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youjustgotlawyered · 5 years

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Your (Evolving) Financial Rights and Responsibilities during COVID 19:

This is in no way a comprehensive list, but much of it has been shared in my networks and compiled by me. I would encourage people to reblog and add to it so that as many people as possible can be aware of their financial responsibilities during these times.

FEDERAL:

1. Student Loans - “Lenders must stop all payments for federal student loans through Sept. 30. During that time, interest will not accrue on the loans and nonpayment during that period cannot be used to affect credit scores or a person’s qualification for loan forgiveness. According to the bill’s text, ‘each month for which a loan payment was suspended’ will be treated as if ‘the borrower of the loan had made a payment.’ The bill also suspends any wage garnishment or tax refund reduction for people who have defaulted on their federal student loans. It does not, however, have any effect on private student loans.” (source: https://www.buzzfeednews.com/article/sarahmimms/coronavirus-bill-ends-student-loan-payments-interest-6 )

“Lenders will have to notify borrowers that their federal student loan payments were suspended within 15 days of Trump signing the bill, which he did Friday evening. Beginning Aug. 1, lenders are also required to notify borrowers when their student loan payments will start up again with at least six notices.“

2. Eviction/Foreclosure Moratorium - for evictions of persons from FHA-insured single-family properties, for single family homeowners with FHA-insured mortgages, for homeowners with mortgages backed by Fannie Mae or Freddie Mac. (please note the press release indicates 60 days but other sources said until the end of April. source: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_042)

3. Disconnection Moratorium (have to contact and mention COVID 19): EBMUD - 60 days, PG&E - 60 days, AT&T, Sprint, T-Mobile, Verizon, Comcast

STATE:

1. Eviction Moratorium - I was able to find a website which seems to be rapidly updating with new information, so please refer to your individual state for now and add along: https://www.fool.com/millionacres/real-estate-market/articles/cities-and-states-that-have-paused-evictions-due-to-covid-19/

CALIFORNIA:

1. Statewide Eviction Moratorium - until May 31, 2020. https://thehill.com/homenews/state-watch/489910-california-gov-newsom-declares-statewide-moratorium-on-evictions-for

2. Paid Family Leave - Caring for family member with COVID 19, eligible

3. State Disability Insurance - Illness due to COVID 19, eligible. 7 days unpaid waiting period waived.

4. Unemployment Insurance - unemployment, loss of hours, or having to work remotely due to children being at home due to COVID 19, eligible. 7 days unpaid waiting period waived. https://www.edd.ca.gov/about_edd/coronavirus-2019.htm

ALAMEDA COUNTY:

1. CalFresh - eligibility determinations waived for 90 days

2. CalWORKs - eligibility determinations waived for 90 days

3. In-Home Support Services - eligibility determinations waived for 90 days

4. Medi-Cal - eligibility determinations waived for 90 days

5. Women, Infant, Children - in-person visits suspended until April 7th. Apply by phone.

6. City of Oakland - Parking meters, time limited parking and street sweeping signs not enforced as of 3/17/2020. Continued enforcement of red curbs, fire hydrants, sidewalk and crosswalk blocking, bike line violations, and wheelchair ramp obstruction.

7. Free “Grab n Go” lunches for minors: Oakland Unified School District - Mon - Thurs, 8AM - 12PM, Alameda School District - Tues and Fri, 10AM - 1PM, Fremont Unified School District - Irvington, Kennedy and Washington High, 10AM - 11AM, Hayward Unified School District

#know your rights #coronavirus #covid2019 #eviction #eviction moratorium #financial rights #economic rights #remember we're all in this together #feel free to reblog #feel free to add to this #something I started #hope it helps somebody somewhere

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clearlendingposts-blog · 3 years

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FHA Loan Benefits Explained: Things You Must Know

Potential borrowers always attempt to find low mortgage insurance costs when they decide on applying for FHA loans or 500 credit score home loans in Chicago. Now, there is no significant chance that FHA loan rates will drop any further, but the loans remain a great option for all. With the access to funding increasing, FHA-backed lenders might put a lid on the overlays. Furthermore, many lenders might also make the credit scores flexible.

This means borrowers can have a better chance of qualifying the FHA loans in Chicago. The loan rates are cheaper than conforming loans. So, the article mentions the main benefits of applying for a 500 credit score home loan in Chicago.

Low Credit Score Requirements

If you look at other government-sponsored or conventional loans, you can see why FHA loans have gained so much popularity. Borrowers with 580 credit scores and above are likely to make a 3.5 down payment. However, FHA loans have another minimum credit score requirement — lenders allow borrowers with a credit score of 500 or above.

