What Heirs Need to Know About Reverse Mortgages-Kiplinger #bac #mortgage


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What Heirs Need to Know About Reverse Mortgages

Death of the borrower triggers the loan payoff, but the estate and heirs will never owe more than what the home is worth.

If you have a reverse mortgage, let your heirs know. Soon after you die, your lender must be repaid. Heirs will need to quickly settle on
a course of action.

See Also: Tighter Rules on Reverse Mortgages

If one spouse has died but the surviving spouse is listed as a borrower on the reverse mortgage, he or she can continue to live in the home, and the terms of the loan do not change. At the death of the last borrower, though, adult children and other nonspouse heirs must pay off the loan. They can keep the property, sell the property or turn the keys over to the lender—and their decision is “usually driven by whether there’s equity left in the property,” says Joseph DeMarkey, a principal member of Reverse Mortgage Funding.

A reverse mortgage allows seniors age 62 or older to tap their home equity. Nearly all reverse mortgages are federally backed Home Equity Conversion Mortgages. The homeowner doesn’t make payments on the loan while living in the house, but the loan becomes due at the death of the last borrower.

Heirs get an initial six months to deal with the loan payoff. And it’s to their advantage to move as quickly as possible. Until the loan is settled, interest on the balance and monthly insurance premiums will continue to eat into any remaining equity.

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The good news for heirs is that reverse mortgages are “nonrecourse” loans. That means if the loan amount exceeds the home’s value, the lender cannot go after the rest of the estate or the heirs’ other assets for payment. “The estate can never owe more than the value of the property,” says Gregg Smith, president and chief operating officer of One Reverse Mortgage.

The difference is covered by federal mortgage insurance, which the borrower pays while holding a HECM. If there is leftover equity after the loan is paid off, that money goes to the estate.

When the last owner dies, the estate’s executor should contact the lender. (Lenders keep track of databases that note deaths and will send a notice to heirs if records indicate the last borrower has died.) Loan proceeds disbursed as monthly payments will stop. If the borrower took a line of credit, that line will be closed.

When It Makes Sense to Keep the House or Sell

Within 30 days of notification, the lender will send a federally approved appraiser to determine the home’s market value. The amount that’s due to the lender is the lesser of the reverse mortgage loan balance or 95% of the appraised market value of the home.

Say the appraiser determines the home is worth $200,000 and the loan balance is $100,000. To keep the house, the heirs need to pay the loan balance of $100,000. If the house is sold, the heirs get any equity above the $100,000 loan balance.

But say the home declined in value during the housing slump and the loan now exceeds the home’s appraised value—the home is appraised for $100,000, but the loan balance is $200,000. To keep the home, the heirs will need to pay $95,000—95% of the $100,000 market value. The heir doesn’t have to pay the full balance; the government insurance covers the remaining loan amount.

If the heirs decide to sell this house, the home must be listed at a minimum of the appraised value. (The 5% difference helps cover the costs of selling.) Because all sale proceeds go to pay off part of the loan and real estate fees, the estate receives no equity. The government insurance picks up the difference on the loan.

But if there is no potential equity, heirs may decide to simply hand the keys to the lender and avoid the hassle of trying to sell the home. Known as “deed in lieu of foreclosure,” the heirs sign the deed over to the lender. “If the property was underwater, the heirs may have no interest in selling it or keeping it,” says Diane Coats, senior operational oversight specialist for Generation Mortgage.

Heirs can request up to two 90-day extensions. To get that full year, they must show evidence that they are arranging the financing to keep the house, or they are actively trying to sell the house, such as providing a listing document or sales contract.

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Cash Call Mortgage Reviews: What You Need to Know #mortgage #calculatr


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Cash Call Mortgage Reviews: What You Need to Know

Since the lead-up to the housing bubble in the mid-2000s, the mortgage industry has been dominated by direct-to-consumer mortgage originators offering lower rates and a streamlined underwriting process. As the housing market heated up, homebuyers were pressed into obtaining a quick lock on their rates and a fast turnaround on their applications, which was what these new mortgage companies advertised. For many homebuyers, the only thing that matters is getting the lowest possible rate. This is especially true in markets such as southern California, where the cost of home ownership is among the highest in the country. Chances are, if you live in or visit southern California and listen to the radio at night, you have heard the radio commercials touting a “no closing cost mortgage” by CashCall Mortgage, a division of CashCall Inc. Founded in 2003, CashCall Mortgage is among the top 30 mortgage originators in the country.

