Colorado | Home Loan | Mortgage | Refinance

Archive for July, 2009

Philadelphia’s Residential Mortgage Foreclosure Diversion Pilot Program commenced in May of 2008. In a very short time it caught the attention of the national media because of its success in helping people facing foreclosure save their homes.

At the end of 2008 78% of the people who had their mortgages modified through the Philadelphia program were still in their homes. This was compared to other statistics which showed that over 50% of the time when mortgages were modified during the first quarter of 2008 the people fell behind on their mortgages within 6 months and were facing foreclosure again. So the results of the Philadelphia program were far better than the national average.

Part 1 of this series was a general overview of the program. In Part 2 let’s take a closer look at why this program is successful.

First Philadelphia was experiencing the same challenges with foreclosures that other major cities were. The city’s tax base was eroding. Neighborhoods were deteriorating because of vacant and abandoned homes.

In early 2008 the city council held a hearing on foreclosures and the crisis it was causing for the city. Residents, representatives from various organizations and leaders of community groups testified at this hearing. This was followed by a meeting at a church in late March. Individuals facing foreclosure, their neighbors, representatives for the community groups and members of the city council attended this. A plan was developed to stop Sheriff’s sales of foreclosed properties.

The city council then passed a resolution calling for a stop of the Sheriff’s sales and asking a judge to design a program to help people facing foreclosure save their homes. The stoppage of the sheriff’s sales caught the attention of the mortgage companies. They sent representatives who met with city council members, community organizations and housing counselors. Their talks led to the framework for the pilot program.

In mid April the First Judicial District of Common Pleas issued an order creating the Residential Mortgage Foreclosure Diversion Pilot Program. A precedent had been set years earlier giving the court the power to do this.

The order stated that a mandatory conciliation conference had to be held in all foreclosure cases where the property was owner occupied before the property could be sold at a sheriff’s sale. Investment or commercial properties were not subject to this order.

This conciliation conference would be scheduled 30 to 45 days after the mortgage company filed its complaint against the person holding the mortgage. The person facing foreclosure and a representative from the mortgage company had to attend this conference.

A court order would be sent to the person facing foreclosure notifying them of the conference. It would also instruct them that they had to meet with a counselor at a housing counseling agency.

The counselor would do a financial assessment and prepare a report for the conciliation conference. This report would propose a plan for the person facing foreclosure detailing how their mortgage could be modified and their home saved.

A case manager appointed by the court would preside over the conciliation conference. The plan prepared by the counselor would be reviewed. A determination would be made if the mortgage could be modified so that the person could make the mortgage payments monthly and save their home or if a sheriff’s sale should be ordered because no resolution was possible.

The first conciliation conferences were held starting on June 10, 2008.

If the people facing foreclosure did not follow through, meet with the counselor from the housing counseling agency and attend the conciliation conference, then the Sheriff’s sale would be set. The order was sent to them through regular mail. It was feared that many of these people would think it was just another foreclosure notice and not open it.

The city officials did not want to risk this. So they recruited community organizations to have their representatives follow up with each person who had been sent an order. One organization, ACORN, reported its results. 91 of the 94 people their representatives met with called or planned to call about the counseling. 61 called while the representative was with them. Most of these used the representative’s cell phone to make the call.

Let’s look at this more closely. People facing foreclosure are very concerned about their situation. They’re embarrassed. They don’t like to tell others what is happening to them. Most times they don’t reach out for help until it is too late.

Here the city had community organizations reach out to them. The representatives from these groups gave them support. They even had them call on their cell phones. One main reason for the success of this program is the personal visits by these representatives.

The next step was for the person facing foreclosure to meet with the financial counselor. Most attended the meetings.

The last step was the conciliation conference. About 80% of the people attended their conference. Here again this is phenomenal. Many people would miss a conference like this because of their fear that the outcome would not be positive for them.

The high success rate in Philadelphia has to be due to two reasons. The first is the positive impression made at the initial contact by the representatives from the community organizations. The second is the hope the people got from the financial counselors and the plan they put together for them.

Other cities and states have adopted various types of mediation programs to stop foreclosure. The success rate of most has not been as great as the program in Philadelphia. Connecticut and New York are two states that have programs. In Part 3 we will look at these and see what the Philadelphia program has that these are lacking.