However, lenders tend to think that borrowers with low credit scores have a risk of defaulting on the loan more. Some lenders think that too many loans with defaults might cause disqualification. It is smart to have at least a 640 credit score if you want a seamless experience. Nevertheless, you can still find lenders willing to accept borrowers with a credit score of 500.

Short Waiting Period

Foreclosures and bankruptcies lead to negative credit. However, you will not be barred from applying for 500 credit score home loans in Chicago. FHA loan programs do not make you wait for a long time in case you have had a credit situation. For instance, FHA borrowers wait for 2 years for bankruptcy and conventional borrowers for 4 years. On the other hand, FHA loans require 3 years waiting period and conventional loans for 7 years.

When you can meet the guidelines for FHA loans, it becomes easy to get through. As long as credit scores are concerned, Fannie Mae and Freddie Mac impose tougher restrictions.

In the end, conventional loans might not add private mortgage insurance but FHA loans do. There are drawbacks but the benefits surpass! So, you should start looking for a professional lender. For this, Clear Lending makes a great choice!

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berkshirelendingus · 3 years

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Visit Now for complete blog.

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anytimeestimate · 3 years

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FHA Loan Foreclosure Waiting Period

FHA Loan Foreclosure Waiting Period The FHA allows home buyers to apply for an FHA mortgage after 3 years. Having a house foreclosure doesn't permanently stop you from acquiring another home.

#• • • • • fhaloan firsttimehomebuyer realestate mortgage valoan realtor conventionalloans downpaymentassistance valoans buyersagent homeswee

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melissawalker01 · 4 years

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Lindon Utah Foreclosure Lawyer

Lindon is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 10,070 at the 2010 census. In July 2018 it was estimated to be to 10,970 by the US Census Bureau. Lindon has an abundant cultural and historical background. Originally settled in 1861, Lindon began as pioneers moved into what was then the Lindon grazing land. The town was originally named “String Town” because of the way the houses were strung up and down the street between the towns of Orem and Pleasant Grove. An old linden tree (Tilia) growing in town in 1901 inspired the present (misspelled) name. Over the past century Lindon has seen organized development, but it has tried to remain true to its motto: “Lindon: a little bit of country”.

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Short Sales vs. Deeds in Lieu of Foreclosure

If you’re having trouble making your mortgage payments and the loan holder (the bank) has denied your request for a repayment plan, forbearance, or loan modification or if you’re not interested in any of those options two other ways to avoid a foreclosure are completing a short sale or a deed in lieu of foreclosure. One benefit to these options is that that you won’t have a foreclosure on your credit history. But your credit score will still take a major hit. A short sale or deed in lieu of foreclosure is almost as bad as a foreclosure when it comes to credit scores. For some people, though, not having the stigma of a foreclosure on their record is worth the effort of working out one of these alternatives.

Short Sales

A short sale occurs when a homeowner sells his or her home to a third party for less than the total debt remaining on the mortgage loan. With a short sale, the bank agrees to accept the proceeds from the sale in exchange for releasing the lien on the property.

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The bank’s loss mitigation department must approve the short sale before the transaction can be completed. (The process of finding a way to avoid foreclosure is called “loss mitigation.”) To get approval for a short sale, the seller (the homeowner) must contact the loan servicer—the company that manages the loan account—to ask for a loss mitigation application. The homeowner then must send the servicer a complete application, which usually includes: • a financial statement, in the form of a questionnaire, that provides detailed information regarding monthly income and expenses • proof of income, if applicable • most recent tax returns • bank statements (usually two recent statements for all accounts), and • a hardship affidavit or statement. • The purchase offer. A short sale application will also most likely require that you include an offer from a potential purchaser. Banks often insist that there be an offer on the table before they will consider a short sale, but not always.

• A second mortgage holder must agree to the short sale. If there is more than one mortgage on the property, both mortgage holders must consent to the short sale. The first mortgage holder will offer a certain amount from the short sale proceeds to second mortgage holder to release their lien, but the second mortgage holder can refuse to accept the amount and kill the deal.

Deficiency Judgments Following Short Sales

Many homeowners who complete a short sale will face a deficiency judgment, though a few states disallow them after this kind of transaction. The difference between the total debt and the sale price is called a “deficiency.” For example, say your bank gives you permission to sell your property for $200,000, but you owe $250,000. The deficiency is $50,000. In many states, the bank can seek a personal judgment against you after the short sale to recover the deficiency amount.

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While many states have enacted legislation that prohibits a deficiency judgment following a foreclosure, most states do not have a corresponding law that would prevent a deficiency judgment following a short sale. How to avoid a deficiency with a short sale To ensure that the bank can’t get a deficiency judgment against you following a short sale, the short sale agreement must expressly state that the transaction is in full satisfaction of the debt and that the bank waives its right to the deficiency.

