Maria F asked:


Due to relocation, I’m left with home mortgage and currently renting in new area. No one buying my old house, loan amount is more than value of my home. Paying for 2 homes is too much. What are my choices to unload old home? If I foreclose or short sale, how would that affect my credit and would I be able to take another home loan? How soon?What is the most important thing I need to know? Who do I approach?

Katherine

Juhani Tontti asked:




The biggest figures came from California, Florida and Arizona. The senior American, who cannot pay their mortgage loan payments, the special loan called a reverse mortgage can offer a great help, because by taking a reverse mortgage loan, they can avoid the monthly payments of the loan.

1. When The Foreclosure Threatens, Act Quickly.

The home foreclosure is a very serious thing. It will drop the credit score by 250 or 300 points for 10 years. Additionally a senior will lose the home. So there is so much on stake. If the reason, why a senior cannot pay the mortgage loan, which has been taken against the home equity, is the lack of the monthly cash, the reverse mortgage loan offers a real help.

If the mortgage loan payments are 3 months behind, you really must act quickly and take contact with your lender. When the initiative comes from the borrower and he has a suggestion, how he is going to solve the financial problem, the lender will do his best to avoid the foreclosure process.

The idea is to pay away the usual mortgage loan with the reverse mortgage and in this way to avoid paying the monthly back payments. If this is enough to carry a senior over his financial troubles, then it is worth taking the reverse loan.

2. Who Can Qualify?

The idea is to take the reverse loan against the equity of the home. So there must be enough equity left. This means, that the credit score nor the income level of a senior has no meaning, they are not even asked. The only requirements are, that a senior is at least 62 and the owner of the home, where he has equity left.

3. What Is The Real Help?

The real help to a senior is, that with the reverse loan he can turn a part of the home equity into cash money and in this way to avoid losing his home and a good credit information. When he has paid the mortgage loan for years, it is fair to use a part of it to save his rest life. And he will stay as an owner.

4. How Many Borrowers Are Allowed?

A couple or maximum three persons are accepted as the borrowers. They have not to be relatives to each other, but all borrowers must be the owners of the home and to use it as their permanent home. Of course all must fulfil the qualifications, i.e. to be American and at least 62.

5. From Where Can A Senior Get Help.

The U.S.Government has organized this in a great way. There are lots of federal counselors all over the country. These counselors are not in the payrolls of the lenders, but they are independent and thus free to give guidance to seniors.

Raul

Tim Gorman asked:




Low interest home equity loans are the fastest, quickest and easiest way to obtain money. However, always be on the lookout for suspicious lenders of low interest loans. Home equity loans can substantially decrease your monthly payments. Find out your credit rating before you search for a loan.

Mortgage lenders are offering great interest rates and easy terms on home equity loans, even if your credit history is less than perfect. Mortgage rates can change daily, and sometimes even multiple times per day depending on economic factors. For accurate mortgage rate comparisons, try to get all quotes on the same day! Mortgage can be defined as a loan which will provide monetary help to purchase any real estate property. The borrower can make his payments regularly to the lender.

Borrowers requesting a home equity loan for bad credit should be aware that the interest rates advertised by a particular lending institution such as a bank, or mortgage brokerage will not apply to them. The borrower will receive a higher interest rate, as interest rates are directly determined by credit score. Borrowers can select from fixed or variable rate home equity loans that offer features like interest only to reduce your monthly expenses.

These low interest home equity loans enable homeowners to just pay the interest due each month for the specified draw period. Borrowing money is expensive generally, with lenders asking you to pay for the privilege of taking out a certain amount of money. The interest a lender will require you to pay for their lending is mainly linked to your personal circumstances.

If you have a good credit score, home equity lenders will offer you a higher loan-to-value ratio, a better interest rate and a higher loan amount. Such loans are referred to as 125% home equity mortgage loan and are very useful when you require large loan amounts. A 125% home equity loan will have a higher interest rate, as the underlying asset only covers a portion of the loan. A home equity loan is the amount of lump sum money you get. The interest rate on a home equity loan is more than a 1st-mortgage interest rate.

Rates can be fixed or adjustable. Signing a contract means you should fully understand how fees will affect your credit plans. Rates, fees, and conditions of low interest home equity loans differ greatly between programs. If you are serious about entering into a home equity loan, you should examine the loan program in its entirety.

Ella