Doc Schmyz
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Posts by Doc Schmyz
Talk To Your Lender About Saving Your Home from Foreclosure
Dec 11th
When your home is on the verge of foreclosure, you certainly will do anything possible to save it. But the problem is how you will do it. One, among many, is going to your lender and asking for help.
Yet for others, contacting the lender at the first sign of financial problems seems to be not such a good idea. It may be because they are embarrassed to discuss money issues to others or they simply don’t see the need to inform their lender right away of their present financial standing , most of the time they are thinking it is a temporary problem. But the fact is, asking for your lender’s help will save you a lot of trouble and it will help you save your home.
Most people have the perception that lenders, like banks, think only of themselves and don’t care about the future of the borrowers. This leads to the common notion that lenders show no mercy to homeowners who have defaulted on payments and will take the homes when the very first window of opportunity opens. The truth is lenders like owners will do everything they can to avoid home foreclosures. So again, the best way to save your home is to work with your lender to solve the problem.
In most cases lenders will send a Notice of Default if you miss payments for 3 consecutive months. Call your lender as soon as possible. Inform them why you have defaulted on a payment and ask for an alternative payment schedule or temporary lower rates until your finances have returned to normal. You can also ask for Forbearance which is where your lender waives some of the penalty fees as a result of default or a mortgage refinance without going through the process of re-application, whichever you think is more economical. Mortgage lenders are NOT IN THE REAL ESTATE SELLING BUSINESS, thus are more than willing to help you to avoid repossessing your home.
Talk to your lender, inform them the cause of your delay, and ask for payment alternatives. DO NOT WAIT!!! Act fast. Understand the gravity of the situation and do something about it. It is your obligation to pay your mortgage but when worst comes to worst, your lender wants to help you keep your home.
Doc Schmyz has invested all over the US and Canada. He built a free website shares Real estate investing information for all over the US. Find real estate information by state
Home Equity Loan Facts
Oct 16th
Home equity loans can be a fast source of cash. However, before start the process of drawing out a loan out of the equity of your property; make sure you read all the fine print.
Are you debating on getting a home equity loan? Home equity loans might be an easy to acquire type of loan, but somehow even a seemingly great deal might turn out to be bad if the process of getting one is not done right.
Let us look at the following areas to better understand the “speak” used for this type of loan.
Points
How are you affected by this? Most lenders charge a part of the loan for commissions for themselves and for their sub-agents. Actually such points vary from little to exorbitant; it all depends on the company. If you are charged 1 point, this would mean 1 percent of the loan. And so 1 percent of a 100,000 dollar loan is an up front charge of 1000 dollars. Do not worry, there are lenders that do not charge points.
Loan “rate” terms
It it a fixed or variable loan. A fixed rate means you pay the same amount every month for the life of the loan. But on the other hand, if you have variable type of loan, you may actually have an initial good interest rate. Interest rates that go up naturally makes your monthly payments go up too in the process. So what do you want ” a home equity loan with interest rate that stays the same all throughout the duration of the loan, or one with the possibility of going up anytime? Understand that more often then not, a variable loan starts out one or two percent lower then a fixed rate. The big question is where does it stop once it starts to adjust?
Pre Payment penalties
Pre payment penalties are a fee that the lender places on you in the event you decide to pay of your loan early. These “pre-pays” can cost several thousand dollars in some cases. The reason for this is that by paying off the loan early, the lender will be missing out on the intrest payments you have agreed to pay over the life of the loan. (these interest payments are normally in the several thousands of dollars)
Late payment fees
Does a home equity loans interest rate go up with late payments? With many lenders, with delinquent payment, penalties usually follow. More so, there sometimes is a clause on default interest rate increase in the loan which raises automatically the loan rates when payments are late. This can actually be costly for the borrower.
