Category: General

What Is the Difference Between Reinstatement Vs Modification of a Home Loan or Mortgage?

If your mortgage lender has sent you a letter demanding that you pay all of your back payments, as well as all late fees, penalties and legal fees in order to become current, then the process they are working with is called a reinstatement of your loan. Your lender views the delinquent amounts as defaulting on the terms of your home loan. This requires them to demand you catch up or they must foreclose on you and take your home. Can a home loan modification avoid this process and get you current without your having to pay this large amount? If the answer is yes, then why is this true? You may ask, what is the difference between reinstatement and modification of a home loan?

The demand for payment letter that a borrower receives is based on the terms of the loan. It only allows for paying the payment as described in your loan documents. If you are behind on your payments, you are still going to be held to the terms of your contract with the lender. There is no language in your loan to allow for changes. Therefore the lender has no other option other than collect or foreclose. You have fallen into default and the only contractual way to become current is to pay all past due amounts. Then your loan has become “reinstated” and you can keep your home as long as you continue to make payments on time. This process is called reinstatement.

But, the problem with the reinstatement process is, that if you are too far behind then you will be unable to find enough cash to catch up all at once. The language of your loan, then triggers a foreclosure that you are unable to stop.

Unless….You are able to work out an agreement with your lender to “change” the language and terms of your loan. This type of situation will call for “modifying” your loan. You modify the terms to make it possible for you to continue owning and paying for your house. It would include interest reduction to lower your monthly payment and taking your unpaid payments and putting them back into your loan. The new terms would have the effect of creating new monthly payments, which would be affordable to you. Your monthly payments would now fit within your monthly budget.

Why would the lender do this? Because, your lender loses a great deal of money whenever they foreclose on a home. This is complicated, but the costs your lender must pay can include:

1. The cost of the foreclosure process going through the court system.

2. Your home will probably sell for less today that just a few years ago due to the economy. If your lender receives less than you owe them, then they lose this money.

3. Care of your home while it is in the selling process. This includes large realtor commissions, utility bills and upkeep.

4. The lender borrowed money from an even larger lender …

Buying Vs Renting: When to Buy a House and When to Rent

Buying your first home can indeed be an incredible milestone in your life. In line with this, you may feel a mixture of many emotions like fulfillment, happiness but at the same time, there’s nervousness that may impair judgement. You feel nervous about this big decision that you have to make, likely the largest financial decision in your life. And one of the most common questions you have to face is – are you going to rent or buy? Let us discuss about buying vs. renting in this post.

Before you come up with any further decision about moving on your own, you have to ask yourself, is it time that you buy your own house or are you better off renting a home?

When to rent?

Living solo? Renting a home might be more suitable for you. Living alone in a big house may be a bit too much – too much space and too much work or cost for the upkeep. If you don’t have the money for a down payment and all the costs of owning a house then renting is likely more advisable. Also, if you are concerned about job security then this is a sign to perhaps continue renting for the moment. Think of the impact to you and your family if you decided to buy a house and then lose your job after few months.

How can you afford to pay for the mortgage? Do you need to rent a room or part of the house to make it work? These considerations are very important before you come up with your final decision.

Do not rush in to buying a house most especially if you’re not financially and mentally ready. There is nothing wrong with renting first. Being practical will give you more benefits in the long run. Most of all, your REALTOR® is a source of valuable information to you as a first time home buyer.

When to buy?

Now, when is the perfect time to buy your house? One main factor to that is when you are financially stable. And when we say financially stable it means that you have funds for at least a 5% down payment for the new house, a permanent and stable job and probably a savings to serve as your back-up plan, should you need to repair or renovate the home. Also, you have to remember that it doesn’t end in paying the down payment; you also have to pay for other costs in buying your own house like budget for the furniture, utilities and of course the monthly mortgage rate. During the purchasing process you will be writing cheques to home inspectors, insurance policies and lawyers.

Having a family could be another factor that will lead you into the decision of buying a house. Raising a family in a house you can call your own is definitely ideal. Having your own garden so that your children can play or a big kitchen where you cook and …

55 Years Old – Don’t Buy A House

If you have owned a house and paid off the mortgage over the years you know the first 10 years is almost all interest payments with very little equity.

There is nothing wrong with buying a house as long as you can qualify. That means a good down payment and a steady job. None of that no-down-payment nonsense. The buyer must be serious about making those monthly mortgage payments and have a good job. Banks are checking these days.