About CashCall Mortgage

CashCall Mortgage, an Orange, California-based company, operates as a centralized call center, taking loan applications directly from consumers or through the Internet. As a direct-to-consumer loan originator, the company offers a streamlined application and lending process, which reduces its costs. The savings are passed on to its customers in the form of lower interest rates. In 2015, CashCall Mortgage was acquired by Impac Mortgage Holdings Inc. (NYSE: IMH ), an Irvine, California-based mortgage originator founded in 1995. The acquisition ranks Impac Mortgage in the top 20 mortgage lenders in the country. CashCall Mortgage continues to operate as a separate division under its original name.

Mortgage Products Offered

CashCall Mortgage offers a full range of loan products, including 10-, 15-, and 30-year fixed-rate mortgages. For each of its fixed-rate loan products, the company offers a zero closing costs version on refinances. Rates on the zero closing cost loans are slightly higher than the standard version, but there are no upfront closing costs to be paid. That includes the cost of an appraisal, which is paid by CashCall Mortgage.

CashCall Mortgage also offers no closing cost jumbo loans over $417,000, and a Do Over Refinance for owner-occupied borrowers who funded a loan elsewhere in the last 18 months. For the Do Over Refinance, borrowers must provide a copy of their mortgage statement with the current fixed loan rate and mortgage term. CashCall will then offer a lower fixed rate with no closing costs, although it may come with a shorter mortgage term. The loan must fund within 30 days of the application.

Mortgage Rates

CashCall Mortgage offers several options for each of its fixed-rate loans, including a zero-cost Roll Down option, a flat $995 lender fee and two-point options.

As of May 7, 2016, the rates on the company’s 30-year fixed loan were 3.50% for a Roll Down, 3.50% for a flat lender fee, 3.375% for 0.50 points, and 3.25% for 1.25 points.

For 15-year fixed loans, the rates were 2.875% for a Roll Down, 2.875% for a flat fee, 2.750% for 0.25 points and 2.625% for 0.50 points.

For 10-year fixed loans, the rates were 2.875% for a Roll Down, 2.75% for a flat fee, 2.625% for 0.25 points and 2.50% for 1.0 points.

What Consumers Are Saying

CashCall Inc. has 204 complaints filed with the Better Business Bureau (BBB), but the vast majority of them involve the company’s consumer loan division, which has come under fire from a number of states for illegal advertising and lending practices. Reviews for its mortgage loans found on review sites such as Yelp are mixed, with about two-thirds giving five stars and one-third giving one star. Most of the reviews, both positive and negative, centered on the company’s underwriting process and customer service.

People who had a favorable experience touted the easy application process and quick turnaround, while those with an unfavorable experience complained that the process was convoluted and slow. It appears that the difference in experiences came down to the particular agent with whom they worked. The company either earned high praise for competence and customer service or criticism for poor service and indifference.


How Does a Reverse Mortgage Work – We Explain Everything You Need #mortgage #loans


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How Does a Reverse Mortgage Work?

A reverse mortgage is a loan for senior homeowners that uses the home s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. Any remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.

Eligibility For a Reverse Mortgage

To be eligible for a HECM reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. The home must be owned free and clear or all existing liens must be satisfied with proceeds from the reverse mortgage. If there is an existing mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at closing. Generally there are no credit score requirements for a reverse mortgage.

Outliving the Reverse Mortgage

Generally speaking, a reverse mortgage loan cannot be outlived and will not become due, as long as at least one homeowner lives in the home as their primary residence, continues to pay required property taxes and homeowners insurance and maintains the home in accordance with FHA requirements.

Estate Inheritance

In the event of death or in the event that the home ceases to be the primary residence for more than 12 months, the homeowner s estate can choose to repay the reverse mortgage loan or put the home up for sale.

