Mortgage Refinancing

Sunday, January 27, 2008

The Truth About Foreclosure Prevention

Foreclosure is the legal right of a mortgage holder or other third party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default.

There are several types of foreclosure in the United States, but two are popularly used.

Foreclosure by judicial sale: It involves the sale of the mortgages property done under the supervision of a court, either the proceeds going first to satisfy the mortgage, and then to satisfy other lien holders, and finally to the mortgagor. However, all the parties must be notified of the foreclosure since it is a legal action.

Foreclosure by power of sale: It involves the sale of the property by the mortgage holder not through the supervision of a court. Foreclosure by the power sale is more expedient way of foreclosing on a property than foreclosure by judicial sale. Proceeds from the sale go first to the mortgage holder, then to other lien holders, and finally to the mortgagor.

Signs for foreclosure

Mortgage payment: If your mortgage payment is 15 days late, you may have to pay a late fee.

Default: A payment that is 30 days late may warrant a notice of default which will explain steps to be taken to prevent foreclosure.

Foreclosure: If your payment is 90 days late and there is no payment plan with the lender, the lender can initiate foreclosure or foreclose. This is usually followed with official notices and a court ruling resulting in public auction of your home to pay off the mortgage debt.

Foreclosure Prevention.

Foreclosure prevention is a program designed for homeowners who have defaulted on their mortgage and are in danger of foreclosure. In other words, foreclosure prevention is a counseling program that assists homeowners who are in trouble with their home loan. The program makes it possible for you to retain your home.

What are the merits?

The program helps you to work out a plan with your current lender.

It provides information that will enable you save for future repairs and other home expenses.

It helps you to get new refinancing loan.

It helps families stay in their homes and retain their equity.

It prevents widespread losses in low and moderate income homeownership.

Project Lifeline: This is anew program designed by the Bush administration to deal with a worsening housing slump facing homeowners about to loss their homes. For qualified homeowners, it will put the foreclosure process on hold for 30 days.

Project lifeline was put together by six of the nation’s largest financial institutions. According to them, they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments. While the foreclosure process will be put on hold for 30 days, to enable lenders try to work out a way to make the mortgage more affordable to the homeowner.

Homeowners who have declared bankruptcy or if they already have a foreclosure date within 30 days or if the home loan was taken out to cover an investment property will not be eligible for the program.








http://www.sellingppp.com/s.cgi?ppp=1211038119

Saturday, January 26, 2008

Mortgage Refinancing Secrets Revealed

Refinancing means applying for a secured loan intended to replace an existing loan secured by the same assets. Refinancing may be done by any issuer of debt, such as corporations and governmental bodies, as well as holders of real estate, including home owners. Many owners of both commercial and residential real estate used certain analysis in their refinancing decisions known as the “2-2-2” rule. What this means is that: if interest rates have fallen two points below the existing mortgage, if the owner has already paid two years of the mortgage, and if the owner plans to live in the house another two years, then refinancing is feasible.

wgatap20.refortunes.hop.clickbank.net/

Benefits of Refinancing

Refinancing a mortgage can lower the monthly payments owed on the loan. This is done by changing the loan to a lower interest rate, or by extending the period of loan, thereby spreading the re-payment out over a long period of time. The benefit of this is that the money saved can be applied to paying down the principal of the loan, and this will further reduce payments.

Refinancing an adjustable rate mortgage into a fixed rate one help to remove the risk of interest rates increasing exponentially. This will further help in stabilizing the interest rate over a long period of time and reduce the risk associated with an existing loan.

Refinancing a loan can help in paying off high interest debt such as credit card debt, with lower interest debt such as that of a fixed rate home mortgage. However, non-tax
Deductible debt, like credit card or car loan debt can be transformed into tax deductible debt such as home mortgage, resulting in lowering one’s taxes.

In addition, refinancing is also used to liquidate some or all the equity that has accumulated in real property during the tenure of ownership.

Facts You Should Know Before Refinancing

Credit score: if your credit score is low, you must improve on it first before considering refinancing otherwise your interest rate is going to be high. But those with a high credit score will not encounter any problem in terms of high interest rate.

Planning your budget before refinancing will enable you to know the cost of the mortgage, the benefits and savings. If the savings will help paying other debts such as credit card bills and unsecured loans, then refinancing can be a good decision.

You should know if your current mortgage is the best deal for you and for how many years do you intend to keep or stay in your home. If you intend to sell your house in less than three years time then refinancing may not be good for you. But if you intend to keep your home for a very long time then refinancing can help you pay off your home sooner with some savings added.

If you believe that refinancing is a good decision for you then shop for a good lender. Compare the total costs you need to pay off with your existing mortgage, also add or consider fees and charges you may incur when you take on a new mortgage. Finally, make sure that the interest rate is lowered, say about two to three percent lower than your current mortgage.

wgatap20.hhfreport.hop.clickbank.net/




Submit Your Site To The Web's Top 50 Search Engines for Free!