Lacky Mortgage

The financial crisis is something that does not come invited in people's lives. If you are a victim of such a financial crisis and are still employed, you can still think of coming out of the crunch as you have the security of the employment and the salary from the job. But if you are a retired person and facing the same crunch, it can be rather difficult to think of something to get out of such financial trouble.

 You might consider applying for a loan, but being retired, it would become difficult to repay back the amount. And who does not know that if you fail to repay the loan amount, you might have to face severe consequences for that. Instead of taking a loan and risking your daily life all the more, it is a much better idea to opt for the equity release mortgages or the home equity release schemes.

 Both these schemes are particularly designed for the retired people only. With the help of both these schemes, you are entitled to obtain a loan that is based on the property valuation that you own. It is similar to the mortgage amount. But unlike the mortgage scheme, in case of the equity release mortgages and the home equity release schemes, you must not give up your property to the lender who offers you the loan. Instead, you can stay in your property for all long as you wish or unless you expire. After your death, the lender will overtake the property and get his share of percentage and retrieve his money. If there are any proceeds remaining as balance, that amount would be handed over to your beneficiary or heir, whichever is applicable.

 There are several equity release calculators available online that is free for usage. With the help of these calculators you can calculate the amount that you can receive from the home equity release and the equity release mortgages. It is also a good idea to consult with an equity expert before finally applying for a scheme. They are the ideal people who can give you the best idea about which schemes are best for you and will suit your property and your family. They will also be able to guide you about the pros and cons of each scheme so that you can choose the best after checking out the details of each of them.

What are the benefits of equity mortgage release?
 Well, the particular scheme can provide you with a lot of added advantages for surviving and maintaining a good life along with your family. You can earn a huge amount of money which will be free of tax or can be counted as steady income. At the same time equity release mortgage will help in reducing the amount of inheritance tax paid by you for your property. More over everything it makes you feel free from all the additional monetary tensions after your retirement. It is all about gaining additional funds when you are not supposed to work hence can only enjoy the fruits of your hard work done in your earlier age.

 What is an equity release mortgage? To be very prompt, it is completely meant for the elderly person who wants to remain out of tension after retirement. Equity mortgage release not only helps in sustaining a decent standard life hence also helps to make up with all unpredicted financial requirements. If you are a borrower then equity mortgage release enhances you to obtain cash either in monthly basis, as instalments, or as lump sum money, by providing your home as security.

 There are several schemes available under equity release mortgage like lifetime mortgage, home reversion plan, home income plan, and shared appreciation mortgage. In case, of lifetime mortgage a loan is being secured under the borrowers name and therefore compound interest is added on it throughout the tenure of the loan and hence paid after the borrower dies or moves out. In case, of home reversion plan the borrower either total or a part of their house to an individual or company and in return receives a regular income by living in the same property. While in home income the asset is used to initiates an income purchasing annuity. Last but not the least is shared appreciation mortgage, the lenders finances the borrower with a capital sum in return for enjoying a share of the future increase in the growth over the property value.

 The UK release market provides mainly two types of equity mortgage release plans – life mortgage and reversion plan. A number of companies provide the customer a particular calculator to show them a rough estimate of amount of equity that can be released. Both the plans now come under Financial Services Authority (FSA). Hence, the above schemes are worth taking.

Source:  http://www.articlesbase.com/mortgage-articles/use-of-equity-release-mortgage-in-terms-of-making-money-5805168.html

On February 1st of 2010 the entire game changed with regards to obtaining FHA insured loans for condominiums. No longer could a seller get "Spot" (single unit) approval when they tried to sell their condo. Now the entire complex has to be approved and under much more stringent regulations to boot.

Many Homeowners Association (HOA) Boards were not aware that HUD was requiring new and tougher criteria to get their complexes approved. Before condominium communities could offer FHA Insured Mortgages they had to prove that they met these new requirements. On the other hand, some of them knew about the changes but just didn't care and others didn't know how to go about getting HUD approval.

Regardless of the reason the end results were the same for the condominium owners that wanted to sell their condos. They could not offer FHA financing to any prospective buyers.

In 2011 just under 40% of all mortgages used to purchase a home nationally where FHA Insured Mortgages. According to the NY Times (February 27, 2012) 1st time buyers used the FHA Mortgage Program in 53% of the cases when purchasing a new home. 53 first time buyers or 40 all around buyers out of 100 is a lot of buyers to pass up. In the market we are currently going through condo buyers are hard to come by so everyone counts. The condos that are offering FHA financing are seeing twice the amount of prospects as the non FHA approved sellers.