The financial community in the recent past has been required to make mortgages for those who did not qualify with no down payments and had no serious intention of paying if it became economically uncomfortable. It is too easy to walk away.

The true cost of home ownership is not just the monthly mortgage payment. In a new house all the appliances, plumbing, roof, pool equipment, window frames, etc., etc., everything has an estimated life expectancy after which they need to be replaced.

Buying an older home means all of the above will occur sooner. Replace or repair can be expensive.

The true cost of keeping the house is the mortgage payment plus upkeep. Oh and let’s not forget taxes. Then there is a little thing called insurance that is required by the mortgage holder.

The industry calls it PITI = principle, interest, taxes and insurance. Depending upon the length of time of the mortgage and whatever your down payment was it normally comes out 10% annually of the selling price divided by 12 or 1% of the selling price each month.

If the house cost $200,000 that figures about or close to $2,000 per month.

If you are 55 years old do you want to take on that obligation? Wouldn’t it be smarter to rent? If the same quality home can be rented for $1,200 per month the renter could save the difference of $800 each month and in 10 years at retirement have $96,000 plus interest. I can guarantee he would not have that in home equity if he bought the house when he was 55.

Furthermore renters pay much less for rental insurance and have the ability to move to a new location any time. Renters do not have to put on a new roof or replace an old hot water heater. No major upkeep out of pocket expense.

How about a 6 month rental in Canada for the Summer and 6 months in Florida, Mexico or Dominican Republic for the Winter? The only extra would be travel expenses.

With so many rentals available the foreclosure prices are not yet a great buy. If a person wishes to buy there are yet about 4,000,000 more distressed properties to hit the market in the next 2 years. Prices will be even lower than today.

Do the numbers before you buy.…

Reverse Mortgages – What Does the Term Principal Limit Mean?

When explaining a reverse mortgage to a senior homeowner, one of the most important terms a reverse mortgage loan officer will discuss is the “Principal Limit.”

What is the Principal Limit and why is it important?

The Principal Limit (PL) is the gross amount of money the lender is willing to lend to the borrower of a Home Equity Conversion Mortgage or HECM reverse mortgage, based on a formula derived from Congressional legislation and implemented by the Department of Housing and Urban Development (HUD) and using the following three criteria: 

  • The lower of the Maximum Claim Limit or the Federal Housing Administration (FHA) appraised value of the home;
  • The age of the youngest borrower (must be 62 or older);
  • The current expected interest rate (based on the current 10 year London Interbank Offered Rate, or LIBOR rate, plus a stated margin for the adjustable rate HECM and based on the current fixed interest rate for the fixed rate reverse mortgage).

The three listed criteria affect the PL in the following ways:

  • The higher the value of the home (up to the maximum claim limit of $625,500) the higher the amount of the PL will be;
  • The older the youngest borrower (age is always based on the youngest borrower’s age, not a blending of multiple borrowers’ ages) the higher the amount of the PL will be;
  • And, conversely, the higher the current expected interest rate, the lower the amount of the PL will be.

The reason potential borrowers should become familiar with the term Principal Limit and what it means is because it is from this cash figure that all fees and set asides will be subtracted in order to arrive at the maximum cash or loan proceeds available to the borrower.

Congress Plans to Lower the Principal Limit

Congress lowered the Principal Limit for the fiscal year 2010 signifantly to make up for a perceived budget shortfall of approximately $798 million for HECM reverse mortgages put in place within that fiscal year. HUD has announced that for the fiscal year 2011 there will likely be decreases in the Principal Limit as well. The 2011 year begins in October 2010 for budgetary purposes.

 Until the budget bill has made it through the joint Senate and House committee, been voted on and signed, we do not know what the exact amount of the cut in the principal limit will be. Senior homeowners who have investigated HECM reverse mortgages prior to October 1, 2010 should contact a reverse mortgage lender to learn how the decreases in Principal Limits could impact  them personally if they pursue a reverse mortgage.…

Advantages of Legal Mortgage Modification Programs

If you are still confused about what legal mortgage modification programs are, it can be easily spelt out as a blessing in disguise. This is a once in a lifetime opportunity coming knocking on your door and guess what it might be the one that can help you stay in your same house without facing the dramatic consequences of foreclosure. Let us have a look at the various advantages of opting for legal mortgage modification program or the loan modification program:

o    Legal mortgage modification programs have been allowed by the government to allow those crushed under the huge debt of repayment of home loans to be able to repay them and keep the house as well. This program will help you to reduce your monthly payments which mean getting a huge burden off your head.