If the bank forgives some or all of the deficiency and issues you a IRS Form 1099-C, you might have to include the forgiven debt as taxable income. When It Might Be a Good Idea to Let a Foreclosure Happen and Other Issues to Consider

In some states, a bank can get a deficiency judgment against a homeowner as part of a foreclosure or thereafter by filing a separate lawsuit. In other states, state law prevents a bank from getting a deficiency judgment following a foreclosure. If the bank can’t get a deficiency judgment against you after a foreclosure, you might be better off letting a foreclosure happen rather than doing a short sale or deed in lieu of foreclosure that leaves you on the hook for a deficiency. For specific advice about what to do in your particular situation, talk to a local foreclosure attorney. Also, you should take into consideration how long it will take to get a new mortgage after a short sale or deed in lieu versus a foreclosure. Fannie Mae, for instance, will buy loans made two years after a short sale or deed in lieu if there are extenuating circumstances, like divorce, medical bills, or a job layoff that caused you economic difficulty, compared to a three-year wait after a foreclosure. (Without extenuating circumstances, the waiting period for a Fannie Mae loan is seven years after a foreclosure or four years after a short sale or deed in lieu.) On the other hand, the Federal Housing Authority (FHA) treats foreclosures, short sales, and deeds in lieu the same, usually making its home loan insurance available after three years.

Deeds in Lieu of Foreclosure

Another way to avoid a foreclosure is by completing a deed in lieu of foreclosure. A deed in lieu of foreclosure is a transaction in which the homeowner voluntarily transfers title to the property to the bank in exchange for a release from the mortgage obligation. Generally, the bank will only approve a deed in lieu of foreclosure if there aren’t any other liens on the property.

You Might Want to Complete a Deed in Lieu of Foreclosure

Because the difference in how a foreclosure or deed in lieu affects your credit is minimal, it might not be worth completing a deed in lieu unless the bank agrees to: • forgive or reduce the deficiency • give you some cash as part of the deal, or • give you some additional time to live in the home (longer than what you’d get if you let the foreclosure go through). Banks sometimes agree to these terms to avoid the expense and hassle of foreclosing. If you have a lot of equity in the property, however, a deed in lieu is usually not a good way to go. In most cases, you’ll be better off by selling the home and paying of the debt. If a foreclosure is imminent and you don’t have much time to sell, you might consider filing for Chapter 13 bankruptcy with a plan to sell your property.

Just like with a short sale, the first step in obtaining a deed in lieu of foreclosure is for the borrower to contact the servicer and request a loss mitigation application. As with a short sale request, the application will need to be filled out and submitted along with documentation about income and expenses. The bank might require that you try to sell your home before it will consider accepting a deed in lieu, and require a copy of the listing agreement as proof that this has been done.

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Deed in Lieu of Foreclosure Documents

If approved for a deed in lieu of foreclosure, the bank will send you documents to sign. You will receive: • a deed that transfers ownership of the property to the bank, and • an estoppel affidavit. (Sometimes there might be a separate deed in lieu agreement.) The estoppel affidavit sets out the terms of the agreement and will include a provision that you are acting freely and voluntarily. It might also include provisions addressing whether the transaction is in full satisfaction of the debt or whether the bank has the right to seek a deficiency judgment. Deficiency Judgments Following a Deed in Lieu of Foreclosure With a deed in lieu of foreclosure, the deficiency amount is the difference between the fair market value of the property and the total debt. In most cases, completing a deed in lieu will release the borrowers from all obligations and liability under the mortgage, but not always.

Anti-deficiency laws

Most states don’t have a law that prevents a bank from obtaining a deficiency judgment following a deed in lieu of foreclosure. Washington, however, is one state that does prohibit a bank from getting a deficiency judgment after a deed in lieu. So, the bank might try to hold you liable for a deficiency following the transaction. If the bank wants to preserve its right to seek a deficiency judgment, it generally must clearly state in the transaction documents that a balance remains after the deed in lieu, and it must include the amount of the deficiency. How to avoid a deficiency with a deed in lieu of foreclosure To avoid a deficiency judgment with a deed in lieu of foreclosure, the agreement must expressly state that the transaction is in full satisfaction of the debt. If the deed in lieu of foreclosure agreement does not contain this provision, the bank might file a lawsuit to obtain a deficiency judgment. Again, you might have tax liability for any forgiven debt.

