South Carolina | Home Loan | Mortgage | Refinance

Archive for September, 2009

Now that you have your dream home after years of persistent hard work, you surely would want it secured from harm. With so many uncertain and unexpected events striking any family anywhere, this keeps your mortgage payments safe and guarded, letting you appreciate even more the dream house that you built for your family.

Many heads of the family consider mortgage as something not worth-wile, thinking it’s just an additional and unnecessary expense. Of course, you sure are not losing your job in a couple of months or you have enough savings and investments should you have trouble at work. Yet, many families still lose their homes for holding the very same perceptions about it.

Fact is mortgage protection is something you should look seriously into, in the early process of building or buying your dream home. Not only it is smart to do so, it will prove an inexpensive move as well. The best and low cost mortgage protection can be surprisingly easy to get, granting you know your options and you get the best choice of insurance company and mortgage institution.

You already get a bargain when you get hold of a mortgage protection from the lender you took out mortgage with, whether it is a building society, the bank you loaned from or an insurance dealer or broker. These days, mortgage protection has become even more accessible, cheaper, and shopping for the same has become very informative through the internet. In fact, some big names in the mortgage insurance business proclaim that a certain mortgage protection cover costs 40% higher from a mortgage lender when compared to an online insurer!

Of course, your building society has served you satisfactorily and there is no reason to look anywhere else for better deals at mortgage. Yet, as buying or building your dream house and then getting it secured is an expensive and important decision you have to make, it is wise to delve into other options that can save you a few thousand dollars.

With this, shopping around and checking what other insurers have to offer is a smart move. You can simply start by investigating reputation and feedback from other people with high street insurers and then look further into online mortgage companies if they give the same insurance coverage at a lower price. Almost all the time, the online insurers offer lower costs as the method of acquiring their services don’t include agent commissions and operational expenses of an office and staff.

Still, it’s wise to note down cost differences, the advantages of each mortgage protection companies, its accessibility and extra service factors. This way, getting your dream house secured from any unforeseen eventualities is not draining your finances, but simply giving you a comforting thought each time you hit the bed.

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Step one – of the home repossession process. If you miss two or more mortgage payments, your mortgage lender is legally entitled to kick off the repossession process. But before they call on the legal system, their internal debt management department will get in touch.

They’ll try their best to advise you, finding the cause of the problem and suggesting practical solutions. If they can help, they will, repossessing your house is a last resort. Keep all the correspondence about any new agreement you reach, and make detailed notes. If things don’t improve, you might need them later.

Step two – After a few more months of unpaid arrears your lender, or more likely their lawyer, will send you a letter. This will warn you that they’re poised to begin the repossession process by taking you to court. At the same time they can apply for a home repossession order.

Step three – The court will send you a summons, this letter tells you the date of your hearing.

Step four – If you don’t turn up and the repossession process goes through without opposition, the judge has to award a repossession order or notice against you.

If you turn up, you’ll get a fair say. The judge will hear all the evidence from you and your mortgage lender before deciding what to do, and there are several possible outcomes:

House repossession process case dismissed, the repossession stops because you have paid your arrears.

Case Adjourned, if the case can’t be heard that day, a new date will be set.

Suspended Possession Order, if you’ve agreed to make your usual monthly mortgage payments plus something towards the arrears and the judge is sure you can afford it, he or she will aim to suspend the order. If you default, your mortgage lender can force possession or evict you without another hearing.

Repossession Order, this lets your bank repossess your house, usually within 28 days; more likely if the judge finds out you’ve made no effort to put things right, or feels you have no chance of managing the repayment schedule.

Step five – The final part of the repossession process.

If your suspended repossession order fails or you’re still living in the property after the order date, your lender can apply for a warrant of eviction notice. This is a letter reminding you that you are legally obliged to leave. You will have between seven and fourteen days before they send the bailiff in to remove you.

This is a guide to the several steps involved with home repossession, the best place to start asking further questions is from your lender. Your lender may offer a clear way out of repossession but always read the fine print.

Mark Jenkins is one of the developers of HouseRepossession.co.uk. Up to date information on all aspects of house repossessions, remortgages and buying repossessed houses.

