The Robo-signing settlement was finalized in February of 2012, and the major benefactors were supposed to be homeowners in need of mortgage relief as well as people who lost their homes to foreclosure, potentially because of mortgage and bank errors. It was discovered that mortgage companies and banks were rushing through the process on many of the homes they foreclosed on, neglecting to check important paperwork and take care of their due diligence. Homeowners were assured they would get relief as a result of this settlement, either by modifying their mortgages or unloading their homes through short sales instead of foreclosure and other remedies. There has been little news about how advantageous this settlement has been to homeowners who are still struggling with mortgage payments and those who lost their homes anyway.

The National Mortgage Settlement Act required the country’s largest banks to help their borrowers stay out of foreclosure. However, the housing situation is still so volatile and confusing, many homeowners are unsure about what they qualify for and what options are on the table. Most of them are hesitant to approach their lenders for any kind of modification, and refinancing is difficult because home values remain low while mortgage payments and costs continue to soar.

Homeowners who have not yet taken advantage of the robo-signing settlement should do what they can to benefit from this national action. Unlike the Home Affordability Modification Program (HAMP), this program is paid for entirely by the banks. If you asked for a modification before this settlement was reached and you were denied, ask again. The country’s largest financial institutions have been called upon in the courts to make it easier for you to keep your home. If loan modification is not enough to help you, talk about the option of a short sale so you do not have to endure a foreclosure. When you sell your house in a short sale, you will still be without a home to live in, but the credit damage and the blow to your financial security will be slightly less with a short sale. You can also work with your bank on negotiating your move-out date and, in some cases, getting a bit of financial help to find a new place to live, especially if you leave your house in good condition.

Politically and financially, nearly everyone agreed that the robo-signing settlement was a good thing for consumers, homeowners and the country as a whole. The only flaw has been in the administration of the settlement. Funds are available for the banks and mortgage companies to modify loans and work with their borrowers to keep them in their houses or release them through short sales, but the programs are not being utilized as much as they could be. If you find yourself struggling with your mortgage because of an interest rate that is too high, monthly payments that are out of reach, or any other reason, talk to your lender and ask for help.

When you’re ready to speak to a lender about getting pre-qualified for your new home, contact one of my professional mortgage brokers. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

This post was written for Growing Money by Stephen K Hachey. Stephen is a licensed Tampa real estate lawyer specializing in loan modifications, short sales, foreclosure and much more. He is also the owner of his own practice, the Law Offices of Stephen Hachey, PA. This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at floridarealestatelawyer.org

Housing is one the major issues concerning the U.S. government recently. For that reason, several preventive measures have been developed to keep the soaring number of foreclosures under permissible limit. Some of the more prominent ones are discussed in this article.

Home Affordable Modification Program (HAMP)

Under the leadership of U.S. President Barack Obama, a number of mortgage relief programs were floated in February 2009 so as to rescue the millions of underwater borrowers from an impending foreclosure. One such pro-consumer relief program is the HAMP. According to the mandate set by the Obama administration, HAMP is supposed to provide the following advantages to struggling mortgage borrowers:

• Lenders are liable to cut down on the interest rate charged by them on the mortgages taken out by the existing underwater borrowers. It should be noted that the modified payment amount can never be in excess of 38% of a borrower’s income.
• Lenders will have to further reduce the monthly payable amount to the tune of 31%. In this case, lenders will get the necessary assistance from the Treasury. However, for that, they’ll have to reduce the principal amount owed to them by the borrowers.

Home Affordable Foreclosure Alternatives (HAFA)

Borrowers who are unable to get a stable loan modification done but are eligible for the HAMP can take advantage of this mortgage relief program (i.e. HAFA). Moreover, people who are looking into the eyes of a foreclosure can also come under the HAFA program. It will provide financial assistance to those borrowers who are intending to opt for a short sale or Deed-in-Lieu (DIL) of Foreclosure as a last resort. Here are some of the advantages that HAFA provides to the underwater mortgage borrowers:

• Borrowers will be allowed to opt for a DIL or Short sale. In this regard, lenders cannot oppose such moves of the struggling borrowers prior to initiating any sort of foreclosure proceedings against their properties.
• Eligible borrowers are liable to receive $3,000 as monetary assistance from the federal government. This is a relocation compensation for the outgoing homeowner.