The process for completing a deed in lieu will vary somewhat depending on who your loan servicer is and who the lender (or current owner of your loan, called an “investor”) is. Generally, you’ll have to try to sell the property for at least 90 days at fair market value before the lender will consent to accepting a deed in lieu. Also, you usually must have clear title, which means there can’t be other liens on the property. You might have to provide details about your finances and show that the home won’t sell for what’s owed. As part of the deal, the homeowner usually agrees to vacate the home, leaving it in good (“broom swept”) condition, and sign over ownership to the lender. In some cases, the borrower will have to submit an affidavit indicating that the process was voluntary. In some cases, the lender will allow the homeowner to rent the home even after turning over the deed. Fannie Mae, for example, offers this option to borrowers who have Fannie Mae loans. Also, in some cases, the departing homeowner will receive relocation money after completing a deed in lieu.

Call A Foreclosure Lawyer

Some people think that completing a deed in lieu will cause less damage to their credit score than a foreclosure. But the difference in how a foreclosure or deed in lieu affects your credit is minimal. For this reason, it might not be worth doing a deed in lieu unless the lender agrees to forgive or reduce the deficiency, you get some cash as part of the deal, or you get some extra time to live in the home (longer than what you’d get if you let the foreclosure go through). In some cases, the lender will agree to one or more of these conditions to avoid the expense and hassle of foreclosing. Also, you should take into consideration how long it will take to get a new mortgage after a deed in lieu versus a foreclosure. Fannie Mae, for instance, will buy loans made two years after a deed in lieu if there are extenuating circumstances, like divorce, medical bills, or a job layoff that caused you economic difficulty, compared to a three-year wait after a foreclosure. (Without extenuating circumstances, the waiting period for a Fannie Mae loan is seven years after a foreclosure or four years after a deed in lieu.) On the other hand, the Federal Housing Authority (FHA) treats foreclosures, short sales, and deeds in lieu the same, usually making its home loan insurance available after three years. If you have a lot of equity in the property, however, a deed in lieu is usually a poor choice. You’d be better off by selling the property and paying of the debt. If you don’t have a lot of time and a foreclosure is imminent, you might consider filing for Chapter 13 bankruptcy with a plan to sell your home.

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With a deed in lieu, the homeowner may negotiate what will happen to the deficiency, if one exists. Because a deed in lieu is a voluntary agreement between you and the lender, it’s possible to negotiate a deal in which: • the lender agrees not to pursue a deficiency judgment • you agree pay part of the deficiency, or • you agree to repay the deficit over time. Be aware that, if the lender forgives all or part of the deficiency, you might face tax consequences. Should You Let the Foreclosure Go Through? In some states, a bank can get a deficiency judgment against a homeowner as part of a foreclosure or thereafter by filing a separate lawsuit. In other states, an anti-deficiency law prevents a bank from getting a deficiency judgment following a foreclosure. If the bank can’t get a deficiency judgment against you after a foreclosure, you might be better off letting a foreclosure happen rather than agreeing to a deed in lieu of foreclosure that leaves you responsible for all or a portion of a deficiency. (For specific advice about what to do in your particular situation, talk to a local foreclosure attorney.)

If you’re considering completing a deed in lieu, consider talking to a lawyer. Many different foreclosure avoidance options exist, including loan modifications and short sales, and some options might be better than others, especially for specific situations. To find out if a deed in lieu might be right for you or to explore other possible options, contact a lawyer.

Avoiding a Deficiency Judgment

In some states, lenders have the right to sue borrowers for deficiencies after a foreclosure or a deed in lieu of foreclosure. A deficiency is the difference between the amount you owe on your mortgage loan and the price your lender gets for your home when it sells at a foreclosure sale. In other words, if you owe your mortgage lender $300,000 on your house and you default, and the foreclosure sale brings in just $250,000, the deficiency is $50,000. If permitted by state law, the lender can sue you for the $50,000 and get a deficiency judgment—even though it already took the house. With a deed in lieu of foreclosure, the deficiency is the difference between the total debt and the fair market value of the house. As part of the deed in lieu of foreclosure negotiations, you should get your lender to agree to release you from having to repay any deficiency, perhaps in exchange for your agreeing to deliver the house to your lender in good condition. Make sure to get the deficiency waiver in writing. Though, if the lender forgives all or part of the deficiency, you could face tax consequences.

Know Your Options

If you are a distressed homeowner who’s facing a foreclosure, knowing your options is very important. As soon as you realize that you’re in financial distress, call your servicer’s loss mitigation department to find out what alternatives to foreclosure—such as a refinance, loan modification, short sale, or deed in lieu of foreclosure—are available to you. (The servicer is the company that manages your loan account on behalf of the lender. Servicers process borrower payments, manage escrow accounts, and pursue foreclosure for defaulted loans.) You have nothing to lose by calling the servicer and the call might make a huge difference. You will typically be provided a packet of information and documents to complete. If you don’t understand the contents of any of these documents, ask for help, either from an attorney or a free HUD-certified housing counselor. While the foreclosure process can be scary, you have some choice in the matter.