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The current state of the economy has had a huge impact on finances for many. Families are in strife; workers are facing redundancies, cuts in hours and even cuts in wages. Many house owners are trying to ‘tighten their belts’ as much as possible, making savings where they can on their outgoings, denying themselves luxuries and cutting back on non-essential expenditure where they can. As a mortgage consumes a large chunk of a monthly income people are looking for the best deals from banks and mortgage brokers. A small percentage on a big figure can result in worthwhile savings. Some people feel that a tracker mortgage may be a solution to their problems — at least in a small, immediate way.

A tracker mortgage is a loan secured against a property where the interest that is charged is guaranteed to remain the same through following or “tracking” the Bank of England base rate at a set margin agreed above the current base rate and will not revert to the SVR [Standard Variable Rate] at any point during the life of the loan. They continually track the base rate until you have either paid off your mortgage or switched your mortgage provider or product.

Usually they work out cheaper than a capped, flexible, or fixed-rate mortgage — and though the cost of a tracker mortgage will fall to match a fall in interest rates, it will also rise to match an increase in interest rates. Tracker mortgages that have discounts and stepped discounts built into them are also available.

Latest figures show that the number of tracker mortgages available has fallen 81% in the last year from 1,937 to 366 and one-year tracker mortgages have been the greatest victims of the fall — astonishingly down to two from 522. Two and three year deals have fallen by around 73%, a reflection of the meltdown in the mortgage market in the current economic climate. It is understandable that customers wish to strike the best deal and the move of borrowers to fixed rate deals over recent months since bank rates slashed makes sense and has had an impact on tracker mortgage availability and attractiveness; choice is now limited. The new lower Bank of England rates means that margins on tracker mortgages over the base rate rise from 0.9 per cent a year ago to 2.5 per cent now.

However, there will probably be a drop in the level of fixed rate mortgages being sold as rates increase and as there has been little change in tracker rates, their appeal will increase unless of course interest rates start increasing rapidly.

Advantages of the tracker mortgage are low or no ERCs [Early Repayment Charges] and a good rate and fee arrangement with the possibility of an offset facility also. The ERC is probably the most appealing aspect of the tracker mortgage as it allows for clients to avail of switching to a fixed mortgage when it suits them better, providing they are not ‘locked in’ or includes a ‘droplock’ clause.

Employee of Which Network – A mortgage network comparison company

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By all accounts, reverse home mortgage growth is set to explode. Baby boomers are reaching retirement and, for most, home equity makes up the largest part of their nest egg. Reverse mortgages will be the tools that many of these retirees will use to tap into this nest egg for retirement living expenses. The number of new HUD Home Equity Conversion Mortgages (HECM) already has increased more than percent in the first nine months of 2006 over the same period one year ago.

But along with reverse home mortgage growth come increased opportunities for fraud and scams. Reverse mortgages are different from traditional mortgages in ways that make them attractive vehicles for scam artists:

reverse mortgages are products specifically designed for and targeted to senior citizens, the population group most vulnerable to fraud;

scam artists know that a reverse mortgages provide the senior homeowner with relatively easy access to a sizeable pool of cash; and,

reverse mortgages are harder to understand than traditional mortgages making it easier for the scam artist to confuse and take advantage of victims.

In this article we look at some of the tactics scam artists are using and the precautions reverse mortgage borrowers can take to protect themselves.

Scam Tactic One – Downplay Pre-Loan Counseling

An educated borrower is the scam artist’s worst enemy – but it’s up to the borrower to educate themselves and take advantage of counseling and other opportunities to learn about reverse mortgages.

All three major reverse mortgage programs – HUD HECM, Fannie Mae’s Home Keeper and Financial Freedom – require potential borrowers to have counseling with an independent counselor specially trained in reverse mortgages before taking out a loan.

In a recent Detroit-area fraud case, a corrupt lender was able to keep the borrower in the dark about the amount she was eligible to borrow. She thought her loan would be for $61,000 when in fact she was borrowing $103,000. Guess who pocketed the $42,000 difference? A thorough counseling session would have given the homeowner an accurate idea of the true amount she was eligible for. Unfortunately for the victim, the prosecutor in the case says this never happened:

“A counseling meeting explaining the reverse mortgage process was required by Financial Freedom before the loan could be processed. Mr. James allegedly informed Ms. Schultz that he would be able to waive the counseling meeting by just asking a few questions over the phone.”