Safe Haven Program

This mortgage relief program is aimed at those borrowers who are not in a position to afford their existing homes, but have a considerable amount of income. The Safe Haven program is conducted by the HUD-approved housing counselors. In this program, housing counselors work out a debt repayment plan after reviewing the financial condition of the underwater borrowers. Here are some of the advantages of the Safe Haven Program:

• These non-profit housing counselors will negotiate with the borrower’s lender and plead with them to reduce the existing monthly mortgage payment amount. Moreover, they also assess an action plan of 90 days in duration on behalf of the borrowers.
• They’ll also create a budget for the borrowers based on the financial information provided by them. Under this program, housing counselors evaluate the performance of the borrowers for a period of 90 days.

Apart from that, housing counselors will refer a borrower’s case to his/her lender.

When you’re ready to speak to a lender about getting pre-qualified for your new home, contact one of my professional mortgage brokers. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

This article was contributed by Selena Cowell. She is a professional writer for Mortgagefit Community. She has written many of her articles on mortgages, refinancing, loan modification, real estate trends, real estate markets, and more!

So what’s really out there these days for home financing? Between the news, friends, family, talks in shopping lines, etc., does anyone know if they even want to consider buying or refinancing a home for a lower payment? It can be a challenge. Many changes have occurred in the industry with more to come.

Even with the best case scenario: high credit score; assets; low debt; good job; the process may not be as easy as you remember. Indeed, the process takes longer and sometimes requires more documentation. When you think about it, someone who doesn’t know you is going to give you their money or someone else’s money that was entrusted to them.

Don’t take “no” for an answer. Find out why they think “no” is the answer. Work around the issues. If the debt-to-income ratio is too high, ask about lowering it. There are ways to do this that don’t require cash. Ask, “What can I do to change the outcome?”

Your credit score can be re-scored for the better through the credit agency used by your mortgage professional. In the end, be sure you entrust your loan to someone willing to do everything possible to make the experience a happy one!

When you’re ready to speak to a lender about getting pre-qualified for your new home, contact one of my professional mortgage brokers. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

You may be able to afford more home than you wish to spend. Start out with an idea of how much of your income will be left after the mortgage payment and utilities. This is the amount you will have for everything else you want and need your income to cover: food, clothing, car payments, insurance, social activities, etc.

Your mortgage lender will determine what mortgage payment you qualify for by using your income, credit score, current debt (car payment, credit cards, etc.) and the down payment you will be making. The amount the lender decides you qualify for should include hazard insurance, taxes, and mortgage insurance, if applicable. There are guidelines as to the percentage of income that should be used for fixed monthly payments, including the mortgage payment. These vary according to mortgage programs. A conservative amount for your debt-to-income ratio, including the mortgage payment, is 36%. This is the percentage of your income used for house payment, credit cards, auto and other installment payments. You could be approved for a mortgage with a much higher debt ratio.

Find a mortgage lender you feel you can trust and are comfortable with during the transaction. This is one of the most important relationships you will build involving what could be the largest investment of your life!

When you’re ready to speak to a lender about getting pre-qualified for your new home, contact one of my professional mortgage brokers. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

Even if you have a handyman on speed dial, having a basic set of tools in your home is always a good idea.

Take stock of your current tools. If you just purchased your first home or don’t consider yourself very handy, you may find you don’t have sufficient tools to start with. It can be overwhelming when you see hundreds of tools on display in hardware stores, but you really need only a few basic ones in your toolbox.

