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Archive for October, 2008

What Will Lenders Do If I Lose My Job?

What Will Lenders Do If I Lose My Job?

Question: I’ve been laid off and must now go on unemployment. The prospects for a job with equal pay do not look good and I have more bills than a flock of mallards. What do I do about my mortgage? Answer: Plainly you’re in for a rough time, financially. You must pay your mortgage. Alternatively, […]

Posted in: Library
Fannie Mae & Freddie Mac: Promised Interest Savings Disappear

Fannie Mae & Freddie Mac: Promised Interest Savings Disappear

It was just a few weeks ago when Fannie Mae and Freddie Mac were seized by the Federal government. To this day it is not clear why such a seizure was necessary given that the two companies had lost roughly $5 billion in the first half of the year — but had $95 billion in […]

Posted in: News
How Do We Get Rid of the FHA Mortgage Insurance Premium?

How Do We Get Rid of the FHA Mortgage Insurance Premium?

Question: I bought a home with FHA financing. We have a monthly insurance premium (MIP) with each payment. How do we get rid of this cost? Answer: When you bought your home you purchased with little money up front, perhaps 3.5 percent down. This means a lender put up as much as 96.5 percent of […]

Posted in: Mortgages
Is Now The Time To Buy A Duplex?

Is Now The Time To Buy A Duplex?

Question: I\’m ready to purchase a 2-unit property. I\’m trying to buy and rent, hopefully with enough income to break even on the mortgage, taxes, insurance and upkeep if I can. Houses in the $400K range aren\’t that available, and given mortgage rates and perhaps $95,000 down I am lucky if rents at $2,200-$2,400 per […]

Posted in: Investing
Can I Back Out Of A Real Estate Listing Agreement?

Can I Back Out Of A Real Estate Listing Agreement?

strong>Question: What happens if you list a home with a real estate broker and then decide you don’t want to sell? Can the broker make you sell the property? Answer: No. You cannot be forced to sell. However, there can be financial consequences. A listing agreement is a contract between a property owner and a […]

Posted in: Sellers
Are Late Mortgage Payments Ever Okay?

Are Late Mortgage Payments Ever Okay?

Question: We have paid our mortgage several days after the due date but before the lender charges a late fee. Does this lower our credit score? Answer: You need to look at this very carefully. A mortgage is a contract. It has certain terms and conditions. You want to honor all conditions. In the usual […]

Posted in: Mortgages
Will Foreclosures Change The Presidential Election?

Will Foreclosures Change The Presidential Election?

The thinking it took to get us into this mess is not the same thinking that is going to get us out of it. Albert Einstein We have red states, we have blue states and increasingly we have purple states, beat-up states with substantial and growing numbers of foreclosures, states that may well decide the […]

Posted in: Foreclosures
Is It Time To Take The Tilt Out Of Bankruptcy?

Is It Time To Take The Tilt Out Of Bankruptcy?

Almost 30 years have passed since the Bankruptcy Reform Act of 1978, a time when mortgages typically had a fixed-rate and unchanging monthly costs. Back then — and until 2005 — if you ran into financial trouble bankruptcy provided a way out and a fresh start. But in 2005 declaring bankruptcy — something that was […]

Posted in: Foreclosures
Why Aren’t Predatory Loans Illegal?

Why Aren’t Predatory Loans Illegal?

“Nationally and internationally, we must be on guard against predatory lending. It is nothing more than a scam, a crime, a lie.” Alphonso Jackson, former HUD Secretary It’s doubtful that anyone who has ever looked at the mortgage industry would disagree with the sentiments offered by Mr. Jackson. Predatory loans are terrible, a scam and […]

Posted in: Toxic Loans
How To End Lethal Prepayment Penalties

How To End Lethal Prepayment Penalties

The Internet has been humming with a new mortgage debate in Washington: With apologies to Shakespeare, to have prepayment penalties or to ban them, that is the question of the day. On August 15th and within five minutes of each other, email arrived from the Mortgage Bankers Association and the National Association of Realtors arguing […]

Posted in: Library