Mortgage restructure might be in your future

The housing market crash of 2008 devastated millions of families, many of which are still in battle. Job loss, foreclosure, short sale, bankruptcy, among other financial crises left mortgagees under the dust, behind on billing statements and in a search for a more promising monetary life.

Fortunately, the government recognized this problem last August. During a speech in Phoenix, President Barack Obama said, “We should give well-qualified Americans who lost their jobs during the crisis a fair chance to get a loan if they’ve worked hard to repair their credit.”



The “Back to Work - Extenuating Circumstances” lending program does just that — across the United States, the mortgage restructure offers a second chance by allowing families to apply for a new mortgage only 12 months after losing their home.

The Federal Housing Administration’s Mortgagee Letter 2013-26 states, “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

Those in the program do not face premiums nor additional fees at closing. In fact, the program is designed for families afraid of complex loan processes and those who have been turned down by other banks. Lenders are making it easy for those with negative credit histories.

To apply, borrowers must first have a home mortgage lender that offers the Back to Work program. Secondly, the family must be demonstrating a full recovery from at least one type of financial crisis, including prior foreclosure, prior short sale, bankruptcy, deed-in-lieu, loan modification or forbearance agreement.

Borrowers must agree to attend at least one hour of one-on-one housing counseling, required by the FHA. Mortgagee Letter 2013-26 states, “Housing counseling enables borrowers to better understand their loan options and obligations, and assists borrowers in the creation and assessment of their household budget.”

Still struggling and searching for a shorter waiting period? Looking for a more promising mortgage restructure? A home mortgage lender offering the “Back to Work” program is waiting to help.

Why you should consider Back to Work mortgage lenders

 Recovering from a home crisis? Switch lenders for the “Back to Work” home loan

The housing market crash of 2008 definitely left its mark, as millions of families are still financially recovering. This past August, the Federal Housing Administration (FHA) launched the Back to Work home loan, giving these folks hope and a chance to financially reestablish. However, not all mortgage lenders have jumped on the FHA’s train, leaving many families behind. If you’re stuck in the dust, here’s why you should consider “Back to Work” mortgage lenders.

“Am I eligible?”
According to Mortgagee Letter 2013-26, a family experiencing deed-in-lieu, prior foreclosure, bankruptcy, prior short sales or forbearance agreements is eligible to apply for this program. The family has to qualify for the program by demonstrating recovery from their financial crisis. The Federal Housing Administration insures mortgage loans in all territories of the US, in all 50 states, as well as in the District of Columbia – you are sure to find one close to your place.



“How will the program help me?”
The program aims to help families that are trying to gain financial steadiness to qualify for a new mortgage program without long waiting periods – just 12 months after home loss. After you’re accepted into the Back to Work program, you need not have to incur a premium on your interest rate nor extra fees at closing. Families have to meet with a housing counselor, who will advise on buying a home, credit issues, reverse mortgages and foreclosure avoidance.

“Will the program help my credit score?”
After unfortunate financial events, some families face a credit drop of up to 250 points. Although this can be disheartening, however, re-entering the real estate market and applying for the loan is worth it. Once you are in the program and making on-time monthly payments, your credit score will gain a boost. Also, a housing counselor can offer credit-boosting advice.

Extenuating circumstances, one-time occurring events that are beyond a borrower’s control, results in a sudden and prolonged significant fall in income or a catastrophic surge in financial obligations. Financial crises are not always your fault and you deserve a way out. If your family has begun financial recovery, consider how “Back to Work” mortgage lenders can help.

New “Back to Work” lending program helps borrowers regain financial stability

The “Back to Work” loan program launches to save families from repeating the same mortgage mistakes twice

The new “Back to Work” lending program is designed to ensure successful home-ownership for families who have previously had financial hardships. Launched in August, the program may save millions of families who continue to suffer from the housing market crash of 2008, offering a second chance and brighter future.

One beneficial key factor in the program is that families may now apply for a new mortgage only 12 months after losing their home. The program waives the two-year waiting period after experiencing a Chapter 7 or Chapter 13 bankruptcy. The lessened waiting period will allow families to get back on track sooner, as long as they can prove they’re demonstrating full recovery from their financial loss.

