Struggling With Your Mortgage? 5 Ways to Keep Repossession at Bay

Industry body the refinancing mortgage of Mortgage Lenders (CML) estimates that unless action is taken, some 75,000 properties will be repossessed in 2009.

But here's the good news:

* Help is available in the form of Government schemes

* You can protect your mortgage repayments with MPPI

* You could reduce monthly repayments by remortgaging

So if you are struggling to keep up with your mortgage payments, here are 5 ways that could help keep repossession at bay:

1. Support for Mortgage Interest (SMI)

Those struggling to pay mortgage refinancing mortgage after losing their job may qualify for SMI if they are also receiving unemployment benefit. Under this scheme, the Government will pay the interest on the first 200,000.

The Government has also reduced the time people have to wait for it to kick in, from 39 weeks to 13. But exclusions do apply and not everyone will qualify for help from the scheme.

2. Homeowner Mortgage Support Scheme

People who do not qualify for SMI may be able to access the Homeowner Mortgage Support Scheme. People facing a short-term drop in their pay due to losing their job or even just their overtime, can apply to have some of their mortgage interest deferred for up to two years, with the money added to their overall debt.

The scheme is likely to help people where just one member of the household loses their job or where the loss of overtime makes the family budget too tight to manage.

3. Shared Ownership

People facing repossession may be able to sell a stake of their property to a social landlord in a shared equity deal or even sell the whole home and rent it back.

This new mortgage rescue scheme allows struggling homeowners to sell their properties to not-for-profit housing associations, and then remain either as tenants paying an affordable rent or as owners after receiving a loan from the housing association to help cut mortgage costs. But it's important to note that if you opt for the tenancy option, you will no longer own the home.

Some of these shared ownership schemes currently have only limited coverage and not everyone will be able to benefit. First port of call for advice on the scheme is your local authority.

4. Mortgage Payment Protection Insurance (MPPI)

For those worried about how they would manage if they weren't working, it may be worth considering taking out mortgage payment protection insurance (MPPI).

MPPI covers mortgage repayments if the holder is unable to work due to an accident, sickness or if they lose their job.

However, policies usually have to be in force for at least 120 days before the holder loses their job/pay and is able makes a claim. This is to avoid people taking out the cover after getting wind their employer is planning job cuts.

Once in force, the policies generally pay out for a maximum of 12 months. Most MPPI policies have fairly standard terms following an initiative by the Council of Mortgage Lenders, so the main area in which providers compete is price.

But, as with all financial products, it's always important to read the small print, particularly as some policies exclude certain medical conditions and the majority will not cover pre-existing ones.

If you're interested in an MPPI, Confused.com can quote you on a range of competitive deals.

5. Remortgage

Despite the current credit drought, there are still some great mortgage deals out there. Remortgaging to a better deal could significantly reduce your monthly repayments.

Though take note, even if you remortgage to a cheaper deal, ensure you can keep up the reduced repayments or you still may face the threat of repossession.

Finally...

...it's worth knowing that lenders are required to treat homeowners with repayment difficulties fairly, and they will often be able to help you find a temporary solution to make repayments more affordable.

So, if facing repayment difficulties, your first step should be to contact your mortgage provider to see what they can do to help.

Compare mortgages at http://www.confused.com/mortgages

Wells Fargo Loan Modification - Things to Know Before You Apply

Stuck in an unaffordable mortgage and wondering how you can qualify for a Wells Fargo Loan Modification? You are not alone-thousands of borrowers are trying to refinancing mortgage approved for a Wells Fargo loan modification program that will lower their monthly payment so they can afford to stay in their home. Unfortunately, not all homeowners will qualify for this help, so it is very important to know a few tips that the professionals know so you can increase your chances of getting the help you need and deserve.

