If your a resident of Arizona, do you think that President Obama’s Mortgage Bailout Plan is the best option for you or do you think that there may be a better solution? Well, the short answer is yes, there may be a better solution for you. The long answer is an option called the Short Refinance. That’s basically the long and short of it.

The reason that the Obama Mortgage Bailout Plan may still leave you short of your expectations is because it’s short minded. Yes, that’s correct. Even if you go through the entire process of Obamas’ Mortgage Bailout Plan, you may be still be upside on your mortgage. And that would leave you very short of your temper. Don’t you agree? Yes, I thought so. Lets take a look at this situation and you decide if you, as an Arizona mortgage holder, will be satisfied with the end result.

The short comings of the problem are easy to understand. Your mortgage payment can still go through the adjust stage after the initial setup. Sound familiar? Yes, that’s very similar to the problem that got you into this situation originally. So, your Obama Mortgage Bailout Plan may end up being short on expectations because you might just go around in a circle and end up where you started, which is behind on your mortgage payments.

What should be considered as a different option is not a short minded plan, but a Short Refinance. The Short Refinance offers a negotiation process with the current mortgage company to accept a mortgage payoff under the current appraised value. Using this payoff, the homeowner is able to get a new thirty year fixed rate mortgage using refinance as a method.

This Short Refinance plan will give you a fixed payment that will not change if interest rates change. The new loan amount has to be lower than appraised value and you get a 30 year fixed rate mortgage which are  two things that the Obama plan does not guarantee.

Don’t be short minded when it concerns your home mortgage. Consider a Short Refinance instead of Obama’s Bailout Plan.

Adam Lieberman writes about topics within the mortgage industry.

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Homeowners are rushing to refinance or modify their mortgages because of President Obamas Making Home Affordable plan. This $75 billion mortgage bailout will help millions of homeowners get a refinancing or loan modification into a better, more affordable, monthly payment. This plan will also help people who are in foreclosure or who are at risk of losing their home. Here is why so many homeowners will benefit from these new programs.

The thinking behind these mortgage programs is that if a homeowner can afford there monthly payments, they will make them. With the high rate of foreclosures and mortgage defaults occurring right now, this plan is a great way for homeowners to save money, their home, or both. With this plan, a homeowner will be able to refinance or modify a mortgage into a payment that is no more than 31% of their gross monthly income. This 31% also includes taxes, home dues, insurance, and other costs. This will be a drastic reduction in payments for homeowners all over the country. Even homeowners with bad credit or an upside down mortgage will find it much easier to get help than it has ever been before.

The help is easy to get because of the $75 billion in Government funding. This money is being given to lenders and banks who help homeowners by following the guidelines of the mortgage bailout programs. This money acts as a financial back up and an incentive to help the lenders and banks help even more homeowners. With this money, homeowners with all types of financial hardships will get the help they need. An estimated 8 million people can use this plan for themselves, and save their home, get a better mortgage, save money, or all three.

Help is available for homeowners. Getting it though is up to you. Contact your mortgage lender or banks and see what options are available to you. The help is there if you need it.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website
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The AP reported in January that  the plan to fix the foreclosure crisis by President Barack Obama’s has been a dud!

This has placed the nations housing market recovery at risk.

It appears now that hopes were inflated when Obama revealed his program in Arizona to high school students (that should have been a clue right there)  last February 2009.   A year later, only about 750,000 homeowners — a fraction of the 3 million to 4 million originally projected — might complete just the application process.   This is a prediction from Mark Zandi, chief economist at Moody’s Economy.com.

In 2009, a record 2.8 million homes faced foreclosure.  That’s over 20 % than 2008 according to RealtyTrac Inc.  But even worse, they expect another record this year for foreclosures

Meanwhile home prices  are down 30 percent  from the peak in mid-2006, and there is mounting evidence they will fall again during the winter.  A big reason is low-priced foreclosures are making up a larger proportion of sales.

What this means is more borrowers  can not be helped forcing them into foreclosure.  The foreclosure properties will flood the market.    The apparent nation’s housing recovery last summer  could soon take a turn for the worse.