If the equity in the home is higher than the balance of the loan when the home is sold to repay the loan, the remaining equity belongs to the estate.

If the sale of the home is not enough to pay off the reverse mortgage, the lender must take a loss and request reimbursement from the FHA. No other assets are affected by a reverse mortgage. For example, investments, second homes, cars, and other valuable possessions cannot be taken from the estate to pay off the reverse mortgage.

Loan Limits

The amount that is available generally depends on four factors: age (older is better), current interest rate, appraised value of the home and government imposed lending limits. Use the calculator to estimate how much you could be eligible for.

Distribution of Money From a Reverse Mortgage

There are several ways to receive the proceeds from a reverse mortgage.

  • Lump sum a lump sum of cash at closing.
  • Tenure equal monthly payments as long as the homeowner lives in the home.
  • Term equal monthly payments for a fixed number of years.
  • Line of Credit draw any amount at any time until the line of credit is exhausted.
  • Any combination of those listed above
  • Begin here to calculating the proceeds you may be eligible to receive: Calculate

Difference Between a Reverse Mortgage and a Home Equity Loan

Generally a home equity loan, a second mortgage, or a home equity line of credit (HELOC) have strict requirements for income and creditworthiness. Also, with other traditional loans the homeowner must still make monthly payments to repay the loans. A reverse mortgage generally has no credit score requirements and instead of making monthly mortgage payments, the homeowner receives cash from the lender.

With a reverse mortgage the amount that can be borrowed is determined by an FHA formula that considers age, the current interest rate, and the appraised value of the home. Typically, the more valuable the home, the higher the loan amount will be, subject to lending limits.

To summarize the key differences, with traditional loans the homeowner is still required to make monthly payments, but with a reverse mortgage the loan is typically not due as long as the homeowner lives in the home as their primary residence and continues to meet all loan obligations. With a reverse mortgage no monthly mortgage payments are required, however the homeowner is still responsible for property taxes, insurance, and maintenance.


Porsche 911 Carrera RS 2 #need #for #speed #wiki,ennfs,porsche #911 #carrera #rs #2.7,porsche,need #for #speed:


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Porsche 911 Carrera RS 2.7

The Porsche 911 Carrera RS 2.7 is lightweight sports car by Porsche based off of the 911S, which was the most powerful 911 variant until then.

Porsche was required to manufacture 500 units of the car to homologate the 911 for the Group 4 racing class, although approximately 1,580 units were eventually made during its production run.

The 911 Carrera RS 2.7 was upgraded to accommodate a more powerful version of the 2.7L engine along with bodywork modification including its distinctive “duck-tail” rear spoiler as well as revised suspension and brakes. Its 2.7L Flat-6 engine was later reused by other Porsche 911 models until 1975.

Need for Speed: Porsche Unleashed

In the Evolution Mode of Need for Speed: Porsche Unleashed. the Carrera RS 2.7 can be acquired for $34,000. Players have to complete the 914 Trophy tournament to unlock it in the car dealer. It appears as a Golden Era Class 2 car.

In the Factory Driver Mode, the player will be rewarded a Carrera RS 2.7 with an unique livery, once they have obtained the Porsche Test Driver licence.

The acceleration and top speed of the Carrera RS are impressive, being one of the most powerful cars of its class, although it is also one of the most difficult cars to control. Since it has a twitchy handling, the player will be punished with oversteer for inappropriate corner entry speeds. Late braking will also cause the rear to break, as the player will block the rear wheels and thus deny traction on them.

Since other rear-engine cars such as the Porsche 930 have similar driving traits, it is recommended to practice driving the car before using it in any race event or tournament.