Here are a few INSIDER TIPS that can help you when you apply for a Wells Fargo loan modification:

1. You must prove to the lender that you have suffered a financial hardship and thru no fault of your own can no longer afford the current mortgage payment. An acceptable hardship can be any number of circumstances, however the most common include a divorce or separation, job loss or income decrease, military service, adjustable rate mortgage payment increase, death of family member, or medical bills or illness. A successful borrower will provide a convincing and compelling hardship mortgage refinancing that explains to Wells Fargo your current situation, but also tells them how you plan to rectify it and your intention to remain committed to home ownership. Get help to compose an acceptable hardship letter by following an outline and a letter template to assist you.
2. Back up your story with proof of your hardship. For example, if you were ill, provide copies of the medical bills. If you were laid off, a letter from your employer. This will demonstrate that the delinquency was out of your control and you are doing your best to deal with an unexpected situation.
3. Work out a new family budget that eliminates all unnecessary expenses and then decide what a truly affordable mortgage payment would be. This is your "target" payment and the goal when working on your Wells Fargo loan modification. The new lower payment needs to fit within the lenders guidelines and meet a certain debt ratio requirement. Learn how to calculate your ideal payment so that it is affordable and meets the lenders guidelines for approval.
4. Carefully complete the required loan modification forms so that you clearly demonstrate that while the current payment is a hardship, the new lower modified mortgage payment will be affordable and sustainable. This can be tricky, but make it simple to do by providing a Current and a Proposed Financial Statement completed properly.
5. Now, put it all together into an accurate and professional Wells Fargo loan modification application by following an easy submission checklist.

The first step in getting a lower mortgage payment with a Wells Fargo loan modification is to learn and understand what the bank needs to see from you in order to grant approval. It is pretty hard to qualify for something that you do not even know the requirements for, right? Homeowners who follow a few simple steps can greatly increase their chances of success. So take the time to learn and prepare before you submit your Wells Fargo loan modification application and you will soon be on the path to secure home ownership again.

You can get the help you need to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Second Mortgage Versus Refinancing

There are times in our life that we will need some extra cash. The reason could be numerous. But what if you just don't have that kind of cash lying around when mortgage refinancing need arises. Have you considered your home as a resource? You could either consider taking out a second mortgage or refinancing your current one.

There are a lot of misconceptions surrounding these two methods. Some people see a second mortgage as adding new debt on top of old. They see refinancing as getting new loan to replace the old, nothing much changes. In this article, we hope to straighten things out for you, so next time you need some extra cash, you will know what to do.

It doesn't matter how you see it, refinancing and second mortgage are both loans. The main difference is that second mortgage is another mortgage loan on top of your old loan. And because your home already has a loan out on it, the second mortgage can't be equal to the amount of the first mortgage.

But how do they determine the amount for the second mortgage? The first mortgage is based on the purchase price of your home. The second mortgage is based on the equity that you have built into your house. This equity is the difference between the appraisal price of your home and how much you have paid towards the first mortgage.

Interest rates are generally quite high for the second mortgage as there is a greater chance of default. If you do default the first mortgage must be paid off before the second mortgage. Similar to the first mortgage, lenders offer either fixed or adjustable rate depending on your credit rating, the market and the ratio of the loan to the total value of the home.

You should only use a second mortgage to cover large amount of debt, such as credit cards, car payments, or medical bills etc. Or you can use the second mortgage as a source of capital for refinancing mortgage in business or another property.

However if you're not looking for a large payout, then refinancing is the way to go. Refinancing basically restructures your existing loan on your home. You will continue with one single payment each month.

Refinancing has several advantages. For example when you got your first mortgage your credit rating only qualified you for an adjustable rate mortgage. Once your interest rates become floating, you could end up paying more each month. But now that your credit could be better, so you can refinance and get a loan with a lower fixed interest rate.

Refinancing can also involve a reduction of the loan period. If you can afford the increase in your monthly payments, you will be able to pay off your loan faster and gain equity faster.

Depending on the type of money issues you have, either second mortgage or refinancing could be the right option for you. If you have already built a substantial equity in your home, you should always try to refinance before taking out a second mortgage.

If you found this article useful, you can get more great mortgage advice tips and tons of free investment advice at Invest Money Stocks.

