Nothing beats listening to some great live music while soaking up the ocean view and moonlight. Last night I had the pleasure of listening to Alex Romano and Kirk Green perform at the Patio Bar on the ocean in Deerfield Beach.

The Howard Johnson Patio Bar and Grill is located just north of Hillsboro on AIA just across from the Deefield Beach pier.

From soulful jazz to get off your feet and dance music, the crowd enjoyed the show until 11PM.

During their break, Alex and Kirk mingled with the crowd and I had the opportunity to chat with them for a few minutes. Alex has a website that has many samples of her talent. In addition, you can do a search for her on You Tube and find dozens of songs.

The duo plays gigs throughout the tri county area and are also available for private events. Take a look at Alex's website for more information and some samples of her talented singing at ARMusicFusion

 

 

No, you do not need to refinance to get a lower interest rate. You might be able to qualify for the Home Affordabe Modification program. If qualified, you lender may lower your rate by modifying your mortgage.

The first thing you should do is go to your lender's website. They should have a section regarding how to get assistance if you are having difficulty making your mortgage payments, or something similar. This is where you can find out if they participate in the Home Affordable Modification program. If so, you can find out if you qualify. If this information is not on your lender's website, you can go to the Government website http://makinghomeaffordable.gov/refinance_eligibility.html for more information.

Basically, in order to qualify, your current mortgage payment ( principal, interest, taxes, insurance and HOA fees) must be more that 31% of your gross monthly income. ( Gross income is your pay before taxes and other deductions are subtracted).For example, if you make $60,000 a year, your monthly gross income is $5000. 31% of that figure is $1550. If your current mortgage payment is more than this, then you could qualify for the program.

The income of whomever is on the note is the income that is used to qualify you. If you are married, but you are the only one on the note, you do not need to disclose your spouse's income.
There is a calculator on the government site that you can use to see if you would be qualfied for the program.
If it looks like you are qualified, contact your lender's loss mitigation department and tell them you want to apply for the program. Be prepared with some basic financial information - have paystubs handy so you can discuss your gross income, and a list of your monthly household expenses. 

This post was inspired by a comment from Alex regarding my post Borrowers Don't Wait for the Well to Run Dry. That post discusses some changes in mortgage underwriting guidelines and how it is getting more difficult for borrowers to qualify for a mortgage.

"Well it is sure the trends show that it is going to harder for the consumers to cover the requirements but what happens with those who didn't make their payments. Those who failed at a certain point. They loose their home?"

Alex,

You are correct about the trends. Lenders are being much more cautious.

You've asked an excellent question that I am sure is on the mind of many homeowners these days. Based on what I am seeing and hearing, lenders are willing to try to work something out with those who have become delinquent...a foreclosure is very costly for the lender. AND bad for everyone all the way around. The lender prefers to avoid this option. As long as the borrower can demonstrate an ability to repay, the lender may do one of the following:

-Reduce the interest rate for a few years
-Allow the borrower to "skip" a few months of payments to get caught up (the "missed" payments are added to the balance of the loan, effectively extending the mortgage term a few months)
-Extend the term of the mortgage from 30 to 40 years
-Freeze the rate on an adjustable mortgage when the rate has increased to the point that the borrower cannot afford the payment.
-The FHA Secure loan is another option..borrowers who have fallen behind due to an adjustable rate increase may qualify to refinance into a lower fixed rate program to reduce their monthly payment. If you have a 2nd mortgage or HELOC, and owe more than the property is worth, you may still be able to refinance. FHA will allow for subordination of the 2nd lien.

-A short sale is another option. If you own more than your home is worth and you can prove hardship, you may be able to sell your home and start fresh. A short sale is less damaging to your credit report than a foreclosure. If you want to explore this option, be sure to work with a realtor who is experienced with short sales.  This can be a time consuming, tricky process.

There is also some proposed legislation that may provide some relief in the form of reduced interest rates to make monthly payments more manageable.

Options are there. It is very important for a borrower who has gotten behind to contact their lender to see what can be done. They should also contact a mortgage professional to see if they qualify for a refinance to reduce the monthly payments. Folks are giving up before they explore their options.

Information brought to you by The South Florida Mortgage Lady, a mortgage broker  in Boca Raton, FL

Looking for a hard equity lender who will loan on land only in Florida.  Property is zoned agricultural.   Looking for 50% LTV.  2 parcels - one is 10 acres and the other is 12 acres.   Borrower says property is valued at 41K per acre.

 

Any ideas?

