Fifth Third Bancorp reported that fourth-quarter originations were up 32 percent from the third quarter. The mortgage servicing portfolio was 4 percent higher. Net income during the fourth quarter climbed 40 percent.

View full post on Mortgage Stories

As the economy continues its rough ride, the fallout from mortgage and credit card late payments and delinquencies has dropped the credit scores of consumers across the country. As credit scores take a higher profile from news reports to conversation at cocktail parties, more consumers are taking interest in their credit reports. The problem with all the information and chatter is that much of it doesn’t accurately reflect what is important regarding credit scores and what is not.

Take this true/false test to see where you stand:

1) You should check your report on occasion whether your are applying for a loan or not

2) Checking your own report can hurt your score

3) Closing a credit card account you are not using can hurt your credit score

4) All credit scores are not the same

5) Paying off outstanding balances is a great way to boost your score immediately

6) A credit score is the same as a credit report

7) Comparing loans can hurt a credit score

Debt relief options hurt more than they help

…and the answers are:

1) True – Reporting errors don’t happen every day but they do happen. Checking your report can save you from being surprised when you apply for a loan or a credit card. You can visit http://www.annualcreditreport.com/ for a free, no-obligation copy of your report.

2) False – Checking your own reports does not damage your score. Employer and landlord checks will not damage a score either.

3) True – One of the factors in calculating a credit score is the amount of unused but available credit, specifically on credit lines and credit cards. Closing these unused accounts can actually lower your credit by removing available credit from the report.

4) True – Between the three reporting agencies (Equifax, Experian and TransUnion) the scores will most likely be similar but not identical as each agency receives and compiles data in different ways.

5) False – Credit scores reflect an extended time frame so the sudden paying off of manageable balances won’t add much immediately. In fact, depleting cash balances to these pay off might hurt the overall review of you as a borrower.

6) False – A credit report is a history of your debts, payments, available balances, and open/closed accounts. The credit score is based on a formula that takes all that information and calculates a number between 300 and 850.

7) False (and true) – Hard loan inquiries for mortgages that come in over a span of about two weeks will not hurt a credit as agencies accept that loans might shopped generating multiple inquiries. Multiple credit card inquiries can hurt a score.

False – For consumers in trouble debt relief options can provide viable solutions to insurmountable debt. While these options will temporarily decrease credit scores, credit counseling, debt settlement and bankruptcy each have long term advantages for getting out of debt. Debt settlement is rapidly increasing in popularity due to the immediate reduction, usually around 50%, of monthly principle payments and the reduction in principle owed by 40 to 60%. Additionally, the timeline for getting out of debt is shorter than credit counseling and filing bankruptcy. Credit counseling can help to manage bills, and lower interest rates and monthly payments to creditors when debt issues are still manageable. Bankruptcy, an even more serious alternative, should be considered a last resort and discussed with a bankruptcy attorney.

Credit scores are more important ever. Knowing what affects them and what doesn’t could make a huge difference in whether you get the loan you want or get it at all. Prior to doing anything that might hurt or help your score, be certain that your actions will help your financial picture.

Some people wonder whether debt settlement is a safe or wise course of action. For those who look to the government provide advice on how to get back on their feet, the question is simple: does the government advocate debt settlement. The answer is equally simple: a resounding yes. Since the worldwide economic crisis has been increasing in severity, the government has created programs to help people get fair and helpful debt settlements. In fact, the FDIC regulates bank debt settlement to prevent unfair and deceptive practices from harming consumers who need to get out of debt.

The Economic Crisis Necessitates Debt Settlement

The fact is people are having a harder and harder time making ends meet these days. Many people are finding it necessary to seek outside help in dealing with crushing debt problems. Wages are going down, layoffs are becoming more common, and it seems that everything is becoming more expensive. Sometimes there’s no way out of the situation other than bankruptcy or debt settlement. While the law does allow you to file bankruptcy, the government does not advocate it because it damages the economy by forcing all involved parties to take a greater loss than they might otherwise have to. With debt settlement, the amount of that loss can be mitigated. You get to keep your assets and your creditors take a smaller loss on their investments.

Government Programs Help With Debt Settlement

The FDIC has programs that help certain consumers negotiate mortgage loan modifications. A mortgage loan modification is a type of debt settlement which is applied to home mortgage loans. Like other forms of debt settlement, this involves and agreement with the creditor to lower the total amount of money owed and accept less instead of nothing. These government programs are helpful to many, but may not be available to everyone because of their narrow qualification guidelines. In addition, debt settlement does not always have to involve a mortgage loan. There are many types of debts that can be addressed with a debt settlement program, from credit card debt to business loans.

