National Mortgage Servicing Company Will Pay $63 Million to Settle FTC, CFPB Charges #bad #credit #mortgage #loans

#greentree mortgage company


National Mortgage Servicing Company Will Pay $63 Million to Settle FTC, CFPB Charges

The FTC and CFPB allege that Green Tree Servicing LLC made illegal and abusive debt collection calls to consumers, misrepresented the amounts people owed, and failed to honor loan modification agreements between consumers and their prior servicers, among other charges.

Under the proposed settlement, Green Tree will pay $48 million to affected consumers and a $15 million civil penalty. The company also will stop its alleged illegal practices, create a home preservation plan for some distressed homeowners, and take rigorous steps to ensure that it collects the correct amounts from consumers.

“It’s against the law for a loan servicer to lie about the debts people owe, or threaten and harass people about their debts,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Working together, the FTC and CFPB are holding Green Tree responsible for mistreating homeowners, including people in financial distress.”

Green Tree has become the servicer for a substantial number of consumers who were behind on their mortgage payments at the time their loans were transferred to Green Tree. Because homeowners cannot choose their servicer, they are locked into a relationship with the company for as long as it services their loans.

Illegal Debt Collection Practices

According to the FTC and the CFPB, Green Tree’s collectors called consumers who were late on mortgage payments many times per day, including at 5 a.m. or 11 p.m. or at their workplace, every day, week after week, and left many voicemails on the same day. They also unlawfully threatened consumers with arrest or imprisonment, seizure of property, garnishment of wages, and foreclosure, and used loud and abusive language, including calling consumers “deadbeats,” mocking their illnesses and other struggles, and yelling and cursing at them. The company also allegedly revealed debts to consumers’ employers, co-workers, neighbors, and family members, and encouraged them to tell the consumers to pay the debt or help them pay it. The complaint also alleges that Green Tree took payments from some consumers’ bank accounts without their consent.

The agencies also allege that Green Tree pressured consumers to make payments via Speedpay, a third-party service that charges a $12 “convenience” fee per transaction, claiming it was the only way to pay, or that consumers had to use the service to avoid a late fee.

Mishandled Loan Modifications and Delayed Short Sale Requests

According to the complaint, in many instances, Green Tree failed to honor loan modifications that were in the process of being finalized when consumers’ loans were transferred from other servicers to Green Tree. This resulted in consumers making higher monthly payments, receiving collection calls, and even losing their homes to foreclosure. Green Tree also allegedly misled consumers about their loss mitigation options. The company told some consumers who were behind on their mortgages that they needed to make a payment to be considered for a loan modification, even for programs that prohibited the company from requiring up-front payments. In addition, Green Tree took up to six months to respond to consumers’ short sale requests despite telling them it would respond much more quickly. These delays caused consumers to lose potential buyers, miss other loss mitigation options, and face foreclosures they could have avoided.

Misrepresented Account Status to Consumers and Credit Reporting Agencies

According to the complaint, Green Tree misrepresented the amounts consumers owed or the terms of their loans. This included telling consumers they owed fees they did not owe, or that they had to make higher monthly payments than their mortgage contracts required. The company often knew or had reason to believe that specific portfolios of loans it acquired from other servicers contained unreliable or missing information. In many instances, it should have known that consumers had loan modifications from prior servicers and therefore owed lower amounts. And when consumers disputed the amounts owed or terms of their loans, Green Tree failed to investigate the disputes before continuing collections.

Green Tree also allegedly furnished consumers’ credit information to consumer reporting agencies when it knew, or had reasonable cause to believe, that the information was inaccurate, and failed to correct the information after determining that it was incomplete or inaccurate – often when consumers told Green Tree about it.

