Mortgages Home Loans - bankruptcy modification

David Reinholtz asked:




The Community Reinvestment Act of 1977 forbade the practice of basing the cost or availability of banking services, including home mortgages or refinancing on ethnicity. However, a community group in California recently claimed that minorities in their state are now twice as likely to be denied a home loan application as their white counterparts. An interesting dilemma during this current housing and economic crisis and one that will certainly stretch far and wide throughout the country in the months and years to come.

While this community group is basing its findings on Home Mortgage Disclosure Act results for the calendar year 2008, there is some cause for concern in the housing market. The HMDA figures indicate a significant drop in prime lending during the fiscal years 2006 to 2008 and the California Reinvestment Coalition claims that redlining, the practice of basing decisions on race, is a prime factor in this drop.

First of all, to be fair, there is certainly a point to be made with regard to home loans being made strictly or even somewhat based upon ethnicity being both unethical and illegal and is a practice that the industry as a whole has worked hard over the past several decades to eliminate. The problem with this study, however, is its focus on HDMA figures, rather than on a broader range of economic principles and conditions that apply to any home loan application.

Maintaining integrity in the industry is one of the most crucial elements to long-term success and, on the heels of the current housing market crash, discipline and sound financial decisions are tantamount to longevity and overall health of the market. So how does this one report affect the mortgage industry as a whole?

It doesn’t, yet, but the markers have been lit and the light is being turned ever brighter on a mortgage industry that has been both ridiculed and maligned with the worst of the past few years’ of the nations economic and housing crises. Currently, loans are considered much more difficult to come by for millions of people, regardless of whether they are home loans, car loans, or simple credit cards. The basis for qualification stems now from a tighter consideration of credit score and history, work history, and an overall ability in the future for an applicant to keep up with the loan terms.

With the microscope potentially being turned up a few notches, or degrees, depending on the point of view, the question is how will this affect the mortgage industry in the near future? At this time it is difficult to predict but if past indicators are taken into account, mortgage lenders will find themselves pressed between the proverbial rock and a hard place. At present, the task of the mortgage industry is to free up credit and home loans for qualified individuals to purchase homes while at the same time attempting to refrain from approving loans to individuals who would not otherwise qualify.

If a minority population has lower income than a majority population and other factors in place categorize the minorities as higher risk and therefore their loan application is denied, will the mortgage lender be held accountable? More importantly, will he or she be forced into a situation to find a home loan, regardless of points, interest rate, or cost to classify that home loan as approved?

These are certainly questions that will be addressed in the coming months and years, but the precedent that this report sets is a dangerous one in an already trouble housing market. Claims of home loan applications being denied based on ethnicity require a foundation in facts that stretch beyond the numbers of approvals and into the factors for denial. Mortgage lenders must take heed and caution to review applications based solely on the numbers provided and not on ethnicity, lest the floodgates of legal action and ethics investigations open.

Jared

Till Death Do Us Part asked:


It was their fault for qualifying them in the first place. They could at least turn the tables and help them out by reducing the mortgage rate so they can make payments. Wouldn’t a steady stream of money coming in be better then not having any money coming in? The company is going bankrupt all because of GREED! They’d rather spit in their faces then turn around and lend a helping hand like they should be doing to keep afloat.
I don’t own a home or have a job and not even out of HS yet odysseus1959 It’s just a random question I wanted to ask while reading about the housing crises. So good for you, go float your ego down your gold plated sewer pipe.

Vera

JayC asked:


I did a refi on my home and now I have been advised that there is fraudulent activity in the processing of the loan, and the agent who wrote the loan also notarized his own work with someone else’s notary seal. The seal belonged to another employee w/ same company. She was never present at the closing.

Lydia

Joseph Kenny asked:




When you need the cash out of the equity of your home you may wonder which one is better for you - a cash out mortgage or a home equity loan. The truth is that both have their advantages - but probably one will be better for your situation than the other. This will mean that you need to know a little about each in order to make up your mind. Here are some differences between the two.

A cash out mortgage will involve refinancing your first mortgage. This could be a great way to go, especially if you can get interest rates on the refinance that are at least one percent (two percent is to be preferred) lower than your present mortgage rates. So not only could you get the equity you want, but also you will save thousands of dollars by getting better interest rates, too.

You get the equity you want in a lump sum when your cash out mortgage is approved. All you need to do is to refinance for the amount of the mortgage that is still outstanding, and add the amount of cash you want from your equity. You will want to watch and make sure that you do not refinance for an amount equal to 80% of the value of your house - that includes the equity, as well. The reason for this is simple, you want to make sure that 20% of the value of your home is left intact so that you do not need to pay the Private Mortgage Insurance. This could add thousands of dollars each year to your payments.

You can enjoy further savings if you decide to shorten the term length, too. If you make the remainder of the refinanced loan to be about 5 years less than what you have now, you could literally save tens of thousands of dollars more over the life of the mortgage.

A home equity loan is another way to get to the cash in your equity that you want. A home equity loan is a second mortgage, and you may be able to get it as either an adjustable rate mortgage or a fixed rate mortgage. While it obviously does not require you to refinance your first mortgage, it will give you a new monthly payment - and the cash you want. As a second mortgage, there will also be closing costs and other fees - with the possible exception of going through your present lender.

The interest rate will be higher than on a first mortgage, when you get a home equity loan. The interest rate, as well as the amount you can borrow, will depend mostly on your credit rating, and your ability to repay the loan. Make sure your credit report is accurate before you apply. If there are inaccuracies on the report it can hurt you and give you higher interest rates than you might have otherwise, or even cause your home equity loan to be rejected.

