Are You Facing Foreclosure? Get ready to get more help!

Are You Facing Foreclosure? Get ready to get more help!

The Consumer Financial Protection Bureau (CFPB) has recently proposed additional set of measures to expand foreclosure protections for mortgage borrowers.

Currently the CFPB continues engaging in the outreach task along with consumer advocacy groups, industry representatives, and other stakeholders to develop additional provisions to protect consumers and make it easier for companies to comply with the rules. New proposals would give greater protections to mortgage borrowers.

Among these new proposals are a number of provisions to improve borrower/servicer communications and to clarify previous regulations, such as,

    • Protections for mortgage heirs
    • Servicers would be required to notify borrowers when their loss mitigation applications are complete and when their foreclosure protections kick in
    • The proposal offers full disclosure on “clarifications” from previous rules dealing with servicing rights transfers between firms.
    • Would require servicers to provide periodic loss mitigation information and other statements to borrowers in bankruptcy.
    • Servicing firms must also provide written early intervention notices to let those borrowers known about their loss mitigation options even after they’ve been told to stop contact.
    • Clarifying the meaning of “delinquency” for the purpose of its servicing rules. Delinquency begins on the day a borrower fails to make a periodic payment. If that payment is later made up, the bureau proposes that the date of delinquency should be pushed up creating room for servicers to consider a payment as “timely”.

A full summary of the proposal can be found at CFPB’s web site.

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Homeowners Pay Less for  Mortgage than Renters for Rent

Homeowners Pay Less for Mortgage than Renters for Rent

Paying a mortgage is cheaper than paying rent. But owning a home costs more.  The never ending debate…Is better to buy or rent?  This could be answered only after considering all of the expenses that contribute to homeownership.

The Bureau of Labor Statistics (BLS) says it’s cheaper to own. It has become less expensive to own. From 2009 to 2012, fueled by falling interest rates, ForRentForSalehomeownership has become more affordable, while renters saw costs go in the opposite direction, according to the BLS.

A recent report by Zillow found that current U.S. home buyers can expect to pay 15.3% of their incomes to a mortgage on the typical home – down considerably from the 22.1% of income homeowners had to budget in the pre-bubble years but renters pay today over 29.5% of their income to rent, compared to 24.9% in the pre-bubble period.

The main reason for the budget disparity is the income gap between owners and renters. At the end of the second quarter, the Census Bureau reported the median annual income in the U.S. was $53,216. But among homeowners, median salaries were $65,514 per year, while the typical renter’s income was just $31,888.

Do you have High Mortgage Payments?

Do you have High Mortgage Payments?

You Could Refinance Your Home With Government Assistance Programs

By Sandy Flores

In recent years we have seen many changes to our national economy. In recent months we have seen cuts in interest rates given by the Federal Reserve. Cuts that have not been seen for many years. With these changes, the Fed hopes to achieve economic improvements and consequently prevent further number of foreclosed homes. Now, how will these changes benefit you?

One situation that influenced home foreclosures many owners were the high interest rates that were granted. These mortgage loans by number of months presented in the form of fixed payments is then converted to a specific period in variable interest rates, causing a drastic financial instability. This motivated the economic imbalance in many homeowners seeing the plight of being unable to meet their new monthly payments.

The “Making Home Affordable Program” sponsored by the Government, aims to help Homeowners facing financial difficulties to reduce mortgage payments make them more affordable. This aid plan applies to those loans on which Fannie Mae and Freddie Mac are owners or loans that are insured by these companies. Fannie Mae and Freddie Mac have roughly 58% of mortgage loans insured between the government entities and this equates to an average of 31 million loans, or 5 trillion dollars, of which 20% are experiencing failure to repayment capacity.

Guide to Assistance ProgramsThe Refinance Program gives Homeowners that haven’t been behind in the last 12 months, can prove income under new conditions, the opportunity to refinance with current interest rates. They previously could not do so because the value of their homes becoming drastically devalued, thus providing better stability of long-term mortgage loan.

You can refinance even if the actual balance you owe on your mortgage is higher than the value of your property on the market today. The HARP and FHA programs are the only programs that allow you to refinance under these terms.

By refinancing at a lower interest rate, and even better if the interest is fixed you will avoid higher future adjustments because your interest rate will not change, and as a result get more affordable monthly payments into your budget without fear there may be a that imbalance in their financial situation caused by the inability to make high mortgage payments.

Compare the current interest rate that is offered with the interest on your mortgage loan. Also, consider comparing interest offered in previous years for you to have a better idea of ​​which are the lowest levels that have been given above to determine who really is a good time to refinance.

You will receive a “Good Faith Estimate” which will include the new interest rate, your monthly payments and the total amount you will pay over the term of the life of your loan. Compare and discuss your options and determine if refinancing is the process more convenient for you. The essence of refinancing is to find the best fit for you and financial balance and your family.

If not consider the refinancing may benefit you, or is not eligible for the Refinance Program, have the option to apply for participation in the Modification Program, which is focused on helping many homeowners already behind on their mortgage payments or have difficulty meeting them.

The main objective of the “Program Stability and Affordability for Homeowners” is to help borrowers avoid foreclosure by modifying troubled mortgage loans granting payment available to borrowers. Remember that the participation of the lender to modify the mortgage loan is voluntary. Each case is personal and at the discretion of your bank for their approval. If your lender decides to participate, he is likely to reduce payments mainly by reducing loan interest rate.

By providing economic incentives for mortgage lenders, the Treasury is expected to help 3 million to 4 million homeowners avoid foreclosure, regardless of who the owner of the mortgage or the administering entity.

Even if your property is scheduled foreclosure you have options! Contact your lender to express their intention to retain their property under the new mortgage rescue programs. Many lenders have expressed their intention to postpone foreclosure if they feel that you qualify for a loan modification.Sold Real Estate Sign and Playful Hispanic Family in Front of House.

Learn and take advice on all options available and are available on assistance programs for homeowners. Note that ‘The Program Affordability’ and ‘Stability to Homeowners’ have expiration dates , so  “time” is a factor and the most basic and crucial element to achieve this.

You can visit the address in Spanish in the Department of Housing and Urban Development: espanol.hud.gov / consumer / index.cfm

OR Check out my book –  www.juntosenlalucha.com

As always, you should consider the help of a Real Estate Professional with valid license issued by the Department of Real Estate in the State of California and Nationwide Mortgage Licensing System & Registry (NMLS) to be in a better position to decide for the options that’s best for you in particular. To check the licenses you can visit the website: http://www.dre.ca.gov/ 

An informed decision is the best guarantee. Remember, there are counseling services and assistance offered free of charge. Find out!

Stay Educated!