Proposed Settlement Order

In addition to the $63 million in monetary payments, the proposed settlement order includes provisions that require Green Tree to:

  • establish and maintain a comprehensive data integrity program to ensure the accuracy and completeness of data and other information about consumers’ accounts, before servicing them;
  • cease collection of amounts disputed by consumers until Green Tree investigates the dispute and provides consumers with verification of the amounts owed;
  • meet certain loan servicing requirements to ensure that whenever Green Tree is involved in the sale or transfer of servicing rights, the buyer or transferee will honor loss mitigation agreements and properly review outstanding loss mitigation requests;
  • ensure that it has enough personnel and the technical capacity to handle loss mitigation requests and respond to consumer inquiries in a timely fashion, and make its loss mitigation application available to consumers at no cost and on its website;
  • implement a “Home Preservation Requirement” to provide loss mitigation options to consumers whose loans were transferred to Green Tree during the time period covered by the complaint; and
  • obtain substantiation for any amounts collected when consumers have in-process loan modifications, and for purported amounts due when there is reason to believe a newly transferred loan portfolio is seriously flawed.

The proposed order also prohibits Green Tree from making material misrepresentations about loans, processing procedures, payment methods, and fees, from taking unauthorized withdrawals from consumer accounts, and from violating the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, and the Real Estate Settlement Procedures Act.

The Commission vote authorizing the staff to file the complaint and proposed stipulated order was 5-0. The FTC filed the complaint and proposed stipulated order in the U.S. District Court for the District of Minnesota.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.

To learn more, read Making Payments to Your Mortgage Servicer and Debt Collection .

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook. follow us on Twitter. and subscribe to press releases for the latest FTC news and resources.

Contact Information

Frank Dorman
Office of Public Affairs

Free Balloon Loan Calculator for Excel #canada #mortgage #rates

#balloon mortgage calculator


Balloon Loan Calculator


Calculate the monthly payments. total interest. and the amount of the balloon payment for a simple loan using this Excel spreadsheet template.

The spreadsheet includes an amortization and payment schedule suitable for car loans, business loans, and mortgage loans.

Update 11/12/2015: The main download and the Google version now have you enter the total number of payments rather than the number of regular payments. The balloon payment is simply the final payment required to fully pay off the loan. This is a minor change but makes the calculator a bit easier to use. (You can still download the older .xls version)

Using the Balloon Mortgage Calculator

Why a Balloon Payment?

I originally created this spreadsheet to figure out a payment schedule for a car loan or auto loan. Why? Mainly because I didn’t have the cash in hand to pay for the car in one lump sum, but I knew that I would after 6 months (because after 10 years of being a student, I was finally going to have a job). So, to keep the monthly payments low at first. we set up a 3-year loan with the plan to pay the loan off completely after about 6 months.


The latest versions of the balloon loan calculator (v1.3+) take into account the fact that the regular payment and the interest are rounded to the nearest cent. The Balloon Payment with Rounding value is taken directly from the amortization schedule, which ensures that the final balance is zero.

Using the Balloon Payment Calculator for Mortgages

This spreadsheet can be useful as a mortgage calculator. particularly for calculating the balloon payment that is made when you sell your house after a number of years. However, there are many other costs associated with home buying/selling that the calculator does not take into account, such as property taxes, escrow payments, mortgage insurance, homeowner’s insurance, closing costs, etc.

Interest-Only Mortgage Loans

An option has been added to the spreadsheet to choose between monthly payments that are amortized vs. payments that are interest-only. Warning! While interest-only loans may look appealing due to the low monthly payment, you still have to pay off the loan eventually. Beware of the consumer debt spiral!

More Loan Calculators

Related Content


  • Balloon Loan Definition , From Mar 24, 2005.
  • Amortization Calculator. by Bret Whissel. An excellent web-based calculator with amortization schedule.

Disclaimer. The spreadsheet and the info on this page is meant for educational purposes only. We believe the calculations to be correct, but do not guarantee the results. Please consult your financial advisor or lending institution before making any final financial decisions.


Obama refinance mortgage rates and low 100% refinancing #mortgage #prequalification

#obama mortgage


Obama refinance mortgage rates programs

As the American housing market continues to bounce along the bottom, the Obama Administration continues to adjust the programs that it offers under the Making Home Affordable banner. The original Home Affordable Modification Program (HAMP) and Home Affordable Refinance Program (HARP) had little impact on the problem of underwater borrowers. However, revisions to the HARP program and changes to the FHA, VA and USDA refinance programs now let almost every homeowner in America to take advantage of the Obama low mortgage rates.