Before you agree to either a home equity loan or a cash out mortgage, you will want to shop around to find the best deal. It will take some time to do it right - but you are the one who will benefit from the savings. Check the various features, such as the interest rate, the fees, and the terms of repayment - including the monthly payments.

The choice is now yours. It can basically be summed up as - do you want to refinance your existing mortgage, or get a second mortgage? Both have their benefits, but only you can decide which one will work best for you.

Stella

Tim Gorman asked:




Equity borrowings call for very good credit scores, however, your bad credit rates may fetch you fast home equity loans at higher rates. Condition of your house, and your income level are the other points to be concerned about. When it comes to home equity loans, there are lots of places you can look. Some people prefer to go to a brick and mortar lender in their area. Internet search is a great method to start your search for easy home loans, and home equity loans.

Get help for home loans by finding sources online. You can have your needs served on the internet and get free quotes for home equity loan comparison. By enlisting the help and guidance of some online companies, you can be connected with the most experienced and qualified mortgage brokers.

Applying for a home equity loan is much easier than the process you underwent in applying for your original mortgage. To qualify for a fast home equity loan, your credit must be in good standing and you must be able to document your income. Loan process time-frame is between 10 and 24 days. For all business loans, the borrower(s) must have a minimum credit score of 660 and at least a 65 paydex score to qualify. To get started with the payday loan process, you just need to fill out an online application form with a few basic details about yourself, your bank account and your job. You can have cash transferred to your bank account within minutes.

The advantage of getting home equity loans on the Internet is that you have licensed online mortgage brokers who will give you the prime rate regardless of what state you live in. Maybe a different person who banks at the same bank but a different state can get a lower rate. And it is often possible to get home equity loans on the Internet. Because of the electronic and connected nature of the Internet, your information can be entered, reviewed, and approved much faster than it would take for humans to review the information and make a decision. Fast home equity loans can be obtained through various lending companies that specialize in providing these loans. They can be contacted online or over the phone through the information provided by these companies in various advertisements.

It is important, however, to factor in closing costs in the decision making process. The closing costs may eat up a great deal of the savings, if not all of it. It takes less than two minutes to complete an application, and your information is processed right away. The lender does a comparative search across all financial institutions offering home improvement loans in your area, and usually you will be called back the next business day.

Marion

Susan V. Gregory asked:




Confused about whether you can qualify for a Wells Fargo loan modification to lower your mortgage payment?

Carrie Reeder asked:




A jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is around $300,000. With a jumbo mortgage, the interest rate is a little higher than other similar mortgage loans that are for smaller amounts. The reason the rate is higher is because the loan has a perceived higher risk by lenders.

A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done.

Although most mortgage loans that are done in the US, are smaller loan amounts than those limits set by Fannie Mae and Freddie Mac for jumbo loans, in California, home prices are so high, that there are many jumbo home loans done there.

If you live in California and/or are looking to get approved for a jumbo loan, the internet is a great place to apply to get a jumbo loan for a few reasons. First of which is that there are so many lenders online competing for your business, that lenders are forced to offer their lowest possible rates in order to get your business. For example, a local broker, who has a steady client base, may not be motivated to offer the lowest rate or the lowest closing costs, when the competition is only local. However, when you have the largest group of lenders online competing for your business, you can get a much better offer.

Where is the best place to apply for a jumbo loan? There are many mortgages companies online who can provide you quotes from multiple lenders. These companies will be able to provide you with quotes for usually up to 4 different lenders. This is a great way to make sure to get competitive offers. However, make sure you still ask each competing mortgage lender about the points they will charge, their closing costs and any other fees, to make sure you are getting the best loan you can.

Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.

To view our list of recommended lenders online for jumbo loans, visit this page: Recommended
Jumbo Mortgage Loan Lenders Online.

Zachary

vdl515 asked:


My husband has a terminal illness and he is the only one on our home mortgage, but I am on the title. What happens to our home when he dies?
We are still paying our mortgage and he is on short-term disability for now. We are just trying to figure out or options for the future.

Audrey

yggdrasil’s gardener asked:


Just curious if I can get any good answers from out there … with the mortgage industry in turmoil, I’d be curious to know if it means anything.

Caroline

William Chesney asked:




With a view to lend a helping hand to those people having problems with mortgage repayments, Obama’s government has come up with special home refinance and loan modification programs. These programs mainly aim at helping the destitute. Due to recession and other economical crunches, many home loan borrowers are unable to repay their mortgage loans promptly. In such a scenario, this special package offered by the government provides relief to about 9 million struggling mortgages.

This package includes two main key components:

Home Refinancing Loan modification

Let us look at each of these components in detail:

Home Refinancing: allows two major players Fannie Mae and Freddie Mac to refinance all those borrowers whose balance outstanding is more than the true value of the property. However, borrowers need to fulfil a clause to be eligible for this program. The mortgage loan procured by them should be guaranteed by these agencies. On the other hand if you have the financial ability to pay the excess amount due, you would be entitled for this option.

But this program is only applicable to those properties that are being used for residential purpose. Any unoccupied property would not get qualified under this program.

Loan Modification: In order to encourage and promote this program on a large scale, Obama government has announced special incentives to lenders modifying loans. The main aim of this program is to help homeowners avoid foreclosures.

How does home loan modification work? Loan modification cuts down the rate of interest up to 2% on the existing loan, increase the repayment period which would in turn reduce the monthly EMI to be paid towards this loan. And most importantly all the penal charges and late fee are waived off.

Mortgage modification also allows lenders to have control over the total payments made by the borrower. In no case, the lender would be able to increase the liabilities of borrower more than 31%.

Yolanda