Type the words “credit repair”, “bad credit” or “bad credit repair” into an Internet search engine. The results will be similar to that seen by thousands of consumers every day. While we recommend that you fully research all the methods available to you when trying to repair poor credit, some of the Web sites that come up in a search for “credit repair” will do you more harm than good.

A typical credit repair scam might work in one of a couple of fashions. There is almost always the promise that your credit history will be made to disappear. In return you’ll be asked for a large payment upfront, sometimes as much as $1,000 to $1,500.

For one typical scam, the credit repair organization will tell you that you’ll get a brand-new Social Security number. Since the Social Security number is new, it won’t be marred with non-pay, or slow-pay blemishes and your credit history will be reported as perfect.

We should know better. (more…)

search for : credit repair, bad credit, bad credit repair, repair poor credit

With blessings from both the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Affairs, HopeNow is providing much-needed help for many of this nations beleaguered subprime mortgage borrowers. Refinanced mortgages with fixed rates are available from a HopeNow program to homeowners meeting their qualifications.

Organization of HopeNow is the work of mortgage servicers who represent 90 percent of the subprime market with over 2 million subprime mortgage holders. Impetus to the promotion of the HopeNow programs have been boosted by those holding mortgages that could reset to higher rates in the next two years.

The HopeNow program’s fast track effort is speeding early applicants through the refinance process to free up time for mortgage servicers’ to focus on the more difficult cases. (more…)

The first step in buying any home nearing foreclosure is to retain counsel and get an immediate title search to determine liens or encumbrances against the property. The, if possible, you chould also talk with the homeowners who are facing foreclosure. Perhaps they would be willing to sell the house to you if you will pay off their mortgage.

Even if they are unwilling to do this, at least you will have had an opportunity to inspect the entire property. That’s always a must; for as homeowners near foreclosure the propensity to maintain the property seems to vanish. (more…)

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More and more seniors are choosing reverse mortgages, allowing them to have near-instant access to the equity of their home investment. A reverse mortgage relieves the borrower from making monthly mortgage payments. With a reverse mortgage the lender pays the borrower. Income and credit history are irrelevant. The mortgage is based on the equity built into the borrower’s investment in the home.

The amount borrowed must be repaid, plus interest, when when the borrower dies, sell the home or moves out. If the home is worth less than the loan amount, the Federal Housing Administration makes up the difference. That’s the reason why mortgage insurance is required. (more…)

search for : reverse mortgage, Federal Housing Administration

A home-equity line of credit works a lot like a credit card. The account has a set credit limit and the owner can usually borrow as much or as little as needed. Many credit lines charge a variable rate of interest, much like a credit card. The amount paid in finance charges depends on the direction of the prime rate.

However, unlike an unsecured revolving credit-card debt, the line of credit is almost always secured by home equity. For some homeowners, if a financial crisis hits and they can’t pay back the home equity line of credit (HELOC), they could lose their house.

Before applying for a line of credit, applicants need to make sure they are getting a good deal. That means checking up on their credit scores. In today’s financial environment, only consumers with excellent credit and substantial home equity will qualify for the best rates. The closer to a score of 700 you come makes you a better borrower in this marketplace. Generally, consumers need a credit score of 740 or higher to get the best deals. (more…)

search for : home-equity line of credit, prime rate, home equity, home equity line of credit, HELOC

Beautiful Wilkes County NC Timber Frame Home and Mountain Property.

MLS Number: 51166, List Price: $898,500

2 Bedrooms, 2 Baths, 2 half baths, 2 car attached garage, full basement, and a barn on 5 acres of land.

These terms are used to describe thousands of homes and yet some things just can’t be described, they have to be experienced. This is one of those homes that really has to be seen to be appreciated.

This majestic Timber Frame home of the Bob Timberlake genre is not just another house, it provides a feeling of home that is not about walls and floors and windows and doors. It creates a feeling of the flow between your outdoor and your indoor environment that is seamless. Everywhere you look there is a view. Everything you touch feels natural and beautiful in a way that cannot be described, only owned.

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

According to the Mortgage Bankers Association, interest rates fell last week. As a result, mortgage applications increased by a seasonally-adjusted 32.2 percent. In real terms, total mortgage applications shot up an astounding 8.7 percent compared to the same week a year ago. Now, near record low interest rates are making homes much more affordable.

Rates on 30-year fixed mortgages averaged 5.73 percent, down from 6.05% only the week before. That could explain why financings were 57.7 percent of mortgage applications last week up from 50.9 percent the week before. The typical homeowner plans to stay in their home about 10 years. That could explain why more people were interested in refinancing their mortgages last week than putting their houses on the market. (more…)

search for : Mortgage Bankers Association, 30-year fixed mortgage

Not enough cash to go around? It’s tempting to skip the biggest bill, which is typically your mortgage payment. However, foreclosure these days is fast-tracked process, which means you could find yourself receiving a foreclosure notice from your lender in as little as 60 days.