Precaution: Although counseling by telephone is allowed, it is always best to meet face-to-face with the counselor. If you find that anyone you’re working with in the process suggests that counseling can be done quickly over the phone or otherwise downplays the importance of pre-loan counseling, be highly suspicious.

Scam Tactic Two – Forgery

Forgery is a key part of many scams. In the Detroit case cited above, the lender requested the title company to prepare two checks payable to the homeowner: one for $61,000 which the homeowner received and a second one for $42,000 which the corrupt lender endorsed with a forged signature and deposited into his own account.

In one California case, two con artists – one working as a financial advisor the other a handyman – convinced an elderly homeowner to take out a reverse mortgage to pay for home repairs. The financial advisor opened an account for the proceeds of the loan and forged the victim’s name to gain access to funds.

Another California case reported in the Santa Cruz Sentinel shows how dangerous it can be to sign “unfinished” documents:

Mrs. Sally Scott is 66 years old. While she receives Social Security and pension checks, she still can’t make ends meet. She saw an ad for a “reverse” mortgage – a loan that allows seniors age 62 or older to receive cash by borrowing against their homes and does not require repayment as long as they live there. Seeking a little financial cushion, she spoke to a mortgage broker about a $10,000 reverse mortgage.

When she received the loan papers, she noticed that the loan amount was $200,000. The broker promised that he’d change the figure, but insisted that she sign the paperwork first. Trusting the broker, Mrs. Scott signed.

A week later, she received a check for $200,000. She immediately notified the broker, who apologized for the mistake and instructed her to wire the money back. As it turned out, the account that Mrs. Scott returned the money to belonged to the broker. He disappeared, leaving her with a mortgage in default and no way to repay the loan.

Precaution: Never sign documents with blanks to be filled in or corrections to be made later. Carefully protect access to your checking and other accounts. Review and reconcile checking account and loan statements regularly. If you find something awry, contact your financial institution immediately.

In the Detroit case cited above, the victim caught on to the scam when she received a loan statement indicating the balance of her reverse mortgage (including interest) totaled $131,000.

Also, take advantage of the free credit reports available to you under federal law. Reviewing your credit report each year is also a good way to catch unauthorized financial activities under your name.

Scam Tactic Three – Charging for Free Reverse Mortgage Information

The complexity of reverse mortgages means that it is natural for borrowers to seek assistance and guidance to help them understand the loan process, find a lender or, generally, better understand what they are getting into. Some scammers have seized on this to offer – for a fee – reverse mortgage information and services that are available to consumers at no charge.

For example, some senior homeowners have been contacted by firms offering to assist them in finding a reverse mortgage lender, in exchange for a percentage of the loan. This type of arrangement should always be avoided. According to HUD’s website:

HUD does NOT recommend using an estate planning service, or any service that charges a fee just for referring a borrower to a lender! HUD provides this information without cost, and HUD-approved housing counseling agencies are available for free, or at minimal cost, to provide information, counseling, and free referral to a list of HUD-approved lenders. Call 1-800-569-4287, toll-free, for the name and location of a HUD-approved housing counseling agency near you.

Precaution: Walk away from anyone who offers to find a reverse mortgage lender for a fee. Use the internet to find free information about reverse mortgages or, read one of the several excellent books that have been published in recent years.

If you feel you have need for a professional financial planner to assess your overall situation – including the reverse mortgage decision – find a certified financial planner (CFP) who works on a fee-only basis and who is knowledgeable of reverse mortgages (many aren’t).

Scam Tactic Four – Posing as a Government or Non-Profit Representative

The most popular form of reverse mortgage – the Home Equity Conversion Mortgage (HECM) – is an official program of the U.S. Department of Housing and Urban Development (HUD). However, neither the HECM program nor other reverse mortgage programs are marketed directly to senior homeowners by government employees.

Unscrupulous reverse mortgage salesmen have been known to represent themselves to elderly homeowners as government representatives or volunteers for non-profit organizations.