Applying the FDIC’s Strategy to Your Situation

The federal government has advised banks and other lending organizations to consider debt settlement as a favorable alternative to increasingly harsh collection action. Though you may not qualify for government help in this area, it could still be a good idea to get help from another company or entity. There are many organizations in existence that can offer assistance in negotiating a debt settlement agreement between you and your creditors. If you think you may benefit from such action, research the programs available to people in your area and contact a debt settlement professional today to determine what your best options for debt relief are. If debt settlement is recommended, make sure you are dealing with a reputable and accredited organization before proceeding. If you act cautiously and do your homework, debt settlement can help save you from years of crushing financial burdens you can’t possibly meet.

Ottawa, Ontario, Canada (AHN) – Canadian Finance Minister Jim Flaherty announced Monday that Ottawa has amended three rules governing mortgages to curb rising household debts.

Under the new regulations, the maximum amortization period for government-backed insured mortgages was reduced to 30 years from 35 years. These are for mortgages with loan-to-value ratios of more than 80 percent.

Ottawa also cut the maximum amount that residents could borrow to refinance their mortgages to 85 percent from 90 percent of their homes’ value. The government also withdrew government insurance backing on lines of credit secured by homes.

With the changes, the amortization of an average Canadian resale house sold for $344,551 with an minimum 5 percent down payment of $17,227 would increase the monthly amortization by $110 to $1,555.

Although Canada has less than 1 percent mortgage default rate, Flaherty said the federal government wants to reduce borrowing with the average level of household debts rising to 148 percent of disposable income.

Flaherty said in a statement, “Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession.”

He added, “The prudent measures announced build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

View full post on All Stories

A selling guide update from Fannie Mae includes state-specific documentation requirements for co-op share loans. Freddie Mac said in an announcement that it will issue jumbo-super conforming pools under the prefixes T4, T5 and T6. A clarification about loan-to-value requirements included in a memorandum from Ginnie Mae indicated that the LTV must be based on the property value at the time of origination.

View full post on Mortgage Stories

Obviously, making the choice to file bankruptcy is a big decision. If your debt is overwhelming you and you’re looking for a quick and easy way out, you may be thinking of bankruptcy. In some extreme cases, bankruptcy may be the only option, but if you have any other choices, it is strongly recommended that you exhaust those options first. A bankruptcy will affect your future credit, your self-image, and possibly your relationships. Bankruptcy exists for a reason and is a powerful tool for some, but only as a last resort because of low lasting and encompassing the consequences are. Here are some shocking facts about bankruptcy that you should know before considering it as an option

A Bankruptcy Stays On Your Credit Report For Ten Years

Having bad credit is one thing. If you are considering filing bankruptcy, you probably already know how frustrating it can be to have an undesirable credit rating. With a bankruptcy on your report, however, you’ll find that it becomes even harder to acquire credit. While being free of much of your previous debt will mean you have fewer bills, it will still be very difficult to raise your score once a bankruptcy is weighing it down. This can make it difficult to buy a home or a car, get insurance, or in some cases even get a job.

A Bankruptcy Makes it Impossible to Get a Mortgage For Nearly Five Years

Filing for bankruptcy won’t make everything free once the bankruptcy is over. You may still find yourself needing to get a mortgage once the bankruptcy has gone through. With a recent bankruptcy on your credit report, however, you will find it nearly impossible to get a new mortgage for up to five years.

Some Debts Cannot be Discharged in a Bankruptcy

If you’re considering filing in order to alleviate your debt, you should be aware that your debt may exempt from the bankruptcy proceeding. Most notably, student loan debt cannot be discharged in a bankruptcy. Additionally, back taxes within the past three years cannot be discharged. This being the case, you may end up selling off possessions and giving up what few luxuries have left only to be stuck with most of the same debt you had before.

If You Declare Bankruptcy Your Name Will be in Court Records and May Appear in the Newspaper

These are articles of public record and if anybody sees your name in connection with a recent bankruptcy, you may find it very difficult to do business.

You Will Lose all Your Credit Cards

Any credit cards you have that are not completely paid off before filing bankruptcy will be lost, and it will be a long time before you are able to get any new ones.

Still think bankruptcy is your best option? Instead of filing a humiliating piece of paper that may force you to give up what little you have left without getting enough in return, consider debt settlement first. With debt settlement, you can have the amount you owe lowered significantly, often by as much as 60%. This will give your lower monthly payments and a shorter payoff period on your debts. Look into debt settlement today to see if this is an option for you.