Gallery


Cash Call Mortgage Reviews: What You Need to Know #second #mortgage #lenders


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Cash Call Mortgage Reviews: What You Need to Know

Since the lead-up to the housing bubble in the mid-2000s, the mortgage industry has been dominated by direct-to-consumer mortgage originators offering lower rates and a streamlined underwriting process. As the housing market heated up, homebuyers were pressed into obtaining a quick lock on their rates and a fast turnaround on their applications, which was what these new mortgage companies advertised. For many homebuyers, the only thing that matters is getting the lowest possible rate. This is especially true in markets such as southern California, where the cost of home ownership is among the highest in the country. Chances are, if you live in or visit southern California and listen to the radio at night, you have heard the radio commercials touting a “no closing cost mortgage” by CashCall Mortgage, a division of CashCall Inc. Founded in 2003, CashCall Mortgage is among the top 30 mortgage originators in the country.

About CashCall Mortgage

CashCall Mortgage, an Orange, California-based company, operates as a centralized call center, taking loan applications directly from consumers or through the Internet. As a direct-to-consumer loan originator, the company offers a streamlined application and lending process, which reduces its costs. The savings are passed on to its customers in the form of lower interest rates. In 2015, CashCall Mortgage was acquired by Impac Mortgage Holdings Inc. (NYSE: IMH ), an Irvine, California-based mortgage originator founded in 1995. The acquisition ranks Impac Mortgage in the top 20 mortgage lenders in the country. CashCall Mortgage continues to operate as a separate division under its original name.

Mortgage Products Offered

CashCall Mortgage offers a full range of loan products, including 10-, 15-, and 30-year fixed-rate mortgages. For each of its fixed-rate loan products, the company offers a zero closing costs version on refinances. Rates on the zero closing cost loans are slightly higher than the standard version, but there are no upfront closing costs to be paid. That includes the cost of an appraisal, which is paid by CashCall Mortgage.

CashCall Mortgage also offers no closing cost jumbo loans over $417,000, and a Do Over Refinance for owner-occupied borrowers who funded a loan elsewhere in the last 18 months. For the Do Over Refinance, borrowers must provide a copy of their mortgage statement with the current fixed loan rate and mortgage term. CashCall will then offer a lower fixed rate with no closing costs, although it may come with a shorter mortgage term. The loan must fund within 30 days of the application.

Mortgage Rates

CashCall Mortgage offers several options for each of its fixed-rate loans, including a zero-cost Roll Down option, a flat $995 lender fee and two-point options.

As of May 7, 2016, the rates on the company’s 30-year fixed loan were 3.50% for a Roll Down, 3.50% for a flat lender fee, 3.375% for 0.50 points, and 3.25% for 1.25 points.

For 15-year fixed loans, the rates were 2.875% for a Roll Down, 2.875% for a flat fee, 2.750% for 0.25 points and 2.625% for 0.50 points.

For 10-year fixed loans, the rates were 2.875% for a Roll Down, 2.75% for a flat fee, 2.625% for 0.25 points and 2.50% for 1.0 points.

What Consumers Are Saying

CashCall Inc. has 204 complaints filed with the Better Business Bureau (BBB), but the vast majority of them involve the company’s consumer loan division, which has come under fire from a number of states for illegal advertising and lending practices. Reviews for its mortgage loans found on review sites such as Yelp are mixed, with about two-thirds giving five stars and one-third giving one star. Most of the reviews, both positive and negative, centered on the company’s underwriting process and customer service.

People who had a favorable experience touted the easy application process and quick turnaround, while those with an unfavorable experience complained that the process was convoluted and slow. It appears that the difference in experiences came down to the particular agent with whom they worked. The company either earned high praise for competence and customer service or criticism for poor service and indifference.


Obama – s Loan Modification Plan: 7 Things You Need to Know #fixed #mortgage


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Obama’s Loan Modification Plan: 7 Things You Need to Know

At the heart of the President Barack Obama’s ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that’s a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren’t. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama’s loan modification program.

1. Payments, not prices. The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. “Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans),” Buffett wrote. “Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay.”

2. Thirty-one percent. To that end, the administration’s plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower’s gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower’s monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that’s not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that’s still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. “For underwater loans, if you don’t write down the balance to be less than the value of the house, people still have an incentive to default,” Green says. “Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me.”