Insurance
One thing you want to check for is if the home equity loan that you are prospecting has insurance costs hidden somewhere, a cost that you definitely do not want. You can have credit life insurance, which takes care of your loan in the event that you die. However, if in the case of home equity loan, if you feel that insurance is just added cost, then by all means avoid the lender that requires you to pay for them.
Doc Schmyz has done real estate deals all over the US and Canada. His website shares Real estate investing information for all over the US. Find real estate information by state
Work Out Your Foreclosure And Keep Your Home
Oct 15th
The last thing anyone wants to loose is your house. Unfortunately even though we know this fact, sometimes we tend to take our mortgage payments for granted and end up loosing our homes. In this case, a home foreclosure will happen. When a borrower fails to pay his or her mortgage for a number of payments (usually 5 or 6) the lender will issue a foreclosure by selling the house or repossessing it.
Sadly, more often than not banks often lead the homeowners to believe that they don’t have other options available. However there are other alternatives that homeowners can use to keep their house.
These are some of the options that homeowners can use.
Short stop
You can get a short refinance for the foreclosure of your property. If you don’t want a new loan to cover an existing one, you can ask the help of a friend. A borrower’s friend or relative can buy or pay off the mortgage.
New payment plan
The homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan.
Change the plans
In some cases a temporary change in the terms of the loan can be given when properly negotiated. These changes include but are not limited to, amortization extension and reduction of interest rate.
Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.
Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders. Then, in turn the property is sold back to the borrower.
The above mentioned are just a few ideas of what you can do to keep your home if faced with foreclosure. Do not be afraid to ask for help. Be forward and upfront with your lender if you have fallen on hard times. If you have to take a second job to earn extra money then do it. It is far easier to work to stay out of foreclosure then to try and fix it once you have gotten a notice.
About the Author:
Doc Schmyz has invested all over the US. His free website shares Real estate investing information for all over the US. Find real estate information by state
DON’T BUY A HOUSE!! (Till You Do These 6 Things First.)
Oct 12th
Buying your first home is down right scary for most people. Your facing the unknown in most cases. Terms you don’t know…payments your not sure of…and I wont even mention the contracts to sign. Some studies show that some people are so over come with anxiety that they wont take the first steps to even buying a home.
Usually, your home will be the biggest purchase you will ever make. And if it is your first time, this purchase is even more intimidating because you are taking full responsibility upon yourself. You should try and take advantage of the wealth of home buying information and programs out there.
Be sure to prepare yourself before buying. Here are six steps to follow before buying:
1) For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.Think about what it will be like to be a homeowner.
2) Have an idea about your credit right from the start. Your FICO score will normally be between 400 and 850. the higher the score the better your funding chances are. Get a copy of your credit report and review it. Look for any discrepencies and report them to the agency. In some cases you may want to use a credit repair agency.
3) Understand exactly what your finances are. For most homebuyers the two most feared words are: DOWN PAYMENT. Today, there are so many diffrent types of loans available that this shouldnt be as much a worry as it was, say ten years ago. a good loan officer or mortgage broker should be able to walk you through the process and stear you clear of the programs to avoid.
4) Get pre-approved…NOT pre-qualified. Here is the diffrence. Pre-approval means you have already given a broker or your bank all the information they want in order to actually run your credit and financies in order to see what loan you can get and how much you can actually spend on a home. Pre-qualified means some one looked at your credit application and THINKS they can get you a loan.
5) Look into down payment assistance programs. While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. They should have an idea of what would be available to you. There are many programs out there run by counties and cities and other governmental agencies. The trick is to know about them, first, and then to see if you qualify for them.
6) Look into first-time home buyer classes. Many lenders and Realtors offer home buyer education classes. They are usually 2 to 4 hours long and will walk you through the process of applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home. And realize that whoever is putting on the class is will also try and sell you on their services, which is fine, but you are under no obligation to use them.
By following these six steps you’ll be well on your way to homeownership! Remember, ask lots of questions and make sure you understand exactly what is happening. Always try to get referrals from people you trust. Good luck.
