Home Equity Loans – second mortgage

wmfetv asked:

WMFE is helping the Orlando community face the on-going mortgage crisis by connecting people those in need with trusted community resources to help them address or prevent a foreclosure situation and deal with other aspects of the current financial crisis. Our work continues here at our new interactive web site – wmfe.org/mortgage. Youll find all the same great content, and hopefully even more resources to help you or those you know. As we all face the mortgage and financial crisis, we will continue to bring you information from experts, trusted resources, and the Orlando community United Way 2-1-1 & Elder Helpline is a free, one-stop source for referrals to approximately 800 health and human service agencies and 2000 programs and services in Central Florida. United Way 2-1-1 is accessed toll-free from anywhere in Orange, Seminole or Osceola counties by simply dialing 2-1-1. It operates 24 hours a day, 365 days a year. Multilingual call specialists and TDD access is available. Central Florida residents call 2-1-1 for many different types of help. Professional call specialists help callers with such complex issues as substance abuse, gambling, domestic violence programs, suicide prevention, financial problems, mortgage foreclosure assistance and much more. By dialing 2-1-1, a caller is connected with a highly trained call specialist who helps the caller assess their situation and find the community services in their area that can assist them. Visit wmfe.org/mortgage for …

Gerald

Alan Lim asked:




Determining your score

To improve the credit score so that you have the best possible terms on a home equity loan, the first step is to learn all you can about the items recorded on your credit reports. There are three major credit bureaus and each of them may have different information. Some or all of the credit bureau reports can contain errors that should be corrected. There are precise procedures that must be followed in order to clear inaccurate, duplicated or missing information. It is possible to complete the cleanup process yourself, or there are companies that specialize in clearing up the information.

What role do credit bureaus play?

Credit bureaus collect information about individuals and present it in a consistent form to lenders, promotional businesses and landlords among others, in order to demonstrate the creditworthiness of the individual. When an individual applies to a lender for a home equity loan, the credit report of the potential borrower will be requested from one or more of the credit bureaus. Usually, the report is presented in the form of a FICO score. This score is a numerical value that tells the lender how the borrower ranks according to the bureau’s algorithm.

Improving the score

Before applying for a home equity loan, you should review your credit score and take steps to improve the score. First, call for a current credit report from each of the three major credit bureaus. Each is required to provide a free report each year upon request. Then carefully review each item and make certain that you understand what the terms and markings indicate. Take note of each incorrect item and follow the instructions provided by the credit bureau to dispute the incorrect information. You should document each step of the process and don’t give up until the report is as accurate as it should be.

Removing negative entries

Current legislation provides a number of different ways that consumers can force the credit bureaus to remove inaccurate information. You can also stop the sale of your credit bureau information to companies who purchase such information either to try to collect on old and sometimes nonexistent debts. Negative entries will lessen the chances of good terms for the home equity loan for which you apply. For example, too many inquiries will lower your credit score. A history of frequent moves can hurt your chances. You can lose good terms on a loan because you’ve held too many jobs recently.

Fixes to avoid

Adjusting the credit score can be fairly simple to do, so it is not necessary to pay someone else to correct your credit score. In fact, some less than scrupulous businesses take your money, but don’t do much toward correcting errors. Don’t waste your money on one of these. You should also avoid blanket disputes online or by mail. The credit bureau will often consider such efforts frivolous and refuse to investigate the dispute further. The time you spend in correcting legitimate errors will pay off in reduced terms for your home equity loan.

Leo

HouseHelp911 asked:


I was not informed of the possibility of a sale until 12/5/07 and then only by email, which gave me only three-business days notice I did not know what to do, To make it worse she left the office early that Friday at 1:30 and they could not be reached over the weekend per their email. Every phone call I made from 12/5/07 on was delayed by the office telling me to hold on as they “must contact the lender and get back to me” they even stopped returning my calls on the day of the sale. While on the phone waiting to hear from the lender; he is auctioning off my home. Currently 150k in equity I was only behind 9k. I believe they did this to lead me on until the sale was over.
I was told there were no other bidders and my lender bought my house for himself. Now my lender wants to rent my house
help.I was delinquent on my second mortgage and I do not dispute any fault on my part for being in this position I was lied to by the lender. Help
as I stated I was current on the first. they didnt send proper notice. Every phone call I made from 12/5/07 on was delayed by the office telling me to hold on as they “must contact the lender and get back to me” they even stopped returning my calls on the day of the sale. I believe that they did this to lead me on until the sale was over. On the day of the sale I had a friend contact the lender as she was ignoring my calls and she claimed to my friend that she had never made any offers to me and had informed me of the pending sale when I gave her the $1000.00 on 11/14/07, that lying (^&%$#@!). I also asked for 2 extra days and payment would have been in full.
Im not asking for pitty just understanding.
The bank told me as long kept my first mortgage current we would be able to do a forbearance agreement without notice they sold.