3. Cash incentives. To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.

4. Financial hardship. The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower’s credit report. In addition, the program is designed to target homeowners who are undergoing “serious hardships”—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. “If we would have had such stringent verification over the last four or five years, we probably wouldn’t be in as bad a position as we are in,” says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. “It’s going to be a very time-consuming process,” he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration’s plan is out, lenders are free to begin modifying loans.

5. Net present value. To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn’t. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan “clever,” arguing that it would work to ensure broad participation. “When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify,” Glaser says. “The federal subsidy for the payment on the modification…tips the scale toward modification as a better deal for the investor.”

6. Second liens. The Obama plan also addresses the issue of second liens—such as home equity loans or home equity lines of credit—by offering incentives to extinguish them. But key details on this component of the plan remained unclear. “Distinguishing the second lien is really important,” Green says. “[But] exactly how they are going to convince the second lien holder to do this is not clear to me at all.”

7. Will it work? Moody argues that while the plan may reduce foreclosures for primary residences, it could lead to a spike in defaults for another group of homeowners. Although he supports the administration’s efforts to focus the initiative on primary residences, Moody notes that “it could be the case that a lot of [real estate speculators] have been just hanging on waiting to see exactly what the details are of this [plan],” Moody says. Now that it’s clear the Obama plan leaves speculators out, “we could actually see a spike in foreclosures or at least mortgage defaults among this group.”

Glaser, meanwhile, worries that lenders may soon be overwhelmed by inquiries from homeowners looking to participate. “Starting today, millions of borrowers are going to start to call their lenders to see whether or not they are eligible,” he said. “And I’m not sure that the financial services industry has the capacity to handle these inquiries.”


Need to Know – Home insurance calculator #aag #reverse #mortgage


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FAQs

+ How can I find out how many square metres my house is?

There are several ways to measure the floor area of your property. You can check the property information held by your local council, or refer to. Read FAQ

+ The building cost of a house can vary depending on the quality of fixtures and fittings. Does the calculator on the need2know.org.nz website allow for this variance?

The calculator asks about the standard of finishing and uses typical building costs to provide an estimate, so some allowance is made. However, if. Read FAQ

+ Why not base home insurance value on a $ per sq metre rebuilding cost?

The potential cost of rebuilding your home is affected by many factors (for example age, size, location and quality of construction and the slope of. Read FAQ

+ Why shouldn’t I select a Sum Insured based on another value indicator like the price I paid for my property or the rateable value?

The likely cost of rebuilding a home differs from other price indicators as it’s based on factors that are solely related to the physical. Read FAQ

Estimate your potential rebuilding cost

Check the Sum Insured on your Policy Schedule

  • Estimate the likely cost of rebuilding your home
  • Contact your insurer to adjust the Sum Insured

  • Ready to estimate what it could cost to rebuild your home? Depending on how well you know your home, the easy-to-use calculator on this site may take just a few minutes to complete or a little longer if you take more time over some of the questions.

    How reliable is the calculator?

    The calculator is intended to provide a free, easy-to-use way of estimating the potential cost of rebuilding a home. While reasonable care is taken by the provider, Cordell, to maintain the data it draws on, the estimated rebuilding cost it produces is intended as a guide only. It does not substitute an insurance valuation provided by a registered valuer or any other kind of home valuation provided by a building expert.

    Note that the calculator is not suitable for extremely large homes (in excess of 700 square metres) or high value homes where the likely cost of rebuilding would exceed $2 million.

    Using the right information

    The accuracy of the information you enter in the calculator has a bearing on its estimate of the likely cost of rebuilding your home. It’s important to enter the best information you can so the estimate is as representative of your home as it can be.

    How the calculator works

    This calculator draws on data from around New Zealand about many aspects of home construction and reconstruction. The information is updated regularly.

    The amount produced by the calculator includes anticipated construction costs and allowances for professional fees, demolition, removal of debris and GST – things people often don’t consider when thinking about the cost of rebuilding their home.

    Does it allow for Recreational Features and retaining walls?

    The calculator identifies the potential costs associated with rebuilding retaining walls and Recreational Features like swimming pools separately. If your home has any of these features, the calculator will help you identify whether you need to purchase cover or additional cover for them under your policy. However, depending on the nature and extent of the particular features in your home, you may choose to check the estimated rebuilding cost the calculator produces for these features to decide if it is sufficient.