Most families in the program face prior foreclosure, but some also face prior short sales, loan modification, deed-in-lieu, forbearance agreements and even bankruptcy. Mortgagee Letter 2013-26 specifies who in eligible in what circumstances.

If you are dealing with foreclosure or short sale, you first need to apply to the Back to Work loan program with a Federal Housing Administration approved lender. After acceptance, there will be neither a premium nor an additional fee at closing. You will also need to attend housing counseling, where you will receive advice on buying a home and credit issues among other helpful guidance. Mortgage companies typically recommend that your monthly mortgage payment does not exceed 28 percent of your gross income.

Rebuilding credit may seem frightening, but the new Back to Work lending program gets borrowers back on track. Paying a monthly house bill will boost your credit, which makes buying a home a great place to begin financial reconstruction, especially with the support of a housing counselor. Since families must demonstrate they are becoming financially stable before program acceptance, your credit score will start to revamp itself.

Almost any family that has had a financial crisis can apply for the lending program. If your current lender does not participate in the new “Back to Work” lending program, finding a new lender will not be difficult. There are insured loans in all 50 states, all U.S. territories and in the District of Columbia. More than ever, mortgage companies are ready to help any family still suffering from the housing crash; your new financial life starts now.

Financial Lenders – Offering Sustainable Lending Products

The dream of home-ownership and the ability to provide a safe and loving place for a family is a common hope for many. Reaching that dream can be a challenging and confusing journey. Navigating financial adversity and endless requirements for obtaining a loan can be a very frustrating process, which is why many reach out to lending firms for guidance.

It is important to find the right lending company to suit your needs. Most firms determine home mortgage loan eligibility based on credit scores, so if you have a less than perfect financial history, you will need to be mindful to reach out to a lending firm that considers more than a 3-digit credit score when determining whether or not to extend you a loan.

There are a few companies that give weight to an individual’s history, unique circumstance, and drive to overcome adversity and get back on their feet. These firms consider things like; what caused your financial trouble in the first place, are you successfully paying your bills now, and have you begun to re-establish financial stability. They pledge to be your lending partner and recommend a home mortgage loan that is right for you now and for the long term in order to set your up for success.

For first time buyers, this is an especially important relationship. Finding the right home mortgage lender who will guide you to a loan that makes sense for your situation increases the chances that you will be able to maintain your loan and build a secure future for your family.

These types of lenders truly can help you turn your dreams into reality.  

Homeowners Can Look Beyond Credit Scores

“Home is a place you grow up wanting to leave, and grow old wanting to get back to.” - John Ed Pearce

A hand to hold onto and a heart to listen to you, is what we expect when we visit a lending company during financial crisis. The fear of denial lurks in our minds but a ray of hope takes us to lending companies expecting words of wisdom, empathy, guidance to give us a second chance.

Owners planning to refinance a home mortgage often face challenges, especially if they have low credit score, below 620. The common practice is to approve loans on the basis of credit scores. Doors are open for homeowners with high credit scores. However, for people with low credit scores, the scenario is different.

• Common Reasons for Low Credit Score

Some of the common reasons for low credit score are:

• Late or missed bill payments
• High level of current debt
• Bankruptcy or foreclosure
• Missed credit card payments
• Recently closed credit card

• Effect of Low Credit Score

Homeowners or people, who have lost their homes and wish to buy a new one, find it difficult to find financing when they have a low credit score. Lending companies reserve prime loans for applicants having high credit scores. Sub-prime loans are offered to people with low credit scores. The loans have low teaser rates, high fees and high prepayment penalties. However, the process is not as rosy as it seems. There are hidden facts that applicants are not aware of. Initially, the low teaser rates attract homeowners trying to minimize monthly payments. However, in course of time, the interest rate goes up. Eventually, homeowners who default on loans can lose their homes built with dreams, aspirations and toil.

