How Can I Get a Fresh Start Loan?

photo credit: A6U571N

If you have damaged credit from a combination of late payments, going over the limit on your credit cards, or filing bankruptcy, you may be in the market for a fresh start loan. A fresh start loan can help you find financing for purchases that you need to make while helping you to raise your damaged credit score up from the ashes.

A fresh start loan can be used for nearly any purpose. You might want to do some home improvements or remodeling, or perhaps you are in the market for new furniture or appliances. Fresh start loans are also ideal for financing your next travel adventure, or to pay for education expenses. Another great idea for the fresh start loan is to consolidate other debt – such as expensive credit card debt or past due bank loans.

Online Fresh Start Loan Read more »

Originally posted 2008-12-10 06:01:18.

Lender’s Get Aggressive To Help Borrowers That Are At Default Status On Their Mortgages

If the borrower has committed to staying in the property and fighting through the difficult period of pending foreclosure many lenders and their servicing agent are offering possible solutions. Early on, with mortgage lates, borrowers are being contacted with possible workout solutions to get caught up on their payments. However, many mortgage products with accelerating payments make it difficult for any mortgage borrower to recover. In the past, forbearance was the tool of choice to be utilized for a borrower to get caught up with payment arrears. For example, if a mortgage payment of $1,500/month is three months down and soon to be four, the mortgage company might take this arrearage of $1,500 x 4 = $6,000 and spread it out over say a years time and a catch up payment of $6,000/12= $500/month. The regular payment of $1,500/month needs to be made plus the $500/month in the forbearance portion for a total of $2,000/month to get caught up and avoid foreclosure. In the past, this might have worked, now however, many borrowers are being crippled with accelerating payments of the first of say an Option ARM, or a 2/28 ARM that is adjusting way up and forbearance won’t do the job. Rather, in many cases, a whole new loan product has to be put in place to even have a chance of rectifying the adverse mortgage situation.

Now the “old” forbearance has been modified to become even more flexible. Mortgage companies, with the current inventory of unsold homes, do not want to foreclose and end up taking an even bigger hit when and if the home sells after foreclosure. The writing has been on the wall for many lenders in this past year, work out the loan or eat huge losses. If someone is in the home and making payments, it can soften the massive write-downs that will follow in this extremely soft market. Read more »

Originally posted 2008-01-06 05:14:27.

Tips to Negotiating a Bank’s Attempt at Foreclosure

If you’ve gone through any part of the pre-foreclosure process, had a lis pendens filed against you (a notice of default – you promised to pay a mortgage, and secured that promise with the deed to the house you mortgaged), or have been harassed by the bank as their interest rates reset on your home loan, trust me, you are not alone. Millions of homeowners who have gone through or are about to go through the untimely process of having the bank try to recall a loan are probably feeling just as lost as you are right now. Here are some helpful resources to open up tons of options for you, after all, YOU are still the homeowner

Bring it on! –

Seriously, for whatever financial straits you are in, know that home ownership is the golden key to creating wealth for you and your family. 99.99% of the world’s millionaires have one thing in common: The are owners! Giving up that right is not in your best future interest. Your best interest is to sack up and deal with whatever reason it is that you came to this point. If you’ve lost your job or had an unexpected emergency, consider yourself lucky (yes, lucky), for these things are temporary and can be overcome. As it relates to your impending foreclosure, know that these are the best situation to deal with and the recovery rates for homeowners are extremely high who have only had temporary setbacks. It’s here also, that a short sale professional is most effective, that in a bit. Read more »

Originally posted 2008-01-06 05:16:07.

Foreclosure ‘Help’ From The IRS?

Yes, even the IRS appears to have a heart! Did you know that you can actually be taxed on the foreclosed sale of your house? Evading tax is another good reason to try and stave off the foreclosure of your home.

If you are trying to avoid foreclosure, many realtors know solutions to house buying problems and finance, and the realtor who sold you the home may be able to offer advice. Meanwhile, the IRS is also trying to offer help and hope.

Under normal conditions, to quote the IRS, “Under the tax law, if the debt wiped out through the foreclosure exceeds the value of the property, the difference is normally taxable income.”

However, the IRS have turned out to be not quite the ogres we like to think they are, and are recently trying to help folks facing genuine hardship foreclosures. Information about this is available on the Internet, under their IRS web page, and it is surely a ‘must read’ for anyone that might lose their home. Read more »

Originally posted 2008-01-06 05:26:20.

7 Proven Strategies to Avoid a Forclosure and Save your Home

Foreclosure can mean the loss of your home, any equity in your home, your credit rating and your dignity. Foreclosure is a very public process, with your name listed in the public court records and then published in your local newspaper. Then, once you are ready to move on with our life, your foreclosure appears on your credit report for at least 7-10 years. In addition, all mortgage applications currently ask if you have EVER had a foreclosure. You’ll have to check “Yes” for the rest of your life.

A foreclosure usually means that you won’t be able to buy another house for several years unless you agree to the exorbitant interest rates of “Bad Credit’ mortgages which can be twice the rate of regular mortgages.

But what if you’ve experienced a temporary hardship? Life is unpredictable and we all experience circumstances in our lives that are unforeseen and that are out of our control. Often times these circumstances can prevent us from making our monthly mortgage payments on time. Some of the issues contributing to delinquency include: Read more »

Originally posted 2008-01-04 05:04:42.