    Does it allow for Special Features ?

    The calculator does not estimate the cost of rebuilding Special Features (as defined in IAG home policies). If you require cover for any of these items you’ll need to talk to your insurance provider and purchase additional cover.

    What doesn’t the calculator allow for?

    The amount produced by the calculator does not include fixed floor coverings such as carpets. It also makes no allowance for changes in building costs over the policy period, or the period of repair or rebuilding that would take place following damage to your home. If you wish to include an allowance for these items in your Sum Insured you will need to add them to the amount produced by the calculator.

    What happens to your information

    The information you enter into the calculator is not stored or passed on to your insurer. It’s used solely for the purposes of estimating the likely cost of rebuilding your home.

    When you’ve completed your calculation you can print out a PDF of the result or save a copy of it on your computer. That way you’ll have a record of the information your estimate is based on.

    Ready to get started?

    Below are the terms of use for this website.

    Privacy

    This website is brought to you by New Zealand’s largest general insurer, IAG New Zealand Limited (IAG ). The protection of your privacy is important to us, and we are committed to acting in accordance with the Privacy Act 1993. Please refer to the respective websites of:

    • our business divisions (State, NZI and Lantern);
    • AMI Insurance Limited;
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    • AON, Crombie Lockwood and other brokers whose products are underwritten by IAG,

    for their individual privacy policies.

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    By accessing and browsing this website you represent that you have read, understood and accepted these Terms of Use (as updated from time to time).

    Changes to the Terms of Use

    As we continually seek to improve our website, we may modify these Terms of Use from time to time. Please check these Terms of Use periodically for changes.

    Purpose and use of this website

    This website is intended for use by people living in New Zealand or with insurable interests in New Zealand to provide information on the changes to our home insurance, and the move from ‘replacement cost’ insurance to ‘sum insured’ insurance. We make no representations that it is appropriate for other purposes and we can’t and don’t accept any responsibility if it is used for such other purposes. New Zealand law governs and New Zealand courts have exclusive jurisdiction.

    Business advice information

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    Why do you need a personal injury lawyer? Joseph A #i #need #a #personal #injury


    Why do you need a personal injury lawyer?

    Why do you need a personal injury lawyer?

    Today I am starting a new series of blogs called Choosing a personal injury lawyer .

    I m going to start with the most basic question for someone who is an injury victim in an accident: “Why do you need a personal injury lawyer?”

    Consider the advantages of having a personal injury lawyer on your side

    For victims of injury accidents, there are many reasons to choose a personal injury lawyer to act on your behalf. Here are 5 of the best reasons.

    1. You need a personal injury lawyer because, unlike the insurance company, your best interests and the best interests of your personal injury lawyer are aligned.

    You want the maximum compensation possible for your injury. Your personal injury lawyer also wants to maximize the amount of recovery you can expect to receive for your injuries, because he works on a contingency fee.

    2. You need a personal injury lawyer to level the playing field with the at-fault party’s insurance company.

    Take the example of being injured in an auto accident. The at-fault driver s insurance company will have an insurance adjuster handling the claim. In a serious motor vehicle accident—for instance, where a person has been severely injured and hospitalized, the insurance adjuster will be:

    • obtaining witness statements (Witness memories are fresher closer to the accident than they are later on. Memories fade.)
    • hiring accident engineers
    • downloading “black box” data from the vehicles
    • taking photos
    • contacting the police.

    You can’t do this from your hospital bed. You need an experienced, knowledgeable personal injury lawyer on your side to do all of those things for you. You need a personal injury lawyer to level the playing field with the at-fault party’s insurance company.

    3. You need a personal injury lawyer to answer your questions and provide advice you can trust.

    Personal injury law is a specialized field of practice. Even a good general practice lawyer who occasionally handles personal injury cases won t have the knowledge and experience that comes from dealing with hundreds or thousands of personal injury cases. As your case progresses, you will need answers to your questions and informed advice on:

    • how your medical treatment will be paid for
    • what benefits are available through your own insurance company
    • documenting your injuries
    • what to communicate to the at-fault party s insurance company
    • how to navigate the legal process
    • what to expect as compensation
    • how to achieve that compensation
    • and many other matters.