As a real estate investor since the 1980’s Mark Elkins has seen the devastating impact foreclosure has had on common ordinary people. This has led him to study and gain much knowledge and insight into how to help people in foreclosure to take the offensive, reverse the process, save their home and minimize their losses. Please visit his website, http://www.stopforeclosureanswer.com

Article Directory: EzineArticles http://ezinearticles.com

All loan modification applications will request that you prove to the lender that you are having a very difficult financial time. You must make your case compelling enough to convince your lender that, because of what is happening in your life right now, your monthly mortgage bill must be lowered.

Some homeowners find the process of writing a hardship letter very difficult. Remember that your lender wants offer you a loan modification right now due to the new Obama guidelines. A hardship letter is your way of letting the bank know you story, how you got to the situation you are in now, and how a modification will help you. Here is a sample letter that your can use to frame your own.

Date

Lending institution name

Lending institution address

Your name, address, and loan number.

Dear [blank]:

I am writing this letter to explain my present financial situation and request a loan modification from your institution so that I can keep my family home. We absolutely do not want to lose our home and are willing to do whatever it takes to keep it.

We have fallen behind in our mortgage payments since my husband has lost his job due to layoffs. This was a job he had held for five years, but four months ago he became unemployed. For these last four months we have had to spend our savings to feed our family and pay our basic bills just to make ends meet. We cut every expense we could. Now our savings are gone and we are using our credit cards just to get by.

We are looking forward to better times; recently my husband found employment and has started his new job. His pay is less that it was before, but we have made the changes necessary and if we could have our monthly mortgage payments reduced, we can manage to pay all our bills and keep our home. As I am sure you are aware, property values have been decreasing and our house is no exception. Our home has declined in value to the point where it is not possible to refinance it or sell it to pay off our mortgage. Our only option is a loan modification.

Please consider our family as a candidate for President Obama’s home affordable plan or any other plan that your think might help us. I believe our circumstances warrant some consideration. We are a hard-working, respectable, responsible family who only ask that we be given the chance to keep our home. Please take the time to review our enclosed application and consider giving us a rate reduction to 2% and an extension to a 40 year term. Thank you so much for you time, consideration and help. We are anxiously awaiting your reply.

Respectfully,

[Your name].

Naturally you will just use this letter as a guide, add your own information and personalize it as you see fit. The important thing to remember is to be descriptive, providing enough details to elicit an emphatic response. You will also need to show that you are going to be able to pay the modified mortgage. Accompanying your letter should be a budget that shows all your income and expenses. Prove to your lender that you will be able to afford the new terms of your mortgage. Make sure you include an amount for emergencies to show that you are hoping to prevent such circumstances from happening again.

After you have learned to write an effective loan modification hardship letter, you have a very good chance of being accepted for a loan modification that will let you keep your home. Start by gathering all the required paperwork because you will have to complete a financial statement. Be prepared and be thorough so you will have the best chance of keeping your home using this one time only plan.

For essential tips and facts about how to get approved for a Mortgage Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

Article Directory: Article Dashboard http://www.articledashboard.com

No matter where you look, there is always a credit card company that is offering reward programs with their credit cards. New ones pop up all the time, making it sound too good to turn down. Even though they may sound great, you may wonder if the rewards are truly worth it. In some cases they are, although in others they may not be quite as good as you would like.

Although having more than one reward card is something many people instantly think about, you should always keep in mind that not all of them are worth having. Even though using your credit card is always good, you can sometimes end up paying quite a bit if you don’t pay attention to what you are buying. When it comes down to credit card reward cards, you should use caution – with a dash of common sense.

Any reward cards that come with high interest rates should always be avoided. With most reward cards, you’ll find that they include higher rates of interest than standard cards. This higher interest rate can quickly and easily offset any type of reward. To be on the safe side, you should always look at the interest rates and determine if the reward is indeed worth it. If you pay off your entire balance at the end of every month – then this won’t be a concern at all for you.

You should also keep your eyes peeled for reward cards that offer a high annual fee. These cards can be very tough to keep a grasp of, and they can also interfere with any type of reward you may think your getting. If you look at the fine print before you get choose your reward credit card, you can help to eliminate problems.

Cash back is a type of reward card that is becoming very popular. A lot of the top credit card companies and banks offer cash back programs that are normally around 1% for every purchase that you make. Before you rush out and get a reward card, you should always make sure that you read the fine print and see if there is a maximum limit on the card.