The Problem: Why We Need Loans for Refinancing Mortgage 100% of Value and Above

Traditionally, mortgages required at least a 20 percent down payment. In other words, if you wanted to buy a $200,000 house, you would have to come up with $40,000 and the bank would lend you $160,000. While the bank expected you to pay your loan, they knew that if anything went wrong, they could take your $200,000 house, sell it at a discount, and still come out with their $160,000 back. Over the years, private mortgage insurance products made it possible for banks to lend you up to 100 percent of your purchase price. In this instance, they would give you $200,000, and if you defaulted on your home, they would get their $160,000 back by selling the home and get their $40,000 back from the mortgage insurance provider.

Today, so many homes have lost so much value that millions of homeowners now have the equivalent of $200,000 loans on $150,000 homes. Since the home has negative equity, no bank is willing to write a new mortgage on it since there is not enough value to make them whole if you do not make your payments. Many homeowners in this situation cannot make payments on their current loans, but could make the payments on their loan if they could just get the interest rate adjusted to today s lower levels.

In an attempt to solve this program, Washington has come up with new Obama refinancing program options to help homeowners. If you have a Fannie Mae, Freddie Mac, FHA, VA or USDA Rural Development loan that you took out before 2009, the odds are that one of these programs can help you. Furthermore, all of them let you take advantage of today s record-setting low interest rates.

HARP 2.0

As revised in February of 2012, the HARP program applies to most underwater Fannie Mae or Freddie Mac mortgages. This pool includes the vast majority of the American mortgages under $417,000 that are not part of the FHA, VA or USDA program. If you have an eligible loan and owe more than your property is worth, HARP is your ticket to taking advantage of today s low rates.

While individual lenders can impose their own more stringent rules, HARP is very generous. It allows you to refinance your existing mortgage without an appraisal regardless of what your home is worth. HARP loans typically require a credit score in the 600 s and require you to have six months of current payment history and no more than one late payment in the first year. A HARP refinance will also need to leave you better off in terms of reducing your payment, switching you from an adjustable to a fixed loan or putting you into a shorter-term fixed loan so that you can be debt-free more quickly.

Government Supported Programs FHA, VA and USDA

The popular low-down payment FHA loan has a refinance program for homeowners who owe more than their homes are worth. The FHA Streamline loan lets you take advantage of today s low interest rates with only three requirements. Your payment must go down by at least five percent, the loan you are refinancing must have been taken out on or before May 31, 2009 and you must have a 12 month record of on-time mortgage payments. If you can meet these standards you can take out a streamline with no review of your credit or FICO score, no income or employment review and no appraisal. FHA has even reduced their insurance premiums to help you get more savings from refinancing. FHA refinance rates are also extremely low.

The VA s Interest Rate Reduction Refinance Loan, usually called an IRRRL or Streamline. lets veterans and active-duty military personnel refinance their VA home mortgage. The VA does not require you to go through credit underwriting and does not require your home to be reappraised. You can include all of the costs in your loan, including the VA s 1.5 percent funding fee, and you can even borrow an additional $6,000 for energy efficiency upgrades to your home. To qualify for a streamline, all that you need to do is to lower your monthly payment or change from an adjustable to a fixed rate loan or from a 30 to a 15 year loan, even if your payment goes up.

Approximately 235,000 people in 19 states that carry USDA Direct 502 mortgages or Guaranteed Rural Housing mortgages on rural properties can take advantage of the USDA s streamline program. Like FHA, the USDA streamline just requires you to have a clean 12-month payment history and to refinance to a 30 year fixed rate mortgage with a rate that is at least one percent, or 100 basis points, lower than your current mortgage. Other than that, the USDA imposes no requirements. In other words, you can refinance regardless of the value of your home, the quality of your credit or your employment status.

These aggressive Obama mortgage programs put refinancing in reach for just about every American with a conforming mortgage of $417,000 or less. If you would like to lower your mortgage payment talk to a qualified lender about which program will work for you. They will let you know how much money you can save.