Free Initial Consultation with Lawyer

It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!

Ascent Law LLC 8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506

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spearbestmortgage-blog · 4 years

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FHA Loan: What You Need to Know

FHA Loans are issued by Private lenders because they are insured by FHA. These loans are not suitable for everyone but contain several appealing features that allow the buyers to make a down payment as small as 3.5%. They can get approval despite credit history problems and buy not only single-family homes, but condos, multi-unit properties, or manufactured homes. A Homebuyer can obtain not only single-family homes, but condos, multi-unit properties, or manufactured homes.

Get funding beyond the amount of purchase for renovations and repairs through the FHA 203k program and Fund a down payment with gift money or help from the seller. FHA Loan requirements for 2020 include 3.5% down payment-minimum 580 FICO score, 10% down payment- minimum 500 FICO score, Maximum debt to income ratios 31% housing, 43% total, and the citizenship is not required. To qualify for FHA loan you must have a FICO score of 500 to 579 with 10 percent down or a FICO score of 580 or higher with 3.5 percent down. Valid employment records for the last two years and the income should be valid through pay stubs, federal tax returns, and bank statements.

The loan is utilized for a primary residency and business is evaluated by an FHA-approved appraiser and meets HUD property guidelines. Your front-end debt ratio (monthly mortgage payments) should not pass 31 percent of your gross monthly salary. Lenders may provide a rate of up to 40 percent in some circumstances. Your back-end debt rate (mortgage, plus all monthly debt payments) should not pass 43 percent of your gross monthly income. Lenders may provide a ratio of up to 50 percent in some cases.

If you encountered a bankruptcy, you must wait 12 months to two years to implement, and three years for a foreclosure. Lenders may offer exceptions on waiting periods for borrowers with extenuating circumstances. Here at Spear Mortgage, you can obtain more information to handle your financing challenges.

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tonygarren · 4 years

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When can I purchase a home after I went through a foreclosure?

This short video tells the time frame it takes to be able to get a loan to purchase a home after you have went through a foreclosure. Other types of loan default timelines are as followed: SHORT SALE Conventional: 4 years FHA: 3 years after settlement date there were late payments; 12 months if no late payments VA: No waiting period if no late payments last 12 months DEED IN LIEU Conventional: 4 years FHA: 3 years VA: 2 years BANKRUPTCY Conventional: 2 years from discharge date . 4 years from dismissal date FHA: 1 year payout elapse and all required payments made on time to court. Must receive permission from the court to enter into new debt. VA: 1 year payout elapse and all required payments made on time to court. Must receive permission from the court to enter into new debt.

#foreclosure #foreclosed home #buyer #homebuyer #homebuyers #homebuying #real estate #fha #va #conventional #time frame #purchase #short sale #deed in lieu #bankruptcy

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asfeedin · 4 years

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Suspend Your Mortgage Payment And Keep Your Home With COVID-19 Forbearance

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If you have lost your job, received a layoff notice or are otherwise struggling to pay your mortgage, it’s critical that you reach out to your creditors and mortgage servicer immediately and request assistance. Most lenders, especially mortgage companies, have developed a thoughtful COVID-19 response that includes offering customers a way to suspend their mortgage payments, keep their homes, avoid late fees and not suffer any negative reporting to the credit bureaus. Most also provide you an option to add the past due payments to the end of your loan instead having to figure out how to pay back a huge lump sum after three or six months of payment suspensions.

As of today, Johns Hopkins is reporting that approximately 835,316 people have tested positive for coronavirus in the United States, and 45,950 people have died from it. The coronavirus is tragically taking lives, and COVID-19 is killing jobs. In the past month, it wiped out a decade of job gains causing 22 million—and counting—to file unemployment claims. Consequently, many of you are understandably anxious. And when you aren’t busy doing all you can to stay coronavirus free, you might find yourself spending an inordinate amount of time wondering whether you’ll even have a job from week to week. Then, there’s still just regular life—your locked-down life that you are impatiently waiting to get back to normal (whatever that will be).

Things are dire for millions of people as the public health crisis has created an outright financial crisis. While you work through your employment—or unemployment—struggles, here’s an outline of what’s available to save your mortgage. Below are options for government-backed loans as well as conventional loans via three of largest private mortgage lenders in the United States.

Government-backed mortgages.

