If you are facing foreclosure you have more foreclosure defenses than you may realize. The most often used foreclosure defense is to file for bankruptcy which will buy you some time with an immediate stay of any foreclosure proceeding, but at the end of the day when your bankruptcy is discharged, the bank is going to be waiting with a motion to lift the stay on your foreclosure and push forward to foreclosure on your property. It may very well be that bankruptcy is your best alternative in the event that you have a large amount of medical bills or credit card bills or other unsecured debt to have discharged. If you are considering bankruptcy ONLY because you are facing foreclosure there are alternatives. There are several other bankruptcy alternatives. If you find that your lender or mortgage broker violated RESPA or TILA or HOEPA when your mortgage was underwritten you can have an attorney stop your foreclosure by filing a TRO or temporary restraining order on your trustee. The courts are granting these fairly liberally. This will buy you time and force your lender to the negotiating table as they will see a potentially damaging and costly suit coming and will want to mitigate their losses.
This process can stop the foreclosure and give you the time you need to negotiate a loan modification and place your lender in a bad negotiating position. This is doubly true if we find that the bank has committed a significant mortgage violation that could result in a rescission of the mortgage. We find these mortgage violations in almost ALL variable rate mortgages. Rescission, for those of you who have not read it’s description in other articles on this site results in the bank being forced to give you back all of the interest payments you’ve made from the origination of the mortgage AND all of the fees your were charged on your final settlement sheet or HUD-1. Rescission DOES NOT GET YOU YOUR HOME FOR FREE! But it does put you back into the position you were just before your loan funded and really places the bank in a painful position. The deed of trust, which is the lenders security interest in your property is REMOVED. Which means you still owe the bank what you borrowed (less the moneys you have paid to the bank over the life of the loan and the fee reimbursements) Now you still own the property and the bank is NO longer secured. They no longer have a security interest in your property so the debt becomes non-secured. This means you have taken away the banks ability to foreclose. No security interest, no right to foreclose. Rescission, which is your right if certain violations are found, is a very powerful tool to force the banks hand in modifying your loan and getting a principal reduction.
It is a wonderful and powerful foreclosure defense. You need to obtain a forensic loan audit to effect a rescission. We will be glad to look at your documents for free to determine if mortgage violations exist. If they exist, then you can choose to have the complete forensic loan audit. Now there is yet another foreclosure defense. It works whether or not you have obtained a forensic loan audit. There are distressed property Realtors’ who are experts at short sales. We happen to work with one of the best in Northern Virginia. If you are so buried in a property with hundreds of thousands of negative equity and just want out. Or, you are just thinking “screw it, I’ll let the bank have my property and good riddance! I owe way more than its worth and I’m just tired of the stress!” You might want to think again. We have a wonderful Realtor who will list the short sale AND get a buyer quick by pricing the property correctly or using one of our real estate investors and then stop the foreclosure by obtaining a quick offer and running the offer to the lender. This will stop the foreclosure while the bank considers the offer. The reason you would prefer short sale as a foreclosure defense over Foreclosure is simple. You can borrow again in only 2 years if you short sale. If you allow the Foreclosure, you will no be able to borrow for another 5-7 years. It is the worst stain on a credit report because it shows that you didn’t even try. Short sale is a good foreclosure defense… Further, if you have found violations in your mortgage documents, your lender is likely to leave you alone regarding the deficiency judgment or waive it altogether at settlement if you waive your rights to sue the bank. If you have questions feel free to contact us.
Everyone is aware that mortgages come with a lot of different fees attached. To most everyone, this also meant that the lender, or the mortgage broker was getting rich by adding these fees to the deal. Before long, someone thought they would provide a more attractive offer by making available a no fee mortgage. The name of it is impressive enough, but is there really no fees attached to it? Here is some information that will help you decide if you should look further into getting a no fee mortgage.
A no fee mortgage pretty much is what it says – no fee. At least, you won’t see them listed when you look at the paperwork on it. More good news is that you will not be paying fees at the closing table, either.
When you do finally come to the table for closing on this mortgage, it does not mean, however, that you will not need to bring any money with you. There will be some things that are not included in the no fee mortgage, and this includes things like interest between the closing date and the first payment, escrow for homeowner’s insurance and various taxes on the property.
The truth is, though, that on a no fee mortgage, there will be some fees that are added on. You, though, do not pay these fees, at closing time. Actually, the lender is providing for the cost of closing at the time – but you will be paying for the privilege eventually.
Looking at the terms of the mortgage, you will see that the fees are not listed there. This is what makes it a no fee mortgage – there must be some truth in advertising. So, the equivalent amount of the fees is placed under another category. Simply raising the interest rate a little higher in order to compensate for it easily does this.
A no fee mortgage adds the fees to the mortgage and then becomes part of it. While you get the privilege of not having to pay for these fees up front – you will still pay them – and pay interest on it, too.
When you compare a no fees mortgage with another type, separate the principal from everything else and compare totals. You will see that the overall amount of costs added is usually about the same. In the case of no fee mortgages, things have simply been shuffled around a bit.
In order to get a no fee mortgage, you may need to “qualify” for it. This may mean that you must provide a certain size down payment in order to get it. If that is true, then make sure you compare it to another lender who may only require half that amount – at the same interest rate. Some lenders will not provide more than an 80% loan to value (LTV amount, meaning that you will need to come up with the other 20%.
No fee mortgages are especially good for the short term. New no fee mortgages offer even greater savings by removing some of the costs that other companies add in. This obviously results in savings if you shop around.
Online home mortgage quotes are very similar to the quotes given by mortgage brokers in “the real world,” except lower. With the reduced cost due to a simplified application process and reduce overhead for office space and personnel, online mortgage lenders can offer financing with no fees or lower interest rates.