As you can readily see being HUD/FHA approved is a tremendous advantage when it comes to selling your condominium. It also should be noted, for any condo owner over 62 years of age, an FHA Reverse Mortgage, which is considered the Cadillac of reversed mortgages, also requires the complex to be HUD/FHA approved.

This brings us to the problem of what a seller can do when they want to sell their condo to an FHA buyer and their HOA board says they are not interested in getting the complex HUD/FHA Approved.

The first thing the seller should do is find out why the HOA is against FHA approval and then the seller can address those issues. I work for a business that gets Condominium Complexes HUD/FHA approved on a daily basis. I will go over the excuses that we hear for a board's refusal to apply for FHA approval.

One reason for the board's negative attitude, that we hear all the time, is that they think that offering FHA Financing will attract "Undesirable" buyers. This reasoning is usually brought about by the fact that the FHA requires only 3.5% down payment where a conventional mortgage can demand up to 20% down. A lower down payment equates to deadbeat buyers in some HOA boards minds.  

First, a higher down payment is not the key to mortgage success. VA mortgages are almost always made with zero down versus 3.5 percent for FHA financing and up to 20% percent for conventional loans. Of all these the VA loans have the lowest foreclosure and delinquency rate.

When you realize that toward the end of 2011  4.29%2 of conventional mortgages nationally were in foreclosure while only 3.24%3  of FHA loans faced the same fate that argument goes out the window.

Another impression that some HOA boards have is that FHA purchasers are bad credit risks. This assumption is also false. A credit score of 620 or above is required by the FHA to get their 1st tier finance program. If a buyer's score is below 620 more down payment will be required or FHA Mortgage Insurance will not be offered. A little education of the board should be sufficient to change their minds on this point.

We also hear that getting FHA Approval doesn't do anything for the HOA. In most cases a simple reminder that the HOA board's only purpose is to oversee the running of the complex in an orderly, efficient and monetarily sound fashion for the greater good of the community. This should include any help that they can offer a condo owner to facilitate the selling, re-financing or acquiring a reverse mortgage for a condominium in the complex.

For the HOA board to choose not to become HUD/FHA approved is not looking out for the complex's and/or the individual owner's best interest. The HOA board should be reminded that at some point in time – Every Single Owner in the Entire Complex Will Want To Sell Their Condominium!  The ability to offer FHA Insured Mortgages just makes selling easer.

Cost is another reason given for not pursuing FHA approval. This can be a factor if a complex's monetary situation is really tight. It is possible to get your community HUD/FHA approved for under $100.00 (not counting the labor time). This can only be accomplished if the board, or their agent, is willing to do a lot of work. They must be willing to properly fill out the application, gather the required documents, furnish all the information that is needed and submit that information in a format and manner that HUD will accept. HUD has issued two articles that list all the documents and information that the board will need4.

If the board chooses to use an FHA condo approval company they should not have to pay much over $1,000.00 for a complete certification and $600.00 or so for a re-certification. After they look over the procedure for obtaining HUD approval we think any board will agree that the money that these companies charge is well worth it.

 As a side note I would suggest that every HOA board steers clear of any company that requires them to pay any money in advance. They will be out the "up front" money if the complex is not approved.

 I have heard of 3 separate companies that offered a money back guarantee and then didn't honor it when the complex was not approved.  A professional approval company will not charge the complex anything until the condominium community is fully HUD/FHA approved.

The last reason we hear can be the hardest to overcome. The board knows that they do not meet the HUD requirements to receive FHA approval. This may or may not be fixable.

 Some of the reasons that a complex may not qualify is that their insurance is not adequate in HUD eyes. Some of these reasons are:

   1 - More than 15% of all home owners' dues are over 30 days in arrears.

   2 - They are not putting 10% or more of those dues into a dedicated reserve   account to cover major repairs or large dollar maintenance items.

   3 - Retail floor space is over 25% of the total floor space.

   4 - 51% or more of the total units are not owner occupied

   5 - More that 50% of all condos were purchased utilizing FHA insured     mortgages.

These are just a few of the HUD requirements that could be holding your condominium community back from HUD/FHA approval. There are quite a few more and some can be fixed and some can't.