The Obama plan had aimed at helping borrowers in financial difficulties by making their payments more affordable. Dropping their payments.

Did you hear that Bank of America and Wells Fargo?

The modifications were suppose to lower interest rate and often a longer repayment period. The monthly payment was to have been cut by $500 on average.   Homeowners would receive temporary modifications and payment releif, which was supposed to become permanent after a trial period.   During this trial period, borrowers would make three payments on time and complete the required paperwork, including proof of income and a letter explaining the reason for their troubles.

However,  only 66,500 borrowers, or 7 percent of the people signed up, have completed the program thru December, according to the Treasury Department.

5 % or another 49,000, have dropped out of the program entirely.  They either missed payments or were found to be ineligible. Thousands more remain in limbo awaiting an answer.

So what went wrong?

There’s blame on both sides: Mortgage companies say they have struggled to get back the necessary paperwork, while homeowners and housing counselors say navigating the bureaucratic maze often seems impossible.

I can attest to the latter.

Look on You Tube or some of my earlier stories.  The Banks are ill-equipped and not capable or worse when dealing with any modification.

Something more drastic needs to be done with the Lenders.

More in my next article.

What have you experienced or found out?

J Michael Seely

With today’s economic crisis we are seeing record highs of foreclosures on the market. If you are in this situation there is probably a million questions running through your head.

Probably the most important, and most frequently asked, is how it will affect your credit. Of course a foreclosure on your credit history will be detrimental.

Natalia Osorio Editor of the “Stop Foreclosure Loans” website — http://www.StopForeclosureLoans.org — pointed out;

“…There really is no disclosed number of points that will be docked from your credit score; however an unofficial number has been rumored to be around 260 points. A good credit score is 700 or higher. An average credit score is around 600. Therefore if you’re current credit score is at 650 you can roughly expect your score to drop to around 390. Even if you have an excellent score of 800 your score will be dropped to around 540 which are still considered to be a negative credit score…”

There are two main reasons that we as a country are currently in this housing crisis. The economic crisis was started by borrowers taking out bad loans, and lenders selling the bad loans to the consumers. Most of these loans included arms which is where the payments were low for the first few years. After the first few years the payments would skyrocket. Lenders would sell these loans to consumers by telling them that they would be able to sell their homes or refinance their homes when their payments increased. Other bad loans included variable interest rates. This again would give a good introductory interest rate, and then the interest rate would increase exponentially after the first few years making payments impossible for the home owners.

This started a domino effect which eventually leads us to record breaking unemployment rates. Because there were millions of these types of loans all at the same time it forced many home owners to go into foreclosure. This affected many industries including banking and real estate. It then got difficult for these consumers to afford or finance anything which then hurt other industries such as automotive and furniture.

“…If you are in this situation there are a few things you can do to stop foreclosure. There are many foreclosure assistance companies that can help you go through your bills, consolidate your debts, and negotiate with your mortgage lender to get your monthly payments down to something you can afford. You can also contact your mortgage company immediately and try to work out a loan modification. You should also research options such as short sales, a deed in lieu, or cash for keys…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.StopForeclosureLoans.org

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-does-a-foreclosure-affect-your-credit-1786824.html

Millions of people are able to save a lot of money through new mortgage refinance options from Obamas “Making Home Affordable” plan. Millions of people are eligible to use this housing stimulus plan for themselves. Here is what people need to do to take advantage of this plan and start saving money.

Many people are facing financial hardships that make it hard, or impossible, to pay their home loan every month. This program is designed to lower peoples monthly mortgage payments, save them money, and prevent their home from being lost to foreclosure or default. Homeowners can use this housing stimulus plan and get a mortgage refinancing that will provide them with low interest rates, no closing costs, and money savings.

Homeowners are able to get help because of over $75 billion in funding that is being used to assist struggling homeowners. This money enables mortgage lenders and banks to take more risks and approve more homeowners in more bad situations than ever before. This money acts as an insurance policy of sorts because it is given every time the lender or bank helps a struggling homeowner. Without this incentive money, people would have a very hard time getting approved for a mortgage refinancing.

