Dec
30
Sean Flanagan asked:
1) Make the House Beautiful
“Curb appeal” is the word usually used to describe this. In other words, when someone pulls up to the house and looks at it, it is very appealing. A little well thought out landscaping can go a very long way. Plus, it’s cheap.
Remember, you never get a 2nd chance to make a 1st impression. If you keep this in mind when preparing your house to sell, you will be just fine. If not, you are fighting an uphill battle.
Key areas to pay extra attention to are front yard, foyer, kitchen, bathrooms and master bedroom. I’m not saying to neglect the other areas, but these are usually the most important… especially to the wife. By the way, the wife is usually the decision maker, at least in my house anyways!
2) Drive traffic
The next step in the house sale process is to drive traffic to the house. I don’t mean physically get in your car and drive people there, what I mean is make as many people in the area know that the house is for sale as possible. In short, market the house! Marketing is one of, if not the, most important part of sales processes. After all, if you have enough people who know about and want what you are selling, it shouldn’t be that hard to sell, right?
There’s many ways to market a house for sale.
The absolute best way I know to sell a house is to already have buyers waiting before you even put it up for sale. I accomplish this by building a solid buyers list and staying in touch with them. I use a website designed specifically for finding buyers in a certain area, then capture their contact information and make them aware every single time I have a house available in their area. I sell most of my houses this way without ever even lifting a finger.
If you are going to market the house on your own, the 2nd best way I have found is to use handwritten or printed “bandit” signs which give a description of the house and the approximate down payment and monthly payment to purchase. I never put the actual price on these signs for the same reason that car dealerships don’t advertise price. Most consumers think in terms of how much it will cost to get into the deal and how much it will cost each month to stay in it.
If you intend on using a realtor® to market your house, be very careful!
Marketing is a key ingredient in selling your house and if you get locked into a contract with a realtor® who doesn’t do his part, you will have a long road ahead of you. If you must list the house, try to negotiate an agreement with the realtor® which allows you to find your own buyer and avoid paying a commission.
After all, you don’t want to do all the work and still have to pay a commission do you?
However, make sure you operate honestly. If the realtor® does his job, make sure he gets the commission he earned.
NOTE: Unless you know a “good” realtor®, you are often better off just using a flat fee listing. The way this works is you pay a company a small fee and they put the house in the MLS for you.
3) “Guide” the buyer
This is an extremely important step to making this system work. Whenever possible, you want the buyer to obtain financing through a mortgage broker or lender that you know will do a great job. Believe it or not, it is very hard to find one that will do a good job. While they do exist, they are far and few between.
This is a critical step because if you send your buyer to the wrong person, you can end up wasting a month or more with a broker who doesn’t know what they are doing. Unfortunately, some brokers will tell you they can do a loan and then 45 days later tell you they can’t. While their intentions may have been good, their knowledge of the lenders programs weren’t.
The end result is that you have wasted a month or so and probably lost your buyer. So, make sure you find a good mortgage broker or lender and then build a sound relationship with them. Once you start sending them business regularly you will become their top priority.
4) Manage your team
Your “team” is your buyer, mortgage broker and title agent. If you are using a realtor®, they are part of your team as well. Regardless, they all need to be managed. If you want to make sure your house sells, you can’t sit back and expect everything to fall into place. This will ever happen in real estate. You need to stay in regular contact with your mortgage broker, buyer and title agent. Whenever you speak, ask probing questions. This way you can help solve any problems that may arise, hopefully before they turn into major problems.
5) Collect Check
Congratulations! You sold your house. Now take your profits and reinvest in strong marketing to find more great deals.
SEBASTIAN
1) Make the House Beautiful
“Curb appeal” is the word usually used to describe this. In other words, when someone pulls up to the house and looks at it, it is very appealing. A little well thought out landscaping can go a very long way. Plus, it’s cheap.
Remember, you never get a 2nd chance to make a 1st impression. If you keep this in mind when preparing your house to sell, you will be just fine. If not, you are fighting an uphill battle.
Key areas to pay extra attention to are front yard, foyer, kitchen, bathrooms and master bedroom. I’m not saying to neglect the other areas, but these are usually the most important… especially to the wife. By the way, the wife is usually the decision maker, at least in my house anyways!