• Hammer
• Rubber Hammer or Mallet – Great for tapping together self-assembled furniture.
• Tape Measure – Generally, a 25ft one should be fine.
• Staple Gun – Comes in handy for tacking down loose upholstery.
• Level
• Utility Knife
• Scissors
• Safety Glasses
• Flashlight – Carry an extra set of batteries.
• Putty Knife
• Sandpaper
• Screwdrivers – Both Flat and Phillips
• Drill – Include screwdriver bits.
• Tape – Duct tape, electrical, and packing tape.
• Pliers
• Ice Pick or Awl – Can open some locked doors.
• Wrenches
• Nails and Screws – Assorted

If you’re still overwhelmed, you can always just pick up a ready-made kit, such as

Stanley 94-248 65-Piece General Homeowner’s Tool Set

If you’d like to add some handyman/woman advice to this post, please feel free to leave it in the comments below. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

The mortgage stories in the news that continue to dominate the headlines always revolve around the “tightening” of credit and how hard it is to obtain a mortgage these days.

We still field phone calls daily where the person will say, “The last time I did this, it was not this hard and they did not ask for all of this information.” Keep in mind that it has been this “way” now since 2008. Almost 8 years!

I have listed below the most common items an underwriter asks for that drives people nuts.

Bank Statements

• In this internet/tech-savvy world we live in, folks always want to use internet printouts of their bank accounts instead of actual bank statements. These printouts typically do NOT show your account number and/or your actual name for security purposes. You can usually pull your actual statements from most banks online, but if not, you will need to make a trip down to the bank. If the bank will only provide printouts, then each page must be signed, stamped, and dated by the bank representative.

• All large deposits not direct deposited from your payroll must be proved with a paper trail and explained. For example, if you have $500 deposited into your savings account, be prepared to show a copy of the check that was deposited and write a quick explanation of what it was for. You may have to go to your bank to obtain a copy of the check.

• Most bank statements have a blank last page or perhaps a page two with either nothing on it or nothing you would consider relevant. This page will be required from the underwriters.

• Your Earnest Money Deposit (EMD) check must clear your account if you want credit for it at the closing table. Make sure your realtor has deposited the EMD check ASAP, since some agents will hold onto the check for a period of two or three weeks without you knowing about it.

Income

• When providing copies of tax returns, most people want to send only the first two pages of the Federal 1040. All schedules of tax returns are required and page two must be signed and dated.

• Many pay stubs provided do NOT show a current year-to-date income. If they don’t, the lender will be required to obtain a written verification of employment form to be filled out by your employer. The underwriter must ensure that your current pay is stable.

Identification

• You’d be surprised how often the drivers license provided is expired or will be expiring in the next month prior to your loan closing. You must have valid identification at the time of closing.

• It’s a problem when the address on the drivers license does not match the address that the borrower states they live at on the mortgage application. Sometimes all that’s needed is visual verification of the sticker on the back of the ID showing the address change. If you have not updated your address, you may be required to do so or write a letter of explanation of why you haven’t.

These items should be discussed with your loan officer upfront at the time of application. This may require a few extra conversations or some back-and-forth until there is a clear agenda of what needs to be done. Again, your local mortgage broker has the experience and customer service background to help you so you don’t feel like you’re getting the runaround.

This guest post was written by Kirk Chivas. Kirk is a licensed Loan Officer and co-owner of First Commerce Financial, LLC, a mortgage brokerage based in Wixom, Michigan. With over 17 years of experience, Kirk has committed to providing Michigan residents with accurate and honest mortgage advice. If you have any questions about your current or future mortgage needs, please feel free to ask Kirk a question on Twitter.

Albuquerqueans, when you’re ready to speak to a lender about getting pre-qualified for your new home, contact one of my professional mortgage brokers. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

Congratulations! You’ve found your perfect home and you’re getting ready to move into it. You’re feeling excited and looking forward to starting your new life in your new home. With all the excitement surrounding your move, it can be difficult to stay focused on the things you need to do to make the move a success.

Aside from all the packing, sorting, and planning, including making a moving checklist, there are four things you can do as soon as you get your keys that will make moving in a smooth and enjoyable experience.