Consumers with credit scores as low as 500 might qualify for government-insured mortgages based on recent changes to underwriting guidelines. The head of the government’s loan program says borrowers with the same low scores might pose different credit risks based on other factors.

View full post on Mortgage Stories

The average 30-year fixed-rate mortgage fell 6 basis points in this week’s survey from Freddie Mac. Also lower were the 15-year fixed rate, the five-year Treasury-indexed adjustable-rate mortgage and the one-year Treasury-indexed ARM. If the Mortgage Market Index is any indicator, mortgage originations will soon be higher.

View full post on Mortgage Stories

Washington, DC, United States (AHN) – Banks foreclosed on a record high 1 million homes in the United States during 2010 and that number could rise in 2010.

At least 5 million homeowners were at least two months behind in mortgage payments, according to foreclosure tracker RealtyTrac.

About 2.9 million households received a foreclosure notice last year, an increase of 1.67 percent from 2009.

Moreover, foreclosure rates are expected to stay high in 2011 because of continued high unemployment rates.

Although earlier questionable practices by banks in filing foreclosure paperwork resulted in a slowing of filing rates toward the end of 2010, the pace of filings is expected to pick up again as banks comply with new procedures and catch up on properties on which they have not yet filed foreclosure notices.

“Total properties receiving foreclosure filings would have easily exceeded 3 million in 2010 had it not been for the fourth quarter drop in foreclosure activity triggered primarily by the continuing controversy surrounding foreclosure documentation and procedures that prompted many major lenders to temporarily halt some foreclosure proceedings,” said James J. Saccacio, chief executive officer of RealtyTrac.

“Even so, 2010 foreclosure activity still hit a record high for our report, and many of the foreclosure proceedings that were stopped in late 2010 — which we estimate may be as high as a quarter million — will likely be re-started and add to the numbers in early 2011,” Saccacio said.

Nevada, Arizona and Florida posted the top state foreclosure rates. More than 9 percent of housing units in Nevada received a foreclosure filing, while 5.73 percent of Arizona housing units and 5.51 percent of Florida housing units received one.

California, Florida, Arizona, Illinois and Michigan accounted for 51 percent of the total national foreclosure activity.

View full post on All Stories

The Wall Street Journal reported in July, 2009 that President Obama is now expanding the plan to help the number of borrowers who can refinance their homes. The administration said that borrowers with mortgages worth up to 125 percent of their home’s value will now be eligible to refinance under its program, up from a 105 percent limit.

According to the new plan, borrowers must be current on their mortgages and have loans owned or backed by government controlled mortgage companies Fannie Mae or Freddie Mac. One of the challenges with the government plan is that it does not help those who are in severe circumstances, either behind on payments or facing foreclosure. The plan does expand the opportunities for those not facing foreclosure to get help, but if you are in the midst of a foreclosure proceeding or if you just received a foreclosure notice, you need some other form of assistance.

The government is hoping that by raising the percentage, many more Americans will be assisted in getting the help they need to stay in their homes. Recent statistics state that almost 30 percent of American homeowners with mortgages owe more than their homes are worth (according to Economy.com). The government’s initial plan seems to have fallen short of expectations as only 20,000 people were able to participate in the program, well short of the 4 million it was projected to help. In fact, as late as April the government was denying there was any need to expand the program.

Interest rates have actually been rising of late, making things even more difficult for Americans. Rates on 30 year fixed rate loans currently average 5.49 percent, up from a recent low of 4.84 percent in April. Government agents hope that this plan will also lower the overall risk for Fannie Mae and Freddie Mac by allowing more people to stick with their mortgages and not default.

Loan modification attorneys are still working tirelessly, throughout California, to help people renegotiate the terms of their loans and get a better mortgage payment. While the government is having a hard time with their refinancing program, California loan modification attorneys are spending morning, noon and night keeping people in their homes through California loan modifications.

A loan modification renegotiates the terms of your home loan, helping you get lower payments that you can actually pay. Rather than see your home go through foreclosure and having to move, you can enjoy a new level of financial freedom as well as a renewed outlook on life. With the unemployment rate in America continuing to rise and the financial future in doubt for many Americans, now may be the time to take advantage of a loan modification. A loan modification attorney can work with you to get the best deal possible, and make sure that your interests are focused upon. Lender driven loan modifications focus on the lender’s needs, and even some government programs focus on the government’s bottom line. A loan modification attorney can represent you and you alone.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.