    A personal injury lawyer will be able to answer your questions, explain your options, and provide the informed advice you need.

    4. You need a personal injury lawyer to provide the resources necessary to support your claim.

    You may require access to scientific, medical, and other personal injury experts to prove fault or damages from your personal injury. The other party’s insurance company won t retain these experts for you. Your insurance company won’t retain these experts for you. Your personal injury lawyer will, and he or she will pay the cost of these expensive expert reports up front. Your personal injury lawyer will have the finances to spend tens of thousands of dollars on your case if it is required. You can t do this alone.

    5. You need a personal injury lawyer to help you maximize your claim

    Your personal injury lawyer will know what payments have been made in other similar cases. As your personal injury lawyer learns more about your case, he or she will also be able to determine the best possible strategy to maximize your claim.

    As an injury victim, you need to protect yourself—you need a personal injury lawyer

    When you are an injury victim, choosing a personal injury lawyer gives you informed professional advice and experience, support throughout the claim s process, access to any required specialists, peace of mind, and confidence that you are acting in your best interests—as well as the best interests of your loved ones.

    If you are an injury victim and are concerned about the impact of your injury on your future well-being, I urge you to contact a personal injury lawyer to arrange a free consultation .

    I will deal more fully with how you can benefit from hiring a personal injury lawyer in later blogs.

    My next blog in this series will be “5 Tips to Help You Find Your Personal Injury Lawyer”.

    Do you have other ideas about why an injury victim needs a personal injury lawyer? I hope you will share your comments and feedback below!

    Share

    Great share Joseph. You have explained the importance of a personal injury lawyer in a very good way. It is very important to understand the importance of injury attorneys. These five points which you mentioned clearly explains the need of hiring a personal injury lawyer.

    I would definitely be looking for your next blog. I love reading blogs and like to share useful information among my friends and relatives. I will definitely share your blog with my loved ones. I would like to share some information about personal injury lawyers with you.

    It is seen that in most cases, the amount that you receive regarding compensation depends on how severe the injuries are generally. This means that should you have very severe injuries you will most likely receive a very large amount of money as compensation.

    Although, this is the case, it s usually difficult to take delivery of the right amount that you ll be worth if you don t know the right channels to make use of. The good side is there are many highly trained and professional lawyers who will help you in every step of the way.

    I learned a lot about personal injury attorneys by reading this article. Thank you for saying that You want the maximum compensation possible for your injury. Your personal injury lawyer also wants to maximize the amount of recovery you can expect to receive for your injuries, because he works on a contingency fee. I have never been involved in an accident before but it is good to know that hiring an attorney will help to maximize the amount of benefits that you can receive.

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    Obama – s Loan Modification Plan: 7 Things You Need to Know #reverse #mortgage #calculator


    #obama mortgage plan

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    Obama’s Loan Modification Plan: 7 Things You Need to Know

    At the heart of the President Barack Obama’s ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that’s a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren’t. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama’s loan modification program.

    1. Payments, not prices. The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. “Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans),” Buffett wrote. “Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay.”

    2. Thirty-one percent. To that end, the administration’s plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower’s gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower’s monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that’s not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that’s still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. “For underwater loans, if you don’t write down the balance to be less than the value of the house, people still have an incentive to default,” Green says. “Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me.”

    3. Cash incentives. To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.

    4. Financial hardship. The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower’s credit report. In addition, the program is designed to target homeowners who are undergoing “serious hardships”—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. “If we would have had such stringent verification over the last four or five years, we probably wouldn’t be in as bad a position as we are in,” says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. “It’s going to be a very time-consuming process,” he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration’s plan is out, lenders are free to begin modifying loans.

    5. Net present value. To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn’t. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan “clever,” arguing that it would work to ensure broad participation. “When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify,” Glaser says. “The federal subsidy for the payment on the modification…tips the scale toward modification as a better deal for the investor.”

