“According to Wednesday’s report released by the Office of the Comptroller of the Currency (“OCC”) and Office of Thrift Supervision (“OTS”), there were nearly 245,000 completed foreclosures in the third quarter of 2010, which represents an 11.2 percent increase over foreclosures completed during previous quarter. The report, however, only tells part of the story as it covers only 64% of mortgages that are held by national banks and thrifts.”
Archive for December, 2010
“Starting January 31, the Federal Trade Commission has banned consulting firms from charging up-front fees for negotiating modifications of residential mortgage loans. In Nevada, the Mortgage Lending Commissioner said the constraints of the federal rule “will have substantial impact” on the number of licensed consultants for mortgage loan modifications. His office counts 39 licensed loan modification firms with 185 licensed associates in Nevada. Critics say that the ruling favors large banks, which don’t want advocates representing homeowners. As one would suspect, unethical mortgage modification firms often fail to do any work after collecting fees, and the FTC rule will prohibit mortgage modification firms from being paid in advance”
“There are very few events in life that simply should not be missed under any circumstances. In my opinion, for attorneys practicing in the Western U.S. and perhaps even others who are engaged in the battle between homeowners and their banks and servicers, this is unquestionably such an event. Max Gardner is bringing OPERATION STRIKE BACK to Law Vegas on February 18-21.”
“The National Association of Realtors released the Pending Home Sales Index for November today.”
“U.S. home foreclosures jumped in the third quarter and banks’ efforts to keep borrowers in their homes dropped as the housing market continues to struggle, U.S. bank regulators said on Wednesday”
Underwater home loan assistance for Chase homeowners may be available to those who are facing a severe negative equity situation, as there have been a wide range of homeowners who have seen their property values decline over the past months. Underwater mortgages are becoming a major problem in some areas across the nation and, for homeowners who are in a situation where they owe more on their home than their home is actually worth, outcries for solutions have been increasing.
Homeowners with Chase may have options through the Making Home Affordable Program for more affordability in their underwater mortgage as modifications have been used to assist homeowners in a negative equity situation. While interest rate reductions and term extensions have been popular among many mortgage servicers, there have been homeowners who have called for a reduction in their mortgage principal due to the fact that they have seen such a severe drop in their property value.
While Chase and other financial institutions participating in the Making Home Affordable Program may be able to offer principal forgiveness for homeowners through either the Principal Reduction Alternatives Program or from permanent home loan modifications, the use of principal reductions have not been common by many mortgage servicers. Homeowners who receive a permanent home loan modification may be able to have their principal reduced by $5000 over a five-year span if they continue to make on-time payments.
However, homeowners have called for more drastic reductions in principles as many have seen the value of their property drop to a point where a simple $5000 reduction in their principle will do little to help their situation. Yet, financial institutions who are being called on to reduce principles often point out that, when it comes to affordability and foreclosure prevention, principal reductions are unhelpful and, for this reason these banks have chosen to offer underwater mortgage assistance through other methods.
While many of the major mortgage servicers have offered some principal reductions, this, again, is not an easy option for homeowners to acquire. Yet, financial advisers do still prompt homeowners to either contact a certified housing counselor or their primary mortgage servicer if their underwater home loan is becoming problematic and they fear foreclosure. Again, not all homeowners may qualify for or have opportunities to receive principal forgiveness, but foreclosure prevention efforts on underwater home loans are still available and in place to address issues which may help homeowners in a negative equity situation avoid the loss of their home.
Wells Fargo and Wachovia Mortgage homeowners may have assistance opportunities when they are suffering from an underwater mortgage as homeowners who are facing negative equity are becoming more common and problematic across the nation. Obviously, there have been many homeowners who have asked for a principal reduction on their underwater mortgage, but there have been some mortgage servicers who have been hesitant to offer this form of underwater homeowners assistance where negative equity has become problematic.
Understandably, homeowners who are having trouble making their home loan payment when negative equity is present usually seek any home loan aid they can find so that they can avoid the loss of their home. In these cases, many financial institutions have stated that principal reductions are simply unhelpful and have opted to either expand mortgage terms or lower interest rates so that homeowners who are struggling with negative equity can avoid the loss of their home.