2) Drive traffic
The next step in the house sale process is to drive traffic to the house. I don’t mean physically get in your car and drive people there, what I mean is make as many people in the area know that the house is for sale as possible. In short, market the house! Marketing is one of, if not the, most important part of sales processes. After all, if you have enough people who know about and want what you are selling, it shouldn’t be that hard to sell, right?
There’s many ways to market a house for sale.
The absolute best way I know to sell a house is to already have buyers waiting before you even put it up for sale. I accomplish this by building a solid buyers list and staying in touch with them. I use a website designed specifically for finding buyers in a certain area, then capture their contact information and make them aware every single time I have a house available in their area. I sell most of my houses this way without ever even lifting a finger.
If you are going to market the house on your own, the 2nd best way I have found is to use handwritten or printed “bandit” signs which give a description of the house and the approximate down payment and monthly payment to purchase. I never put the actual price on these signs for the same reason that car dealerships don’t advertise price. Most consumers think in terms of how much it will cost to get into the deal and how much it will cost each month to stay in it.
If you intend on using a realtor® to market your house, be very careful!
Marketing is a key ingredient in selling your house and if you get locked into a contract with a realtor® who doesn’t do his part, you will have a long road ahead of you. If you must list the house, try to negotiate an agreement with the realtor® which allows you to find your own buyer and avoid paying a commission.
After all, you don’t want to do all the work and still have to pay a commission do you?
However, make sure you operate honestly. If the realtor® does his job, make sure he gets the commission he earned.
NOTE: Unless you know a “good” realtor®, you are often better off just using a flat fee listing. The way this works is you pay a company a small fee and they put the house in the MLS for you.
3) “Guide” the buyer
This is an extremely important step to making this system work. Whenever possible, you want the buyer to obtain financing through a mortgage broker or lender that you know will do a great job. Believe it or not, it is very hard to find one that will do a good job. While they do exist, they are far and few between.
This is a critical step because if you send your buyer to the wrong person, you can end up wasting a month or more with a broker who doesn’t know what they are doing. Unfortunately, some brokers will tell you they can do a loan and then 45 days later tell you they can’t. While their intentions may have been good, their knowledge of the lenders programs weren’t.
The end result is that you have wasted a month or so and probably lost your buyer. So, make sure you find a good mortgage broker or lender and then build a sound relationship with them. Once you start sending them business regularly you will become their top priority.
4) Manage your team
Your “team” is your buyer, mortgage broker and title agent. If you are using a realtor®, they are part of your team as well. Regardless, they all need to be managed. If you want to make sure your house sells, you can’t sit back and expect everything to fall into place. This will ever happen in real estate. You need to stay in regular contact with your mortgage broker, buyer and title agent. Whenever you speak, ask probing questions. This way you can help solve any problems that may arise, hopefully before they turn into major problems.
5) Collect Check
Congratulations! You sold your house. Now take your profits and reinvest in strong marketing to find more great deals.
SEBASTIAN
Dec
23
Foreclosure Auction Faq
Filed Under Real Estate | Leave a Comment
John Montgomery asked:
Q: Who can participate in a foreclosure auction?
A: Unless otherwise specified by the seller, anyone can participate in a foreclosure auction. Some organizations, such as HUD, give priority to owner-occupant bidders before allowing investors to participate. For additional information on an upcoming foreclosure auction, check with the lender who currently owns the property or the auction house conducting the sale.
Q: When should I have an inspection completed?
A: The answer to this question will differ depending on who you ask, but the one consistent statement is that inspections are important. If you are permitted to have a professional inspection completed prior to the foreclosure auction, this will give you a good idea as to a fair bid amount when considering the cost of any necessary repairs. On the other hand, a professional inspection isn’t cheap and some investors may choose to complete the task after their offer is accepted. If in doubt, speak with a real estate attorney regarding your responsibilities when participating in a foreclosure auction.
Q: Are there any warranties offered in a foreclosure auction?
A: Most, if not all, foreclosures are sold ‘as is’ and with no warranty of any kind. This means that you, the buyer, will be responsible for any necessary repairs or improvements on the property. If possible, it’s recommended to have a professional inspection conducted.
Q: What type of financing options are available for a foreclosure auction purchase?
A: As is the case with any type of home purchase, including that of a foreclosure auction, you will be responsible for making sure that the funds are in place before you agree to purchase. Whether your ability to participate in a foreclosure auction comes from cash assets or a mortgage loan, it’s important to research your options before making an offer.
Q: What can I expect from a foreclosure auction?
