Settle Your HELOC With Chase Bank

Over the past few years Americans consumers have been greatly affected by our current economic crisis and because of this foreclosure rates across America to skyrocket higher than they ever have before. Foreclosure is especially common with homeowners who have obtained a second mortgage (or HELOC) on their property. In the recent past many borrowers obtained this mortgage through a refinance because the market seemed great. No one knew what was to come in early 2007 when the value of homes began to drop dramatically throughout the states. (more…)

How To Get Multiple Real Estate Loans?

If an individual needs to pay off other debts while he or she already has existing real estate loans, the borrower can take advantage of various kinds of additional loans to mitigate the pressures of mounting debt.

A single lending entity, such as a bank, can offer a borrower multiple loans under specific circumstances. Primarily, one needs to meet the credit requirements of these lenders before obtaining approval for multiple loans. Aside from this, there are other factors involved in the approval of multiple real estate loans. (more…)

How Do Second Mortgage Loans Affect Financial Aid?

Second mortgage loans have a minimal effect on financial aid, which is the money that is awarded, loaned or paid to the student to assist in the payment of his college education. There are three kinds of financial aid and these are loans, scholarships and grants and work-study employment. Meanwhile, a second mortgage is a kind of loan that is secured by the home of the borrower. It is known as a second mortgage because it is the original mortgage used to purchase the home has precedence over it. The proceeds of this loan can typically be used for anything, including college education. (more…)

Loan Modification Twilight Zone

Submitted to by LadyofDarkness – Hello guys… I have a Wells Fargo mortgage. We were not late or have ever been delinquent with paying the mortgage, but was afraid that we would fall behind soon due to our high property tax increase. Late summer of last year, we contacted Wells Fargo to inquire about a modification. They did their thing over the phone and said we were “pre-approved” for a loan modification. They asked us to fax a hardship letter, a financial worksheet, and pay stubs.

Well we did. And then after a long period of waiting, we finally got some kind of answer. At the time I didn’t know that they were offering us a moratorium. I thought it was some sort of pre-trial thing for a modification. I did not agree to it at first cause the balloon payment scared the crap out of me. Concerned, I called Wells Fargo and spoke to probably about 40 different reps. They each told me that it was a good plan, a way for us to use the extra money to pay off our 3 other credit card debts. They said by the 3rd month, if I’m not able to pay the balloon payment then that’s when they will find other workouts for me that will put me closer to a modification. (more…)

How Do College Graduates Pay Off Loans?

College graduates can use several strategies to pay off their loans. First of all, it is important to determine the kinds of loans that were used, the lenders and the total amount that is owed. Then, the next step is to find out if you can request for loan forgiveness. Various organizations may pay for a certain amount of your student loans every year that you are serving with them. These include the Peace Corps, AmeriCorps, the military service, Volunteers in Service to America, Equal Justice Works and National Health Service Corps. Some graduates may also get some of their loans forgiven by teaching in certain areas, providing social work to certain communities or working as physical or occupational therapists. (more…)

How To Beat Student Loans

Going to college can be an exciting experience. Students get to meet new people, learn useful skills for their working lives and even take on new responsibilities. However, the fiscal cost of going to college can be quite high. Even with a good financial aid award package, college savings and scholarships students may still have to sign for student loans. Just because a student takes on a student loan does not mean that they are impossible to pay back. In fact, if the student meets certain criteria they may be able to have the interest paid while they are in school or even have the loan forgiven! (more…)

How Many Home Loans Are There In America?

America is one of the largest countries in the world. The standard of living in the United States is much higher than that of even established European countries. This also means that we live with a large amount more debt than the average citizen of another country as well. For example, there are millions of home loans in America today. While these loans provide a roof over a families head they do not often take into consideration what the borrower is making and whether they will be able to afford the cost of the mortgage over the long term.

So, the question is how many homeowners have a mortgage at the moment?

There are approximately 50 millions home loans in America at the moment.

In August 2009, Deutsche Bank released a report that stated 25 million mortgages would be underwater by 2011. This astounding figure represents a projected 48% of all U.S. home loans. Deutsche estimates that prime conforming and prime jumbo mortgages will be 79% of all home loans. They estimate that 41% of conforming and 47% of jumbo loans will be underwater. (more…)

Free Online Mortgage Calculators

When it comes to purchasing a new home one of the basic questions a potential buyer has is how much their monthly payments will be. It is very important for an individual to know exactly how long it will take to pay off the mortgage and how much the monthly payments will calculate to. Many people are just not aware of the fact that lenders have their own complex formulas they use to determine how much the borrower can really afford. One way for an individual to find out for themselves how much they can afford is by using a mortgage calculator. (more…)

I don’t know what to do at this point, other than keep begging for a loan modification

By forum member, Ms Thistle –  Hi everyone –

Wow. I can’t tell you how much better I feel having stumbled upon this place! I’ve felt so lost in this process, and we are told we have a unique situation.

