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Torang Nazmi's Blog

By Torang | AATRealty | Broker in 75063
  • How to Work With Mortgage Lenders to Lower Payments

    Posted Under: Home Buying in Miami, Property Q&A in Miami, Credit Score in Miami  |  January 30, 2013 6:41 AM  |  268 views  |  No comments

    Mortgages With Good Payment History

    1

    Determine which program your loan is eligible for. Mortgages without any 30-day late payments and those that are not likely to become delinquent in the near future are eligible for these special financing programs. Fannie Mae’s DU Refi Plus program and Freddie Mac’s Relief Refinance Mortgage program allow loan-to-values, or LTVs, that exceed 100 percent. Fannie Mae or Freddie Mac must currently own the loan. Contact your loan servicer--the company you make your payments to--for details on which company owns your mortgage.

    2

    Request quotes from your servicer for the program that your loan qualifies for. These programs do not allow the homeowner to pull any equity out of the home. You can finance the closing costs and receive up to $250 back at closing, but nothing above that. Ensure the amount saved provides a true benefit. Saving $50 a month may not be worth $4,000 in closing costs in the long term. Divide the closing costs by the monthly savings to determine how long it takes to see actual savings on the loan.

    3

    Apply to your servicer for the correct loan program with the best savings. You will have to provide different types of documentation, depending on which program your loan qualifies for. In some cases, however, property appraisal and income documentation may not be required. Fannie Mae and Freddie Mac streamlined these programs to close faster than a full refinance, so responding timely to the servicer's requests will help your loan to close faster.

    Mortgages in Risk of Foreclosure

    1

    Contact a housing counseling agency approved by the U.S. Department of Housing and Urban Development. These HUD-approved non-profit companies are required to assist struggling homeowners to find the help they need to avoid foreclosure, free of charge. Call HUD at 800-569-4287 and request names and phone numbers of housing counseling agencies in your area.

    2

    Determine which program is best for your situation, with the assistance of your housing counselor. He may recommend a permanent modification of your loan’s balance and/or interest rate to make the house payment affordable. This program is for homeowners who cannot pay their loan as it is currently structured, but could make the payments if modified.

    3

    Contact your loan servicer and apply for the modification. Your servicer will require you to fill out the government application, and provide proof of your income. The new modification must yield a mortgage payment that is not more than 31 percent of your gross monthly income. Once the terms are determined, the servicer will require you to successfully make the modified payment for a trial period. Any late payments during the trial period could revoke the modification. Once it is completed, the modification becomes permanent.

    SOURCE : http://homeguides.sfgate.com/work-mortgage-lenders-lower-payments-2367.html

  • Difference Between a Deed of Trust and a Mortgage

    Posted Under: Home Selling in Miami, Property Q&A in Miami  |  January 28, 2013 10:02 AM  |  293 views  |  No comments

    Mortgage Function

    In real estate transactions involving a mortgage note, the note serves as a lien on the property, which means the borrower can't sell the house until the debt is repaid and the lien is satisfied. With a mortgage note, either the lender or the borrower can hold the actual title to the house, depending on state law. In some states, known as "title theory" states, the lender keeps the title and owns the house until the borrower pays off the loan. In "lien theory" states, the borrower holds the title and owns the house, but the mortgage note gives the lender the right to seize and sell the house for non-payment.

    Deed of Trust Function

    For home loans backed by a deed of trust, neither the borrower nor the lender holds the title to the property. The deed of trust brings in a third party to hold the title. This party is the trustee. The trustee might be a bank, a lawyer or some other entity, but it must be a neutral party. When the borrower has repaid the loan, the lender directs the trustee to release the title to the borrower, who now owns the house free and clear.

    Foreclosure

    The difference between a mortgage and a deed of trust really becomes clear if the borrower defaults on the loan and the lender forecloses on the house. With a mortgage, regardless of who is holding the title, the lender usually has to get a court order allowing it to seize the home and sell it. This is called "judicial foreclosure." With a deed of trust, the trustee already has the power to sell the home. All the lender has to do is furnish proof to the trustee that the borrower has defaulted. This is called "non-judicial foreclosure," and because it doesn't need to go through the court system, it's usually quicker and easier for the lender.

    Geography

    Eight states, including California, and the District of Columbia require that home loans be secured with deeds of trusts. Twenty-six states require mortgage notes. Fifteen states allow either document; local custom usually dictates which is used. One state, Georgia, requires a "security deed," which combines features of both (see Resources).

    Misconception

    Home loans of all kinds are commonly referred to as "mortgages," but only loans backed by mortgage notes are truly mortgage loans. Home loans backed by a deed of trust are trusts.

    source :http://homeguides.sfgate.com/difference-between-deed-trust-mortgage-9124.html

 
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