A: Because some homeowners are forced out of their home due to unsettling circumstances, such as a divorce, job loss, illness or other hardship, the foreclosure process is understandably difficult. A foreclosed property may or may not be in good condition and could require extensive repairs. No two homes are alike in this respect as the condition of the home will greatly depend on its former residents.
Q: Will I be required to pay in full on the day of the foreclosure auction?
A: Policies vary from one auction foreclosure to another, but most will require that you at least place a good-faith deposit if your bid is accepted. In some cases, you may be required to pay for the property in full on the day of the foreclosure auction. If you have questions, contact the lender who currently owns the property or the auction house conducting the sale.
The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional legal, financial and/or investment advice regarding the foreclosure auction process. For additional information, consult an attorney who specializes in real estate and/or financial matters.
CECIL
Q: Who can participate in a foreclosure auction?
A: Unless otherwise specified by the seller, anyone can participate in a foreclosure auction. Some organizations, such as HUD, give priority to owner-occupant bidders before allowing investors to participate. For additional information on an upcoming foreclosure auction, check with the lender who currently owns the property or the auction house conducting the sale.
Q: When should I have an inspection completed?
A: The answer to this question will differ depending on who you ask, but the one consistent statement is that inspections are important. If you are permitted to have a professional inspection completed prior to the foreclosure auction, this will give you a good idea as to a fair bid amount when considering the cost of any necessary repairs. On the other hand, a professional inspection isn’t cheap and some investors may choose to complete the task after their offer is accepted. If in doubt, speak with a real estate attorney regarding your responsibilities when participating in a foreclosure auction.
Q: Are there any warranties offered in a foreclosure auction?
A: Most, if not all, foreclosures are sold ‘as is’ and with no warranty of any kind. This means that you, the buyer, will be responsible for any necessary repairs or improvements on the property. If possible, it’s recommended to have a professional inspection conducted.
Q: What type of financing options are available for a foreclosure auction purchase?
A: As is the case with any type of home purchase, including that of a foreclosure auction, you will be responsible for making sure that the funds are in place before you agree to purchase. Whether your ability to participate in a foreclosure auction comes from cash assets or a mortgage loan, it’s important to research your options before making an offer.
Q: What can I expect from a foreclosure auction?
A: Because some homeowners are forced out of their home due to unsettling circumstances, such as a divorce, job loss, illness or other hardship, the foreclosure process is understandably difficult. A foreclosed property may or may not be in good condition and could require extensive repairs. No two homes are alike in this respect as the condition of the home will greatly depend on its former residents.
Q: Will I be required to pay in full on the day of the foreclosure auction?
A: Policies vary from one auction foreclosure to another, but most will require that you at least place a good-faith deposit if your bid is accepted. In some cases, you may be required to pay for the property in full on the day of the foreclosure auction. If you have questions, contact the lender who currently owns the property or the auction house conducting the sale.
The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional legal, financial and/or investment advice regarding the foreclosure auction process. For additional information, consult an attorney who specializes in real estate and/or financial matters.
CECIL
Dec
22
Top Faqs for Home Loan Modifications
Filed Under Real Estate | Leave a Comment
Chris Fuelling asked:
1. What is a Loan Modification?
A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to ultimately and significantly lower your monthly payments, for either a temporary or permanent period of time.
2. Who qualifies for a loan modification?
Anyone that is having trouble paying their existing loan. In today’s housing conditions banks are willing to work with mortgage holders that are having trouble paying their mortgage. However, high probability characteristics are homeowners currently in an adjustable rate mortgage, have a high interest rate, are upside down on their home, and/or experiencing any kind of hardship.
3. Why will it work for me?
The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Certain websites can automatically produce your Bank Approved Loan Modification Package. Going to your lender with a complete modification package that has been reviewed by modification consultants, will make a scary process seem simple.
4. What if my credit is bad?
A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan.
5. What if I have no equity or I am upside on my home?
It does not matter! Some banks are doing principal reduction, which means the bank will discount the total loan amount to the current value of your home. This is called a principal reduction and is becoming popular for banks.
6. What if my income is too low?
You will need to show the bank, you or all others in your household can afford the new payment proposed by your bank.
7. What should I expect the terms to be on my new loan?
Banks have rapidly changing guidelines for Loan Modifications. A bank will typically modify your loan into a loan you can afford and continue to pay. This may include a lower interest rate, payment reschedule, principal reduction, longer terms or any other function that will make and keep the loan performing.