There has never been this much help available for nearly any homeowner. Do not lose your home to foreclosure or mortgage default and do not pay more than you need to every month. Get a mortgage refinance with Obamas housing program and secure your homes future. Contact mortgage lenders and banks today and see what options exist for you because of the stimulus plan.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-get-a-home-mortgage-refinance-with-obamas-stimulus-1782267.html

Many people have questions about foreclosures these days.

One of the many questions being tossed about is if a home is foreclosed on in my neighborhood does it lower the value of the surrounding homes. The answer here is a resounding yes.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…Property values are based upon a numerous factors. One of the most important factors in determining a property’s value is recent sales statistics. Appraisers, to determine an average price for a home in a neighborhood, use recent sales statistics as a yardstick to measure all the remaining factors…”

To determine a home’s present worth appraisers find three comparable homes that have recently been sold in a neighborhood. They must use this average price as a gauge to determine the value of all other comparable properties in the same neighborhood. After the average price is determined the appraiser looks at other factors to determine the property’s exact value. A home’s value usually cannot exceed the average value determined by the last 3 comparable sales in the neighborhood.

For example, house A, a 3-bedroom home in a neighborhood recently sold for $100,000. A comparable home across the street, house B, sold for $115,000. A third home, house C, comparable to A and B, sold for $107,000. The median price for a comparable home in this neighborhood would be roughly $107,000.

When a home in the neighborhood is foreclosed upon the recent sales statistics will reflect the price paid for the home at the foreclosure auction. This, sometimes drastically, lower price effects the average home price in the neighborhood and as with valuation system based on averages, drives the average home price in the neighborhood lower. The result of a lower average median price is that all the remaining homes in the neighborhood lose value.

For example, house A, a 3-bedroom home in a neighborhood recently sold for $100,000. A comparable home across the street, house B, sold for $115,000. A third home, house C, comparable to A, B, was foreclosed upon, and the price at the auction sale was $75,000. The median price for a comparable home in this neighborhood would be roughly $96,000.

“…Every home in the neighborhood with the foreclosed property would be worth $17,000 less than if there was not a foreclosure in the neighborhood. This decrease in value for the entire neighborhood will not change until the sales prices for comparable properties increases…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/does-a-foreclosure-on-a-house-lower-the-value-of-other-houses-1777241.html

Millions of homeowners can now get approved for a mortgage refinance with 2% interest rates thanks to President Obamas stimulus plan. This is easy to do and designed to help homeowners in nearly any financial situation. Here is how homeowners can easily use this stimulus program and get a 2% mortgage refinance for themselves with President Obamas stimulus.

This program gives cash incentives to mortgage lenders and banks every time they help a homeowner with a mortgage refinance or modification and follow the Obama stimulus plan guidelines. This means that not only are mortgage lenders and banks able to help more people than ever before, they are also happy to. The money they get allows them to take on more risks and take on more people in worse financial situations than ever before.

This money is the reason that mortgage refinancing or modification can be extremely beneficial right now. To get the money, the plan must be followed. Some of the benefits include low interest rates, the ability to get approved if the homeowner has bad credit or an upside down mortgage, and really easy to qualify for requirements. Millions of people can easily save hundreds of dollars per month by using Obamas plan for themselves and prevent their homes from being lost.

Homeowners need to contact their mortgage lender or bank and see if they are able to provide Obamas stimulus plan options for you. This program will help millions of people get a more affordable monthly home loan and save a lot of money. Take action now before things get worse, or more expensive and harder to qualify for.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-get-2-interest-rates-by-mortgage-refinancing-or-modification-with-obamas-stimulus-1771755.html

It started last summer with a group of giant financial institutions, moved onto the auto industry and now is reaching into the population to reward those who do not know how or worse, choose, not to manage their money.

It used to be the cause for whispering, disdainful looks and the admonition “You got yourself there by irresponsibility and lack of discipline, now get yourself out,” when friend, relative or merchant ran themselves into debt beyond their means.

The reason for that attitude when we were a nation on the road to success and world leadership is everyone of every age and education level was familiar with one basic rule of nature, “Only the fit survive.”

