Real Estate - Market, Mortgage, Buying Homes, Selling Property » loan

Loan Modification Agreement

admin — Tue, 02 Jun 2009 22:53:36 +0000

There are new loan modification options, so relief from the stress of making the mortgage payment is now available as many homeowners are discovering. It may be suitable for loan modification and thus put to rest your fears of foreclosure. Read on to know how this program works.

In step 1 of loan modification is to find a qualified financial advisor. Nonprofit organizations approved by HUD offer free counseling. Due to the more number of homeowners seeking loan modification relief, there are now loan modification companies to help you too. There you can deal directly with your lending bank and it is often best to work through a third party advisor who can manage the process and go to bat for you with your lender if you required. Your first meeting with your loan modification advisor involves discussing your present finances. The two of you will cover the choices accessible to you and to arrive at the preferred plan of action. If loan modification is right for you then you will require to compose a loan modification hardship letter. This letter will be delivered to your lending bank to describe your financial hardship and why loan modification is essential to avoid foreclosure. The letter must show you are responsible and dedicated to keeping your home.

Your financial advisor will include any of your essential financial documents with your hardship letter. Thus the lending bank can make a decision if they can work with you on a loan modification agreement. Your lender must be persuaded by your hardship letter that you are serious about meeting the payment terms you propose and able to do so based on the accompanying financial documents. If your lender agrees then you should qualify for reduced payments that permit you to stay in your home. If your lender can calculate an adjustment that shows your debt to income ratio within the range of 34 to 45% of your gross monthly income and they will almost certainly take your loan modification application seriously. Your debt to income ratio is basically the percentage of your gross monthly income used to pay your monthly mortgage. Private lenders and the government alike now have loan modification programs available so more homeowners than ever are qualified for these programs. The main point is to take action as soon as possible and once you realize that your mortgage is no longer affordable. The sooner you act the easier it is to get a loan modification and avoid foreclosure on your home.

Most people trying to come to a loan modification agreement with their lender appear to be thinking that there is an invisible steel wall between the loan modification and them. Lenders can be hard on accepting applications but most people don’t realize that they either do not meet all of the requirements or that even the smallest error can disqualify their application. Most of the lenders look at the same things when considering a homeowner for a loan modification but each one has a different take on what they’re looking for. Some lenders put a lot of stress on a homeowner’s credit while others don’t put so much weight on it. There are also lenders who need a homeowner to have been late on at least one mortgage payment to be capable of come to a loan modification agreement. And some lenders disqualify based on too high of a home value, bankruptcy, or even a vast amount of debt.

Anyone considering applying for a loan modification agreement should research a lender’s criteria for agreement prior to actually applying. Thus you can know what that particular lender is looking for. It’s also a good thought to look around online for other people who have gotten modifications with that lender to see how giving they are with their modifications and how difficult they are to deal with.

Coming to a loan modification agreement with a lender is a time consuming procedure but is no means unworkable and there is no steel wall between the homeowner and a modification. Checking up on the needs and filling out the application correctly will increase the chances of approval.

Handle a dozen financial chores at once

admin — Fri, 20 Mar 2009 13:29:17 +0000

Did you know there is a place on the Internet where you can apply for a loan, get a fast credit rating check or even compare prices for credit cards? There is, and it is called Credit Choices. You will find them at CreditChoices.co.uk. On the site there is a mortgage calculator and a savings calculator. All of the information and tools at Credit Choices are completely free. You can look at credit card rates or study current yields on savings accounts.

You can even apply for loans that give decisions instantly. Before you do any of this you will wan to look into your personal credit rating. This all-important score tells lenders how great or small a credit risk you are. Often credit cards and banks use this information to their advantage by with holding from you the deal your credit rating entitles you to. By getting an occasional credit rating check you will sit across the table with the exact same knowledge as your banker.

Real Estate Tax For Property

admin — Mon, 10 Nov 2008 17:50:46 +0000

Anytime you have a home or property you will pay real estate tax. Real estate tax is estimated based on your home value. For instance, if you purchase a home and the property is worth $10,000 but you pay $20,000 for the home, thus this additional balance is your equity.

In some areas, you pay taxes in the winter and spring months. Some cities charge city taxes and state taxes for property. In addition, the real estate tax estimate is based on the current market price also. For this reason, you want to find deductibles to save money on home taxes.

If you purchased a home and lived there a couple of years, you have an invested property. The interest that you pay toward the property will not qualify you for interest deduction on your real estate tax. On the other hand, you may have tax deductibles under the itemized returns.

The purpose of bringing this up is to let you know that you may have real estate tax options available to you for saving money. Many people do not realize this. Renters get money back from the government all the time for paying rent each month. Thus, like renters homeowners have return options also. Check these options carefully.

Moreover, check your options, since you may have deductible choices on your equity interest dues. Check under the itemized deduction options to learn more.

You will find that you may have options for taking out loans over home improvement. If you recently were accepted for a line of credit or a home improvement loan, look under the itemized deductions to see if you have options for tax returns. Tax options are available for second mortgages, etc. You can also find help for particular issues. For instance, if you recently lost your home because of flood, fire, or your home was damaged, thus you may have an option to file claims. You may find a big real estate tax relief by searching through the theft, fire, and disaster category on your tax forms. Usually, you will need tax form 1040X.