Randy Bolton has started a new group - Learn Mortgages and AUS

Here's the purpose of the group as proposed by founder Randy Bolton:

"Welcome to our educational group. Here we attempt to teach you the mortgage business. Starting with how to take a loan application, then, input a loan into an Automated Underwriting System, to finally closing the deal and receiving a paycheck. "
 

Stop by and see his introductory post - he made a list of some topics to contribute to.

Please join us by contributing your wisdom and experience.  And for any of you with questions, don't be afraid to post them!

Realtors, this would be good for you if you want to learn about mortgage basics and more.

Let me know if the links don't work - I was having trouble with the cut and paste.

As reported by Mortgage News Daily, FICO is planning on releasing it's new credit scoring product sooner than planned.  FICO states that this new system will help reduce default rates on mortgages and other consumer loans.

The key points:

Consumers will not be hit as hard for an occasional, or one time missed payment provided the rest of their bills are paid in a timely manner.

As a consumer and mortgage broker, I like this one. While I don't advocate that making late payments is a good thing, once in while, someone with otherwise good credit could miss a payment for some odd reason. With the current model, this could lower their score considerably. I once did a refinance , and during the loan process, the borrower accidentally missed a payment on a Home Depot card...the account had been paid on time for 99 months.  The score dropped 60 points since the delinquency was recent, and when the lender re-pulled the credit, they no longer qualified for the loan.

Another item that will be addressed is the authorized user. In the past, someone with an account in good standing could add an authorized user (spouse or child, for example) and that would almost immediately boost the score of the authorized user.

Apparently, there was a practice of folks adding authorized users for a fee, so borrowers could increase their credit scores.  Not withstanding the moral implications of this, these folks are able to charge a fee for their "service". Little risk to them as the new "authorized user" never had access to the account or account number.After the deed was done, they could remove the borrower from the account, and add another one..for a fee, of course. 

Lenders became concerned about this a while ago, and would not consider those tradelines in evaluating a loan approval. Bottom line is, if you want to build your credit, you're going to have to do it on your own.

However...."The new version of FICO has prompted anger over the elimination of the authorized user category claiming that it will unduly penalize women who are more likely to have that status on their husbands' card than vice versa."

Another item: Those with a mix of revolving and installment debt will have a higher score than those with revolving debt only. So it can show you can manage a car payment and credit debt, your score will be higher

As a mortgage broker, I work with a lot of first time homebuyers.  The loan process is sometimes scary and intimidating.  It really doesn't need to be that way, however you do need to be prepared to provide certain information so the lender can determine if you can pay the loan back.

A purchase that I am working on is consuming a lot of my time and energy, so I've decided to write this "letter" to hopefully educate and inform first time buyers and anyone else who may not be familiar with the mortgage loan process. 

Dear Borrower:

As a mortgage broker, I pride myself in getting loans closed as quickly as I can. I'm good at what I do, but I also rely on a team to help me.  That team can include an appraiser, a Realtor, a processor, an underwriter and YOU. Everyone on the team relies on the others to do their job correctly.

That's right - you are part of the team too. And your job is to provide me with the documentation I request in a timely manner. If you do that, you loan is going to close quickly.  If not, your file is not going anywhere.

You are wondering why it's been a month and your loan hasn't closed...let's see..what could be the problem? ..

The pay stubs you gave me are from July, not December or January.  It's taken me 2 weeks to get current pay stubs from you. If I submit your loan with outdated documents, the underwriter is going to put your file at the bottom of the pile. You told me you had a 401K, so I asked for verification.  Another week goes by..OK, I think you get my drift.

You're upset that I am "asking for so much stuff" that you're going to have to take time off work.

I am asking you for the things I know the underwriter will require. The underwriter needs to justify approving your loan. If you were loaning someone a few hundred thousand dollars, wouldn't you want to be assured you would get paid back?

If you are prepared with the documentation you will need , your loan process will go very quickly and smoothly.

Here's a list of documentation you will need to provide to your mortgage professional:

• 1 month's worth of current pay stubs
• W2's for the past 2 years
• 2 years tax returns if you are self employed
• 2 months of current bank statements..all pages
• Current statements for any other assets such as a 401K or mutual fund.
• 2 years of complete employment history and a phone number for the HR department or a supervisor who can verify your employment.
• Letter of explanation for any derogatory items on your credit report. Something very short and to the point, you don't have to write a novel.
• For a purchase, a copy of the sales contract signed by all parties
• A copy of your driver's license and social security card

It seems like a lot, but this is what your mortgage professional needs so they can submit your file to an underwriter for approval. Providing these things with the file makes the underwriter very happy and that means a faster closing for you!

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Information provided by The South Florida Mortgage Lady, a mortgage broker in Boca Raton, Florida

If you are age 62 or over, and are having trouble making your mortgage payments, you may want to consider a reverse mortgage as a way out.