You need to call your lender. If you’ve already missed a payment and your lender has called you, you need to pick up the phone and return the call. Talking to your lender is the best way to stop foreclosure.

If you’re having trouble reaching your lender, call a HUD-certified housing counselor, who may be able to reach out to your lender on your behalf. The toll-free number is (800) 569-4287, or go online to the www.HUD.gov website. (more…)

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Treasury Secretary Henry Paulson is defending a plan brokered by the Bush administration to “freeze” mortgage rates for some subprime borrowers. By coordinating an alliance of lenders, servicers and investors, the Administration is hoping to prevent avoidable foreclosures.

Critics of the plan fall say that the rate-freeze plan is a start, but it’s a late one and not sufficient to address the size of the problem. Others point-out that adjusting mortgage contracts amounts to a bailout. That is, free-market principles say that those to take on risk should suffer the loss when bets go bad. (more…)

search for : Treasury Secretary Henry Paulson

Recently, the Financial Industry Regulatory Authority, Wall Street’s self-regulatory body, broadened their review of Wall Street’s role in the mortgage industry crisis. Just last month, the body sent letters to firms asking for documents, including marketing materials, a list of supervisory policies and loan making procedures.

Also requested are descriptions of how collateralized mortgage obligations were valued. Actions suggests that the regulators are looking into whether brokers sold these risky investments to individuals just as the market for related products was collapsing. (more…)

search for : Financial Industry Regulatory Authority, mortgage industry crisis, collateralized mortgage obligations

Reverse mortgage loans are experiencing a dramatic increase in popularity. Lenders and banks are beginning to realize this and are making a shift towards the reverse mortgage market.

A reverse mortgage offers an older homeowner the ability to tap into the equity of the home. A reverse mortgages works almost like getting a fixed-amount, monthly pension paycheck. But, instead of making a monthly payment to a bank, the bank writes a check to the homeowner and then adds that dollar amount to principle amount owed on the property.

First Midwest Bank offers two Reverse Equity Loan products; the Home Equity Conversion Mortgage (HECM) is available through the Federal Housing Administration and the HomeKeeper® Reverse Mortgage is available through Fannie Mae, a private company chartered by the U.S. government.

Freddie Mac recently released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage averaged 6.07 percent. That’s down from 6.17 percent last week. Last year at this time, the 30-year FRM averaged 6.18 percent.

The latest home sales data has sent mixed messages on the direction of housing activity towards the end of 2007. The mostly grave home sales reports came with a few light notes. While new home sales fell in November to the slowest pace since April 1995, existing home sales rose by a small margin to an annual pace of 5 million units. (more…)

search for : 30-year fixed-rate mortgage

Beautiful Wilkes County NC Log Home and Mountain Property.

MLS Number: 50863, List Price: $359,900

Bedrooms: 3, Full Baths: 2, Half Baths: 0, Est Total SqFt: 2600, Type/Style: Log Home, Area: Area 6, Middle School: Cntrl Wlks, High School: Wlks Cntrl, Construction: Log

Foundation: Combination, Roof: Metal Roof, Floors: Carpet/Hardwood/Tile, Garage/Carport: None-Garage, None-Carport, Interior Features: Master Bedroom, Main Level, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Fireplace(s), Great Room, Exterior Features: Double Pane Windows, Wooded Lot, 1-5 Acres, Hot Tub, Subdivision: N/A, Lot Size: 2.47, Apx SqFt: 2600 - 2800 SF, Basement: None

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

Your first priority should be to know when and how much your adjustable-rate mortgage will change if and when a reset occurs. This one fact will help you determine whether or not you refinance your mortgage during 2008. A reset, by definition, means that the rate on an adjustable-rate mortgage goes through at least one adjustment. Those adjustments are called resets. In recent years, the most common kinds of adjustables have been 3/1 and 5/1 ARMs.

The section in your loan contract that discloses the rate’s change date should offer an explanation of how the lender will calculate the new rate. The ARM’s rate will be based on an index and a margin. The index is an independent interest rate that is widely known — the yield on the one-year Treasury note, for example, or the six-month London Interbank Offered Rate (LIBOR). (more…)

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With all the talk of the subprime market tending towards foreclosures, one might not think that now may still be the best time to refinance a mortgage.

In 2008, homeowners will consider refinancing because their adjustable-rate mortgages will hit their reset dates, sending rates and mortgage payments to the stratosphere.

To determine if your mortgage will encounter a reset, simply read your loan contract. In the section that discloses the rate’s change date, there should be an explanation of how the lender will calculate the new rate. The ARM’s rate will be based on an index and a margin. The index is an independent interest rate that is widely known, maybe the yield on the one-year Treasury note, or maybe the six-month London Interbank Offered Rate (LIBOR). (more…)

search for : subprime, adjustable-rate mortgage, reset date