To learn more about real estate tax visit the real estate sites online. Here you will find helpful information, calculators and other valuable tools to help you save money. Many sites post information about real estate tax deductibles, so see what you qualify for by visiting now.

Susan Duey represents RateTake Mortgage Loan mortgage marketplace. RateTake matches consumers with multiple lenders offering low Refinance Rates from our network of accredited lenders

What’s Required to Get a Mortgage License?

admin — Wed, 30 Apr 2008 10:05:44 +0000

The first thing to keep in mind when deciding to get licensed in multiple states is that every state is different. Mostly in the last 10 years, every state has come up with their own licensing scheme. The state congress passes a bill requiring mortgage companies, branches, and/or loan officers to get licensed. The bill then designates a regulatory agency such as the Department of Financial Institutions in the state to come up with a plan to license all required individuals according to the bill passed by congress. I’m giving you this background, because it helps to understand the reason why ever state is different.

Although the state congressmen and regulators often help each other come up with these licensing schemes, they almost always add their own little twist to it. In general, however, most states require the mortgage company (whether it be a corporation, LLC, or sole proprietorship) to be licensed, the branch locations to be licensed, and the loan originators to be licensed. Some exceptions are Colorado for example, which requires only the loan originators to be licensed and not the company they work for. There is also a common thread to the types of documentation the states require in an application for a license. I’ll be going over this in the rest of the article.

Almost every state has the following requirements: Filing for certificate of authority as a foreign entity, registered agent, surety bond, fingerprints, education, experience, and exams, detailed ownership and officer information, financials, and a final application.

Certificate of Authority as a Foreign Entity and Registered Agent

Usually this is filed with the Secretary of State. It can range from $25 to as high as $700 but usually costs about $100. The filing is basic information on the company, its owners, officers, and directors. It is required to be filed in almost every state prior to applying for a license.

A registered agent is someone physical in the state that can receive service of process from a court, attorney, or regulatory agency. There are many companies that handle this service nationwide for about $125 per state per year. Information on the registered agent is required to be sent with the filing for the certificate of authority

Surety Bond

Almost every state is now requiring licensed mortgage companies to obtain a surety bond. Basically a surety bond protects the consumer, third party, and state against any claims made against a mortgage company that does not have the ability to pay. This is not insurance and will be required to be paid back if you ever get a claim against your surety bond. The best thing to do is to never allow your surety bond to be drawn against. Most states require between a $10,000 to $100,000 surety bond to obtain a mortgage license. The cost usually ranges from 0.7% to as high as 3% if you have bad credit or financials.

Fingerprints or other Criminal Background Check

Every state has some way of determining if the owners, officers, directors, and loan originators have a criminal history which would exclude them from being able to be licensed. Often states handle this by obtaining fingerprints. You will have to go to your local law enforcement office to get the fingerprints. If you do have any criminal or civil background, you will want to provide the state with the information up front. Many people have minor violations, which could become an issue when licensing if the information is not provided up front. The cost for this is around $40 to $75 per person.

Education, Experience, and Exams

Each state requires some sort of proof that an officer of the company has enough knowledge and experience to adequately run a mortgage company. Normally states will require 1 to 3 years of experience for a principal officer of the company. Many states also require initial education and almost every state requires continuing education in order to renew your license. Initial education can be taken online in some states but is required to be live in others. There are about 5 states that require an exam for a principal officer. Even if you have a detailed knowledge of federal laws, you will have to study a lot for these exams since they have a lot of state law questions.

Detailed Ownership, Officer, and Director Information

Every state requires you to provide details on the owners, officers, and directors of the company. The information is similar to filling out an application for a loan or a new job. They always want your social security number, your residence history, employment history, and criminal history. Again, being as detailed as possible eliminates the state coming back and asking for more information

Financials

A majority of states have a net worth requirement. Net worth is the difference between your assets and liabilities. Personal assets are not included in this calculation unless you put those assets in your company. The average net worth requirement for mortgage brokers is about $25,000 but can be as high as $100,000. Fortunately only a few states require audited financials in order to obtain a mortgage license. Audited financials can be very costly and time consuming. Recent quotes I have seen on audited financials have been between $2,000 to $10,000 per year.

Final Application

The final application is the last step to getting licensed in the state. Every state has different questions they may ask about your business plan, quality control plan, company information, articles of incorporation or organization, etc. The list can go on quite long some times. The prices for the final license application range from as low as $100 to as high as $3,000. Most state license applications are around $750.

If you are ready to go through this process, we have the experience and here at Integrity Mortgage Licensing to make the process simple and expedited. Our costs are $500 in most states and we have large discounts if you plan on getting licenses in 2 or more states at a time.

Steven Sheasby, founder of Integrity Mortgage Licensing, has worked with numerous mortgage companies with licensing across the country. He has managed multiple compliance departments for nationwide lenders and brokers. His experience in mortgage licensing and other mortgage regulatory compliance issues has given him the inside track for dealing with the states without the expensive cost of an attorney. Contact Integrity Mortgage Licensing at 714-721-3963 or ssheasby@integritymortgagelicensing.com Or Visit their website at http://www.integritymortgagelicensing.com