8. How much can I really save by doing a loan modification?
Hundreds or Thousands a month. Remember, a Loan is typically for 30 years. So the Loan Modification that saves you $500 a month, really equals $150,000 over the life of the loan.
9. Does every bank do loan modifications?
Yes. We are in a housing crisis and banks are willing to work with clients to help save their homes.
10. How does the bail out bill affect my chances of getting a loan modification?
The government is telling banks they need to do their part to fix the housing crisis. The Bail Out Bill will only help your chances of getting a Loan Modification.
11. What should I do to ensure the best loan modification?
Take Advantage of Attorney services that fully process your modification. Read up on submission steps, and negotiation tips.
12. How long does the process take?
With the right documents you will be able to submit a full package ready to go to the bank. All Banks are different and can take 30-90 days for a decision. It all depends how busy their are with current modification requests and how many loss mitigators they have on staff. It is not uncommon for one loss mitigator to have up to 700 files under their management at a time.
13. What is the difference between doing a loan modification myself or hiring an attorney?
A Loan Modification firm will charge you a high fee ($2000-$5000) to submit the docs that you can submit yourself. Banks are willing to help their clients with a Loan Modification with out an Attorney. What is important, is you have the CORRECT, BANK APPROVED documents ready for submission, so the bank can efficiently and more effectively review your case.
14. Are there any other costs involved? Appraisal, credit report, title, closing costs, broker fees, etc…
There are no costs assigned with a Loan Modification. The banks are modifying loans for no charge.
NIGEL
1. What is a Loan Modification?
A Loan Modification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to ultimately and significantly lower your monthly payments, for either a temporary or permanent period of time.
2. Who qualifies for a loan modification?
Anyone that is having trouble paying their existing loan. In today’s housing conditions banks are willing to work with mortgage holders that are having trouble paying their mortgage. However, high probability characteristics are homeowners currently in an adjustable rate mortgage, have a high interest rate, are upside down on their home, and/or experiencing any kind of hardship.
3. Why will it work for me?
The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Certain websites can automatically produce your Bank Approved Loan Modification Package. Going to your lender with a complete modification package that has been reviewed by modification consultants, will make a scary process seem simple.
4. What if my credit is bad?
A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan.
5. What if I have no equity or I am upside on my home?
It does not matter! Some banks are doing principal reduction, which means the bank will discount the total loan amount to the current value of your home. This is called a principal reduction and is becoming popular for banks.
6. What if my income is too low?
You will need to show the bank, you or all others in your household can afford the new payment proposed by your bank.
7. What should I expect the terms to be on my new loan?
Banks have rapidly changing guidelines for Loan Modifications. A bank will typically modify your loan into a loan you can afford and continue to pay. This may include a lower interest rate, payment reschedule, principal reduction, longer terms or any other function that will make and keep the loan performing.
8. How much can I really save by doing a loan modification?
Hundreds or Thousands a month. Remember, a Loan is typically for 30 years. So the Loan Modification that saves you $500 a month, really equals $150,000 over the life of the loan.
9. Does every bank do loan modifications?
Yes. We are in a housing crisis and banks are willing to work with clients to help save their homes.
10. How does the bail out bill affect my chances of getting a loan modification?
The government is telling banks they need to do their part to fix the housing crisis. The Bail Out Bill will only help your chances of getting a Loan Modification.
11. What should I do to ensure the best loan modification?
Take Advantage of Attorney services that fully process your modification. Read up on submission steps, and negotiation tips.
12. How long does the process take?
With the right documents you will be able to submit a full package ready to go to the bank. All Banks are different and can take 30-90 days for a decision. It all depends how busy their are with current modification requests and how many loss mitigators they have on staff. It is not uncommon for one loss mitigator to have up to 700 files under their management at a time.
13. What is the difference between doing a loan modification myself or hiring an attorney?
A Loan Modification firm will charge you a high fee ($2000-$5000) to submit the docs that you can submit yourself. Banks are willing to help their clients with a Loan Modification with out an Attorney. What is important, is you have the CORRECT, BANK APPROVED documents ready for submission, so the bank can efficiently and more effectively review your case.
14. Are there any other costs involved? Appraisal, credit report, title, closing costs, broker fees, etc…
There are no costs assigned with a Loan Modification. The banks are modifying loans for no charge.