This article was written by Richard Tyler - a happily retired investment guru who ran several successful businesses during his earlier years. He now shares his wealth of knowledge on investment, business and strategic wealth management at Invest Money Stocks. Ignorance is often the reason why some people are unable to harness upon what they already have to make more money while some 'in-the-know' get richer every year simply through investments. Richard sees it as a passion as well as a pleasure to share his knowledge and experience and hopes that his website will be a wealth of knowledge for those who need help in investment and wealth management matters. Invest Money Stocks covers a wide range of topics from business management, home budgeting, personal wealth management to stocks investment, options trading, penny stocks trading, forex trading, bonds, technical analysis, fundamental analysis and more.

Homeowners Are Faced With a Dysfunctional Mortgage Market

The Council of Mortgage Lenders (CML) warned mortgage refinancing the rationing of mortgages will deteriorate in 2009. The CML felt that homeowners with mortgages were being forced to cope with a dysfunctional mortgage refinancing market. Last year the net mortgage lending was 108billion and this year it is expected to be around 40billion, which is a 60% drop in net mortgage lending.

What is causing the mortgage market to be dysfunctional?

1. It started with the Credit Crunch which is defined as "a severe shortage of money or credit" back in August 2007.

2. The London interbank lending rate known as the Libor rate is still too high. This is the rate at which banks lend money to each other. The libor rate has been dropping slowly recently and it needs to be more in line with the Bank of England base rate.

3. The American Insurance Group (AIG) scandal that has now left all the banks struggling to borrow money as no one is willing to insure their obligations (mortgages) since the collapse of Credit Default Swaps or debt insurance contracts.

4. Property prices are falling monthly.

5. Many homeowners have properties with little or no equity due to the fall in house prices. There are currently no remortgage products available above 95% loan-to-value for homeowners wishing to remortgage.

6. Lenders have reduced their loan-to-value mortgage products available.

7. Lenders are only willing to lend to homeowners with a 100% clean credit history and they are scared to take a chance on anyone with a blemished financial history.

8. Anyone with a subprime mortgage or poor credit history will struggle to find a mortgage lender willing to remortgage their homes. These homeowners will be left on their lenders worst rate the standard variable rate (SVR) paying over the odds. Some lender may offer an alternative mortgage product but it will not be competitive and will certainly come with high arrangement fees.

9. Banks and mortgage lenders are not passing on the full interest rate cuts as they are made by the Bank of England. The Bank of England has just dropped their base rate to 2% which is the lowest since1951.

10. First-time buyers are struggling to find any mortgages that only require a 5% deposit.

The government has tried to introduce new initiatives over the past few months and have already nationalised Northern Rock and Bradford & Bingley. They have also put vast amounts of taxpayers' money into the banking system and last week Alistair Darling announced further tax cuts in his recent mini-budget.

It is my belief that the government and the banks should now increase the number of shared ownership properties available to first-time buyers. If we can get the more first-time buyers to start buying properties then we can start to stimulate the rest of the mortgage market. Another solution would require banks to be brave and offer a 95% loan-to-value mortgage to first-time buyers without requiring a guarantor. Currently there are two lenders that are offering this kind of mortgage but they want a guarantor to protect themselves.

A lot of initiatives have been introduced and it takes time for these changes to take effect. As confidence returns so will these changes and let's not forget that we are in a worldwide recession.

Contributing author Mark Aucamp has been providing Talk Money Blog with regular money saving expert posts and comments. Mark is recognised as an authority in the field of Debt Management. Mark has extensive experience in providing Advice & Solutions. To see if your Mortgage or Loan is invalid and unenforceable go LoanCheck for a free appraisal.