About the Author:
Doc Schmyz has invested all over the US. He built a free website shares Real estate investing information for all over the US. Find real estate information by state
Are You A Military Member or Veteran With Debt??? Look In To The SSCRA
Aug 5th
The Soldier and Sailor Civil Relief Act or SSCRA was signed by President Bush on December 2003. The point for this act was to set legislation to simplify or ease both legal and economic burdens to military personnel whether active or retired.
What is the SSCRA
SSCRA addresses the inability of military men to meet financial obligations when they are in active duty. Financial obligations to include rentals, leases, mortgages, credit card payments and other similar transactions. The SSCRA also stretches to cover the dependents of the military men in question.
SSCRA covers those under active duty, to include out on basic training exercises or assigned in the field. Often veterans miss the chance to pay their financial obligations since they are unable to do so during the line of duty. The SSCRA aims to provide legislation to these individuals so that they are given consideration regarding deadlines and payment due dates.
One area covered by SSCRA for military personnel/dependents includes leasing/renting of a property for residential purpose (not to exceed more than $1,200 a month.) Also the conditions must be met and the transaction must be first be made before the service man is enlisted into active duty.
Once on active duty, it’s becomes almost impossible for them to settle this obligation. The next course of action is for the service man to send a request of being under the protection of the SSCRA to the court when he or she receives an eviction notice. If the judge finds sufficient grounds which merits the protection from SSCRA then the court may postpone the eviction until the term of duty of the personnel expires
Advantage of SSCRA for veterans on active duty
Often military personnel on active duty will not have the ability to fulfill their financial obligations to various institutions like credit cards, banks, insurance or mortgage lenders. The SSCRA was developed to provide a form of security to these men on duty on active duty.
SSCRA will provide enough “elbow room” for military personnel to be given extended deadlines for payments, foreclosures and mortgage transactions when they are in the line of duty. However, not all veterans are qualified for the protection of the SSCRA; some criteria and requirements must be met for both the transaction and the personnel before they are granted protection.
Interest Rates and SSCRA
Members on active duty who are unable to pay mortgages and who are facing foreclosure may then invoke the protection of the SSCRA to avoid such problems. Qualified debts are those incurred prior to service men coming into the line of duty. Also, the request will only be valid if the personnel are in the line of duty when the request was made which limited them from settling the said obligation.
If qualified, the service member needs to send a letter to the lender/bank requesting that their interest rate be capped to 6% according to the provision stated in SSCRA. Also, they may should send a photocopy of the military order to the lender as proof that they are on military duty as stated in their letter of request. the process can take up to 3 months to complete.
Foreclosure and the SSCRA
The SSCRA can also help cover the military member under the obligation of a mortgage, trust deed or security of property for any financial obligation. The SSCRA simply states that the personnel are valid for protection under the SSCRA if the obligation and the property were done prior to their military service.
The provision states that prohibition of foreclosure or sale of mortgage property without the presence of the borrower, the military personnel in this case, whether in a judicial or a non-judicial foreclosure. It is also stated in the SSCRA that maturity dates and deadlines will be given an extension when the military personnel is in active duty until they are released from their given designation.
Even if the maturity date or the date of foreclosure is extended due to the military personnel’s inability to pay, the court will try to achieve a compromise agreement from both parties requiring the mortgage lender to pay at least half of the amount due while the mortgage holder extends the deadline or put a stay on the foreclosure or sale of the property.
About the Author:
Doc Schmyz has worked with investors all over the US. His website shares Real estate investing information for all over the US. Find Real estate investing information by state
What Is Foreclosure
Jul 18th
Your mortgage is the most important bill we have to pay every month. Besides credit card bills, we also have to make sure we don’t miss our other monthly payments. Unfortunately paying with plastic makes it difficult to track our expenses and easier to splurge on shopping sprees. When we fail to pay the mortgage; foreclosure happens and we lose our home.