Mortgage Marvel: Online Refinance Mortgage Rates, Quotes #mortgage #affordability #calculator

#mortgage marvel


Mortgage marvel The other part of the payment pays for part of the interest due on the loan. mortgage marvel Jumbo mortgages are home loans that have a higher amount than the amount of conventional loans.�Since the government is not ready for a buyer jumbo loans jumbo rates are higher than the rate of compliance. mortgage marvel

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Mortgage marvel Research shows that housing loans account for over-extension of finances more people than anything else. mortgage marvel Moving can be stressful, but inside in case it is necessary, you may be able to buy a home with a reverse mortgage. mortgage marvel

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Mortgage marvel The individual using the online options should not have a problem negotiating rates with lenders above. mortgage marvel This is where you want to work with a VA mortgage professional who fully understands the guidelines, and can guide you through the process to cover all the documentation you need, right from the start. mortgage marvel

Say goodbye to Green Tree; company merging with Ditech #bad #credit #home #loans

#greentree mortgage company


Say goodbye to Green Tree; company merging with Ditech

But the company is not closing.

In fact, Green Tree s parent company, Walter Investment Management Corp. (WAC ), is merging Green Tree with another of Walter Investment s well-known subsidiaries, Ditech Mortgage Corp. to form a new company, ditech, a Walter company .

According to a post on Green Tree s website. the full legal name of the company will be Ditech Financial LLC. but the company will operate as ditech, a Walter company.

The merger was actually announced quietly in February when Walter Investment released its full-year results for 2014, but the merger takes effect on Aug. 31.

In February, Mark O Brien, Walter Investment s chairman and chief executive officer, said the move to merge the two companies was being made to drive efficiencies within the company.

By consolidating our Green Tree and Ditech brands under the name Ditech, a Walter Company and enhancing focus on the use of technology, we will drive efficiencies through the reduction of duplicative functions and cost structures and become a stronger, more unified end-to-end mortgage company, O Brien said in February.

In a slideshow posted on Walter Investment s website in conjunction with the company s earnings in February, Walter Investment said that mortgages originated by ditech will be serviced by the same brand once the merger is complete.

Additionally, Walter said that the establishment of a single entity will improve consumer experience with the servicer and enhance retention efforts through brand consistency.

Walter Investment also said in February that the merger of Green Tree and ditech will help the company s bottom line.

The company said that additional cost-savings of at least $35 million have been identified with approximately $25 million expected to be realized in 2015 related to capturing opportunities for enhanced benefits from shared services, the consolidation of Green Tree Servicing and Ditech in the second half 2015 and a significant acceleration of automation efforts which will increase efficiencies company-wide.

According to Green Tree s website, the companies say that the transition will allow a greater focus on customers.

Combining our companies and changing our name to ditech, a Walter company is a recommitment to you, our borrowers, to provide excellent customer service and a promise to support you as partners in sustainable home ownership, Green Tree said in a post in the Frequently Asked Questions section on its website.

In a separate post on Green Tree s website, the company notifies borrowers and potential borrowers that beginning Aug. 31, all correspondence and digital communications will come from ditech.

Whether you re purchasing a new home or looking to refinance your current mortgage, ditech can help you find the right solution for your needs, the website states. We look forward to serving you as a ditech customer.

Both Green Tree and ditech have made their fair share of headlines in the last 18 months.

When ditech relaunched back into the industry in March 2014, it did so with a new business plan, including direct consumer lending, retail lending and correspondent lending.

The new ditech was formed from the assets from the GMACRescap estate, purchased by Walter Investment/Greentree Originations in November 2012.

When ditech announced its plans to come back into the market, it revealed its new business plan, which entailed a three-pronged approach.

Ditech was planning to build business segments in direct consumer lending, retail lending and correspondent lending with its 600-plus institutional partners, according to company spokesman Richard Smith.

And now, ditech will be adding mortgage servicing to its business model.

As for Green Tree, the name was sullied a bit when the Consumer Financial Protection Bureau and the Federal Trade Commission fined Green Tree $63 million in April for mistreating borrowers by failing to honor modifications for loans transferred from other servicers, demanding payments before providing loss mitigation options, delaying decisions on short sales, and harassing and threatening overdue borrowers.