o    Fix your adjustable rate with proper negotiations with your lender. A loan modification program is designed to prevent your from defaulting your payments any further by fixing a rate as per your capability to repay.

o    Lowering your interest rate is a big bonus of opting for legal mortgage modification program. It will help you to get the same loan from the lender at better terms and conditions.

o    Reduce your loan balance by choosing the legal mortgage modification program. This program can negotiate a reduction in the lump sum amount that you need to repay apart from the fall in interest rates.

o    In cases where there are many default payments being made that have attracted negatively accrued interest, you can get these waived off by joining the legal mortgage modification program.

o    A very good thing coming out of joining the program is that it will help to re-amortize loan to include past due payments.

o    You can get some extensions grant regarding your payments by joining the program. The lender will be also more submissive when you approach him this way.

o    Loan modification helps you as well as your lender to save lots of money involved in the process of foreclosure. In fact, the amount of these proceedings is so high at times that even your lender would prefer to avoid foreclosures at any cost.

o    Loan modification does not involve any other costs. This is a huge advantage over re-financing option and also for those in dire needs; this is the only workable option at times.

o    Opting for loan modification will not affect your credit scores negatively unlike in the case of facing a foreclosure.  In short, it will help the borrower to keep his credit record intact.

o    Finally it all goes down to the wire and you get to save your home. This in fact is the biggest advantage of opting for legal mortgage modification program.

Loan modification reviews show that there is absolutely no reason for you to not opt for this tremendously successful program. It will help you to get a substantial decrease in the amount of interest you need to pay over …

Swimming Pool Dreaming

When I was young, I always dream of possessing a gorgeous swimming pool house in our house. After your distinct pool construction website is selected, you may that this helpt to drive the pool style. Great lens on accessories for swimming pools or just water in common, enjoyed browsing these items tonight, thank you. Pools that are oval-shaped fit in the basic category of rectangular pools (which themselves often have rounded edges for a softer appear). Hubby built our deck the same height as the pool, with the planks of the deck fitting snuggly beneath the lip of the swimming pool’s prime rail. That supplies ready access to the property and makes it less complicated to bring meals and drinks out and to clean up afterwards. If you are just organizing on swimming laps you’ll probably want a lap pool (something more than 10m in length is advisable). More than water or integrated into your garden path, you can not go incorrect with wooden garden bridges. The homeowner can be held responsible for injuries triggered in their pool by neighbors, or friends.

How you heat, clean, filter and sustain your extension de maison is an further expense to take into account. Our Swimming Pool scope of work includes, Civil Performs, Filtration Works, Electrical Performs, Plumbing Works, and Below Water Lighting Method. There are a range of safety measures which users can take advantage of in order to add an added measure of protection, including alarms, fences, and pool covers. No matter whether home owners want to convert their classic swimming pools in Hudson Valley to a salt-primarily based pool, or just build 1 from scratch, there will be no regrets with salt water pools. It is mentioned that you should not super chlorinate your pool but you can at night and stay out of the pool for the entire evening. I utilized to get my pool cleaned by the employees from Ferarri Pools every single month to guarantee that youngsters are secure.

Securing a agrandissement maison bois cover helps to guarantees not only security for men and women, but also protection against the elements of nature. Summer time time pool parties or a late evening swim is constantly enjoyable when you own your personal pool. It’s also worth checking out a French-common pool alarm (from about £500), which protects the perimeter of the pool employing infra-red technologies — a bit like a burglar alarm. Filters require to be backwashed (and at times disassembled and cleaned) and if you live in snow country, pools need to be winterized, covered, and the like – and the approach reversed in the Spring. Your swimming pool is a lengthy term investment and likewise you should appear at each the security of your gate and its corresponding lock but also look as it as a decorative element for your back yard pleasure.

If feasible, it is much far better to location swimming pools at the aspect of a yard rather than straight in the rear. …

Mortgage Pay Off Trap – Why the First Five Years of Your Mortgage is Set to Work Against You

The first 5 years of your mortgage is the most critical. The general rule of thumb is that you spend at least 5 times more in principal than interest. You can run the numbers for yourself at http://www.bankrate.com

The banks’ hope you won’t break free from this cycle and have designed the mortgage tables to trap you into paying interest for a longer period of time.

To get ahead of your mortgage…

…it is important you have a basic understanding of your mortgage amortization schedule so that the banks don’t take advantage of you and suck you into a lifetime of payments.