If you have an FHA, VA or USDA loan, you have a government-insured mortgage loan. These loans are backed by the Federal Housing Authority (FHA), the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA). It states here that you can also apply if you have a Fannie Mae or Freddie Mac loan. The new law known as the CARES Act provides mortgage relief protection for those who have government-backed loans. As such, immediate help is available for you if you find yourself struggling to make your mortgage payments.

The first thing you need to do is contact your mortgage service provider. If you have a government-backed loan and find yourself either directly or indirectly impacted by COVID-19 such that you are experiencing a financial hardship, make this call immediately. All you need to do is explain that you want to apply for the COVID-19 mortgage forbearance program. You will then be instructed how to apply. The best part is that the program stipulates that your mortgage lender will not require you to provide documents.

To get started just call your lender. You can also review this document for more details. It’s been put together by the FHA, but the process is applicable for all government-backed loans.

Conventional mortgages.

Even if you don’t have a government-insured loan, immediately call your mortgage servicer. Due to COVID-19, most all major lenders have put together programs to address the pressing needs of customers experiencing a financial hardship during this time. Here’s what three of the largest private lenders are doing.

Wells Fargo

Wells Fargo has announced that you can request a payment suspension for an initial three-month period, and then (based on your circumstances), you can apply for a longer payment suspension period. Wells Fargo also informs that they will not be charging any late fees while your payments are in suspension, and they won’t report any negative information to the credit bureaus about your account being in past-due status.

Even more, to help you get back on your feet once you can start making your mortgage payments again, Wells Fargo is offering a variety of options to repay the suspended payments, including a loan modification where you can roll your suspended payments to the end of your loan instead of being required to make the full deferred payment directly after the suspension is lifted.

On their website they go on to state that they are prepared to suspend residential foreclosures, evictions and even automobile repossessions. Customers can also apply for financial assistance with credit cards as well.

Bank of America

Bank of America has announced that you can request to have your payment suspended for up to three months or longer via two options (1) payment deferral and (2) payment forbearance. With Bank of America, and depending on your specific circumstances, your payments might either be suspended (delayed) or completely erased, and they won’t apply any late charges for past-due payments.

When you speak with them, they will determine which option is best for you. It also appears that once you start making payments again, the past-due amounts could be added to the end of your loan if you make that request. Learn more by checking out their website.

Quicken Loans

Quicken Loans has announced that you can request to have your mortgage payment suspended. If you are experiencing financial hardship due to COVID-19, Quicken is offering an initial three-month forbearance option which will place your mortgage in pause status. After the crisis is over, they will work with you to determine how best to move forward and get you back on track.

The late payments would never be reported to the credit bureaus, and you wouldn’t be required to pay late fees. Call your mortgage servicer, or check out their website for more details.

Take immediate action.

COVID-19 is wreaking havoc on our entire lives. If you are struggling financially right now and having trouble paying your mortgage, don’t wait to take action. Get on these opportunities immediately. Contact your lender today, explain your situation and get the help you need. Finally, if your lender wasn’t listed here, chances are it has a similar kind of COVID-19 program in place, but you still have to take the first step and reach out.

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nightmare-afton-cosplay · 4 years

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Mortgage Forbearance Requests Spike as Americans Lose Jobs at Record Rates

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Unprecedented numbers of homeowners are seeking mortgage assistance as desperate and drastic efforts to limit the spread of the coronavirus have resulted in record job losses.

Mortgage forbearance requests shot up 1,270% between the weeks of March 2 and March 16, according to the Mortgage Bankers Association, a national trade group. (The data is based on a weekly survey of forbearance and call center activity in the week of April 1. It covers 22.4 million loans.) As the economy continued to falter, with a slew of nonessential businesses closed across the country, forbearance requests surged an additional 1,896% between the weeks of March 16 and March 30.

Forbearance allows borrowers to miss several months of payments if they’re suffering a hardship and their mortgage servicer has approved it. But that money is typically due in a lump sum at the end of the forbearance period.

“Obviously, there’s going to be massive take-up on the forbearance program,” says Mark Zandi, chief economist of Moody’s Analytics. “There are a lot of homeowners who are unemployed, have lost hours, are having their wages cut, and need lots of help.”

Due to the deluge of requests, the number of loans in forbearance went from 0.25% of all mortgages to 2.66% from March 2 to April 1, according to MBA. That’s likely because the federal government stepped in to help struggling homeowners who may have lost income or jobs in this crisis.

“MBA’s survey highlights the immediate relief consumers are seeking as they navigate the economic hardships brought forth by the mitigation efforts to stop the spread of COVID-19,” MBA’s chief economist, Mike Fratantoni, said in a statement. “It is expected that requests will continue to skyrocket at an unsustainable pace in the coming weeks.”

