One of the things that is happening to more people than we would like is foreclosure, and in the United States right now, foreclosure is an ever present possibility. Trying to keep foreclosure from happening, after the dominoes have begun to fall, is not exactly easy, but like any disease, the sooner it is caught, the better the chance you will make it through. Depending where you are in the foreclosure process, it may not be that easy to get out of this unfortunate situation.
If you are early on in the default process, you can get back from bankruptcy because you have not missed more than one or two mortgage payments and lenders have not had to work hard to get everything back on track.Of course, this begins to disappear the farther you get into the process. As the debt increases, so to do the legal costs of the bank. At this point, ignoring the problem will fix nothing.
The first moment you think you are going to miss a mortgage payment, you need to contact the bank and let them know. By contacting them, you are alerting them to the fact that you may be late on the payment this month, and that will actually get you a lot of lead way as a result.
Now, it should be noted that this alone is not going to fix your mortgage problems and if you continue to forget to pay your mortgage, no matter how many times you call the bank is going to come for their loan.
What else can you do to prevent your house from going into foreclosure, helping you keep your home.
1. Loan Modification: If you can change at least one term of your mortgage, you can bring the loan current. This is done by capitalizing the interest that is owed, extending over a fixed period on the loan. You can also lower the interest rate to reduce how much you pay each month.
2. Repayment Plans: When you give a written agreement to the borrower, you can shoe them you will have the loan up to date in a certain amount of time. Usually this will not be over a year and a half, and it is used for borrowers who have suffered layoffs, illnesses or more.
3. Forbearance Agreement: In this agreement, the lender reduces or suspends payments for a certain amount of time. Usually, this will be no more than three months. This is used to help people when they are in short-term unemployment situations, illnesses or other events that disturb their regular payments.
4. Preforclosure sales: These are a bit more drastic but they are good for owners with home equity still on their homes because whatever is left after the home is paid off, goes to them.
These are just a few of the things that can be done to prevent foreclosure from happening to you. They may not work, and they are Band-Aid solutions, but they should buy you enough time to help you out in the long run.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, July 16, 2009
Monday, July 13, 2009
How many years should you have your mortgage for?
When the housing market is hot, it is not uncommon to see potential home owners thinking about getting a 50-year mortgage to lower the cost of mortgage payments. Like any new style of doing something, there are those who swear by it and those who do not. However, when looking at mortgages, how long is too long? Generally, 25 years is the standard rate for a mortgage as it gives relatively low interest rates, while at the same time not cementing the homeowners into a long mortgage that they may not be able to get out of.
Looking at the 50-year mortgage, it is easy to see the appeal of having a lower mortgage payment. Looking at a $300,000 fixed rate mortgage of six percent interest, the monthly payments for the mortgage will be $500, before interest. This wonderfully low payment comes at a price, and it is committing to half a century of mortgage payments, twice as long as most people. If bought in the right time, you could end up paying much less than what your property is worth. However, getting a mortgage when the market is low does not often entail 50-year mortgages. Typically, this will be done when the market is high and mortgage prices are inflated. As a result, for 50-years you can be paying too much for your house, even as it dips in value due to extraneous circumstances.
Many potential homeowners will go with a 30- or 40-year mortgage instead of a 50 year mortgages. However, while they are shorter and have the benefits of low mortgage payments, they entail long mortgages for houses that may dip in value.
As a potential buyer, you never want to force yourself into a commitment that could last longer than you. Getting a 50 year mortgage may seem like a good idea because of the low mortgage payments, but you may think differently in 10, 20 or 30 years. You will be paying your mortgage twice as long as everyone else. If you are 30 years old when you get this mortgage, you are going to be paying it until you are 80 years old! That is 15 years longer than you will most likely be working, which puts a big strain on your finances when you are living off of your pension or retirement savings.
Getting a long mortgage, longer than 25 years, can seem appealing but there is a lot more to consider than just low mortgage payments. If you are planning on getting a house worth more than you can afford over 25 years, it may be a better idea to get something in your price range.
Never try to get a mortgage longer than 30 years, you may end up paying much more than you ever expected to. It is best to go around 20 years, giving yourself ample time to pay it off, without getting too deep into the length of the mortgage.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com for more information.
Looking at the 50-year mortgage, it is easy to see the appeal of having a lower mortgage payment. Looking at a $300,000 fixed rate mortgage of six percent interest, the monthly payments for the mortgage will be $500, before interest. This wonderfully low payment comes at a price, and it is committing to half a century of mortgage payments, twice as long as most people. If bought in the right time, you could end up paying much less than what your property is worth. However, getting a mortgage when the market is low does not often entail 50-year mortgages. Typically, this will be done when the market is high and mortgage prices are inflated. As a result, for 50-years you can be paying too much for your house, even as it dips in value due to extraneous circumstances.
Many potential homeowners will go with a 30- or 40-year mortgage instead of a 50 year mortgages. However, while they are shorter and have the benefits of low mortgage payments, they entail long mortgages for houses that may dip in value.
As a potential buyer, you never want to force yourself into a commitment that could last longer than you. Getting a 50 year mortgage may seem like a good idea because of the low mortgage payments, but you may think differently in 10, 20 or 30 years. You will be paying your mortgage twice as long as everyone else. If you are 30 years old when you get this mortgage, you are going to be paying it until you are 80 years old! That is 15 years longer than you will most likely be working, which puts a big strain on your finances when you are living off of your pension or retirement savings.
Getting a long mortgage, longer than 25 years, can seem appealing but there is a lot more to consider than just low mortgage payments. If you are planning on getting a house worth more than you can afford over 25 years, it may be a better idea to get something in your price range.
Never try to get a mortgage longer than 30 years, you may end up paying much more than you ever expected to. It is best to go around 20 years, giving yourself ample time to pay it off, without getting too deep into the length of the mortgage.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com for more information.
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