HUH!

I know this may sound strange but nothing in life is constant.

Chances are at some point you will move, need to borrow money from your mortgage, pay for the kids education or take out a reverse mortgage in retirement. Knowing how your mortgage works will help you make those important financial decisions.

Let’s take a closer look at an example.

For a $334,000 mortgage at a 6.3% interest rate you will end up paying approximately $774,252.88 in repayments over 30 years.

You will spend $410,252.88 in interest and $334,000 in principal.

That sounds pretty fair right?

At approximately year 21, you will pay off 50% of your mortgage. So in the last ten years you will still owe $167,000.

Can you see what going on?

For the 1st 20 years you are working for the bank. Most of your hard-earned paycheck goes towards interest.

Which sucks!

Let’s take a closer look at the first 5 years of your amortization schedule. You will notice that you spend $22,068.33 in principal and $101,973.82 in interest.

Out of a total repayment of $124,042.15, you would pay approximately 82% in mortgage interest as compared to principal.

This made me feel sick when I found about this for my mortgage.

So where did it leave me and what does this mean to you?

You really start making a small dent in your mortgage after the first 8 years.

Please don’t take my word for this. You can go directly to http://www.bankrate.com and check this for yourself if your mortgage balance has changed. Pay close attention to your outstanding balance and how much of your monthly repayments are applied to interest at this point.

At the year 21 mark of your monthly mortgage payments, more of your money will go towards principal than interest. Your hard-earned paycheck would finally begin to work for you.

There are two key numbers to understand when dealing with your mortgage.

  • The first 5 years, where you would typically pay five times more in interest than principal, is the first key milestone.
  • The second key point is at year 21 when you still owe at least 50 percent of your mortgage principal.

This is interesting to know that at the 21 year mark, you pay less in interest and in the last 10 years you get very little to almost no tax deductions for your mortgage interest.…

Heating and Cooling Your Log Home

Needless to say, our forefathers didn’t worry too much about heating their log cabins. Big fireplaces had no problem warming up the one or two rooms they lived in. Of course now that log homes are family-sized, people often have the impression that there is something different about how they are heated, and the good news is that a standard system will work as well in a log home as a traditional structure.

Almost all log homes are built with at least one fireplace. Initially, we thought that our beautiful soapstone woodstove would heat the whole house, and we would use our forced-air propane heat as a backup. Alas, we were all wrong. Because we have a cathedral ceiling with a big loft, the heat from the stove goes directly upstairs, requiring two ceiling fans to recirculate the warm air. We expected this, but we also thought the heat would expand sideways into the rest of the open floor space (dining room and kitchen). Not on your life! Even sitting on the couch about 15 feet from the stove, I need a coverlet. I’m uncomfortably chilly in the kitchen. I think that if we had a regular ceiling, the heat might have gone where we expected it, but the volume of the cathedral ceiling threw off our calculations. Also, the soapstone stove is designed to be run 24/7, and because we both work for a living, the stove doesn’t get fired up until the evening. This woodstove needs to be heated up slowly at the risk of cracking the stone, so by the time it’s really cooking we’re ready for bed.

Old-fashioned fireplaces traditionally sucked all the warm air out of the room, but modern designs are more efficient at recirculating the heat. The most energy-efficient fireplace is built in the center of the house, so the stack heat is not lost to the outside. Outside stacks can create back drafts if the fire is extinguished, making a new fire more difficult to light. If you are planning multiple fireplaces, putting two of them back-to-back (facing adjoining rooms) will give you the opportunity to build one chimney with two flues. Or you could put a fireplace above your furnace, again allowing two flues in the same chimney. A direct-vent fireplace will eliminate the chimney, but you’ll have to figure out how to hide the vent on the outside wall. Or, if you use a wood-stove, you could run the pipe through the wall and straight up the outside, building a box around the pipe to simulate a chimney. Depending on the look you want, you may want to leave the pipe inside the room and send it through the roof. This will give more heat.

It’s a good idea to consider your heating and air-conditioning needs early in the design phase. Although log homes are naturally energy-efficient, it’s not wise to skimp on your system. You may be able to heat your whole house with a huge fireplace or wood …

New Real Estate Agent Training – Your Circle Of Influence

Every new agent has heard the admonition they absolutely must contact everyone in their circle of influence when they start out. This is certainly good advice because when you are just starting out, you are going to have a tough time getting clients. You will not have past clients to recommend you, signs around town with your name on them, or print ads displaying your listings. All of these methods, and many more, combine to bring a constant stream of clients once you have been in business a number of years.

