With foreclosures continuously on the rise and more homeowners facing the risk every day, the fear of being foreclosed on is a common trend.  This fear disables homeowners to step up to the plate and face their mortgage companies about possibly options.  Foreclosure can be prevented as long as the consumers remain aware and confident. 

Fear: Homeowners are afraid to let the mortgage company know that they are having a problem because they think it will speed up the foreclosure process.

* Contacting the lender is a crucial first step in order to prevent the bank from foreclosing on your home.  This gives you an opportunity to offer an explanation as to why you may have fallen behind in the payments.  Remember, lenders have a financial interest in keeping you in your home too and they may be willing to alter some of the terms of the loan in order to keep you in control. 

Fear: Homeowners believe that if a mortgage company has denied them for a loan modification, it is useless to contact a counseling agency.

* One reason homeowners are turned down for modifications is because they have provided information that states their expenses exceed their income, or they haven’t accurately documented the terms of their loan.  A housing counselor can suggest better-suited alternatives for your specific financial situation or even help you make adjustments on your loan modification application that would then qualify you as a candidate. 

Fear: Homeowners are fearful of being judged by others.

* Today’s financial crisis is challenging for many consumers, however it still doesn’t make you feel better if you have to ask for help.  While many of your friends and neighbors are struggling to stay afloat, it feels as if you may be alone in this economic slump. 

Fear: Homeowners would rather use all their financial resources before asking for help.

* Riding out the financial storm is common for those unaware of alternative solutions, which depletes savings and retirement accounts.  With dwindling bank accounts, this gives them less opportunity to apply for a loan modification.  Lenders don’t want to see that a homeowner has little to no alternative financial resources.  Ask for help before spending your last penny!

Fear: Homeowners are certain that their situation is hopeless.

* Homeowners facing foreclosure have an overwhelming feeling of despair and hopelessness.  Of course, not all foreclosures can be prevented, however it is possible.  Housing counselors can not only prevent your property from being foreclosed on, they can also assist you with building a new plan for long-term financial success.

Fear: What kind of large, up-front fees will I have to pay in order for a company to help me save my home?

* There are nonprofit housing counseling agencies that offer reputable assistance free of charge.  Be sure to look for a HUD-approved counseling agency to ensure that you aren’t being taken advantage of.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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 With a slumping economy, the feds are once again stepping in to implement a program that will help bring down your mortgage to the equivalent of being only 31% of your gross income.  Qualifying for this program isn’t going to be an easy feat, however here are some tips to give you your best shot!

Know the Program! Obama’s administration has implemented a $75 billion Making Home Affordable program. It will apply to mortgages held by Fanny Mae and Freddie Mac, with these two mortgage holders cutting interest rates down as low as 2%, in hopes of lowering mortgage payments to equal no more than 31% of your annual gross income.

Navigating the Process. When Frannie and Freddie own loans, they rely on commercial banks to handle all the homeowner paperwork, service the loans and the decision on who qualifies for this program.  The point of this program is to modify loans to the point that allows borrowers to keep their head above water. You need to convince the bank that you’re in dire enough financial turmoil for assistance, but not in deep enough to be considered hopeless.

Disqualifiers. One big disqualifying factor is the amount you have stashed away in savings.  If you apply for this modification, but you’ve got a hefty chunk of change sitting in your savings account, changes are, you’re going to be declined.  However, going to the opposite extreme of having no savings, no job and no income will also disqualify you.  Candidates must show proof of income and convince the bank that it is expected to remain steady for at least 9 months.  If you’re currently relying on unemployment benefits, don’t think you’re in the clear.  Those programs typically last 6 months only, and the chances of being qualified using your unemployment money are slim to none. 

Showing Just Enough Distress! The US Department of Housing & Urban Development has a network of free debt counselors to work with you and assist you with the application.  The Homeowner’s Toolbox, a former California mortgage broker, is free to users  and claims to estimate the probability that a homeowner will be approved for a modification.   

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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Mortgage lenders are currently swamped with mortgage applications and the piles keep growing by the day.  Due to the lowest interest rates in years on housing loans, many consumers are chomping at the bit to get in while it’s still a buyer’s market.