    6. Second liens. The Obama plan also addresses the issue of second liens—such as home equity loans or home equity lines of credit—by offering incentives to extinguish them. But key details on this component of the plan remained unclear. “Distinguishing the second lien is really important,” Green says. “[But] exactly how they are going to convince the second lien holder to do this is not clear to me at all.”

    7. Will it work? Moody argues that while the plan may reduce foreclosures for primary residences, it could lead to a spike in defaults for another group of homeowners. Although he supports the administration’s efforts to focus the initiative on primary residences, Moody notes that “it could be the case that a lot of [real estate speculators] have been just hanging on waiting to see exactly what the details are of this [plan],” Moody says. Now that it’s clear the Obama plan leaves speculators out, “we could actually see a spike in foreclosures or at least mortgage defaults among this group.”

    Glaser, meanwhile, worries that lenders may soon be overwhelmed by inquiries from homeowners looking to participate. “Starting today, millions of borrowers are going to start to call their lenders to see whether or not they are eligible,” he said. “And I’m not sure that the financial services industry has the capacity to handle these inquiries.”


    How Does a Reverse Mortgage Work – We Explain Everything You Need #mortgages


    #reverse mortgage wiki

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    How Does a Reverse Mortgage Work?

    A reverse mortgage is a loan for senior homeowners that uses the home s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. Any remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.

    Eligibility For a Reverse Mortgage

    To be eligible for a HECM reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. The home must be owned free and clear or all existing liens must be satisfied with proceeds from the reverse mortgage. If there is an existing mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at closing. Generally there are no credit score requirements for a reverse mortgage.

    Outliving the Reverse Mortgage

    Generally speaking, a reverse mortgage loan cannot be outlived and will not become due, as long as at least one homeowner lives in the home as their primary residence, continues to pay required property taxes and homeowners insurance and maintains the home in accordance with FHA requirements.

    Estate Inheritance

    In the event of death or in the event that the home ceases to be the primary residence for more than 12 months, the homeowner s estate can choose to repay the reverse mortgage loan or put the home up for sale.

    If the equity in the home is higher than the balance of the loan when the home is sold to repay the loan, the remaining equity belongs to the estate.

    If the sale of the home is not enough to pay off the reverse mortgage, the lender must take a loss and request reimbursement from the FHA. No other assets are affected by a reverse mortgage. For example, investments, second homes, cars, and other valuable possessions cannot be taken from the estate to pay off the reverse mortgage.

    Loan Limits

    The amount that is available generally depends on four factors: age (older is better), current interest rate, appraised value of the home and government imposed lending limits. Use the calculator to estimate how much you could be eligible for.

    Distribution of Money From a Reverse Mortgage

    There are several ways to receive the proceeds from a reverse mortgage.

    • Lump sum a lump sum of cash at closing.
    • Tenure equal monthly payments as long as the homeowner lives in the home.
    • Term equal monthly payments for a fixed number of years.
    • Line of Credit draw any amount at any time until the line of credit is exhausted.
    • Any combination of those listed above
    • Begin here to calculating the proceeds you may be eligible to receive: Calculate

    Difference Between a Reverse Mortgage and a Home Equity Loan

    Generally a home equity loan, a second mortgage, or a home equity line of credit (HELOC) have strict requirements for income and creditworthiness. Also, with other traditional loans the homeowner must still make monthly payments to repay the loans. A reverse mortgage generally has no credit score requirements and instead of making monthly mortgage payments, the homeowner receives cash from the lender.

    With a reverse mortgage the amount that can be borrowed is determined by an FHA formula that considers age, the current interest rate, and the appraised value of the home. Typically, the more valuable the home, the higher the loan amount will be, subject to lending limits.

    To summarize the key differences, with traditional loans the homeowner is still required to make monthly payments, but with a reverse mortgage the loan is typically not due as long as the homeowner lives in the home as their primary residence and continues to meet all loan obligations. With a reverse mortgage no monthly mortgage payments are required, however the homeowner is still responsible for property taxes, insurance, and maintenance.