Precaution: Be sure you know who you are dealing with and what organization they represent. Do not be timid about asking for information such as their home office location and phone number. Use resources like HUD and the National Reverse Mortgage Lenders Association (NRMLA) to check out the company.

Scam Tactic Five – Bundling Things with Reverse Mortgage Financing

Smart consumers know that the best way to shop for a car is to separate the parts of the transaction – purchase, financing and trade-in – from each another. With a bundled transaction, it’s easy for the consumer to be befuddled and not understand the true cost of the overall deal. What appears to be a “great price” on the car may mask exorbitant finance charges or a low trade-in value.

Similarly, a common tactic of scam artists is to bundle reverse mortgage financing with something else such as home improvements, annuities, risky investments, living trusts or other estate planning products.

In one Seattle-area case, elderly consumers were told that living trusts must be purchased in order to obtain a reverse mortgage. In another case, seniors were encouraged to take out a reverse mortgage and use the proceeds to “invest” in truck-mounted billboards.

Frequently, two or more scammers work as a team. For example, in the California case cited earlier, an unscrupulous financial advisor steered the homeowner to a home repair contractor who was party to the scam and who grossly overcharged the victim for repair work.

If you find yourself dealing with someone who attempts to bundle a reverse mortgage with another product or service or steer you to a particular contractor/lender, be highly suspicious. If you feel at all uncomfortable or that the person is using high-pressure sales tactics, walk away.

Precaution: When home improvements or estate planning services are needed, shop for the best deal. It’s best for you to find what you’re looking for rather than them finding you. Homeowners should avoid doing business with anyone who comes uninvited to the door, makes an unsolicited phone call or whose name is found randomly on a flier.

When you’ve found the best deal, then weigh your financing options – including a reverse mortgage. Keeping these decisions separate will protect you from possible fraud and help ensure you get the most for your money.

Tim Paul is a financial management executive with more than 25 years experience. His websites focus on personal finance issues including 401k Planning and college savings through credit cards: 529 Reward Credit Cards

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Many payday loan customers anywhere in the world are now looking for a free payday loan just to cover whatever emergency needs they have. And if you are one of them, I think you should first know that finding a particular free payday loan is not so difficult with today’s rapidly growing payday loan business. For many people, the term “free payday loan” actually sounds so funny and unbelievable. But, mind you, a free payday loan exists these days. This service is even now being offered by few companies out there on the web for the purpose of helping thousands of poor people to obtain cash fast for their financial worries.

To give you a concrete idea about the existence of free payday loan, here is some information about certain companies that are operating online to show you that a free payday loan is real. Consider the following sites:

National Payday.com

If you are looking for a certain company that will give access to a free payday loan that could be National Payday.com. This company is actually an Internet service that provides a free payday loan for the first time customers. So if you are a first time payday loan customer at National Payday.com, you will definitely get a free payday loan amount of up to $300. So if you found yourself trapped between paydays and need extra cash to cover the expenses, don’t just worry about it for National Payday.com is happy and ready to lend you cash fast. You just need to meet certain criteria such as being a US citizen, above 18 years of age or older, and having an active checking account or bank statement. If such requirements are met, it is just so easy to get approved for a free payday loan at National Payday.com.

The Cash Station.com

The Cash Station.com is but another notable portal on the web for a free payday loan. However, unlike the National Payday.com, this site neither actually offers a free payday loan for first time customers nor for previously approved customers. They are just considered as another place for this service for the reason that they allow the customers to get cash fast through their free payday loan applications that are easy to complete. This kind of service is basically considered by The Cash Station.com knowing that many people are looking for companies that will provide them a free payday loan application. So, if you need to pay your bills on time and get out from the tight spot, you should then consider The Cash Station.com for they can provide you a solution for your financial worries.

MyPayDayLoan.com
Finally, here is MyPayDayLoan.com, which is actually one of the most notable and well-known sites on the web for free payday loans. This site actually provides their free payday loans to those customers who have been haunted by their unpaid bills, emergency bills, and other financial worries. And, just like National Payday.com, this too particularly offers a free payday loan to their first time customers. So if you are a first time customer of MyPayDayLoan.com, you should note that you will be asked to complete and submit an online application with nothing necessary to fax. Once your application is approved, the funds will be deposited directly into your checking account, so you can have the money, just when you need it the most. Obtaining a free payday loan at MyPayDayLoan.com is as simple as that!