NIGEL
Dec
18
9 Faqs About Reverse Mortgages
Filed Under Mortgage | Leave a Comment
reversemortgage asked:
What is it?
A reverse mortgage is a special finance option available only to seniors, age 62 or over. It works by allowing seniors to turn their home equity into income, without having to sell the actual home. This can be a great option for low-income seniors looking for some additional income.
Who qualifies for one?
Reverse mortgages are available exclusively to seniors over the age of 62. There are specific qualifications for different programs, but they are some general qualifications. The applicant needs to own their home, the residence must be lived in the majority of the year, and it usually needs to be the applicant’s primary place of residence.
What are the fees?
In order to get into a reverse mortgage there will usually be an affordable set-up or application fees, however some lenders may waive this initial fee to entice a qualified applicant. Additional fees (such as appraisal fees, etc.) can often be tacked on to the loan itself, making it more easy and manageable for applicants to pay.
Is a reverse mortgage considered taxable income?
No, the IRS does not consider reverse mortgage payments taxable income and you will not be taxed on it. However, on the opposite side, this also means you cannot deduct any loan expenses or fees on your tax return.
Why is it called a reverse mortgage?
In a regular mortgage, you use debt to turn your income into equity. In a reverse mortgage, you use debt to turn your equity into income. This means you are literally reversing the method of purchasing a home. Instead of having extra income and wanting to purchase equity, you have equity and need additional income.
What does TALC mean?
TALC, or Total Annual Loan Cost, is certainly something you will want to ask potential reverse mortgage lenders about. TALC refers to the combined costs of a reverse mortgage to a single annual price quote. It is especially useful when comparing and contrasting various lenders.
How and when are the funds paid to me?
When you setup a reverse mortgage you get the option to decide just how you want to receive payments. Most reverse mortgage lenders offer monthly payments, credit accounts that can be accessed when you wish, and full one-time payouts.
If I get a reverse mortgage, will I still own my home?
Of course, the owners name will remain on the house’s deed until it is sold, or the owner’s estate is settled. Although the mortgage company will have a lien against your home, they will not own it and they cannot kick you out, or take your home from you.
Do I need a mortgage counselor?
Yes, you will need to see a mortgage counselor in order to get a counseling certificate, which will be your proof that you qualify for a reverse mortgage. The counseling session is free, and can be helpful too!
CHRISTIAN
What is it?
A reverse mortgage is a special finance option available only to seniors, age 62 or over. It works by allowing seniors to turn their home equity into income, without having to sell the actual home. This can be a great option for low-income seniors looking for some additional income.
Who qualifies for one?
Reverse mortgages are available exclusively to seniors over the age of 62. There are specific qualifications for different programs, but they are some general qualifications. The applicant needs to own their home, the residence must be lived in the majority of the year, and it usually needs to be the applicant’s primary place of residence.
What are the fees?
In order to get into a reverse mortgage there will usually be an affordable set-up or application fees, however some lenders may waive this initial fee to entice a qualified applicant. Additional fees (such as appraisal fees, etc.) can often be tacked on to the loan itself, making it more easy and manageable for applicants to pay.
Is a reverse mortgage considered taxable income?
No, the IRS does not consider reverse mortgage payments taxable income and you will not be taxed on it. However, on the opposite side, this also means you cannot deduct any loan expenses or fees on your tax return.
Why is it called a reverse mortgage?
In a regular mortgage, you use debt to turn your income into equity. In a reverse mortgage, you use debt to turn your equity into income. This means you are literally reversing the method of purchasing a home. Instead of having extra income and wanting to purchase equity, you have equity and need additional income.
What does TALC mean?
TALC, or Total Annual Loan Cost, is certainly something you will want to ask potential reverse mortgage lenders about. TALC refers to the combined costs of a reverse mortgage to a single annual price quote. It is especially useful when comparing and contrasting various lenders.
How and when are the funds paid to me?
When you setup a reverse mortgage you get the option to decide just how you want to receive payments. Most reverse mortgage lenders offer monthly payments, credit accounts that can be accessed when you wish, and full one-time payouts.
If I get a reverse mortgage, will I still own my home?
Of course, the owners name will remain on the house’s deed until it is sold, or the owner’s estate is settled. Although the mortgage company will have a lien against your home, they will not own it and they cannot kick you out, or take your home from you.
Do I need a mortgage counselor?
Yes, you will need to see a mortgage counselor in order to get a counseling certificate, which will be your proof that you qualify for a reverse mortgage. The counseling session is free, and can be helpful too!