However, Wells Fargo/Wachovia Mortgage do participate in the Making Home Affordable Program and, for homeowners who received a permanent home loan modification, a principal reduction may be offered. According to the program’s guidelines, homeowners who receive a permanent modification may qualify for up to $5,000 in principal reduction assistance over a five-year period and those who qualify for a Second Lien Modification may receive an additional $1,250 off of their mortgage principal over the same five-year timeframe.
Yet, when it comes to principle reductions which many underwater homeowners are seeking, these options have been limited at best. While homeowners with Wells Fargo/Wachovia and other mortgage servicers have contacted their financial institution to inquire about opportunities for principal forgiveness, as there are some banks which offer principal forgiveness programs if homeowners continue to make timely payments, principal reductions have been a highly debated issue among both homeowners and banks.
Again, there are financial institutions that do offer current principal forgiveness, but homeowners who are not facing a negative equity situation feel that forgiving a homeowner’s principle is simply unfair and, there are banks who take this stance as well, stating that principal reductions do little to offer affordability in terms of foreclosure prevention efforts.
While homeowners who view their home as an investment feel that a principal reduction can be helpful since, obviously, these homeowners may want to sell their home for a profit years down the road, but homeowners who are having difficulty making payments on their underwater mortgage do have opportunities for affordability through modification efforts and proprietary assistance plans.
Homeowners who do have a home loan that is guaranteed or owned by Fannie Mae or Freddie Mac may have refinancing options through the Making Home Affordable Program, but principal forgiveness may be unavailable to many homeowners with a negative equity problem. However, homeowners are still being prompted to either consult a certified housing counselor or talk directly with their mortgage servicer about principal forgiveness options or, if homeowners are struggling to make the mortgage payment, there are foreclosure prevention opportunities which may help make an underwater mortgage payment more affordable.
Bank of homeowners may have opportunities to find more affordability in their home loan when they are in an underwater mortgage situation thanks to forgiveness plans that could offer principal forgiveness. Earlier this year, Bank of America announced their earned principle forgiveness program, which offered some homeowners the opportunity to have a percentage of their principal forgiven over time if payments are continually made. Simply put, homeowners who are able to meet their underwater mortgage payment, under certain conditions, could see their mortgage principal lowered to its market value by being in a negative equity situation at the present time.
Yet, there were also homeowners who were able to refinance their underwater mortgage through the Home Affordable Refinance Program, but these homeowners had to have their home loan guaranteed or owned by Fannie Mae and Freddie Mac. Obviously, Bank of America homeowners are not alone when they have been seeking principal forgiveness on negative equity home loans, but there have been many servicers who were hesitant to offer a reduction on a homeowner’s principal, especially if they were able to make their mortgage payments.
However, the Making Home Affordable Program does offer homeowner who receive a permanent home loan modification the opportunity to receive a principal reduction over a five-year period. Obviously, since Bank of America participates in the federal modification program, homeowners may be able to see a reduction in their mortgage principal through this option as well. The Home Affordable Modification Program states that homeowners who make timely payments will receive a principal reduction of up to $5000 over the course of five years. Also, homeowners who have a second lien on their home may qualify for a principal reduction of up to $1250 over five years, which may also be beneficial to some homeowners facing a negative equity problem on their home.
While there was the introduction of the Principal Reduction Alternative program, this was at a servicer’s discretion and, again, there have been some financial institutions who have been hesitant to use principal reductions as a way to offer affordability to homeowners. Bank of America, and other mortgage servicers, have all reportedly offered principal reduction opportunities for certain homeowners, but again, this may be limited to only specific cases as there are banks who feel principal reductions do not help with affordability or foreclosure prevention.
However, homeowners who are struggling with an underwater home loan situation may have options from Bank of America, or their particular mortgage servicer if their home loan is serviced by another financial institution, but these underwater home loan assistance plans may come in the form of modifications or interest rate reductions, rather than the forgiveness of a percentage of a homeowner’s principle. Yet, advisers are still prompting homeowners to contact certified housing counselors or simply speak directly with their home loan servicer if negative equity has become a problem and homeowners fear the threat of foreclosure may be drawing near.