Florida Home Equity Loans Refinancing a Home Equity Loan

During mortgage refinancing last five years, Florida mortgage refinancing values have practically doubled in cities like Orlando, Miami, Tampa, Ft. Lauderdale, Clearwater, and Sarasota. Many homeowners reaped the benefits during this time and borrowed from the equity in their home. If you are part of this crowd, now may be a good time to consider refinancing your Florida home equity loan. While refinancing may not be right for everyone, it can be very beneficial to some. Good reasons to refinance include:

Better Interest Rates

Interest rates in the state of Florida are constantly changing. If you took out a fixed rate home equity loan while rates were high, or if you now have better credit, refinancing your Florida home equity loan could save you a lot of money. You'll have to be very careful though. Lower monthly payments may not offset closing cost fees. For example, if your closing costs come to $3,000 and you save $100 per month, it will take you 30 months to break even.

Avoid a Balloon Payment

Taking on a Florida home equity loan that has a balloon payment can save you money in the beginning of the loan term, but coming up with that final balloon payment can be difficult. Refinancing your home equity loan will allow you to avoid the balloon payment altogether.

Extract More Equity Cash

When dipping into your equity, it can be very hard to determine how much money to borrow. If you didn't take out enough the first time around, refinancing your Florida home equity loan will provide all of the benefits mentioned above and allow you to extract a bit more cash from your equity.

Visit Florida Lending Hub to see our Top 3 Home Equity Lenders in Florida, whether you are looking for home purchase, refinance or a home equity loan.

Refinancing Of Home Equity Loans Need Careful Consideration

Many factors go into deciding on refinancing your home equity loan. These include how much will you be able to save in your monthly payments mortgage refinancing the costs associated with the refinance home equity loan in the closing expenditures. Some lenders offer low cost refinance home equity loans and a few also extend it to "no costs" refinance home equity loans.

Its important for you to ensure that your new lender does not charge you a high interest rate or does not include any such fee that covers their cost of lower interest rate. The interest rate of refinance home equity loan should be at least two percent lesser than your existing loan.

Always think if refinancing is worth for you at your current situation. Many times the lender will not charge you for various fees like refinancing fees and legal charges.

Home Equity Refinance is beneficial as there is no need for you to pay out cash by accumulating points and closing costs on your loan which means that you do not keep accruing debt. This implies that you have your mortgage for a fewer years and your overhead balance will be reduced by a few thousand dollars. This way you will end up paying much less over the life of the loan.

But until you find a suitable refinance home equity loan, make sure you find means to pay your bills and fulfill your obligations. Seek advice from a credible source like a budget counseling organization or your creditor in case you do not know how and what to do. These people will help you to work out something that will enable you to reduce your payments considerably.

Never let your bad credit rating come in the way of your home loan refinancing, make sure when applying your credit is good or repaired. Nevertheless, some lenders do offer refinance home equity loans to the borrowers with bad credit rating or fixed incomes.

Needless to say, mortgage refinancing beware of scams, financial crooks and fake refinance lenders. Being cautious always pays off so keep a close eye on those who contact you for the home equity refinance. Check the background of the refinance home equity lender to ensure he is a reputed one. You will be better off to contact a home equity finance company instead. In fact if you have any ongoing home improvement contracts to be done, ensure that the loan proceeds will be sent directly to you.

Finally, check all the terms and conditions of the loan before you final commitment. Be careful as you are using your home as collateral!

For additional help with refinancing your home techniques, William Tellall recommends http://www.helpfulmortgagerefinanceloans.com as a trusted source of information for Home Equity Mortgage Refinancing

Working With a Mortgage Broker

As mortgage refinancing homeowner you want the best mortgage for your family. This is true whether you are refinancing your current mortgage, taking mortgage refinancing a second mortgage, or adding a home equity line of credit. Before you make a decision on any of these loans there are several questions you need answers to.

Mortgage brokers can use their expertise to quickly locate a variety of loans tailored for your individual situation. There are a number of things you need to know about these loans before you can compare and choose the best mortgage.

What is the Lock Period of the loan?

The interest rate you are offered for a given loan can change at any time. Most lenders give you a period of time where you are guaranteed this rate will not change. This is called the lock period, and as long as you close prior to the expiration of the lock you are guaranteed that interest rate. Youll want to make sure the lender does not tack a fee onto your loan for this guarantee. Make sure the points you prepay are also a part of this guarantee.