Another type of popular reward credit card is the type that give you points for every purchase you make using that card. Once you have accumulated enough points, you can redeem them for items and other cool things. Some cards will have limits as to how many points you can receive, which again makes it your best interest to shop around.

There are also credit cards with frequent flyer miles, which have been around the longest. Some cards will base their rewards on points, while some choose to use actual miles. For every dollar you spend using your frequent flyer credit card, you’ll receive either a point or a mile. Once you get enough accumulated, you can redeem them. Most frequent flyer rewards take about 25,000 points or miles in order to redeem them, which can make it nearly impossible for some to reap the benefits of using the card.

No matter where you look, finding the right credit card reward card can take some time and effort. You may have no problems finding the card to fit your needs, and if you do, you should consider yourself lucky. Before you choose your card however – you should always take the necessary time to read the fine print and compare what each unique company has to offer you.

If you are looking to purchase a new home or refinance the one you are currently living in, you will want to find the best mortgage rate out there.

Securing the best mortgage rate for you really isn’t that difficult if you are willing to take some time and educate yourself, as well as put out some feelers to do some shopping around.

The mortgage industry is a very competitive one, so for starters, shopping around isn’t such a bad idea.

If you put yourself in touch with up to four loan officers or mortgage brokers, and allow for them to assess your situation, they will most likely get back to you with the best rate they have to offer in order to keep you from taking your business to their competition.

Securing the best rate will be much easier for you if you do take the time to educate yourself about the mortgage industry.

By educating yourself about the mortgage industry you will gain a good grasp as to what products are hot and what the rates are doing, as well as certain trends that are affecting the industry.

Having even just a limited knowledge of what the mortgage industry has to offer, not to mention an understanding of all the jargon that is certain to be thrown your way will give you an advantage when dealing with lenders and brokers.

Just because a lender or broker offers you a particular product and rate doesn’t mean that it is the best product and rate out there.

A lot of people in the industry including brokers and loan officers are paid on commission, and the rate they offer you affects their commission.

So be careful, make sure the rate and product that you choose is in the best interest of you and not the person doing the mortgage for you.

That is why shopping around and educating yourself is so vitally important before you go and commit to one mortgage company.

Education is important because knowledge is power, and it will give you the opportunity to talk the talk with the people in the mortgage industry.

Shopping around is important because you will be given a handful of products and rates, than you will be able to base your decision on the deal that best fits your needs and your budget.

Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.

Article Directory: Article Dashboard http://www.articledashboard.com

Newly elected President Barack Obama is very conscious of the latest financial and job situation in the country leaves and that it leaves many homeowners nervous about the future. Home prices have fallen to record lows and foreclosures are also climbing to all time highs, bringing neighborhood home values by as much as 15%. Property and home values have fallen so steep that numerous homeowners now owe far more on their mortgages than their home is actually worth or will be worth in the next two decades. Because of these problems, the President Barack Obama has presented the housing and homeowner stimulus plan as the fix all for Americans who are close to losing their homes.

The Making Home Affordable plan was announced in February 2009 and has been running with very questionable results since then. Many borrowers no longer have any equity let alone the 20% equity that is often needed for mortgage refinancing these days. The stimulus or Making Home Affordable plan, from Pres. Obama is supposed to make it easier for homeowners to refinance or modify their current primary mortgage and receive lower monthly payments helping many homeowners temporarily avoid foreclosure.

The ultimate goal of the Making Home Affordable Plan is to help over 9 million homeowners keep their homes and avoid foreclosure or defaulting on their loan until the depression is over as most loans are short term fixes only. This is done by giving incentives to mortgage lenders to use new government guidelines for approving mortgage refinances. So with only a small incentive and slightly less risk to mortgage lenders some are choosing to be more compromising on who can refinance.

We believe the projected number of 9 million homeowners helped will be closer to 1 million as some lenders appear to be balking at governments incentives.

With the Making Homes Affordable program, the final mortgage payment will still not be allowed to exceed 38% of the homeowners gross monthly income. This is great news for a lot of homeowners who are fighting to make their monthly mortgage payment. A lot of homeowners currently pay 50% or more of their income towards making the mortgage payment. A 12 – 20 percent reduction would add up to a lot of saved money every month, but still leave homeowners with a house now worth hundreds of thousands less then they owe on their mortgage.

Refinancing your home can either save you thousands or cost you thousands. Predatory mortgage lenders will take advantage of you every chance they get. Learn how to properly refinance a mortgage and walk away with more money and a smile.