What is a refinance home loan?

A refinance house loan or a home loan refinance is a new loan obtained through your lender or a new lender to pay off on hand loan. Then again, you can opt to ask for a lower interest rate and or cash out on your homes equity.

When must I refinance my house?

It is a common fact that interest rates are lesser than they have been in existence. This is due to our fast paced and ever changing economy and marketplace. Now would be the perfect chance to refinance your house to gain a lesser interest rate. Even a .25 difference can save you thousands of dollars a year in mortgage payments.

Why should I refinance my home?

There are some reasons home owners decides to refinance. The four most common reasons comprise:

To get a lower interest rate

House owner generally are aware of interest rate down fall. They take advantage of this opportunity by applying to a refinance loan to lower their existing interest rates and save money on mortgage expenses. The cash that a borrower saves on mortgage expenses can be invested in other financial investments.

To get a refinance cash out

Some home owners who obtain enough equity accumulated in their homes refinance to cash out their equity and get a reduce interest rate

To make home improvements

Sooner than later you will discover that maintaining your house is hard work (not to mention pretty pricey). In most cases, house owners will pursue a refinance, rather than a private advance, in order to save on interest rates. A individual loan might have higher interest rates and are generally, not as large as a home enhancement loan.

To alter loan programs

A majority of house owner refinance because they are not satisfied with their present loan plan. They may be less than a 5 year arm, but somewhere along the line they decided they would favor a 30 year permanent loan. No matter what the reason may be, a refinance house loan will resolve the problem.

What are the benefits of refinancing my house?

There are several benefits included with refinancing your home, including:

Your credit possibly will be in healthier standings then before you purchased your home, now you can refinance and obtain a more appropriate loan, with lesser interest rates and terms.

Or, you can obtain a home equity line of credit and have cash obtainable when you want it.

With refinance cash out, your lender can merge your bills and pay off all of your money owing. You will not have to deal with the hassle by yourself.

What are the dissimilar refinance loan options?

As with a traditional loan, refinance home loans offer some of the same loan programs, such as:

10/15/30 year fixed

Zero Down

Interest Only

And so on

Where can I refinance my loan?

You can apply for a refinance home loan through your existing lender. Or you can explore for a new lender more appropriate to your financial needs. This search can be done by internet search, flipping through the yellow pages, or consulting with your real estate agent.

Get more Home Loan Guides at http://all-online-tips.com/finance/ – Free online guide to help discover more evrything about finances

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All debt elimination methods are aimed at helping a consumer clear off all his/her bills and become a debt free person. However, once you are unable to complete all your payments especially for secured loans, your important assets which was used as the collateral could be repossessed. This is very frustrating but you do not have a choice other than just let it go. Again, the interest rate for the mortgage will continue until its sold.

On the other hand, the lender will sell the assets at the highest price possible. The main reason of doing this is to recover their money back. If the selling price of the assets exceeds your loan balance, you are refunded back the money. Sometimes, your lender could not recover back all the money even after the sale. You will therefore be sent a statement showing the total sale and the new balance. This will also include the interest rate.

However, some lenders may decide to forgive the remaining debts. When this happens, the bills are termed as an income and you will start paying tax. Initially, you did not have the money and, since the bill is now forgiven there will be an increase in your income. This will be a great advantage because you will become a debt free person.

Depending on each country or region, if the payment period have passed and no statement have been sent to the borrower requesting for the repayment, the balance is normally expelled. Most lenders who fail to recover all their money after selling the assets hardly like facing their debtors. Instead, they use debt collectors to negotiate with the borrowers on their behalf and ensure all the bills are cleared and, get some commission in return.

Mary Mukami Gachonde Researches and Reports on Finance. For More Information On How To Get Out Of Debt, Visit Her Site At GETTING OUT OF DEBT You Can Also Post Your Views About How To Get Out Of Debt Here WHAT MORTGAGE DEBTS ENTAILS

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