Last month, the Federal Housing Finance Agency allowed homeowners suffering from financial hardship due to COVID-19 to receive up to 12 months of forbearance on their mortgages. Homeowners won’t have their late payments reported to credit bureaus, which could lower their scores, or be charged late fees. The help was only for those with single-family homes backed by FHA, Fannie Mae, Freddie Mac, U.S. Department of Agriculture, and U.S. Department of Veterans Affairs loans.

Many other lenders who have issued or are servicing non-Fannie and non-Freddie loans are following suit.

In addition, hold time on calls with mortgage servicers went from under 2 minutes to 17.5 minutes, according to MBA. People on Twitter have complained of having to wait much longer, even up to five hours. One tweeted about getting a hold message estimating a nearly 44-hour wait time to speak with a Chase representative.

“Homeowners who are having difficulty making mortgage payments should reach out to their lenders to work on a plan,” says realtor.com Chief Economist Danielle Hale. “You may have to wait for a while before getting your lender on the phone, but be persistent.”

Moody’s Zandi anticipates that about 15 million homeowners will receive mortgage forbearance as this crisis drags on. That’s about 30% of all residential, single-family mortgages.

If additional government action isn’t taken and homeowners continue struggling to pay their bills, Zandi worries there could be a surge in foreclosures in the future.

“There will be a lot of credit problems down the road, delinquencies, defaults, and foreclosures,” says Zandi.

The post Mortgage Forbearance Requests Spike as Americans Lose Jobs at Record Rates appeared first on Real Estate News & Insights | realtor.com®.

from https://realtor.com/news/real-estate-news/mortgage-forbearance-requests-spike-as-americans-lose-jobs-at-record-rates/

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ijessicaalva-blog · 5 years

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California FHA Home Loans requirements

An FHA loan is a good deal for home buyers looking for low down-payment mortgage deals - but there are specific requirements and hurdles to clear

1. Proven employment status of at least 2 years. 2. Steady or increasing income over a 2 year period. 3. History of on-time payment. No more than two missed payments on your credit. 4. If you have filed for bankruptcy you must wait at least 2 years and have good credit since you filed. 5. Those with foreclosures must wait at least 3 years since the most recent foreclosure. 6. FHA loans are subject to Mortgage Insurance Premium, payable both upfront and every month. MIP is sometimes referred to as PMI. 7. You must pay a minimum of a 3.5% down-payment.

If you are thinking about obtaining FHA Loans or have additional questions about what loan products you may qualify for, you can reach us here, by phone at (805) 371-0431, or by email at [email protected]

For more information you can visit on https://www.paylessloansource.com/

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creditmonkey · 5 years

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What Credit Score Is Needed to Buy a House?

Owning your own home can often be a wise investment, plus you don’t have a landlord breathing down your neck about what you can and can’t do. But what kind of credit score is needed to buy a house? We’ve got the answers, plus some extra tips on how to seal the deal no matter what kind of credit score you have.

How does your credit score affect buying a home?

Your credit score affects your ability to buy a home as a major factor in whether or not you’re approved for a mortgage. That’s because your credit score is a reflection of how likely you may be to default on your loan. Weighing all of the items on your credit reports, such as payment history and amounts owed, a complex calculation then creates your credit score. This gives mortgage lenders a better idea of how you handle your finances. Even after you’re approved for a loan, your credit score also affects the interest rate on your mortgage. Why is that a big deal? Well, depending on how expensive your loan is, you’ll likely end up paying tens of thousands of dollars (if not more) in interest — that’s on top of your principal loan amount. An interest rate of even just ¼ percent less can save you a lot of money over the course of a 30-year loan. So it’s clear that your credit score is an important factor not just for getting approved for a mortgage, but also for getting the best mortgage rates to lower your monthly payments. Ready to Get Negative Items Removed from Your Credit Report?

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Is there a credit score minimum for buying a house?

The required minimum credit score for purchasing a home can vary based on the economy and the housing market, but there are some basic guidelines you can go by to determine how likely you are to be approved for a home loan. First, the required score depends on what type of loan you’re getting. For conventional loans, which come with the strictest lending standards, you’ll need at least a 620. However, with an FHA loan backed by the Federal Housing Administration, the minimum is just 580. Different lenders have different credit score requirements depending on how much risk they’re willing to take on a loan. It’s important to note that your credit score alone doesn’t determine whether you’ll be approved for a mortgage. Lenders also look at your employment history, how much debt you have, and your down payment amount. For example, buyers with higher credit scores could be eligible to put down as little as 3.5% of the mortgage loan amount with an FHA loan. Those with lower scores, however, may be required to pay as much as 10% since they’re considered more at-risk for defaulting on the loan. With a conventional loan, the minimum down payment is 5% but could also increase based on your credit score. You can also explore newer mortgage programs available for home buyers with lower income. The Freddie Mac Home Possible mortgage, for example, allows you to purchase a home with a down payment of just 3%. Fannie Mae also offers a 3% down payment option with the HomeReady loan, as long as you have a credit score of at least 620.