Julie Haviv reports on the current phenomenon in her article, Mortgage Applications Surge to 4-Month High. 

Have you experienced an increase on your credit card’s interest rates?

Are you victim of unfair fees charged by credit card companies?

Has your credit line been been reduced without any explanation?

These are common trends with credit card holders lately, and the credit card companies aren’t providing any answers as to why.  They’re smiling all the way to the bank as they’ve collected $15 billion in fees in the last year, and all you’re left with a damaged credit score.

Thankfully, the government is stepping in and intervening. The Credit Card Accountability, Responsibility and Disclosure Act of 2009—commonly referred to as the Credit Card Act was signed in May and with some changes put into effect in August of this year with others starting in February of 2010.  This act represents some of the most protective credit card consumer legislation in 60 years.

Changes and Policies of The Credit Card Act

{as of August 2009}

• Credit card companies must alert you 45 days prior to changing your interest rate, versus what used to be only a 15-day requirement
• Credit card holders now have 21 days to make their payments, rather than the 14 days previously instituted before the Act.

{as of February 2010}

• No unfair changes. Unlike today, credit card issuers will not be able to change your credit status at anytime, for any reason. So, if you miss a payment with one creditor, another cannot automatically increase your interest rate or drop your credit limit, which often unfairly affects your credit scores.
• Restrictions under 21.  Consumers under the age of 21 will need a co-signer or a job in order to get a credit card. This is designed to help control the number of young, college-aged students building up credit card debt and negatively impacting their credit profile before they even graduate.
• Over-limit fee control.  Credit card companies will no longer be allowed to let card holders exceed their limit without having the card holder’s permission to do so. If you have not agreed to allow over-limit exceptions, your card will simply be declined, protecting your credit score and protecting you from over-limit fees.
• Late fees.  If your credit card provider charges late fees, they must clearly disclose them on your monthly statement.
• Credit card agreements. Changes occur so often that consumers don’t know which agreement is accurate. Creditors will now be required to have a copy of your credit agreement available for you on a website.Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 
  

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 A nice life lesson comes with the territory of purchasing a home that has been foreclosed on:  patience!  While the sales on homes that are bank-owned due to foreclosures or that are up for a short sale are on the rise, so are the headaches.  These types of purchases can include many conflicts with unpaid mortgages, leins, titles, and of course, long waiting periods. 

There are bidding wars between potential homeowners for the lowest prices, while investors are shoving them out of the way with cash offers.  If you’re lucky enough to get in on the benefits of purchasing a foreclosed home, then you have to deal with the ‘as is’ selling factor of the property.  When a bank takes ownership of a home, they’re not looking to invest in repairs and updates.  And boy, do many of these homes need some help.  Vandalism is fairly common amongst foreclosed properties, and in many cases, it’s been done by the previous homeowner.  One can expect to have a house completely gutted and trashed if it was an ugly foreclosure proceeding that forced the sale. 

Distressed sales are far different than the normal real estate transaction, and there are specific pointers that should be considered for this type of sale.

• Distressed-property listings can be obtained from local real-estate agents, classified ads and Web sites such as RealtyTrac.com, Foreclosure.com, Trulia.com and Zillow.com, as well as bank Web sites.
• Work with experienced real-estate agents and brokers with special training in foreclosures and short sales.
• Get pre-approved by a lender, or certify that you have sufficient cash available, before bidding on properties. Auction buyers must be prepared to put down a cash deposit of 5 to 10% cash and pay the balance within 30 days in many states—and in some states, on the same day.
• Get a thorough inspection by a qualified professional inspector or home-inspection engineer prior to auction or sale.
• Arrange for a thorough title search and title insurance.
• Be prepared for a long wait to hear back from the bank on a short sale, but be prepared to move quickly on a foreclosure; banks often set strict timetables on foreclosures

First-time buyers with minimal cash and little time or aptitude for repairs probably should avoid foreclosures, and inexperienced purchasers should avoid auctions.

No doubt about it,  there are headaches with any type of real estate sale, but if you’re looking to buy a home in distress, it’s best to prepare yourelf for any possible situation.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

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