 These shortcomings should be addressed on a case by case basis. If the board got this far they will probably be open to getting advice from a professional FHA condo approval company. These companies should be able to tell the board if their problems are fixable and what they need to do to get approved.

 There is usually no charge for this consultation. A fee should only be owed when the complex is fully HUD approved and only after the board has hired the approval company to finish the application.

 Good luck and I hope this article gives you some insight into how your HOA board may be thinking. If you need any help or more information just give me a call at (360) 562 0406 and ask for Sam or Bob. We don't charge anything to talk.    

 Footnotes

1 - http://www.nytimes.com/2012/02/28/business/fha-raising-its-mortgage-fees.html

2 - http://www.calculatedriskblog.com/2011/12/lps-mortgages-in-foreclosure-process-at.html

3 - http://www.mbaa.org/NewsandMedia/PressCenter/77688.htm

Source:  http://www.articlesbase.com/mortgage-articles/what-your-condos-home-owners-association-board-should-know-before-they-says-no-to-fha-approval-5791025.html

Do you want to make your retirement life free of tension and stress? Do you want to make your retirement days full of fun and frolic? It's the fundamental right of every individual to be independent and walk without any burden on his shoulder. A retirement annuity is one such investment scheme which secures your life even after you retire. You get huge returns from the insurance companies. However, you need to examine and evaluate the company first before you apply for such policies. It is because the annuities are paid out on a yearly basis and it takes one whole year to mature the funds. It's better to seek the advice of a professional financial expert or investment adviser before you make any decision regarding any policy.

 There are many reasons as to why you must cash out of an immediate annuity. Suppose you are facing any hardship or financial trouble or you need to reconstruct the investment portfolio. What will you do then? There are various options available to you. You can opt for immediate annuities in such cases which are single payment policies that are gaining momentum day by day.

Types of immediate annuities Immediate annuities are not projected for huge investors who are opting for liquidity. They are generally classified into two broad groups. The first type of immediate annuity is fixed immediate annuity. Such annuities ensure guaranteed payments irrespective of the market structure and growth. The second kind is variable immediate annuity which fluctuates on a regular basis and is highly dependent on the performance of the market.

How can you extract cash from an immediate annuity?
At first you need to understand the outcome of extracting money out of immediate annuity. Calculate the withdrawal or surrender fees very carefully. Penalty is applicable to these annuities and a 10 percent penalty is charged if the annuitant is under the age of 59 years.
Under section 1035 of the IRS, you can enjoy tax free exchanges between the annuities and the insurance policies.
The next step you should do is to surrender the immediate annuity, which is a kind of retirement annuityfor extracting cash and then choose to buy another policy. However, you will still fall under tax penalty.
Now you can transfer the money on immediate annuity to the retirement account of the individual and then ask the specific brokers for waiver benefits.

In these ways you can cash out an immediate annuity in a desired manner and make your retirement life healthy.
Source:  http://www.articlesbase.com/mortgage-articles/how-to-extract-cash-from-an-immediate-annuity-5791119.html

Mortgage loan loans are regarded as being probably the most needed auto loans. Many reasons exist for behind it. The prevailing concern that is always that individuals now using this program can find their unique property without having whole quantity simultaneously. The loan case has to pay bit every month. Do you think you're one of many home masters assessed down with the loan overhead costs? The financial meltdown can include bane the home mortgage you have already to pay for.You sense that your scenario is despairing and there won't appear every other way but foreclosure simply because you consider no methods to generate further resources. This is a really upsetting circumstance. Its not necessary to become entirely despairing because every cloud has a gold coating and your own house may be available as home loan modification programs.

Just before continuing further with mortgage difficulties, lets set up what Hamp loans actually do. These loans might be termed as the modified model of refinancing in places you get benefits like remortgage without having to remortgage your mortgage loan. Is that not something? These home house loan loan modifications programs are the methods to result in the house loan cost-effective for yourself by enhancing your overall home mortgage.Due to the good and bad throughout the market and tough economy obtaining usual the market place pretty badly lots of people are dropping brief on conference the output deadlines to their financial debt commitments. They have to discover a method to keep up the loan without having planning belly up.