There are some lending companies that believe in the philosophy of empathy, to help borrowers during crisis. With housing market recovering at a rapid pace, increase in household wealth can be projected. This will be beneficial in home mortgage financing. There are companies offering mortgage and lending options to help borrowers sustain the crisis. Instead of focusing on numbers, they take a customized approach to hear out the problem of buyers, get an idea about the current financial status of the borrower and offer a suitable plan to lead way to their dream home.

Homeowners or people aspiring to make an abode for themselves can look beyond the three digit number.

Lenders make a big difference when buying a home

When you think of buying a new home for yourself, there are mixed feelings of happiness and stress. Happiness because we know that a home is where families live and grow together, a place where bonds develop and love blossoms. The stress is about the complexities of home mortgage loans. Home-ownership is a serious commitment that lasts for many years. It is important that we manage our monthly installments in a way that we are able to make regular payments without any defaults.

On the one hand, buying a home is a symbol of security, and on the other it is associated with a sense of responsibility. At this instance, we need the assistance of a reliable lending company who can provide us with the understanding of loan procedures and payment details.

There are a few factors that must be considered carefully when you decide to buy a home:

• Added financial responsibility: Apart from the monthly loan installments, there are other expenses such as utilities, maintenance, taxes and insurance which are inevitable with the purchase of a home.

• Risk possibility: There is always a risk factor associated with such a significant purchase. Although the value of a property increases over time, there are chances that it may go down.

 • Lesser flexibility: As a renter, it is possible to shift to a new place at a short notice. However, it is very complicated to sell a home and move to a new one.

There are some lenders who earn the trust of their borrowers through their dedicated and caring approach. They act as a partner throughout the process and enable borrowers to make a planned decision by giving them information about the different loan options available. The experts invest time to figure out the requirements of the borrowers and provide them with the best solutions.

When we purchase a home, it is quite an accomplishment. It is part of the American dream. When we get assistance from a trustworthy lending company, buying a home becomes a much more manageable experience.

A new beginning after foreclosure

In 2008, the financial services firm of Lehman Brothers crashed and nearly 25,000 people lost their jobs. After this, the American dream of owning a home was shattered for many. It was the worst financial collapse since the Great Depression of the 1930’s and it led to a complete financial meltdown. What followed the crisis was widespread unemployment and foreclosure for many. It was a great setback for homeowners who were forced to give up their homes because they were unable to make their payments on their home mortgage loans. It was an unforeseen circumstance that came without warning.

For many, foreclosure is a painful reality because it is associated with one of the most important possessions of our lives – our homes. A home is more than a structure with four walls; it’s our dream, a world where our families can feel safe. In the case of financial hardships, when we have no other options but to accept a foreclosure, we feel broken. At this point, it is important to understand that foreclosure is not the end. With lending companies who care, there can be a new beginning in assuring the possession of a new house.

Usually, a borrower who has gone through foreclosure is supposed to wait for years before applying for home mortgage loans. There are a few lending companies who work with borrowers sooner with the aim of helping people get into a new home, even after foreclosure. Such lenders have the ability to walk in the borrowers’ shoes and understand their situation. Unlike other lenders who make re-entering the market difficult, there are some lending companies who try to figure out the circumstances of the borrower and work with them. In return, the borrowers invest their trust in them because of the lender’s interest in helping them start anew.

Not all lenders take the time to understand and identify the causes of previous struggles. There are a few, however, who possess the understanding and experience to deal with the emotions of people who face helplessness in times of hardships. The true separation between such compassionate lenders and their competitors lies in the reliability and determination to provide solutions that will last in the long run.

Buying a Home? – Find a Perfect Lender

Becoming a home owner for the first time is indeed the most cherishable moment in our lives. After all, our homes are not just structures, but a place where relationships blossom and happiness dwells.

However, amidst all of the excitement of buying a home for the first time, there are a few traces of apprehensions that we experience with respect to the most important aspect of purchase – the home mortgage loan. As a result, home-owners seek the services of a trustworthy lender, who can guide them with clear and concise details on how to navigate the mortgage process smoothly.