There is a reason that animals who produce their offspring in litters ignore and reject those that they know have a defect, it is not cruelty it is a strategy to assure the survival of the litter members that have the basic tools in place to survive.

If the objective, survival oriented mother of the litter devotes all of her assets to the defective offspring it will have a deep and lifelong enduring effect on the other members of the litter and reduce, if not eliminate their ability to survive.

Well we had better look with less arrogance on this strategy when it comes to sacrificing the financially strong and responsible to shore up, temporarily the weak and irresponsible.

The problem with every new initiative coming out of Washington is that it rewards failure and to pay for the rewards of failure it grabs more of the assets of the successful.

It doesn’t take an economic genius (a group that seems to be nowhere in sight in DC) to comprehend that when you take more from that group that manages to take care of itself, those who were marginal in that group fall into the abyss of failure.  If government had not burdened the responsible with the added load of ‘sharing’ their meager assets with the irresponsible, they would have survived, but once their assets were confiscated and handed off to the loser group, they couldn’t keep up, and so they slid down the slope into failure.

The talking heads in Washington would like us all to forget where this debacle started, but we must not forget.

It started with the likes of Barney Frank and Christopher Dodd encouraging…no strike that…blackmailing banks into lending to folk who should not have been loaned to!

The banks were skeptical of their not getting screwed if they gave a $300,000 mortgage to a person making $30,000.

Under normal circumstances, a $300,000 mortgage to a marginal borrower would require an income of over $54,000 per year to qualify assuming 5% interest, $2,000 in Real Estate Taxes and Homeowners Insurance of $1,000.  The borrower would have to demonstrate the ability to carry mortgage payments of $18,000 per year or $1,500 per month.  Assuming that their mortgage related payments should not exceed one-third their income, their income should be $18,000 times 3 or $54,000.

The bankers, mortgage bankers and mortgage brokers knew that the person making $30,000 per year wouldn’t qualify under the rules for making mortgages that could be sold to Fannie Mae and Freddie Mac so they would be stuck with a bad loan on their books…probably bad from the first month.

Enter the Congress nudged giants that buy these mortgages from bankers, mortgage bankers and mortgage brokers with an new set of rules.

Make the first one or two years interest only 1% and qualify the borrower at that rate.  After one or two years the rate can adjust, to current market conditions, but you Mr. Lender don’t have to worry, we’ll own the loan by that time and we are backed by the government.

Bingo!  $300,000 at 1% is $3,000 a year plus Taxes of $2,000 and Insurance of $1,000 and the total mortgage carry becomes $6,000 per year.  Three times that required cash flow is $18,000.

“Mr. Borrower,” says Mr. Lender, “Hell you could qualify for a $500,000 loan…go find a bigger house.”

It would be quaint but a bit Pollyannaish to presume that Mr. Borrower was an ignorant  victim of Mr. Lender, but Mr. Borrower knew for the last 11 years that he  did not make enough to buy a $300,000 house much less a $500,000 house.

Also it doesn’t take a degree in either economics or accounting to understand that in two years your payment will jump to more money than your total salary.

WASHINGTON’S ANSWER TO THE MESS THEY CREATED

Well by slight-of-hand, they are going to reduce the mortgage payment on that hypothetical mortgage to a number that the 30,000-dollar wage earner can afford.  Not the real estate taxes, not the insurance, just the mortgage.

Then they are going to turn to the stable and fiscally responsible citizens of this country and demand of them a higher share of their income to give to the banks to make up the difference.

Once again, Congress is forcing the banks into providing inappropriate loans to inappropriate borrowers to afford them an inappropriate and yes an undeserved lifestyle change.

Well some sub-set of those stable and fiscally responsible citizens will not be able to afford the new income taxes and the mortgage.

No one can avoid the income taxes so they let the mortgage slip, and soon they walk into Mr. Lender and say, “Mr. Lender, I can no longer afford my mortgage because income taxes are taking to big a bite from my cash flow, can you get me one of those Washington Welfare Mortgages?”