What else do you need to buy a house?

In addition to your credit score, your lender looks at a few other factors to approve your home loan. They’ll review your employment situation to make sure you have a steady income to make your monthly mortgage payments. You’ll most likely need to submit pay stubs, bank statements, W-2s, and sometimes even a verification of employment form. If you’re seriously considering purchasing a home, start setting these documents aside in a safe place so you have them ready to give to your lender when the time comes. Not only does the lender look at your financials, but they’ll also check out the actual home you’re purchasing. Some types of home loans require the house to be in a certain condition, which can take rehabilitation projects off the table. Before making an offer, check with your lender on what types of properties you can consider. That will allow you to avoid making an offer you can’t follow through on. The property’s appraisal also needs to come in at or above your loan amount, because a lender is not able to loan more than the appraisal value.

Can you get a mortgage with bad credit?

You can still get a mortgage even if you have bad credit, although you’re likely to pay a much higher interest rate to compensate for the increased risk to the lender. Government-sponsored programs like FHA loans specifically cater to borrowers with lower credit scores. But even if you’re not sure you’ll qualify, it’s worth offering some extra security to your lender. For example, you might give a larger down payment or set aside extra cash reserves to show the lender you have the money to repay the mortgage loan. Or you might give proof that you’ve consistently paid your rent on time for an extended period. Check Out Our Top Picks: Best Mortgage Loans for Bad Credit of 2019 You could also try writing a letter to explain your credit situation, especially if it’s due to an extenuating circumstance like emergency medical bills. Be upfront in asking your lender what you can do to qualify for a loan even if you might not meet the usual underwriting standards right away. If you’ve had a bankruptcy or foreclosure in your past, there are a few rules that you simply can’t get around. The exact specifics depend on your loan type. However, in general, you have to wait for a predetermined “seasoning period” after the bankruptcy or foreclosure has been discharged before you can get approved for a home loan. For bankruptcies, the seasoning period is typically between two and four years. For foreclosures, you’ll need to wait between three and seven years.

Can a cosigner help you get a mortgage?

For home buyers worried about their credit score when buying a house, you could consider getting a co-signer for your mortgage. This means you get someone who has a good credit score (such as a family member) to sign the loan with you, which strengthens your loan application. However, it’s essential to realize that your co-signer is equally accountable as you are for repaying the loan. When you fail to make loan payments and your account goes into delinquency or even foreclosure, those events affect the cosigner’s credit as much as they affect yours. If you decide to take on a co-signer to get approved, make sure that person understands the responsibility — and risk — that goes into the decision. It obviously takes a close relationship for this kind of situation to work out, so make sure you choose your co-signer wisely.

What if you don’t have any credit at all?

Building credit from scratch is challenging, but it can be done. Adding a co-signer to the mortgage loan application works for people with no credit as well as for those with poor credit. Another option is to start using a credit card responsibly. Start off with a secured card and make payments in full each month to build up your payment history. Or ask a close relative if you can be added as an authorized user on one of their credit cards. You can agree not to spend anything (or make quick payments if you do). This simple step will add that credit card’s entire length of use to your own credit report. You can also show your lender that you’ve regularly paid other bills on time, like your cell phone, utilities, or rent. Another method is to make a larger down payment to compensate for your lack of credit. Talk to your lender to see what else you can provide to make the loan work.

How can you improve your credit to qualify for a mortgage?

There are a number of different ways you can improve your credit so that you can buy a house — just realize that it won’t happen overnight. Get started by ordering copies of your credit report. This way you can get an idea of everything a lender would see when reviewing your loan application. First, check to make sure that all the information is 100% accurate. From there, look at where there are weaknesses on your report. Is the amount of debt you owe really high? Try to re-work your budget to pay off more of your debt. Is your available line of credit really small? Ask an existing creditor to extend your maximum amount on one of your current credit cards. If you have a lot of negative items on your report and feel overwhelmed, you might consider hiring a credit repair company. Check out our list of top ranked credit repair companies in your area to find a reputable one to work with. They’ll take the lead in disputing negative items and getting them removed from your credit history. Once that happens, you’ll automatically see your credit score increase. Even if you don’t have the bare minimum credit score to qualify for a mortgage, there are a lot of ways to buy a house. By getting the right loan to implementing quick fixes on your credit score, you’ll be able to quickly put yourself on the path to home-ownership. Read the full article

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