1. Change the locks.

It might sound a bit drastic, but just imagine how many other people could have copies of the keys to your front door. Investing in a locksmith and deadbolts can help give you the peace of mind that it is you, and only you, who has access to your new home.

2. Change your address and services.

The sooner you change your address and all your services over, the sooner you’ll be getting your mail delivered and be able to use services in your new home.

Things like broadband and telephone service can take a few weeks to sort out, so do this as soon as you have your move confirmed. Other things to remember include:

• Redirecting mail for anything you may have overlooked.

• Changing addresses on bank accounts.

• Finding a new doctor and dentist.

• Booking a moving company.

• Notifying agencies such as the DMV, voter registration, and USPS.

• Notifying gas, power, and water companies, and taking meter readings at both ends.

3. Undertake messy tasks.

If you know your home is going to need some renovation, taking care of messy, invasive, and complicated jobs before the furniture arrives can be a great way to reduce your stress. Think about whether you will need to:

• Wallpaper.

• Sand floors.

• Paint walls or woodwork.

• Install wiring.

• Plaster ceilings or walls.

• Install new carpet.

All these jobs are best performed without furniture and people on property, so do as much as you can before you move your belongings in to make your life a lot easier.

4. Carry out tasks from your home inspection.

If your inspection brought up some things that are inexpensive and easy to remedy, it’s a good idea to do them now rather than leave them until later. Consider whether you need to buy new smoke alarms, fire extinguishers, carbon monoxide detectors or if you need someone to service the hot water heater, stove, or other gas appliances.

This guest post was written by James Harrison, who works as a relocation consultant. He regularly contributes write-ups to business websites and blogs with most of his writings based on tips for business removals, business relocation, and marketing techniques. In his free time, he plays sports, mainly soccer, and plays chess. He is also passionate about reading fiction and traveling.

And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

Many clients have asked me over the years how to figure out just how much house they can afford. There’s so much more than the purchase price to consider when determining how much house you can actually afford. For example, consider the following items as typical expenses in home ownership:

• Mortgage Payment
• Taxes
• Insurance
• HOA Fees
• Maintenance

Closing Costs

Further, being aware of all the closing costs that can be associated with your new home purchase can help avoid unpleasant surprises later. Here are some common closing costs:

• Earnest Money
• Down Payment
• Loan Costs
• Recording Fees
• Prepaids
• Title Policy

Mortgage Resources

On my Albuquerque Mortgage Pros page, you’ll find several loan officers that will be able to assist you in determining a house price you can be comfortable with. Further, they can provide you with a pre-approval letter so you can make a strong offer when you find the right home. This page also features a Mortgage Calculator to help you estimate what your mortgage payment would be, including taxes and insurance.

Home Search Tips

When searching for your dream home, take this tips to heart…

• What is the location to your job and schools?
• What is your lifestyle?
• Do you need to be close to outdoor recreational activities or would you be happier located in a neighborhood with a vibrant nightlife?

In other words, make a list of your wants vs. needs to help you focus on your home search.

Search Online

Start looking at homes on the Internet. According to the NATIONAL ASSOCIATION OF REALTORS® in a 2014 study, ninety-two percent of buyers used the internet in some way in their home search process! Searching the Albuquerque MLS will help you become familiar with the inventory of homes available in your price range.

Open Houses

Visiting open houses will help you focus on the features and locations that are important to you. This is especially important if you are relocating to Albuquerque and are unfamilar with our area. You can search for open houses in Albuquerque to make finding them easier.

Inspections

There are many different types of inspections that are available when purchasing a new home. It is important to consult with your real estate agent to determine what home inspection you should have performed. Here is just an example of some of the inspections available.

• Full Home Inspection with warranty
• Pest and Dry Rot Inspection
• Duct inspection Inspection
• Pool inspection Inspection
• Radon Inspection
• Mold Inspection

By doing just a little “homework,” you’ll be well on your way to a wonderfully successful home purchase!

Do you have any home searching tips to add to this post? Please leave them in the comments below. And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!