To Avoid Foreclosure

A number of years ago there was a popular book entitled, “When Bad Things Happen to Good People”. Today, that could describe the nightmare of foreclosure that is facing many families.

Foreclosure can be stopped dead in its tracks before it derails you.

The first step to avoid foreclosure is to deal with the facts honestly and openly. DO NOT BE AN OSTRICH! Call or contact your lender as soon as you are aware that you will fall behind in your payments. Lenders want your money, not your home. In many cases your lender will work to help you avoid foreclosure. With foreclosures increasing every day, the last thing most lenders want is another house to dispose of. In the long run, most legitimate lenders realize that helping you to avoid foreclosure will be to their own benefit. (Lenders are not charitable institutions, however. They might view the totality of circumstances, including your long term prospects, the amount of the loan versus the equity, your payment history, etc, in a way that might accelerate the foreclosure process.) In any case, it is important to notify your lender ASAP if you want it to help you avoid foreclosure.

To Avoid Foreclosure: Important Dates Read more »

Originally posted 2008-01-04 05:28:20.

Foreclosure Programs – Lets Take a Good Look

1. The FHA Modernization Act of 2007 was recently passed today by the Senate authorizes lenders to help borrowers who are in default.

a. lower down payments

b. Allow FHA to insure bigger loans

3. Allow FHA more pricing flexibility

Increased loan limits would also help people living in high-cost areas; current FHA limits make the program unusable for expensive areas.

2. FHASecure: FHASecure is designed for families who are good borrowers but were steered into high-cost loans with teaser rates. A HUD program program designed to provide borrowers with strong credit histories with the ability to qualify and secure new mortgages. In the first 4 months of the program, FHASecure will have helped 53,000 families and received more than 127,000 refinance applications from families whose loans are current or past due. They can be reached at 1-800-CALL-FHA

To qualify for FHASecure, eligible homeowners must meet the following five criteria:

1. A history of on-time mortgage payments before the borrower’s teaser rates expired and loans reset; Read more »

Originally posted 2008-01-06 05:30:40.

What Caused the Foreclosure Crisis?

Many people are wondering what the story is behind the foreclosure crisis. Currently over 83,000 families are facing foreclosure every month. Foreclosures have risen over 141% since 2005. In 2007, over 1.3 million homes are in foreclosure and that numbers is expected to rise even higher.

Why is the foreclosure crisis so out of hand? Is it because so many people just don’t want to pay their mortgage? No. If you check the news lately on stopping foreclosure you’ll notice a common theme among homeowners facing foreclosure: Homeowners are actively seeking to stop foreclosure and save their homes. As many as 1 in 10 homeowners are facing foreclosure in major cities in the United States. Even the famous actor, talk show host, and Publishers Clearing House spokesperson Ed McMahon just had his multi-million dollar mansion go into foreclosure.

So right now foreclosure is becoming a national tragedy, because everybody always told you to build wealth you need to own your own home and thousands of homeowners now facing foreclosure from that bad advice. One of the major reasons there is this foreclosure crisis right now is because of Wall Street looking to make a buck and loose loan standards practiced by mortgage companies to loan money to future home buyers.

In 2003, Wall Street rushed to find the next big thing since the dot.com collapse, they found the ripe market of mortgage brokers, so all the fund managers of the pension funds, mutual funds and other investment vehicles rush to make money from mortgage backed securities which paid higher than treasury bills. At the same time Wall Street was enjoying unregulated, creative ways to increase business the Federal Reserve Bank Read more »

Originally posted 2008-06-16 01:27:46.

A Foreclosure Loan Can Help You

If the ship is going down and you feel like you are drowning and about to lose your home to foreclosure you may be able to save it before it is too late. It may look bad right now, but a new foreclosure loan may save the day. If the home has not yet sold in auction it is not too late to do something about saving your home. A foreclosure loan is the answer for many who face this terrible situation every year.

The Nuts and Blots of a Foreclosure Loan

All across the country people face the fear of losing their homes to foreclosure. Foreclosure loans are set up by many private investors in order to either buy homes for realize or to help individuals save their home and secure anew loan with the new company. The funds form theses private investors will help many save their homes if they apply. Read more »

Originally posted 2008-01-06 05:51:18.

Foreclosure Victims Helping Foreclosure Victims

A number of the homeowners that we talk to everyday are motivated by two main goals. The first, obviously, is to save their home from foreclosure, avoid potential scams, and get their financial lives back to normal. Teaching homeowners how to do each of these is the main purpose of our website, which encourages every foreclosure victim to gain the foreclosure information necessary to stop foreclosure on their own. However, many homeowners that we talk to also have a secondary, altruistic goal, which is to help families in similar situations avoid facing foreclosure and the loss of their homes. In fact, some even want to get into the foreclosure industry as a way to provide legitimate, empathetic support to other foreclosure victims and make a career out of helping others in need.

A good number of homeowners who have faced foreclosure know just as much about the foreclosure process as many of the major players in the real estate and mortgage industries. Realtors, mortgage brokers, and representatives from mortgage companies often know very little about how foreclosure actually works, as it is not often studied. Rather, the basics of how mortgages work and how real estate is transferred is focused on to the exclusion of the actual process that banks use to take a home back that is in default. This leaves the door wide open for former foreclosure victims to provide their own foreclosure advice to other homeowners in financial hardships. Read more »

Originally posted 2008-01-06 05:01:55.