Making-Homes-Affordable.com is the #1 independant Obama Stimulus information website. With information written to help borrowers and homeowners escape the pitfalls of the mortgage and real estate industry.

Article Directory: EzineArticles http://ezinearticles.com

Your credit score affects you in more ways than you realize. You may think nothing of this three-digit number but just ask any lender if they would give a favorable loan term to anyone who does not have a good credit score and you will realize how important it is to maintain a good credit score.

A good credit score is indicative of good financial health. It means that you pay all your bills on time, that you never missed out on your monthly credit card payments, that you have more credit available than you have debts. To a lender, this is credit heaven.

But maintaining a good credit score takes some work. Just as it would take one years to build a reputation and only one second to destroy it, it would take a good amount of time before you are able to hit past that average mark in credit scores and just one unpaid bill to watch it all crash down.

Below are some steps to help you better maintain a good credit score:

Pay Your Bills on Time

It doesn’t matter how you do it, whether by credit card, check, or bank draft, just so long as you do it on time. This is the first step in maintaining a good credit score. Punctuality in making your payments, after all, is a vital element of good financial management.

Keeping tabs of all your due dates may help. You can then create a budget plan where in you list your household’s money flow — in (income, salary, etc.) or out (expenses, repayments, etc.), including the dates when you are supposed to make your payments.

Save

Save for the rainy day. There is not a better financial advice around than this and no better way to maintain a good credit score. Savings come in handy during emergencies or when there are contingencies that you suddenly need to answer for. This way, you won’t have to rely on outside financing whenever you run into trouble.

In addition, you could also add your savings to the money needed in order to purchase the home of your dreams or any other items you may need in the future.

Practice Self-Restraint

It would be hard maintaining a good credit score if every time you go to the mall, you feel this wild urge to buy everything you see and end up with mile-long bills as a consequence.

No, you need to practice self-restraint if you want to keep your good credit score. Just because you want something does not mean that you have to have it now. Buy only those that are absolutely necessary and leave the rest for later when you have more money to spare.

Now that you have your dream home after years of persistent hard work, you surely would want it secured from harm. With so many uncertain and unexpected events striking any family anywhere, this keeps your mortgage payments safe and guarded, letting you appreciate even more the dream house that you built for your family.

Many heads of the family consider mortgage as something not worth-wile, thinking it’s just an additional and unnecessary expense. Of course, you sure are not losing your job in a couple of months or you have enough savings and investments should you have trouble at work. Yet, many families still lose their homes for holding the very same perceptions about it.

Fact is mortgage protection is something you should look seriously into, in the early process of building or buying your dream home. Not only it is smart to do so, it will prove an inexpensive move as well. The best and low cost mortgage protection can be surprisingly easy to get, granting you know your options and you get the best choice of insurance company and mortgage institution.

You already get a bargain when you get hold of a mortgage protection from the lender you took out mortgage with, whether it is a building society, the bank you loaned from or an insurance dealer or broker. These days, mortgage protection has become even more accessible, cheaper, and shopping for the same has become very informative through the internet. In fact, some big names in the mortgage insurance business proclaim that a certain mortgage protection cover costs 40% higher from a mortgage lender when compared to an online insurer!

Of course, your building society has served you satisfactorily and there is no reason to look anywhere else for better deals at mortgage. Yet, as buying or building your dream house and then getting it secured is an expensive and important decision you have to make, it is wise to delve into other options that can save you a few thousand dollars.

With this, shopping around and checking what other insurers have to offer is a smart move. You can simply start by investigating reputation and feedback from other people with high street insurers and then look further into online mortgage companies if they give the same insurance coverage at a lower price. Almost all the time, the online insurers offer lower costs as the method of acquiring their services don’t include agent commissions and operational expenses of an office and staff.

Still, it’s wise to note down cost differences, the advantages of each mortgage protection companies, its accessibility and extra service factors. This way, getting your dream house secured from any unforeseen eventualities is not draining your finances, but simply giving you a comforting thought each time you hit the bed.

Life Insurance Quote from JumpLifeInsurance.co.uk. Get a Life Insurance quote Now. With so many Life Insurance UK and Mortgage Protection websites out there, we decided to make things simple.There is just one short from to fill in, and after just a few seconds you will have quotes from all the leading providers.

Article Directory: EzineArticles http://ezinearticles.com