As part of the agreement, Green Tree agreed to pay $48 million in restitution to victims, and a $15 million civil money penalty to the CFPB s Civil Penalty Fund for its illegal actions.

Green Tree failed consumers who were struggling by prioritizing collecting payments over helping homeowners, CFPB Director Richard Cordray said at the time. When homeowners in distress had their mortgages transferred to Green Tree, their previous foreclosure relief plans were not maintained. We are holding Green Tree accountable for its unlawful conduct.

Green Tree said at the time that it agreed to the terms of the settlement, without admitting or denying any allegations.

Mark O Brien, Walter Investment s chairman and chief executive officer, said the settlement was in the best interest of Green Tree, its consumers, its clients and its shareholders.

As a company, we have been and continue to be committed to properly serving homeowners and helping them remain in their homes, O Brien said in April. We continue to develop and deploy best practices in our servicing operations and believe these standards will serve us well as we partner with our consumers to support them in their goal to achieve sustainable homeownership.

Interestingly, after ditech was reformed it actually worked under the name Green Tree from Feb. 1, 2013 through Feb. 28, 2014, until it once again started to operate under the name ditech in March 2014.

But now that Green Tree is going away, things have come full circle.

This month in
Housing Wire magazine

The winners of our Insiders award are people who get things done, who are known throughout their companies as the “go-to” person in their department or division. They provide expertise in areas as diverse as operations, compliance and client services, but also have a reputation for going above and beyond their assigned roles to help out their colleagues, their companies and their clients.


In May of 2016 Airbnb had almost 1.4 listings on the site and raised its revenue projection for this year to more than $900 million. But the site impacts more than just hotel chains. As more investors, not just homeowners, use the site to rent out spare rooms — and even spare couches — it strains the supply of rental houses.


A funny thing happened while the mortgage process became more automated. Rather than reduce human interaction, which some skeptics anticipated, automation technology is in fact having the opposite effect. It is enabling mortgage lending to become a people-first business once again.

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Fha mortgage requirements #current #fixed #mortgage #rates

#fha mortgage requirements


FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

  • Low down payments
  • Low closing costs
  • Easy credit qualifying

What does FHA have for you?

Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties.

Financial help for seniors
Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer yes to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.

Want to make your home more energy efficient?
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.

Ask an FHA lender to tell you more about FHA loan products.
Find an FHA lender

Need help with your downpayment? State and local governments offer programs that can help. Find a program near you .

Marvel Ventures Mortgage, Inc #what #is #arm #mortgage

#mortgage marvel


About Us

Marvel Ventures Mortgage Inc. is located at 10610 S. Western Avenue on the Southside of Chicago. As a small company, we pride ourselves in establishing personal relationships that last a lifetime. Diligent service is not optional but a requirement at Marvel Ventures Mortgage. It has quickly earned us a reputation for conducting business with honesty and integrity. As a result, Marvel Ventures Mortgage was the multiple year Broker of the Year nominee for excellence in their field. Our standards have caused us to continue to receive the highest accolade in customer service. you the new and return clients.

We are dedicated to keeping up with new technologies of the mortgage industry which are designed to increase the speed and accuracy of the loan process, saving you valuable time. Our accomplished loan officers receive continuing education yearly to remain abreast of new developments in the mortgage industry and provide you service at it s best. Options abound for our loan programs, so please review the examples listed. Always remember, our goal is to provide you with loans that are tailored for your life!

Adenike (Nike) Fasanya

Ms. Fasanya is the Owner, President and Chief Executive Officer of Marvel Ventures Mortgage, Inc. She has built this company into one of the most successful, privately-owned Mortgage Brokerage firms in Chicago, with expertise in every mortgage product offered in the market today to fit today s consumer.

It is her belief that in order to be a true professional and service her customers to the fullest, she must listen to, analyze and provide strategic resources that will place them in the best loan programs suited to their circumstances.

She has a burning passion to provide the customer with complete and targeted education that, not only puts them in the best loan available, but, also, provides them with tools to remain successful homeowners throughout life.

She, therefore, demands the highest educational standards, for herself and all members of her staff through constant training and continuing education programs.

