A Short Refinance may be available for homeowners who live in their home and meet the following criteria; 1: Short Refinance: This is for owner occupied homeowners who are current on their loan and who are underwater. at least 10% on the loan A principal reduction is based on lender participation which is voluntary. Must have made last 12 payments on time and have a fico of 500 minimum. 2: Principal Reduction Alternative Modification - this is for home owners who are working on a modification: *Owner occupied. *originated loan before 1/1/09 * First loan at or below $729,950 * payment must be more than 31% of gross income. These are the initial guidelies to be preapproved for the modification. You do not need to be current for a modification. If you are current, the lender will want to see that you are facing "iminent default". default within 3 months in order to be approved. Which means you need to have less than 3 months worth liquid savings. Depending on your specific lender and scenario above are the initial guidelines to be approved for the Making Home Affordable Modificaiton. The idea is to get your payment down to 31% of your gross income. The lender may allow a principal reduction to get your payment down to 31% of your gross which MAY end up looking likd this: 1) first reduce interest rate to see if that gets you to a payment of 31% of your gross income. 2) possibly extend the term of your loan to 40 years to get your mortgage payment to 31% of your gross income. 3) possibly if the lender allows reduce principal or Forebear principal (do not reduce it but do not charge intereest on it for the life of the loan) the idea is to get your payment to 31% of your gros income, principal interest taxes and insurance. These guidelines depend on who your investor is. Some investors may not reduce your interest lower than 3%. Also, do not be tempted to think the lender will reduce your payment to match your income so showing an extremely low income will offer you a very low payment will do the trick. Not necessarily!! If your income is too low the lender will deny you. You do have to qualify for a new reduced loan. if the lender can either short sell or foreclose and get more money they can do that per Treasury guidelines. Sometimes upon a Financial Analysis, it may make better financial sense to do a Short Sell than to take on a mortgage payment that is soo upside down it may take you 10 years or more to break even... If you decide to do a Short Sell you want an Attorney on your side to negotiate for you. Lenders typically offer Cash for Keys to help with moving expenses. Not legal advice. Lenders are not required to offer a principal reduction. For morre information Call JoAnna Jensen Legal Assistant / Realtor 01827432 925 699 5041 Legal Realty Joanna@vololaw.com ...read more
By Certified Debt Negotiators February 08, 2011
In this economy there are so many people who are facing a financial hardship.You have options. As a Certified Debt Negotiator, I can negotiate with your creditors to reduce credit card debt to free up money for your Mortgage Payment.If your worried about Foreclosure and think a Short Sale is your only option, I can give a free 15 minute consultation.It is very important to know your Lender is willing to work with you if you to keep you in your home. I may be able to help obtain a Principal Reduction to 90 -95% of the current market value.I work hard as your advocate to offer a full service solution for home owners who are in trouble.Example:Banlance of Loan $925,000. Value of home $685,000. Principal reduction to 95% of current market value$$650,750 (new loan). 30 year fixed 7.25% $4,439.00 Same loan modified, amortizing only current market value, (No principal reduction) 2% interest $2,584. big difference in savings!!! $2,584 new modified payment . Principal reduction is not always the best bet, sounds good though!!!got questions?Call me todayJoAnna Jensen,925 699 5041 ...read more
By Certified Debt Negotiators February 22, 2010
Not being able to pay your creditors due to job loss or other unforeseen circumstances can leave you feeling overwhelmed. Bill collectors will call you at all hours of the day attempting collect. A debt reduction service may be the answer for your situation, but there are scams that you will want to a... ...read more
Making sales these days is highly competitive and if you are not accepting charge and debit cards, you are missing out on sales. There are many different types of processing equipment deals as well as variables in merchant services. Learn how merchant services work and put them to use to make sales yo... ...read more