CHRISTIAN
Dec
15
Mortgage Loss Mitigation Leads Factsheet
Filed Under Mortgage | Leave a Comment
Darewin Ocampo asked:
Mortgage loss mitigation leads are most efficient tools that can turn the tides of battle between homeowners and the dreaded foreclosure favorable to the former. Mortgage mitigation leads can be said to be the guardian angels of households as their primary purpose is keeping the homeowner and the home together. However, mortgage mitigation leads should not be dealt with haste and time should be taken to understand them more, because there is no room for ignorance when combating foreclosure.
Mortgage loss mitigation is the act of saving ones home or if such proves to be unachievable, mitigates the losses the homeowner will suffer. Caution should be taken when partnering with companies that claim to offer loss mitigation help because the less you understand about mortgage loss mitigation, the more likely you will fall prey to these predators that seek only to deprive you of your money.
Given below are some facts about mortgage loss mitigation as provided by the federal government to help enlighten homeowners about things they should and have to know.
Assumptions
Assumption of an FHA-insured mortgage is a servicing function where the responsibility or paying for a mortgage is taken over by another person through simple assumption or creditworthiness assumption.
Claims
The vehicle utilized for payment of insurance proceeds from HUD to a Mortgagee is the Insurance Benefit Claim form HUD- 27011. This form is utilized for all submissions of claims for Conveyance of Property and Loss Mitigation Option incentives.
Deed-in-Lieu
A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments. DIL Fact Sheet
Extension of Time
To comply with required time frames, an Extension of Time may be granted for a mortgagee to initiate or complete a Loss Mitigation (except Pre-foreclosure Sales) and/or foreclosure action. A mortgagee is required to submit to NSC-Oklahoma City, form HUD-50012, Request for Extension of Time, prior to the expiration of the respective time frame to Fax Number (405) 609-8405.
FHA Connection
FHA Connection (FHAC) is a portal used by mortgagees to report on and update the status of their FHA portfolio. In addition, the FHAC facilitates the following Single Family Servicing functions: Claims Processing, Delinquent Loans, HECM Reports, Monthly Premiums, Mortgage Record Changes, Mortgage Calculator, Mortgage Servicing Data Quality system and Lender Query by Case Number. FHAC FAQs.
Foreclosure
Foreclosure should only be considered as a last resort and should not be initiated until all relief options have been exhausted. When foreclosure cannot be avoided, it must be started quickly and prosecuted vigorously to minimize losses to both the mortgagee and HUD.
General Loss Mitigation
This category includes all Loss Mitigation questions that are not specific to one of the five Loss Mitigation Options.
General Servicing
This category includes all General Servicing items stated within HUD Handbook 4330.1 REV-5, Administration of Insured Home Mortgages.
Loan Modification
A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. Loan Modification Fact Sheet
Partial Claim
Under the Partial Claim option, a mortgagee will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to HUD. Currently, these promissory or “Partial Claim” notes assess no interest and are not due and payable until the mortgagor either pays off the first mortgage or no longer owns the property. Partial Claim Fact Sheet
Pre-foreclosure Sale
The Pre-foreclosure Sale (PFS) Program allows the mortgagor in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed. Pre-foreclosure Sale Fact Sheet
Pre-foreclosure Sale Variance
A mortgagee is required to submit to NSC – Oklahoma City, form HUD-90041, Request for Variance Procedure, to request permission from HUD regarding any Pre-foreclosure Sale Program exception as well as to request an Extension of Time pertaining to the Pre-foreclosure Sale Program. Variances are considered on a case-by-case basis. Requests are to be faxed to (405) 609-8405.
Single Family Default Monitoring System
Data reported to the Single Family Default Monitoring System (SFDMS) is used to measure the effectiveness of origination and servicing activities, and the potential risk to the insurance fund. For additional information, please see www.hud.gov/offices/hsg/sfh/nsc/sfdms.cfm
Special Forbearance
A Special Forbearance (SFB) is a written repayment agreement between a mortgagee and a mortgagor, which contains a plan to reinstate an asset that is minimum three mortgage payments due and unpaid. Special Forbearance Fact Sheet
Variance
On company letterhead, mortgagees are required to submit to NSC-Oklahoma City any request requiring a variance associated with Special Forbearance, Loan Modification, Partial Claim or Deed-in-Lieu of Foreclosure eligibility criteria or servicing guidelines. Variances are considered on a case-by-case basis. Requests are to be faxed to (405) 609-8405.