  • 1987 – Ms Fasanya received her Bachelor of Laws Degree
  • 1988 – Ms Fasanya was called to the Bar
  • 1995 – Ms Fasanya graduated and became an Associate of the Institute of Chartered Secretaries and Administrators (ICSA) – Equivalent of a Bachelor s Degree in Business Administration.
  • 1997 – She was certified as an FHA Direct Endorsement (DE) Underwriter
  • 1997-2012 – Ms Fasanya, also, has completed countless hours of Education in Loan Origination, Loan Processing, Credit and Risk Underwriting, Closing and Title Insurance, etc.
  • 2008 – She received her Certification on the Fair Credit Reporting Act from CDIA
  • 2011 – Ms Fasanya received her Master Diploma in Islamic Finance
  • 2008 – She was awarded the prestigious Certified Mortgage Consultant (CMC) designation by the National Association of Mortgage Brokers (NAMB)

Memberships and Affiliations

  • National Association of Mortgage Brokers (NAMB) – Silver Medallion member
  • Illinois Association of Mortgage Professionals
  • Illinois Association of Mortgage Broker s Political Action Committee
  • Institute of Chartered Secretaries and Administrators – (ICSA)
  • President – Parents of Academically Gifted Students (Excel 135), Orland Park, Illinois
  • Nominated for Broker – Loan Officer of the Year for 2008. (PDF)
  • Several Mortgage Industry award nominations in multiple years
  • Financial Advisor on several Boards
  • Credit Seminar Keynote Speaker
  • Contributor – The John Hannah Show – 1390 AM – John Hannah, Program Host
  • Volunteer Credit Consultant – several community agencies

Nike Fasanya – Please understand, my greatest achievement is being a Wife and Mother !

Government Help for an Upside Down Mortgage #mortgage #calculators #with #taxes #and #insurance

#upside down mortgage


Government Help for an Upside Down Mortgage

Government programs are available to help upside down mortgage holders.

A sustained housing-market slide since 2007 has turned the American Dream of home ownership upside down for a number of mortgage holders. These people may have bought their homes during the boom years of the early 2000s through 2005, but now in 2012, they may owe more than their homes are worth. Several government programs can help homeowners in this predicament by reducing principal amounts or allowing refinances to lower interest rates.


HAMP, officially known as the Home Affordable Modification Program, is intended to make a homeowner’s mortgage debt more affordable in the long-term. Federal officials designed HAMP as a way to rescue mortgage holders who lose their jobs and can’t make monthly house payments at current levels. HAMP can help, but you must show you can afford the modified mortgage. Plus, you must have obtained your mortgage by Jan. 1, 2009, and your mortgage debt must be no more than $729,750.

Modified HAMP

The federal government offers a modified HAMP program that helps people who have jobs but struggle to pay their upside down mortgages. The modified HAMP aims to increase the number of homeowners eligible for help by relaxing the debit-to-income ratio requirement to 31 percent or lower. Also welcomed into the modified HAMP are homeowners who defaulted on a previous HAMP permanent modification, as well as homeowners who defaulted on payments in a HAMP trial period plan. Similar to the original HAMP program, you must have obtained your mortgage by Jan. 1, 2009, and your mortgage debt must be no more than $729,750.


The Home Affordable Refinance Program, or HARP, is a component of the federal Making Home Affordable initiative. It helps homeowners who are struggling but current on payments refinance their mortgages. HARP can help upside down mortgage holders, provided they owe more than 80 percent of their home’s value. HARP eligibility also requires that Freddie Mac or Fannie Mae bought the mortgages on or before May 31, 2009.

FHA Short Refinance

The Making Home Affordable initiative also authorizes the Federal Housing Administration to assist holders of upside down mortgages through refinancings. It authorizes FHA lenders to forgive at least 10 percent of the borrower’s original mortgage amount and provides the homeowner the opportunity to qualify for a new FHA-insured mortgage. To qualify, the borrower’s loan-to-value ratio can’t exceed 97.75 percent.

Mortgage Foreclosure Settlement

A national legal settlement engineered by 49 state attorneys general and the Justice Department can help certain upside down mortgage owners with refinancing to lower interest rates. Loan servicers at Bank of America, Wells Fargo, Citi and J.P. Morgan Chase must provide up to $3 billion in refinancing relief to borrowers who are upside down, according to the settlement, which was negotiated in February 2012.