Lenders understand the little intricacies that are involved in a home purchase in context to the financial conditions of a buyer. They enter into a committed relationship with the buyer and provide sustainable home financing solutions with an aim to take away the excessive burden from the buyer’s shoulders and enable him to enjoy his valuable possession with peace and contentment.

We cannot deny that buying a home sometimes involves undue financial pressures. If we do not make a planned decision at the very beginning, we might face difficulties later. Professional lending companies are well adept to analyze and chalk out appropriate plans for buyers that are suitable for them in terms of payments and duration of the loan. The objective of their strategies is to ensure that a buyer can afford to make all of his payments on time.

Expertise of professional lenders The services of some lenders are unique in nature. The lenders try to analyze the need of borrowers and customize their solutions accordingly. Lenders assist borrowers with the following:

• Analyzing the situation of a buyer in detail
• Help a buyer in understanding every aspect of a purchase
• Assist a buyer in making informed decisions
• Ensure the well-being of a buyer

Having a roof over your head is a fulfilling experience and buying a home is one of the biggest financial decisions. With an overwhelming sense of responsibility, lenders make it easy for borrowers to make the right decision for themselves.

There is a Silver Lining Even after a Foreclosure

Buying a home is the most fulfilling experience; however, losing it is equally as devastating. It is a terrible feeling and we often take a lot of time to come to terms with such a situation. There are many reasons that lead to foreclosure. The more common ones are as follows:

• Unforeseen incidents
• Job loss
• Inability to refinance
The impact of a foreclosure is often overbearing. Besides the emotional implications, there is an immediate need to find a place to stay. Foreclosure is also accompanied with an unfavorable effect on the credit rating of a homeowner. It is a personal financial disaster and the individual must take time to cope with it.

However, once the finances are back on track and the borrower intends to buy a house again, the situation may not be in his favor.

Need to repair the credit history Borrowers have to reestablish a good record and it takes a long time to build up an ideal credit history. In normal circumstances, one must wait several years after a foreclosure to buy another house. However, there are some professional lenders who are empathetic enough to understand the definite reasons that led to the foreclosure. If the reasons depict the right intent of a homeowner, they can actually help him/her out to secure a second chance and buy a home.

For example, after the 2008 economic crisis, many people were rendered homeless due to job losses. This was a situation where these jobless people could not afford to make their regular home mortgage loan payments. However, they could not be held responsible for the crisis. In such circumstances, any conventional lending company would not consider the facts behind a homeowner’s inability to make timely payments. Instead, they would outright reject his loan application for the purchase of a new house.

There are some lenders who take note of actual facts behind foreclosure. They help borrowers to become proud homeowners again; they provide all of the necessary assistance that can help borrowers secure a new home through easy procedures. These lenders serve as support pillars to help borrowers sail through their financial crisis and gift themselves the priciest possession – a home.

Checklist For Borrowers Re-Entering The Market After Foreclosure

“Where we love is home - home that our feet may leave, but not our hearts.”- Oliver Wendell Holmes

More than a roof, more than a shelter, more than a structure on a plot of land; our homes are built with love and commitment. A home is a place where we learn the most, love the most and it’s a place where we can be ourselves. During financial instability, people struggle to secure their most important asset, their home. Due to unforeseen circumstances, sometimes people have to sacrifice the security of their homes, and when that happens it becomes difficult to recoup and come to terms with life. The emotional distress during foreclosure and the process of shifting from your own home to a rented apartment is painful.

When luck and circumstances are not in our favor, we must make critical decisions. Sometimes this means that homeowners have to step out of a home that promises love, security and togetherness. Apart from the distress and the pain, there are serious repercussions that come from home loss. Damage to one’s credit score is imminent and distressing. For this reason, the previous homeowner will have to wait two to three years before re-entering the market to buy a home again.

When people approach lenders to buy a home for the second time, several factors are taken into consideration. Those who are planning to re-enter the market after foreclosure should consider the following before approaching a lender for a home mortgage loan:

·         Job stability: People who fell into foreclosure due to job loss have to prove their job stability before re-entering the market. Lenders look for job stability before granting a suitable home mortgage loan.