For more clarification regarding terms about mortgage loss mitigation or for high quality mortgage loss mitigation leads please take time to visit CallComLeads
CallComLeads also offers high quality insurance leads
CLARK
Mortgage loss mitigation leads are most efficient tools that can turn the tides of battle between homeowners and the dreaded foreclosure favorable to the former. Mortgage mitigation leads can be said to be the guardian angels of households as their primary purpose is keeping the homeowner and the home together. However, mortgage mitigation leads should not be dealt with haste and time should be taken to understand them more, because there is no room for ignorance when combating foreclosure.
Mortgage loss mitigation is the act of saving ones home or if such proves to be unachievable, mitigates the losses the homeowner will suffer. Caution should be taken when partnering with companies that claim to offer loss mitigation help because the less you understand about mortgage loss mitigation, the more likely you will fall prey to these predators that seek only to deprive you of your money.
Given below are some facts about mortgage loss mitigation as provided by the federal government to help enlighten homeowners about things they should and have to know.
Assumptions
Assumption of an FHA-insured mortgage is a servicing function where the responsibility or paying for a mortgage is taken over by another person through simple assumption or creditworthiness assumption.
Claims
The vehicle utilized for payment of insurance proceeds from HUD to a Mortgagee is the Insurance Benefit Claim form HUD- 27011. This form is utilized for all submissions of claims for Conveyance of Property and Loss Mitigation Option incentives.
Deed-in-Lieu
A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments. DIL Fact Sheet
Extension of Time
To comply with required time frames, an Extension of Time may be granted for a mortgagee to initiate or complete a Loss Mitigation (except Pre-foreclosure Sales) and/or foreclosure action. A mortgagee is required to submit to NSC-Oklahoma City, form HUD-50012, Request for Extension of Time, prior to the expiration of the respective time frame to Fax Number (405) 609-8405.
FHA Connection
FHA Connection (FHAC) is a portal used by mortgagees to report on and update the status of their FHA portfolio. In addition, the FHAC facilitates the following Single Family Servicing functions: Claims Processing, Delinquent Loans, HECM Reports, Monthly Premiums, Mortgage Record Changes, Mortgage Calculator, Mortgage Servicing Data Quality system and Lender Query by Case Number. FHAC FAQs.
Foreclosure
Foreclosure should only be considered as a last resort and should not be initiated until all relief options have been exhausted. When foreclosure cannot be avoided, it must be started quickly and prosecuted vigorously to minimize losses to both the mortgagee and HUD.
General Loss Mitigation
This category includes all Loss Mitigation questions that are not specific to one of the five Loss Mitigation Options.
General Servicing
This category includes all General Servicing items stated within HUD Handbook 4330.1 REV-5, Administration of Insured Home Mortgages.
Loan Modification
A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. Loan Modification Fact Sheet
Partial Claim
Under the Partial Claim option, a mortgagee will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to HUD. Currently, these promissory or “Partial Claim” notes assess no interest and are not due and payable until the mortgagor either pays off the first mortgage or no longer owns the property. Partial Claim Fact Sheet
Pre-foreclosure Sale
The Pre-foreclosure Sale (PFS) Program allows the mortgagor in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed. Pre-foreclosure Sale Fact Sheet
Pre-foreclosure Sale Variance
A mortgagee is required to submit to NSC – Oklahoma City, form HUD-90041, Request for Variance Procedure, to request permission from HUD regarding any Pre-foreclosure Sale Program exception as well as to request an Extension of Time pertaining to the Pre-foreclosure Sale Program. Variances are considered on a case-by-case basis. Requests are to be faxed to (405) 609-8405.
Single Family Default Monitoring System
Data reported to the Single Family Default Monitoring System (SFDMS) is used to measure the effectiveness of origination and servicing activities, and the potential risk to the insurance fund. For additional information, please see www.hud.gov/offices/hsg/sfh/nsc/sfdms.cfm
Special Forbearance
A Special Forbearance (SFB) is a written repayment agreement between a mortgagee and a mortgagor, which contains a plan to reinstate an asset that is minimum three mortgage payments due and unpaid. Special Forbearance Fact Sheet
Variance
On company letterhead, mortgagees are required to submit to NSC-Oklahoma City any request requiring a variance associated with Special Forbearance, Loan Modification, Partial Claim or Deed-in-Lieu of Foreclosure eligibility criteria or servicing guidelines. Variances are considered on a case-by-case basis. Requests are to be faxed to (405) 609-8405.