Foreclosure…what exactly is it?
When you miss a number of payments; your mortgage lender has the right to foreclose on the home by selling or repossessing the property.
In most cases the usual number of payments that borrowers miss before their house goes into foreclosure is 3 months. In other cases the lender may accelerate the payment to give the borrower a chance to settle his or her debt/catch up on missed payments. In this case however they will require the borrower to pay all the missed payments at once.
Lenders can choose several types of foreclosure.
Judicial foreclosure
In this case the lender sues the homeowner. If the owner of the house does not respond to the lawsuit, the lender wins. The property is then put up for auction. A court official will be in charge of the auction. Participants will have to compete with the mortgage lenders bid. If no one out bids the mortgage lender he repossesses the house. Otherwise, the deed will go to the highest bidder. This is normally referred to as a “courthouse auction”.
Foreclosure by the power of sale
The deed of the house goes directly back to the mortgage lender. The house is then sold by a real estate agent. Proceeds earned from the sale will be used for paying off the amount owed by the former homeowner.
The deficiency judgment is the amount left after the proceeds from the sale cover the mortgage owed by the previous homeowner. The previous homeowner is liable for it.
Strict foreclosure
The court orders the borrower to pay the mortgage in a certain period of time. If the borrower fails the property will go directly back to the mortgage lender without any obligation to sell it.
Judicial and foreclosure by power of sale are the most commonly used methods in United States. Other states use other methods. Strict foreclosure was originally used but is now only utilized by a few states such as Vermont and New Hampshire.
About the Author:
Doc Schmyz has done real estate deals all over the US. His free website shares Real estate investing information for all over the US. Find Real estate investing information by state
Types Of Home Foreclosure
Jul 16th
Your mortgage is the most important bill we have to pay every month. Besides credit card bills, we also have to make sure we don’t miss our other monthly payments. Unfortunately paying with plastic makes it difficult to track our expenses and easier to splurge on shopping sprees. When we fail to pay the mortgage; foreclosure happens and we lose our home.
So what is a “Foreclosure”?
When you miss a number of payments; your mortgage lender has the right to foreclose on the home by selling or repossessing the property.
In most cases the usual number of payments that borrowers miss before their house goes into foreclosure is 3 months. In other cases the lender may accelerate the payment to give the borrower a chance to settle his or her debt/catch up on missed payments. They will require the borrower to pay all the missed payments at once.
Lenders have several options on what foreclosure to actually move forward with.
Judicial foreclosure
The lender sues the homeowner. If the owner of the house does not respond to the lawsuit the lender wins. The property is then put up for auction. A court official will be in charge of the auction. Participants will have to compete with the mortgage lenders bid. If no one out bids the mortgage lender he repossesses the house. Otherwise, the deed will go to the highest bidder.
Foreclosure by the power of sale
The deed of the house goes directly back to the mortgage lender. The house is then sold by a real estate agent. Proceeds earned from the sale will be used for paying off the amount owed by the former homeowner.
The deficiency judgment is the amount left after the proceeds from the sale cover the mortgage owed by the previous homeowner. The previous homeowner is liable for it.
Strict foreclosure
The court orders the borrower to pay the mortgage in a certain period of time. If the borrower fails the property will go directly back to the mortgage lender without any obligation to sell it. In this case (as silly as it sounds) normally the tenants are evicted from the home via the local sheriff, and then the house sits empty until such time as the lender can sell it. (In the event it is a rental property,and the tenants are NOT the owners,they are still forced out in most cases.)
Judicial and foreclosure by power of sale are the most commonly used methods in United States. Other states use other methods. Strict foreclosure was originally used but is now only utilized by a few states such as Vermont and New Hampshire.
About the Author:
Doc Schmyz has done real estate deals all over the US and Mexico. He built a free free website shares Real estate investing information for all over the US. Find Real estate investing information by state