Meeting undergraduate college costs can be expensive but for students who are continuing their education the cost of graduate school can be even more burdensome, and it’s for this reason that graduate students are prompted to seek out college scholarships and grant funding specifically available to individuals who are graduate students. Students who are pursuing a Master’s Degree obviously wish to avoid debt which may be associated from student loans. Understandably, students who have had to borrow money during their undergraduate career could put themselves in a difficult financial position if they must also use student loans to pursue a graduate degree.
However, there are opportunities for college scholarships and grants which can be beneficial to graduate students when it comes to paying tuition costs. While there are some popular scholarship and grant options for graduate students, many financial aid counselors feel that graduate students, and in some cases undergraduate students, do not explore the entirety of all of their financial aid options which may be available.
There are some grants which are available from federal grant programs and graduate students may fill out a FAFSA form in order to qualify for these funds. While federal grants are a very popular form of financial aid, students may qualify for specific grants which can be helpful in meeting tuition costs. As an example, the TEACH Grant is one source of federal financial assistance for graduate students who are pursuing a career in teaching or will be able to serve in a teaching career for at least four academic years.
Grants and scholarships for graduate students may be available to specific individuals who are pursuing a degree in fields, like teaching, and these opportunities may be explored by financial aid seekers. Counselors often suggest that students who are pursuing a graduate degree seek out assistance plans that are specific to their degree or career goals, as this could open up more opportunities for financial assistance from grants and scholarships.
Also, scholarships which may be available from educational institutions are also popular among many college students, as these types of scholarships can also help meet college tuition costs in their entirety. However, looking beyond institutional scholarships is something that can also benefit graduate students as students in the past have sought out financial assistance from scholarships at local, state, and even federal levels.
There are some scholarships that may help specific individuals as well, as scholarship and grants are available to men and women who may be military service members, a minority, or again, pursuing a particular career. While there is no guarantee when it comes to scholarships and grants for graduate students, heavy research has been advised so that if student loans are necessary a graduate student may keep their borrowing to a minimum and graduate with a smaller amount of debt then had they relied solely on student loans to meet their needs.
Consumers with various sources of debt which has led to a bad credit score in their life often seek out options for bad credit debt consolidation due to the fact that many feel a consolidated debt obligation will be more affordable and manageable than multiple debt obligations, which are the source of a bad credit score. Typically, consumers who seek out opportunities to consolidate bad credit debt turn to secured personal loans as these loans may bring not only opportunities for debt relief but can be more affordable than other credit consolidation plans.
Obviously, the opportunity to borrow a secured loan which can be used to consolidate bad credit debt will be heavily dependent upon an individual’s position and the severity of their bad credit situation, but also, consumers who seek out a secured loan must provide collateral before they can borrow. It’s because collateral is offered that some consumers have found affordable secured personal loan opportunities which have allowed them to consolidate their bad credit debt and begin a more affordable route to erasing what they owe.
While there are numerous financial institutions that can offer opportunities for consumers to find secured loan options, advisers often caution potential borrowers against rushing into a secured loan obligation, as there can be drawbacks to this type of debt consolidation. As the new year approaches, it stands to reason that more consumers will look to get their financial life in order and start the new year on a positive note or at least begin the process of repairing their personal finances.
Because of this, some consumers may jump at the first offer they find for a bad credit debt consolidation loan, yet there are some lenders and institutions that are not reputable who can offer these types of secured loans for debt consolidation, but it could end up costing a borrower much more over time. Secured loans, again, require collateral and if a secured loan lender charges excessive fees or interest on this type of loan, a borrower may find themselves in a difficult financial position down the road and risk losing not only their collateral but could do more damage to their bad credit score.
Yet, some advisers also suggests that consumers explore options for repaying debt obligations separately, as this could be more cost-efficient in some cases. While there are nonprofit credit counseling agencies or debt management services which may be helpful in finding solutions for a consumer’s bad credit debt situation, if one of these options is used or a consumer decides a secured personal loan to consolidate their bad credit debt is the best route for their situation, research must be done on either the financial assistance organization or secured loan lender so that a borrower will not be taken advantage of while trying to repair their bad credit and erase their debt.