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CLARK
Dec
12
Simon Burgess asked:
Losing your job and income after being made redundant would be hard, struggling to pay your outgoings would be even harder. You would need to find the money to pay your mortgage. If you had credit cards or loans then you would also need to maintain these and of course there are many other outgoings which have to be maintained also. You would be able to continue meeting your bills and continue paying out if you take redundancy insurance.
You have to look around online and compare the cost of redundancy insurance as some premiums are a lot higher than others. You also have to compare the quality of the policy as this can differ too along with when and for how long the policy would payout. You can find all the information in the key facts of the particular policy and this should be available on the provider’s website. You can also find a wide variety of information with the provider by way of FAQs and articles, and you should find as much as possible about the product you are considering buying before taking it out. Policies will come with exclusions and some will have more than others and you have to check them against your personal circumstances if you want the peace of mind and security that protection gives.
Providers usually offer payout on cover for between 12 and 24 months and you are asked to wait for between 30 and 90 days before putting in a claim after becoming unemployed. Upon commencement of the policy some providers will backdate their insurance to the first day of being unemployed. You can find out the exact terms in the small print or key facts of the cover before buying and this is something that should be compared along with the cost.
The cost of redundancy insurance will depend on your age at the time of applying for your policy and how much you wish to insure each month. All lenders will only allow you to cover up to a certain amount of your outgoings each month so when comparing the cost of the premiums also compare the terms of the cover.
Unemployment insurance to protect against redundancy can be taken out to safeguard your loan and credit card repayments if you choose to take out loan payment protection. This would give you an income that is tax-free to ensure that you are able to maintain your outgoings and so not get into debt. It will protect your credit rating and also ensure that you will not get a CCJ.
Mortgage payment protection taken as unemployment insurance would allow you to maintain your mortgage each month and so you are not at risk of losing your home. You would not have to worry about the lender threatening repossession.
If you safeguard your income on the whole with income payment protection insurance taken out as redundancy insurance, you would be able to continue meeting all your outgoings in general. This would include loan and mortgage repayments along with the smaller outgoings which means you wouldn’t have to change your lifestyle drastically.
SCOTT
Losing your job and income after being made redundant would be hard, struggling to pay your outgoings would be even harder. You would need to find the money to pay your mortgage. If you had credit cards or loans then you would also need to maintain these and of course there are many other outgoings which have to be maintained also. You would be able to continue meeting your bills and continue paying out if you take redundancy insurance.
You have to look around online and compare the cost of redundancy insurance as some premiums are a lot higher than others. You also have to compare the quality of the policy as this can differ too along with when and for how long the policy would payout. You can find all the information in the key facts of the particular policy and this should be available on the provider’s website. You can also find a wide variety of information with the provider by way of FAQs and articles, and you should find as much as possible about the product you are considering buying before taking it out. Policies will come with exclusions and some will have more than others and you have to check them against your personal circumstances if you want the peace of mind and security that protection gives.
Providers usually offer payout on cover for between 12 and 24 months and you are asked to wait for between 30 and 90 days before putting in a claim after becoming unemployed. Upon commencement of the policy some providers will backdate their insurance to the first day of being unemployed. You can find out the exact terms in the small print or key facts of the cover before buying and this is something that should be compared along with the cost.
The cost of redundancy insurance will depend on your age at the time of applying for your policy and how much you wish to insure each month. All lenders will only allow you to cover up to a certain amount of your outgoings each month so when comparing the cost of the premiums also compare the terms of the cover.
Unemployment insurance to protect against redundancy can be taken out to safeguard your loan and credit card repayments if you choose to take out loan payment protection. This would give you an income that is tax-free to ensure that you are able to maintain your outgoings and so not get into debt. It will protect your credit rating and also ensure that you will not get a CCJ.
Mortgage payment protection taken as unemployment insurance would allow you to maintain your mortgage each month and so you are not at risk of losing your home. You would not have to worry about the lender threatening repossession.
If you safeguard your income on the whole with income payment protection insurance taken out as redundancy insurance, you would be able to continue meeting all your outgoings in general. This would include loan and mortgage repayments along with the smaller outgoings which means you wouldn’t have to change your lifestyle drastically.
SCOTT