Five Mortgage And Foreclosure Myths

In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction.  For buyers, misinformation can be the difference between qualifying for a home loan or not.

Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.

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There's Life After Bailing On A Mortgage

The typical questions about ethics and blame were not what three Huffington Post writers had in mind last year when they asked readers, "Are you considering walking away? Have you already walked away from an underwater mortgage?"

Nearly one in four American mortgages is worth more than the home it's tied to. That's about 10.8 million mortgages. Borrowers of 58 of those mortgages responded to the reporters. In the ensuing year, 10 homeowners lost touch with The Huffington Post but 48 stayed in contact and reported on their experiences. Today, just eight are still in their homes.

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2011 FHA Home Loan Requirements for Borrowers

If you are a home buyer thinking of using an FHA loan to buy a home, you should be aware of certain changes to the FHA program. This page offers a summary of FHA home loan requirements for 2011.

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What is a Good Credit Score in 2011?

What is considered a good credit score these days? This is one of the most common questions we receive from our readers. And as we replace our 2010 calendars with new ones for 2011, this question will surely see a spike in frequency again.


So, in anticipation of all those emails, I thought I’d share my own definition of a good credit score in 2011:

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5 FHA Streamline Facts You Need to Know

The benefits of an FHA Streamline loan are going to be discussed in the following article. Anyone with an FHA loan that wants to reduce their monthly payment is going to want to see these facts.

1. Who qualifies for an FHA streamline loan?

• Home owners that currently have an FHA loan.
• Must have the loan for 6 months or longer.
• No delinquencies on the mortgage in the last 12 months.

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Short Sale Of Home Similar To Foreclosure In Its Effect On FICO Score

Dear Liz: In 2005, I purchased a town home for my children, and they have since vacated the property. The town house is now worth 60% of what I owe, and I am considering a short sale. All my other obligations are current with no late payments in years. My credit scores are over 800 and my only other debt is a car payment. After a short sale, what kind of hit can I expect on my credit score, and about what would be the recovery time for my credit score?

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After Foreclosure: The Consequences of Bad Credit

After foreclosure, you can expect your credit score to drop – by as much as 180 points. Even if your home is lost through short sale or deed in lieu of foreclosure, the result is the same – bad credit. Considering that you need a credit score of at least 580 to get a loan, a reasonable interest rate on a credit card, or even many apartments, the effect of foreclosure on your credit, and your life, is significant.

1. HOUSING: First, realize that after foreclosure, your housing situation is going to change. This may be somewhat obvious as you are losing your home, but consider the effect of foreclosure a bit deeper. You will not be able to purchase a home for at least seven years unless there were verifiable extenuating circumstances. Likewise, you may experience problems finding a new place to live as many landlords will not rent to people with bad credit (in many cases, property management agencies have strict guidelines prohibiting it). As such, it is in your best interest to apply for housing before filing for foreclosure (or at least spend time figuring out where you will live).


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Former Homeowners Ponder When To Re-enter Real Estate Market

In hindsight, Scott Feldman's decision to sell his first home in late 2006 could have been a case study in a textbook called "How to Time the Real Estate Market."

Feldman, who works at a private equity firm, sold his two-bedroom apartment on Manhattan's Upper East Side for $879,000, about 40 percent more than what he paid for it in 2003.

But whether Feldman's return to homeownership proves as financially savvy remains to be seen. After weathering the recession in a rental unit, he bought a five-bedroom house in a New Jersey suburb last spring for 30 percent below the original asking price.

"We probably overpaid for it -- but we're happy here," Feldman said, adding that he and his wife's decision to buy had less to do with calling a market bottom than settling into a community their two young children, nearing school age, could grow up in.

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How Do I Obtain A Mortgage After Bankruptcy?

My husband just recently filed for Chapter 7 bankruptcy to help clear up some of his debts. His hours have been cut at work and he had major credit card bills piling up. Let alone I have also had a big cut in my pay as well due to the economy. When he filed we did not include the property in the bankruptcy and we are now looking to sell our home and find a new place to live in search for a better career.

How do I obtain a new mortgage after bankruptcy?

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Can I Get A Mortgage After A Short Sale?

My husband and I have been trying to get a loan modification for the past year and a half and have exhausted all of our resources just to stay out of foreclosure. At this time we feel our best option may be to short sale our home and move elsewhere. However, we cannot decide whether or not we want to rent or buy a new home right away after the sale occurs, or if we will even be allowed to do so.

Our question to you is, “Can we get a mortgage after a short sale?”

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Short Sales On Underwater Homes Better For A Credit Score Than Defaulting On A Home Loan

Many homeowners who have experienced an underwater mortgage have been very frustrated with the situation, which is understandable. When a homeowner owes more on their home than their home is worth it easy to see why some homeowners have sought help through principal reductions, refinancing, and any other form of mortgage assistance they can find.

However, homeowners have grown so frustrated in many cases that they simply walked away from their home loan and defaulted on their mortgage. Some homeowners were unconcerned with the damage this does to their credit score and felt that since their home is an investment and its value had declined to such a state where they were unlikely to ever regain anything, there was no reason for them to keep making mortgage payments.

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Translating Mortgages Into Monthly Payments

Q: If I buy a house in Maine for $320,000 with a 7% interest rate for 30 years, what will my monthly payment be? What about at 8% interest for 15 years?

A: To start with direct answers to your questions, a $320,000 mortgage at 7% over 30 years would yield a monthly payment of $2,128.97. A $320,000 mortgage at 8% over 15 years would yield a monthly payment of $3,058.09.

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Your Worst Credit Problems Are Not As Bad As You Think!

There's a cruel irony to navigating your finances amid the ongoing credit crunch.

On the one hand, maintaining a great credit rating is more important than ever – especially if you're looking for a job or need a loan of any kind. On the other hand, if you mess up royally in the credit department, rest assured that even the worst credit mistakes you can make probably aren't as bad as you fear.

Here's a look at a couple of the most severe credit catastrophes you can face – and why none of them is fatal to your financial life.

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How to Avoid Common Real Estate Mistakes

Spring is typically peak season for buying and selling homes. But many Americans jump into this major transaction without doing their homework, and that could cost them.

CBS News Business and Economic Correspondent Rebecca Jarvis said on "The Early Show" Thursday buyers and sellers can expect two big unknowns in the stabilizing market: What happens with the federal stimulus money expires after April 30? And with foreclosures increasing, how much could that weigh in on prices?

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