What Penalties are Built Into the Mortgage?

You will need to read the fine print and find out what fees and penalties the lender has included with your mortgage. Some lenders charge a penalty if you repay the loan ahead of schedule. If you need to move or refinance down the road this penalty could become a problem for you. When negotiating for the terms on your mortgage you could ask the lender to exclude these fees as a condition of your business. The mortgage industry is extremely competitive and you will find lenders very flexible in this manner.

What Could Prevent You From Closing on Your New Mortgage?

Once you have selected the perfect mortgage for your home, you will want to close as soon as possible. If you have submitted all the required paperwork you should be able to close before the lock guaranteeing your loan expires. Make sure all of your documents for appraisals, surveys, insurance, and lender paperwork have been filled out correctly and submitted to your lender in a timely manner.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgages for Dummies, a mortgage resource site called Mortgage Refinance Advisor, devoted to saving homeowners money with a free guidebook Five Things You Need to Know Before Refinancing a Mortgage. http://www.refiadvisor.com

Low Credit Score Home Loans Home Buying Tips

Although you can purchase a new home without knowing all the tricks and
techniques for securing a low rate, future homebuyers should educate
themselves on the home buying process.

In some states, it is mandatory for first time homebuyers to attend a
home buying workshop. If you have bad credit, these workshops are
beneficial. They teach you various techniques such as how to improve refinancing mortgage
rating, and how to find a lender that caters to bad credit home loans.

Bad Credit Rating Effect Loan Approval

For the most part, you can obtain a home loan with fair credit. In some
cases, you may even be able to get a low rate. Unfortunately, if your
credit score falls below 500, homeownership may be impossible. Even with
a credit score below 600, your loan options are limited. Thus, it is
important for those contemplating buying a home to improve their credit
rating.

Before approving a loan and offering a mortgage rate, lenders will
carefully review your credit report and score. mortgage refinancing payments, collection
accounts, excessive debts, and inquiries contribute to having a high or
low credit score. Mortgage rates are based on credit rating. Hence, if
you are hoping to get a great mortgage rate, which equals lower monthly
payments, now's the time to improve credit.

Save Enough Money for a Down Payment

Because it is difficult for hard-working people to save money for a
down payment and closing costs, various loan programs will incorporate
fees into the total loan amount. However, if you have bad credit, a down
payment can improve your chances of getting approved for a home loan.

The ideal down payment is about 20% of the home price. Nonetheless,
lenders are willing to accept smaller amounts. If possible, attempt to
have a down payment of at least 3% to 5%. Aside from boosting approval
chances, a down payment may help you secure a lower rate.

Use the Right Lender for a Bad Credit Loan

To obtain the best mortgage loan with a low credit score, you need to
use a sub prime or high risk lender. Some traditional lenders offer sub
prime loans. However, choose a lender that specializes in bad credit loans. You may obtain better rates with a bad credit mortgage lender.

View our recommended bad credit mortgage lenders online.

Also check out our recommended sources for a free instant credit report, or view our recommended online debt recovery solutions online.

Bonuses, Windfalls and Your Mortgage

Your work bonus can do more for you than help you buy Christmas presents or the latest electrical gadget.It can help you buy a home or help you pay it off a lot sooner.Investing your bonuses and extra income in your home can pay off in a big way.

Your work bonus may help you buy a home.While some lenders might look at bonuses with a suspicious eye, there are provisions in the FHA for regularly received or earned bonuses.This can help you qualify for a mortgage that you otherwise might not be able to obtain.

The 4155 (the FHA "bible") states, "Both overtime and bonus income may be used to qualify if the borrower has received such income for the past two refinancing mortgage and it is likely to continue. The lender must develop an average mortgage refinancing bonus or overtime income for the past two years and the employment verification must not state that such income is unlikely to continue."Furthermore, it goes on to say, "Periods of less than 2 years may be acceptable provided the lender justifies and documents in writing the reason for using the income for qualifying purposes."