hamp government program applies the modification to the interest rate charged on the loan, thereby lowering it to reduce interest expense on the loan, the duration of the loan which is prolonged to make the payments low and help the home owner save on the loan. Different mortgage companies are willing to provide such programs according to the home owners' needs and limits. You need to be updated with your loan provider whether you qualify for HAMP or not. Usually a mortgage company which is FHA approved can only provides these programs. So consider this too before approaching any mortgage company. A home owner needs to be behind on the monthly payments, meaning 30 days past the due date. The house that you're acquiring the HAMP program for must be an insured single family home. Search around in the market and don't just jump on the first offer you get from the lender.
Source:  http://www.articlesbase.com/mortgage-articles/save-your-money-and-lower-the-financial-stress-with-hamp-program-5792929.html

With home prices inching downward and interest rates close to record lows, a lot of investors are tempted to scoop up properties while the pickings are lush. However, while prices are looking good, finding investment property mortgage financing can be a challenge.

Although the days of quick and easy loans may have come and gone, that doesn't mean it's impossible to find a good financing plan for your real estate investment. Here are some helpful tips:

1. Have a sizable down payment
Most investment property loans will require at least 20 percent down. If you can come up with more than that, you stand an even better chance at securing a low interest rate. There may be hard money lenders out there who will allow for a lower down payment but you'll likely have to do digging in order to find them. With a private investor, there is a good chance that your mortgage rate will be higher.

2. Be an attractive loan candidate
 While many things will influence your ability to qualify for a loan, your credit score will be a big factor. Be sure to keep tabs on your credit score before you apply for a loan. If you have a low credit score, you may have to need to pay points to get your interest rate down. If you know your credit could use some improvement, you should consider taking some time to build it back up before diving head-first into an investment deal.

3. Request owner financing
While owner financing used to be frowned upon by some sellers, the strict changes in credit requirements have made this tactic more acceptable. A lease-to-own or rent-to-own plan could be an alternative option for the buyer who is reluctant to go through a bank; however, any time you enter into a financial agreement with a non-professional, you run certain risks. Always get your agreements in writing and consult a legal professional when dealing with this type of financing.

4. Investigate equity loan options
If you're looking for a property that has good income potential, you might want to research borrowing through home equity lines of credit (HELOC). Be aware that HELOCs can carry a higher risk for the borrower. With a HELOC, you are essentially putting your own home on the line in order to secure a down payment or repair money for your investment. If the investment should fall through, you could end up in trouble. If you are looking for a large lump sum, you may want to research a home equity loan where the interest rate may be fixed.

 5. Research your investment thoroughly
 Before securing any kind of financing - especially the more risky options such as owner financing or borrowing against equity - make sure you know all you need to know about your investment. You don't want to be unpleasantly surprised or find yourself unprepared.

As always, don't rely on your own personal knowledge when it comes to financial investments. Take the time to research the property itself, your own credit and financial state, as well as all possible financing opportunities.
Source:  http://www.articlesbase.com/mortgage-articles/5-tips-for-financing-investment-property-5777361.html

Mortgage refinance loans offer immense opportunity to borrowers who had been and still are struggling with mortgage payment. Losing some funds is one thing but losing your home which is a huge investment of one's life is extremely distressing. Home owners can refinance the home mortgage at low rates to save money and stabilize the financial situation. This effort would not only revitalize the home owner but also lend towards stabilizing the real estate industry that has taken a hard blow due to unstable economic situation.

Many mortgage refinance lender agrees to repay the entire amount of the existing home mortgage loan by offering a new loan at low mortgage refinance rates. The low rates would help make savings and these savings can go towards financing some other activity, can be saved for future use or even go towards accelerating the loan repayment. You can go to banks, credit unions, third party lenders or other financial intermediaries to get a free mortgage refinance quote. It is very essential to get as many mortgage refinance quotes as possible because every financial advisor would suggest quote comparison as an essential part of selecting a mortgage deal.

It is very important to consider the fact that when you're refinancing the mortgage loan you'll still end up with a loan. So, when you refinance the mortgage loan start saving from day one. You can take assistance of financial consultants who would advice you how to manage debts. You can also negotiate with the refinance mortgage lender to provide good repayment schedule or further reduce the rate. If you have been a good borrower and you like the lender's way of handling the mortgage then you can contact the existing lender to offer you refinance mortgage loan.
Source:  http://www.articlesbase.com/mortgage-articles/say-bye-to-foreclosure-by-availing-refinance-mortgage-loan-5775511.html