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    Real estate contracts between partners who are not.

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  • Got An Upside Down Mortgage? Would You Foreclose and Walk Away From Your Mortgage? #reverse #mortgage #wiki

    #upside down mortgage


    Got An Upside Down Mortgage? Would You Foreclose and Walk Away From Your Mortgage?

    by The Smarter Wallet on March 7, 2009

    Got An Upside Down Mortgage?

    It s hard to believe that it was a mere couple of years ago when homes were selling like hotcakes with multiple bids. Back then, I was wondering when we d be facing the end of the real estate bubble. Well, many of us are now living the American Nightmare: thanks to the real estate bust and subprime mortgage mess, we face foreclosures and worry about our unemployment checks running out. while we try to manage job loss and avoid debt collectors.

    These days, we re now talking about how people are facing the prospects of walking away from their upside down mortgage, or a mortgage that keeps them financially underwater. Here s what s amazing: reports are stating that 20% of homeowners (or 1 in 5 families) now owe more than what their properties are worth.

    What s frustrating to me is that this was something many of us could have probably seen coming. Many of us probably anticipated that the market would eventually receive its comeuppance sometime in the future, given how crazy prices were back then, except that we didn t do anything about it. At least I didn t. I still remember a moment when I was tempted to call out the peak of the real estate (and stock) market (I was actually spot on, in hindsight), but still remained fully invested in the stock market. Oh well we can only wish we can turn back time and do things over.

    Now believe it or not, when a basic cost-benefit analysis is done, it makes more sense for people to actually walk away from their devalued homes. But for those who are now wallowing in negative amortization and upside down mortgages the surprising fact is that they re actually sticking it out. There are people have chosen to address their debt and loan problems by working to consolidate debt or by signing up for loan modification services instead of walking away from their obligations. As behavioral economics would have it, most people don t make the rational decision of moving on and cutting their losses. Now why is that?

    Why You Probably Won t Foreclose and Walk Away From Your Mortgage

    Why is it that most people will prefer to stay put and will refuse to walk away even if it s in their best financial interest to do so?

    1. There s this thing called the endowment effect , where homeowners have the tendency to value their homes above their market price. Because people don t want to admit they ve actually lost money, they d rather stick things out and avoid selling at a loss.

    2. Homeowners place more importance on immediate outcomes than they do long-term effects. Now what does this mean? There s a visible cost to walking away that people anticipate right away, while they don t see very much material benefit to actually abandoning their homes. The impact of walking away (there s effort, time and money involved) has an immediate negative effect whereas the positive impact isn t easily felt until possibly later. Hence, people will wrongfully assume that there s a heavier cost to walking away than it is to staying put.

    Check out this interesting article on this difficult dilemma. What would you do if you re faced with an upside down mortgage?

    For those who d like help with an upside down mortgage, you may want to consider modifying your loans or seeking help with debt management. Some possible services include those provided by:

    • Debt Consolidation Care for your debt consolidation needs
    • Home Foreclosure Fighter for loan modification services
    • Lower My Bills for home refinancing, debt consolidation and debt management
    • for mortgage refinancing and personal loan needs

    But always do your due diligence before signing up with any service.

    If you enjoyed this post, you can get free regular updates through our RSS Feed. or you can have our latest posts delivered to your email inbox by supplying your address here. Your address will only be used for this purpose, and you can unsubscribe anytime. Share This: Save to Digg This! Stumble It! Submit to Reddit Email This

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    Mortgage Balance Calculator #ing #orange #mortgage

    #calculate my mortgage


    With expert guidance you can make short work of not only finding the best mortgage for your circumstances, but also understand how to manage the mortgage while you repay.

    Whether you need a loan to finance a new purchase or are consolidating existing debts, it’s a good idea to make sure you can save money – not only with the lowest rate for your credit rating but by understanding the finer print of your loan agreement.

    See the latest offers for credit cards, check if you can consolidate existing debts to save money, find out how long it could take to repay an existing balance.

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