Because none of these are available to you, you will have to work with what you have got. And what you have got is a vast collection of friends, relatives, and acquaintances you can look to for your first deal. This is your circle of influence (COI).

So, where to begin? One of the first things you will want to do is begin compiling your contact list. The list should include everyone listed above and anyone else you can think of. Do not forget past co-workers, people you went to school with, and casual acquaintances you know from your bank, the grocery store, the dry cleaners, etc. Make sure to note as much information about each of them as you can. You will want their name, address, phone numbers, birthday and anniversary dates, and any other information you want to include.

A standard tool for agents, and one you really cannot do without, is some type of contact manager software. There are many different choices on the market and they range in price from free to several hundred dollars. There are even packages where you pay a subscription fee every month.

You may be tempted to try one of the free or low-end packages but you should consider this carefully. A well-known problem with this type of software is the malicious code that often comes with it. This can include spyware, adware, malware, and any number of viruses.

You will be better off if you go with one of the mid-priced packages that allow contact information, expense and other custom reports, letter and flyer management, and can be upgraded in the future. You will want to start using any package you go with as soon as possible.

If you want to start making some money before making another purchase, just use the Mail Merge feature in Microsoft Word. You will be limited to basic name and address information but this can help you address your letters for mailing. Make sure you handwrite the address on the outside of the envelope. This helps separate your letter from the junk mail everyone receives. Your first letter should announce your new broker affiliation, and do not forget to include a few business cards.

Something you should keep in mind whenever you are mailing anything is that you can improve the response immensely if you follow this, or any other, mailing with a personal phone call or visit. In fact, you should make …

EOS Flameless Lighter In San Diego, California, United States

Pre-salesIf you have any concerns just before making a obtain, chat with our online sales to get more information. There are several different brands of usb lighter WIFI antennas and the price tag variety is varied as are the capabilities. The dilemma with the Plazma Lighter is that its pricing is substantially larger than the pricing we’ve observed from other electric arc lighters sold on the internet. Vector® Thermoelectric Portable Meals Cooler/Warmer Chests, cool to 40° under outdoors temperature, warm to approximately 130° F, 9-foot cord plugs into lighter plug. We are the only manufacturer of electric lighters in the globe to offer you a restricted Lifetime Warranty and 30 day income back assure. Lighters developed for beginning barbecues or fireplaces often use these ignition approaches. Zippo American Flag Lighters is a top quality windproof lighter, but its value is higher.

Generic Car Charger for Nokia N91, N90, N80, 770, 7370, 6282, 6265i, 6165i, 6155i, 6126, 6103, 6102i, 6102, 6101, 3155i. Tesla Coil windproof lighters always come with a USB rechargeable battery and even a cell telephone charger can be used for charging this lighter. Replacing a cigarette lighter socket with a 12V USB port is a fairly simple operation, but you could have problems with match and finish. When it comes to candle lighters, there truly is no lighter like the ArcLighter Candle Lighter.flameless lighters,usb lighter

This is just an electronic resistive strategy, though consider platinum would perform fine and not oxidize as fast as a spring. These candles never have an open flame, but rather are powered by a electric battery and usually include LEDs as the light. This is a quite standard and easy to use lighter and may be a single of the best electric lighters available. The CIG-SS Wall mounted Flameless Lighter homes the quickly lighting element inside the tamperproof stainless steel enclosure. When you get an Ozilite no flame lighter, you get two spare lengthy lasting elements, providing you a lifetime of protected cigarette lighting. As it can be recharged, you never want to be concerned about it running out either, as long as you bear in mind to plug it in making use of a USB port. Diverse lighters can be smothered like a birthday flame, even though the Zippo is tough to blow ou you can hurl a Zippo underhand like a softball and it will even now be lit when it hits the ground.

Charging with the included USB cable is easy, and I don’t have to be concerned about lighter fluid ever again. I would suggest obtaining the USB MP3 FM transmitter due to the fact it will be simpler for you to connect to storage devices such as thumb drive, laptop or even the MP3 player. As matches , lighters, and other heat sources are the leading causes of fire deaths for young children, 11 several jurisdictions, such as the EU, 12 have prohibited the marketing of novelty or non-kid resistant lighters. Charge the ArcLighter Candle Lighter or Impulse Pocket Lighter …