LOUIE

Yves g asked:


Hello,

I’d like to understand (at a high level) the rules that lenders apply to qualify you for a mortgage in the following situation. You own a house that you plan to sell and are looking for a new one and would possibly use an equity loan for the down payment. Do you have to get approve for 3 mortgages at one? Do lenders use the same debt/income ratio when it is clear you plan to sell the 1st house and if so what ratio are used? Can the approval be contingent on the sale of the first house prior to buying the second one? Even if I close on the same day or close on the sell prior to buying, in all likelihood, I need to get pre-approved prior to officially selling my first home.

Any other concepts that I am missing?

SAMMY

pcary2000 asked:


Hello!! I have struggled hard and have not missed a single payment to any of my lenders. However, I do have a financial hardship. I have a second mortgage for a second property which I amtrying to sell but I can’t. And also, unfortunately, my son (3 years) is sick. I will have to pay someone for taking care of him (he can’t go to a regular daycare because illness is infectious) while I try to keep my full time job (his insurance also depends on me). I’m very confused because I don’t know how to write the hardship letter and all examples I find is from people that are behind in payments or with variable interest rates. If I tell them, that my problem is the second property (which part of the debt is in my home equity line, maybe they will deny me. I Could you please help? Thanks a lot.

WINSTON

Chris asked:


Due to the down economy I was laid off from my job. This is happening everywhere but I was wondering if I could still get a second mortgage as a type of “rental income”. I currently own a home, well still have a mortgage. But are lenders still willing to give out loans to people who are unemployed but yet looking to make a second source of income from rent. Or could I pull out a line of equity on my current home? Please give me some advice

(reason I ask: Found a steal on a home appraised at $99,000- selling for $30,000)

ORLANDO

T F asked:


Probably will have to let my home go to foreclosure. Currently am behind 3 payments on the second mortgage but not on the first. Should I try to get the second caught up and then have them go into default at the same time? What happens if the second mortgage goes into foreclosure before the first? Would the holder of the first mortgage redeem the sheriff deed on the 2nd, or would the 2nd buy out the first? Need help here deciding what to do. I don’t have enough equity in the house to sell it and can’t make the payments.

TERRENCE

SoCal G asked:


My wife and I are going to buy our second home. We’ve been in our current home for 15 years and have good equity. My sister who works for in the credit industry told me that the FICO score generated by the 3 bureaus is only a CONSUMER score and that the actual score used for a mortgage will be lower. For example, I know my current FICO is about 725. She claims it will actually be lower when a mortgage company runs my credit which could affect how much of a loan we get and the interest on it. Is this true???

Please no personal opinions, cite references or industry experience if possible
Thanks to the early responses. We are very fortunate with debt/available credit.
We have 4 c/c’s each with approx $15-$20k limits and zero balance on all. We use them occasionally to keep some use going but no balances. They are all old accounts, about 4-15 years. No car loans. The only loan is a student loan with about $7k on it.

SAMUEL

Stephen Campbell asked:


A home-equity loan might be the right option on whether you need amount for college, home improvement, or even medical bill. This is a type of loan that uses home as a collateral and this can be classified into two categories: The closed end such a loan; and the open end home-equity loan.

Closed End Equity Loan- is like a traditional loan and this is also called as ‘second mortgage’. With this, the borrower receives the full amount loaned at the time of loan’s closing. It is paid back on monthly basis.

Open End Home-Equity Loan- it is a lot more flexible compared to closed end. Instead of acquiring the full amount loaned, the borrower gets a line of credit. The borrower can also choose when to borrow the money. This type of loan usually have a variable interest rate. The borrower can choose how much money to borrow against the home’s equity.

The basic concept of a home equity loan is that you can borrow against the current equity in your home, so the more equity you have the larger loan you can actually receive. In other words, to acquire an equity loan you are using your home as collateral, or the basis, for the such a loan. If you do not pay the equity-loan back, then your home is at stake and may be foreclosed upon. Therefore, it is important to understand more about this so that you are able to ride on the how this business flow.

You will need to know all of this concepts or information before you apply for a home equity loan to know if you have enough equity to even apply for a home equity-loan. In addition, the more you know about applying for and negotiating rates for a home-equity loan the better deal you will receive. Always put in mine, knowledge is power and the more home equity loan knowledge you have the more powerful you will be able to negotiate.

Home-equity-loan is searched well with online tool. Here you need to fill an online application form. Then you find number of lender approaches you with their loan quotes, repayable term, and rate of interest. It is the easiest and convenient method to reach your desired loan deal.

You can learn additional ideas on how to this business flow by visiting some websites. This is very useful if in case you want to engage in this business.



DARWIN