Looking At Fees
Fees are the hidden costs of loans. Mortgage brokers are paid in fees or points on the mortgage loan. The advantage of a mortgage broker is that they find the best mortgage rates for you. So even with their fee added into the loan, you still can expect to save money.
Online mortgage brokers have automated much of the mortgage loan process, reducing costs. As a way to stay competitive, many of these lenders have eliminated or reduced their fees.
Interest Rate Quotes
Both traditional and online mortgage brokers can give you an instant generic interest rate quote to narrow your choices from a mortgage lender. However, to get a true quote, you will need to provide detailed personal and financial information. With a traditional mortgage broker, the process can take a couple of days to process the information and meet with the mortgage broker to review rates.
Online mortgage lenders connected all their databases to be able to provide you with a near instant quote. Occasionally there can be delays in processing your information if you have recently moved or changed names or jobs.
Difference Is Sales Styles
Online and traditional mortgage brokers differ in their sales style when relaying quotes to you. A traditional mortgage broker will use sales tactics to pressure you to complete the mortgage application right there. Many people feel the need to make a quick decision rather than taking the time to process the information.
Online mortgage lenders offer a different approach; they provided the information, then wait for you to take the next step. After requesting a mortgage quote, you will receive rates either through the website or through email that you can review at your own pace. You can choose to apply with a specific mortgage lender, or decide that none of them are best for you.
To view our list of recommended mortgage lenders online, visit this page:
Recommended Mortgage
Lenders Online
It has never been harder than at the moment to get a mortgage with the current economic state. This guide has been created to provide practical tips to anyone looking to get a mortgage whether it’d be for a London or Aberdeen mortgage or anywhere in between.
Borrowing
First things first, you need to see how much you can borrow, generally mortgage lenders will allow you to borrow three times your salary or if you are buying with someone else it will likely be two and a half times of the joint salary.
There are other options to consider so don’t worry if you can’t afford to buy your ideal home using the above methods. One option lenders offer is to allow two people to buy together giving three times the salary of the larger salary and one times the lesser. Other options include if you want to rent a room out you can add this income to your salary before income assessments are calculated. It is worth searching the market to see what options lenders are offering as they often change, using a mortgage broker will help you search the market without the hassle.
Final tip for borrowing – been honest! If you hide information on debt or county court judgements held when you take a mortgage it can come back to affect you greatly, later on.
Deposits
Banks are being understandably more careful with their lending. The size of the deposit makes a huge difference not only in terms of being able to acquire a mortgage but at a decent rate. Larger deposits are needed to secure a mortgage so if you can hold on a little longer, save up a bigger deposit it will save you money in the long run. Many work overtime or take a second job and/or live at home to save money as quickly as possible. Bigger deposit -means a much better deal.
Although there are no 100% or 125% mortgages on the market as at time of writing (and unlikely soon) you do have the Family Equity Loan Plan mortgage where a parent or close family relative will take an equity stake in the property when paying for part of the home.
If you are in Scotland you also have the option of the new LIFT mortgage scheme were the government will take a stake in the property, allowing you to get that property of your dreams.
Mortgage Broker
Using the services of a mortgage broker is a good place to start. A good mortgage broker will search the whole of the market to ensure you find the best deal available whether it’d be for an Aberdeen Mortgage, London or anywhere else in the UK.
Purchasing property for the first or subsequent time can be a very exciting time in anybodys life. That said there can be a great deal of uncertainty surrounding the whole process. If you are not familiar with the territory you should always consider getting mortgage advice.
Taking out a mortgage requires consideration to be given to many things and if you’re not satisfied with the information you receive from a potential lender, then you need to seek out an independent mortgage advisor who is not attached to any lender to get that true independent mortgage advice that you really need.
External advice is always the best way to go. This is due mainly to the fact that these sort of people or organisations will normally have your interests at heart. They will generally not have any benefit from which particular mortgage deal you sign up for especially if it is not the best one for you. These sort of people will also bear in mind many factors that affect your mortgage that other people such as the lenders themselves will not have informed you of.
A very good example of this is the interest rate itself. When you get independent mortgage advice the broker or adviser will normally tell you when the best time is to sign for the mortgage deal they could recommend you delay for a couple of weeks. The reasons for this could be many but one example is that they might have heard interest rates were due to fall and your delay could benefit you with a better deal.
Most mortgage brokers have very good contacts with all the lenders. This is a great benefit as most brokers will have advance warning of special deals coming onto the market or being taken off the market and as such will advise you accordingly. This type of knowledge can benefit you greatly and as such may even save you a considerable amount of money over the term of the mortgage.
Due to the fact that mortgage brokers work in the property market they will have an idea of property trends and as such may also recommend the best times to buy or even sell if they have an idea of which way the market is moving. Again this sort of knowledge is invaluable when buying a home so you don’t inadvertently pay too much for a property.
Now that you have decided to go ahead and buy a house or even get a remortgage your mortgage adviser should be able to guide you through the process. There will be quite a lot of things that you will need to have available for example, proof of identity, pay slips, accounts if applicable, and even bank statements. Having all this paperwork will always speed up the whole process as it means the lender will not have to ask for it later. A good mortgage advisor will be able to ensure you have the right paperwork ready.
Regardless of whether you’re buying your first house or your fifth, it is never an easy or simple process organizing a mortgage, so ensuring your advisor is independent means they have no agenda other than ensuring you complete as easily as possible with the maximum of information to aid you in an informed process.
Signing for a mortgage is a big step and if you have any doubts or uncertainty then you should get mortgage advice. This advice can literally save you thousands and they will walk you through all the steps that come along with applying, accepting and signing for a mortgage.