your mortgage

Do it Yourself Loan Modification - 7 Deadly Sins to Avoid

Looking for information on how to convince your lender to approve your do it yourself loan modification? Not every borrower will qualify for these loan workout programs, so make sure you know the 7 deadly sins to avoid when you prepare your loan modification application. It can make the difference between approval and denial!

Deadly Sin #1: Contacting your lender before you understand how the process works and what your lender needs to see in order to approve your application.

Deadly Sin #2: Paying a loan modification company a large, upfront fee without first verifying that the company is properly licensed and has experience with loss mitigation. Unfortunately, many homeowners have paid thousands of dollars without ever seeing any results instead of beginning their own do it yourself loan modification application.

Deadly Sin #3: Wasting time trying to speak with your lender about a loan modification when they call your home. The employees calling you at home are from the collections department, they will not help you with a loan workout. They will tell you anything to get your last dime-these employees get paid based on how much money they get out of you. You need to know who to speak with at your lender to get the results you need.

Deadly Sin #4: Not writing a convincing and compelling description of your hardship situation so that your lender will empathize with your situation. It is important to know the 3 key elements of a winning hardship letter-if you do not convince your bank that you deserve a loan workout due to circumstances beyond your control your chances of approval are slim.

Deadly Sin #5: Omitting information on your application or completing the forms wrong can be a reason for a delay or even an immediate decline of your proposal. Do you know that your bank will verify all of the information you provide? This is a full disclosure process-you can avoid this deadly sin by making sure you disclose all of your income and debts completely. There is a sure fire way to make sure you do not leave anything out.

Deadly Sin #6: Submitting a loan workout proposal that does not meet your lenders requirements for approval. Each bank has certain criteria that must be met-if your proposal does not fit into this criteria, you will be declined. Make sure you know your banks guidelines and then complete your loan modification forms accordingly. Do you know how to determine your target mortgage payment so it is affordable and meets those approval guidelines?

Deadly Sin #7: Not providing your lender with a complete loan modification proposal package that includes all the forms and documentation they need to review. Your bank has thousands of borrowers just like you who need help-what do you think happens to your package when it is missing items and cannot be processed? It gets set aside and finds it's way to the bottom of the pile-there goes your chance for a loan workout solution!

A successful do it yourself loan modification means you have avoided the 7 Deadly Sins and have prepared a professional, acceptable and complete loan workout proposal. Do you know how you can make sure that you have given yourself the best chance for saving your family's home? Research, learn and prepare before you contact your bank about your loan workout-this is too important to take chances-help is available if you know how to get it!

4 Successful Tips For a Successful Chase Loan Modification Program

You must know of certain things before you apply. Here are 5 tips for you to be successful with a Chase Loan modification program.

1. Tip 1 - Call the Loss Mitigation Department: A lot of people end up calling the Collections Department. Bad place to call, because even before you know, they would be asking you for your money.

2. Tip 2 - Watch the debt ratio: If you have a debt ratio between 38% and 45%, you will in all chances qualify for the program. Call the Loss Mitigation Department, and ask them to send you a loan modification package.

3. Tip 3 - Write the loan modification hardship letter: It is important you convey to Chase, your reasons for not paying the mortgage payments on time. Write a convincing hardship letter, and support it with proofs when possible.

4. Tip 4 - Any type of modification can be considered a success, only if you honor your revised financial commitments. Set aside your budget carefully, and be sure you pay back the mortgage payments as per the new agreement.

Loan modification programs offer you a second chance for you to revive your mortgage payments. This is your chance to get them back on track, and Chase allows you to do this with the help of their special Programs.


How You Can Refinance Your Mortgage Even With Bad Credit

Are you a homeowner with bad credit? Is your existing mortgage payment more than you can handle? Or do you want to refinance your current mortgage in order to cash out some of the built up equity in your home? Whatever reason you might have for refinancing your mortgage, your bad credit does not have to be a hindrance.

Lower Your Interest, Cash Out Equity

Many homeowners want or need to refinance their mortgages at some point in life. Refinancing is typically done to obtain a lower rate of interest that can save the homeowner money and also lower their monthly mortgage payments. Oftentimes, a homeowner may be stuck in an adjustable rate mortgage of which the monthly payment has ballooned out of control. Still others just need a great way to cash out equity in their homes that has been built up over the years - possibly to make home improvements, do remodeling, buy a car, take a vacation, pay for education, or even to pay down other debts and obligations.

Although you can generally stick with your current mortgage servicer to refinance your mortgage, you also have the option of choosing a different lender. Your choice should not be based on loyalty to a certain lender, but rather on savings over the life of your mortgage refinance.

Considerations You Must Make

When refinancing your mortgage, you should always consider a fixed rate loan product first. A fixed rate will allow you to make predictable monthly payments at a rate of interest that is fixed and cannot be increased due to market conditions. You should also look for a lender who will help absorb some of the costs of refinancing your mortgage - such as appraisal fees, attorney fees, and other fees that are tacked on that can inflate the amount of money that refinancing will cost you.

You should consider how long you want to pay on your new mortgage. Most lenders will give you an option of ten, fifteen, twenty, and even thirty year fixed mortgages. Keep in mind that the longer you take to pay off your mortgage, the less your monthly payment will be, but taking longer to pay will cost you more interest. Never agree to a payment amount that you cannot reasonably afford to make as your budget and income dictate.

Another often overlooked option when you refinance your mortgage is to consider allowing the lender to include the cost of homeowner insurance in the loan. This can make your homeowner insurance more affordable, and also makes for one less bill that you will be paying out each month. You can always opt, however, to keep your current insurance policy on your home and continue paying it out of your pocket each month.


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