In order to qualify your bonus as income for the purposes of the FHA, you must have pay stubs, W2s and income tax forms for the past two years or for as long as you've been working.Two years or more is optimal, but if you are applying only after a year or so, it can't hurt to make a case for your yearly bonus program to be included in your overall financial outlook.

Be careful about depending on your bonus for income if it isn't guaranteed.If your financial picture would be seriously affected by the lack of a bonus, you might want to reconsider using it as collateral for your mortgage.

One option that might drastically help your financial outlook is if you apply the bonus to your mortgage principal, which will reduce the amount of the principal that you pay interest on.Another option is to put your bonus and any other "windfall" income into a high-interest savings account and make a lump sum payment on your mortgage principal every year.However, the more frequently you pay money towards your principal, the smaller the amount of mortgage you have to pay interest on, so in many cases it is preferable to put money towards your mortgage as soon as possible.

It is very tempting to treat extra money as "free spending capital", but in the long run, you'll do a lot better to invest your extra dollars in your home or in a portfolio that will see some long-term return.

Joshua Sloan is your experienced REALTOR for San Diego real estate. Visit his website at SanDiegoRealEstateBuzz.com to find San Diego home values, property listings and more.

Mortgage Loan Modification Assistance - How to Get My Loan Modified

The home loan industry has changed stated income loans requirements if you don't know yet. Most lenders now want full documentation loans and borrowers qualifying by using traditional debt to income ratio calculations. This directly affects the high cost housing markets like California, Florida, and the tri-state area of New York, New Jersey, Connecticut as well as parts of mortgage refinancing Virginia, and Massachusetts. The reason is a lot of homeowners in these markets used adjustable rate mortgages and qualified by using stated income, stated assets and some instances no verification of employment.

The adjustments for adjustable rate mortgages (ARMs) will continue through 2010 and into 2011. Most homeowners will be unable to refinance due to loss of equity in their home, their job, or other hardship. So, their best option is to negotiate with their loan servicing company or let the home go into foreclosure. Homeowners need to understand that when they send in a payment to the lender or loan servicer, that is their primary business to collect debts not negotiate with the public to change terms or modify interest rates. Furthermore, in a majority of the cases the borrowers do not get through to the right person or worse yet call them back in a timely fashion until they are close to foreclosure.

If a borrower has a truthful hardship and the bank is slow to react or refuses to listen what happens is a foreclosure results and the borrowers credit is hurt for seven years. When you are facing this situation and getting nowhere with a business and you don't get the results you need in a timely manner, you should hire an attorney who specializes in foreclosures and loan modifications!

There are many stories from borrowers who say they most banks will not discuss your situation unless you are behind two to four months in payments. Once that occurs, your hard earned credit scores from years of being responsible are wiped out. Furthermore, you may never be eligible for a home loan at market rates for quite some time. The solution is to use a Loan Modification company that actually does have an attorney on staff to get answers and responses quickly so your situation is resolved quickly. You end up keeping your home, getting a loan modification, reducing your interest rate to an affordable level, and in some cases reducing your loan principal but there's no guarantees. An experienced debt representative from the attorney backed loan modification company will call you to see if you do qualify based on certain criteria. Although, some firms will take your money and you don't qualify. Those are the ones you have to watch out for. They hit you when you're down. Work with a company that has success, years of experience, paralegals and an attorney on staff. You will feel more at ease knowing you have the best team working on a solution for you whether it be a short sale, a deed in lieu of foreclosure, tax ramifications of short sale, or a loan modification.

A lawyer who specializes in negotiating with lenders can achieve magical results especially if they find RESPA or TILA violations to use for leverage. A real estate attorney understands how to speak their language and get the lender to negotiate. When a homeowners uses an Attorney, the lender's loss mitigation and legal department become very receptive and responsive. Get a good legal team on your mortgage refinancing to stop foreclosure and get a loan modification!

Homeowners interested in a loan modification program who are behind on their payments or have a financial hardship can apply with a Real Estate Lawyer or visit http://www.OCRealEstateLawyer.net website to have experienced paralegals, debt negotiators supervised by Attorneys who know this business.