·         Saving attempt: After a foreclosure, it is important to rebuild savings to prove financial stability and the ability to make monthly payments on time.

·         Attempt to improve credit score: It is a difficult and time consuming process. A foreclosure can drop a credit score by about 150 points. On-time bill payments and keeping credit card balances below the maximum level help to regain the lost score.

·         A valid reason for foreclosure: If a foreclosure occurred due to a justifying circumstance such as job loss or unexpected medical bills, then the waiting period for a new home mortgage loan can be reduced.

Most importantly, it is important to explain to lenders the exact reason for foreclosure. Accordingly, lenders suggest an affordable home mortgage loan. Lenders try to balance affordability and equity to offer a sustainable program that is beneficial in the future. Lenders work as partners and suggest loans that can be transformed into performing assets. 

Source Via: www.1stalliancelending.com

Homeownership – Fulfillment of a Dream

After spending five years pursuing my career, working hard and saving my money, I felt it might be time to take that first big step into homeownership. The idea of buying my first home was overwhelming and a bit intimidating, not understanding the process and all that entailed, but still my excitement about having my very own place and my interest in building equity for my future was winning out. 

This was going to be, what felt like, a true transition into adulthood for me. I felt that finding the right lender to guide me through the process was very important. I really needed a lender, who I could count on to educate and prepare me for all that was entailed in getting approved for a mortgage as well as help me make sure I was getting the right loan for me. As a first time buyer, I had little equity and knew I needed something sustainable that I could manage and maintain for the long term. This was not a small step in my life and I wanted to do everything right.

Significance of Home for First Time Buyers: 

For first time buyers, a home offers shelter, security and much more than that. Here are a few benefits of home ownership for new buyers:

• Emotional satisfaction: Home ownership offers emotional satisfaction. It ensures security, pride and fulfillment.
• Stability: When we rent a home, there is an element of uncertainty, whereas owning a home provides financial as well as emotional stability.
• Build equity: With monthly mortgage payments, homeowners build equity in their homes.
• Tax benefits: Homeowners get to avail tax benefits.

There are some lenders who offer customized solutions, taking several aspects into consideration. Job histories, salary, credit score, payment record and other aspects are taken into account before offering a home mortgage loan, and the whole picture is considered. Personalized service helps ensure you are getting the correcy and sustainable loan that fits your situation.

Source Via: www.1stalliancelending.com

Home Mortgage Loans for People in Crisis

High time for technology to take a back seat – before you raise your eyebrows and wonder what this statement is all about, relax and think about the shoulder you can lean on during crisis. Well, that is where technology fails. Technology brings us together, but nurturing fosters the bond between people. The presence of a friend in thick and thin, the unconditional love of parents, the joy of dining together, the touch of a new born baby can only be experienced. People, who are severely affected by economic and financial crisis, find it difficult to revive; however, like a phoenix, these people are determined to rise from the ashes and build an abode for themselves. Borrowers need a piece or two of advice and customized solutions to give wings to their dreams.

People who have lost their homes are financially distressed but they are determined to face the tough situation. With an aim to improve their credit score, borrowers pay off all debts, look for a job with steady income and start saving. Most lending companies offer home mortgage loans on the basis of the three-digit credit score; however, the unsaid stories of hardship cannot be ignored. Quality investment of time and imbibing faith in borrowers can do wonders.

Financial terminology, countless documents and complex calculations make things difficult for people aspiring to buy a home again, with low credit score. Tech savvy lenders often forget the words of compassion and believe in objective answers limited to ‘yes’ and ‘no’. Empathetic home lenders emphasize on quality conversation. These companies use the power of technology to reach people in financial crisis, but the process is personalized. Representatives answer the calls of people who search for home mortgage loans online and dial a number. They revert to an old fashioned conversation.

Borrowers believe in the philosophy of John Wayne, “Tomorrow hopes we have learned something from yesterday”. Words of wisdom, suggestions, customized solutions and a heart to listen to the story of borrowers can build hope. Borrowers aspiring to secure a home for their loved ones can reach these lending companies, explain their current financial status, express their anxiety, agony and desire to realize their American Dream.