“Sure Mr. Borrower, sit right down here, we can do it all on line and you will have your new mortgage in 48 hours.”

And the cycle starts again, the taxes will creep up and soon the next tier of stable and fiscally responsible citizens will be taxed to pay for Mr. Borrower’s loan and they will not be able to afford to pay their mortgage and they will turn to Washington for a brand spanking new Washington Welfare Mortgage.

That my valued readers, is the definition of a SLIPPERY SLOPE!

After a consulting career providing technology based solutions to complex challenges, in October 2006, Mr. Bodell began the process of reinventing myself as a writer intending to concentrate on technical/business writing, an area in which he has extensive experience.
This worked, but the compulsion to venture into other areas of authorship took over and he found himself much more diversified than first intended.

His achievements to date include, among others:

- An article on the benefits of investing in Belize in a rising tax environment

- A commentary on the Auto Industry Bailout

- An extensive business plan for a joint venture of a group of Veterinarians and the leading School of Veterinarian Medicine in the US (Partially available at http://www.ghughbodell.com)

Two mystery novels:

- Treachery in Turtle Bay, his first achievement in the International Mystery Fiction genre is looking for a publisher.

- Treachery In Turtle Bay II – Oil ~ Dollars ~ Diplomacy & The Sinister Three, deals with the Oil industry, Iraq and the theft of $1 Billion/month in Iraqi Oil cash flow, which, by the way, exceeds $6 billion/Month.
This work is targeted for completion by the end of 2008 and it too will be on the hunt for a publisher.
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With the new mortgage bailout plan, many homeowners are questioning whether or not they should continue to pay their mortgages. If you do make your mortgage payments on time, can you still receive help from the proposed mortgage bailout plan?

The answer to this question is a definitive “maybe.” With the economic stimulus bill that passed into law by President Obama, $75 billion will be allocated towards preventing four million homeowners from losing their home. However, neither paying nor stopping your mortgage is an automatic qualifier for help through this program.

How Will the Bailout Plan Work?

In 2008, over 1.3 million homes foreclosed as owners were unable to meet their monthly mortgage obligation. Most of these foreclosures were a result of either job loss or an adjustable rate mortgage (ARM) payment ballooning beyond affordability. Millions of more homes are expected to enter into foreclosure over the next few years.

Mortgage companies are not in the business of repossessing homes and selling them. However, they can be hesitant to restructure a mortgage with a homeowner without the proper financial means to repay the principal and interest each month. With the new bailout, however, the $75 million will be going toward guaranteeing mortgage companies a portion of the mortgage if they agree to restructure with a qualified homeowner.

Who Qualifies for Bailout Assistance?

How do homeowners in jeopardy of losing their homes qualify for a restructured mortgage? The main aspect that your lender and the government program will review is whether you have a financial hardship. They will look at whether you have lost income due to unemployment, layoffs, cutbacks at work, etc. A serious financial setback that puts you at risk of foreclosure will at least get you a review with the program.

However, you must be able to make a new mortgage payment. If you have suffered unemployment and have no future prospects for immediate employment, the mortgage company will assume that you do not have the means to repay the mortgage – and therefore, does not have any motivation to work with you. When you approach your lender to restructure, be sure that you can prove your means of making a monthly payment.

The other main issue that the bailout program will evaluate when determining your eligibility to restructure is if your current mortgage payment is greater than 31% of your gross monthly income. If so, you may qualify for a mortgage restructure to lower your payment to 31% or below.

Who Does Not Qualify for Assistance?

If you are not currently delinquent and can still make your mortgage payment, don’t expect to get help with the bailout program. Continue to make your mortgage payments on time and protect your credit history. Ultimately, you need to keep in contact with your lender and keep them informed of any changes in your financial situation. A borrower who is upfront with their lender is more likely to receive consideration from the lender in working out mortgage issues.

This article is intended for general information. Always seek sound financial and legal advice before making any financial decision.

Helpful mortgage information at Online-Home-Mortgage.net P. Payne works for OHM Mortgage and Foreclosure Information Site providing answers to all those questions people need to know.
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