Wednesday, June 25, 2008

Stop Foreclosure

Stop Foreclosure!
Lower Your Monthly Payment!

I was passing out flyers today when I was stopped by a lady wanting help. She, like many other hard working americans was experiencing the backlash from the Sub-Prime Mortgage Meltdown. As we talked I started to recognize a repetition of circumstances leading up to her current plight. She was a UPS employee who had purchased a home using a ARM with marginal credit. Now that the Sub-Prime market no longer existed, she was trapped with a product due to continually adjust until it reached it's cap.
To better understand the damage done by the withdrawal of sub-prime mortgage products, let me take a quick minute to give a quick over view of the sub-prime customer grading profile. The quickest way to understand sub-prime is to understand what is not sub-prime. Mortgage loan qualification is based on various factors. Each factor must meet certain guidelines. Those factors are 1. Income as it relates to debt. 2. Credit. 3. Job history. 4. Rental History. 5. Downpayment. Conventional lending or Prime lending requires that each of the aforementioned criteria must adhere to certain guidelines i.e. 1. Income depending on the type of mortgage product, ......not more that 17% of your income can be absorbed by your mortgage payment including principle, interest, taxes and insurance. This is called front end debt to income qualification. Back end debt to income qualification dictates that no more that 36 to 42% of one's income can be exceeded towards any long term debt (Long Term = debt with more than ten months worth of payments remainding), including one's mortgage payment.

Anyway without being too detailed suffice it to say that Prime Lending adheres to stricter guidelines than Sub-Prime. To abbreviate the Sub-Prime over view, let me simply state, under th past sub-prime guidelines, any one of the five (5) required Prime criteria could be ignored as long as the other four were met. Sometimes, depending on the strength of a certain factor, even more of the others can be ignored. For instance, if the client's credit is strong enough, he or she didn't need a job. Or, if the downpayment was large enough, he or she didn't need a social security number.
For over 13 years I personally originated sub-prime products. When many of my clients found themselves burdened under unbearable mortgage payments, I vowed to discover a way to help relieve the pressure of accelerating monthly payments. I looked into loan mitigation and mortgage loan modification for our property. I was not able to save our rental properties but, I was able to lower the payment on our personal dwelling and obtain a 3% interest rate. This is the secret that Investors and Lenders don't want you to know. I don't have a mortgage calculator within reach while I'm writing this article. Actually I don't feel like getting up and getting one. But, I'm going to use a general example so that you can get the jist of this concept. With a fully amortized mortgage loan $200,000 paid off in 30 years @ 8% could easily amount to over $500,000 dollars. The same principle amount repaid at 3% equals a little over $300,000. The secret is that under the current mortgage and economic crisis, lenders are willing to settle for the lesser amount as an alternative to foreclosure. Let us show you how it's done. On a $200,000 mortgage, it could mean the difference between a $1400 a month payment and a $800 dollar a month payment for the same house. NOTE: Credit is not a criteria.
We all know that life is unpredictable, and that circumstances often arise that can prevent you from making your mortgage payments.
Even hard-working people can encounter unforeseen situations which may affect their ability to pay their mortgage in a timely manner. Many issues can be contributing factors such as temporary job loss, medical illness or injury, marital difficulties, unforeseen repairs or high utility rates, tenant problems, or even a death in the family. Just one of these situations can have a direct bearing on making home mortgage payments.
Our Goal is Solely to Assist Homeowners
At American Home Savers we provide assistance to homeowners experiencing rate increases(due to adjustable arms), mortgage or foreclosure difficulities. We provide out of court resolutions to remedy your mortgage delinquency and foreclosure situations.

Triad Mortgage and Realty
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Or just Call me Direct 832-754-5365

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