Our story in brief (because it’s long, I’m only giving the highlights!): We live in a rural area of Northern CA, where the economy was already somewhat depressed before all this hit. We had a 5/1 ARM, and we were clear on the terms but planned on refinancing – we felt financially strong and had well over 125K++ equity, at one point, in our home. We took out a second, invested in a small rental for future income. We tore out the master bath, thinking we would redo it.

However, our ‘wealth’ turned downward over the coming years: we had two children, we acquired a lot of debt from my failed business and bills, etc. We went from almost no debt to 30K in the last 8 yrs. We kept thinking somehow we would turn it around, but these last two years has seen a slooooow snowball getting worse and worse.

A little over a year ago, I saw what was coming down the road with the economy and started trying to refi (all told, we tried 3 x in the last year and a half). We were told over and over how great we looked, regardless of our debt to income ratio we had a credit score of over 700+, our home while it had lost equity still was good (used to be almost 800+). Sadly, I got a loan agent that was not savvy at all, and she dragged her feet, constantly messing up and misquoting,etc – during this time, a span of 9 months or so, our appraisal and lock expired, requiring another one, and during this time our home had lost a lot of value in the market. Not to mention we now had a ripped out master bath, adding to the loss in value. (more…)

Why Loan Modification Programs Don’t Work

This video is another wanna be expert on Fox Business News. Mary Tootikian, author of Stunned in America, explains on how to repair the housing market. But in reality, she does not know what the hell she is talking about. I feel we have a nation plagued with fools giving advice to fools. This madness must stop!

The facts are that we need to get through this economic crisis as fast as possible in order to repair our economy on Main Street. Unfortunately, it is not a great thing to say, but helping homeowners who cant pay or afford their homes is not good for the economy and a complete waste of time for mortgage servicers. They know this and it is time that Main Street understands this.

I hate to see people struggle, but the people on Main Street need to know when to hold em and when to fold em. As bad as it may sound, we all need to look in the mirror and take responsibility for our own actions. Americans need to stop blaming, bitching and crying.  We need to take this mortgage, debt and credit medicine down in one big gulp. It is time to stop blaming government, banks and everyone else, but ourselves.

Financial literacy starts with self accountability. Now is the time for people on Main Street to start being accountable and stop whining.

If you disagree with me, please explain to me how whining, bitching and not looking in the mirror is going to help you or any other homeowner?

Home Loan Limbo: Moe Bedard In The Portland Business Journal

By Courtney Sherwood – And nobody — not the loan servicers on the front lines, not the U.S. Treasury which designed this program, not the officials charged with keeping it on track — seems to have a solution.

Some question effectiveness

Moe Bedard, who runs, a California-based information clearing house and community forum, says mortgage modifications moved more quickly before the federal government intervened. He has worked with thousands of struggling borrowers since 2007. (more…)

Did Credit Agencies Aid Wall Street In Committing Fraud?

The rating agencies made public computer models that were used to devise ratings to make the process less secretive. That way, banks and others issuing bonds — companies and states, for instance — wouldn’t be surprised by a weak rating that could make it harder to sell the bonds or that would require them to offer a higher interest rate.

But by routinely sharing their models, the agencies in effect gave bankers the tools to tinker with their complicated mortgage deals until the models produced the desired ratings.

“There’s a bit of a Catch-22 here, to be fair to the ratings agencies,” said Dan Rosen, a member of Fitch’s academic advisory board and the chief of R2 Financial Technologies in Toronto. “They have to explain how they do things, but that sometimes allowed people to game it.”

Read more from the NY Times

Can A Retired Couple Get A New Home Loan?

As a retired couple financial planning should be characterized as prudent, less aggressive and conservative. How a new home loan would fit into your unique financial mix would be best for a financial adviser to answer. What a new home loan does to your life’s pro forma, is it takes away from your pension and interest generated income, which is typically the mode in which retired couples receive their household income.

If you’re asking if lenders tend to prohibit loans to retired couples, the answer is no. There are a number of legally definable discriminatory factors that lenders will run into if they officially did this; the least of which is age discrimination. The heaviest factor that the lender will weigh against granting a mortgage to a retired couple is income and of course: the bank will look at the event of the mortgage’s full maturity and the borrower’s ultimate capacity to repay the full amount. (more…)

Risky Negative Amortization Loans

In this PBS video, a retired couple with a free and  clear  million dollar home is convinced by a mortgage broker to take out a risky refinance loan.  Unbeknownst to them, the type of loan they were steered into is called a negative amortization mortgage. This type of financing is also sometimes called Pick a Payment, Flex Pay or Option ARM loans.

Nightly Business Report profiles a these homeowners who was surprised by the risk factors of a this mortgage.