Equity Talks

Making Home Affordable 105% Loans were introduced just this spring and the program has simply not been meeting the public need. Homeowners seeking to refinance their Fannie Mae or Freddie Mac Mortgages quickly found that the new 105% loans were helping a minority of people teetering on the edge of collapse. While it may seem obvious to people in trouble, here is why the limit was increased to 125% last week. Many homeowners simply cannot meet the required 33% debt to income limits necessary to refinance their loans due primarily to a job loss or cutback or other change in their financial situation. You see, many people purchased or refinanced their homes with much higher housing ratios: in many cases over 45%. So unless your income went up, the chances of a lower ratio will be slim even with a fixed interest rate. A careful look at the rates on the much touted 'DU Refinance' Programs our lenders are offering are just not so hot. Given you have to be in 'financial dist

Loan Modification and Stimulus  Programs are the hot buzz words for distressed homeowners. But exactly what are they and who qualifies for help? Mortgage loan modification as a means to help folks in financial distress has always been an option --just not widely known. The basic premise is to renegotiate the terms of your existing loan contract with your mortgage holder. Generally, modifications are considered if your financial circumstances have changed, or you simply cannot afford the new adjustable rate reset. Most lenders want a hardship letter that holds water. (Not a good idea to complain that your stated income loan was a sham!) The key word is 'negotiation'. Few of us have the understanding of win win in a delicate balancing act with that creature we fondly refer to as 'The Bank'. Those friendly folks who loaned you money to buy or refinance just a few years ago, have built a very effective and impenetrable wall built of endless automated phone systems and