The proceeds from a reverse mortgage can be used to pay off the current lender, allowing you to stay in your home and never have another mortgage payment. My post on reverse mortgage basics will give you some information on how a reverse mortgage works.

Investigate your options with a reverse mortgage as soon as possible. Once your mortgage is in default, interest, attorney and other fees add up quickly, making the payoff amount several thousand dollars higher.

In order to use a reverse mortgage to prevent foreclosure, you will need to have a decent amount of equity in your home. With a reverse mortgage, you are eligible for a benefit amount of anywhere from 60-80% or so of the appraised property value. The older you are, the more $$ you will be eligible for.

Use this reverse mortgage calculator to see what you may qualify for. Remember, reverse mortgages do not have income or credit score requirements for qualification.

If the reverse mortgage calculator shows that you do not qualify for enough money to pay off your mortgage, speak with a mortgage professional anyhow. Lenders prefer to avoid foreclosure...the process is very expensive for them. It may be possible that your mortgage professional will be able to negotiate with the lender to accept a payoff that is less than the loan balance due.



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South Florida Mortgage Lady is a mortgage broker in Boca Raton, Florida. She works with an FHA approved mortgage company, and has completed many reverse mortgage transactions.
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The positive things I have to look forward to in 2008:

• Moving near the beach :)  I've been talking about this for a few years, and now I am actually going to do it!! I have my villa for sale, and I am positive that it will sell, even here in the south Florida market.
• Making more friends here on Active Rain
• Celebrating my next birthday in February...it's a new decade, and it's a doozy  lol  am I am looking forward to this new chapter in my life
• Another season of no hurricanes 
• Seeing my friend Laura's baby Grace learn to walk
• Continuing the daily positive affirmations that keep me focused
• Generating lots of new business and helping people achieve their homeownership dreams and financial goals

I was honored when Jeff Belonger asked me to write this review. The holidays are near,and everyone is so busy, yet so many of you continued your dedication with quality posts.  I'm glad to have the opportunity to do this review because without it, I would have missed out on some great posts to share with you. It was difficult to narrow the choices, but I gave it my best shot.  I hope they inform, enlighten and inspire you.

Having been born and raised in Detroit, I rephrased a car slogan that popped into my mind which seemed to provide a good analogy to start off this Mortgage Pro Week in Review:

This ain't your daddy's automobile....this is what drives the mortgage industry  today:

In a world not too long ago a pre approval letter meant what it said. Almost anyone could get a loan. The old model pre approval letter worked. Not so today. In true Active Rain style, Scott McKay generates lots of feedback from the pro's regarding this in his post DO NOT ACCEPT PRE APPROVAL LETTERS 

Joe Adams further expands on this topic with his 2 cents in his post What is my Pre Approval letter worth???  Seeing how guidelines keep changing, how can we make everyone feel comfortable that a pre approval is worth the paper it is written on and that the deal will close?

Bottom line is we all want a deal that will close and that keeps getting harder to predict. The old models that we used no longer fit the bill. Those of us in the driver's seat have to be brighter, tougher and better engineered than before.

And speaking of getting deals closed...let's take a look at what goes on behind the scenes, on the assembly line so to speak. The people who work so hard and get so little credit for the final product. This could make some interesting reality TV...

Ken Cook gives us an entertaining glimpse into a day in the life of a head underwriter who just happens to be his wife... Dear Head Underwriter, Here Is Your Lump Of Coal, Signed ~ Santa

I bet Ken's wife would appreciate a loan package submitted the way Rey "Steak Dinner" Gallegos describes in his meaty post about other behind the scenes events that can impact the loan process ...no room for the kiddies - this playground is for professionals only...What To Expect From Your Mortgage Transaction

Try packaging a loan for underwriting with some of these issues to deal with...Matt Blum dishes up some very real and sometimes humorous statements made by would be borrowers...and generates some interesting comments along the way in his post  Things not  to tell Your Licensed Mortgage Professionals...  

And last but not least in the behind the scenes category, I found this gem by new member Tana Hunt - her first post describing a hectic day spent overcoming hurdle after hurdle to make a closing happen. ..Christmastime  Tana may be new to Active Rain. but she's a seasoned pro.

The professionals who know their stuff, communicate, adapt new strategies, and go the extra mile are going to be the one's who will not only survive, but thrive in the future in our industry.

Moving to the future - a couple of insightful posts provide food for thought as we continue to adjust and adapt to new models:

Chris Pollinger provides us with an insider's view on thoughts and predictions from some major industry players...is wholesale slowly and sneakily going away??? The Death of the Mortgage Broker . Bookmark this one and let's see if these guys are right.

Moving into territory that isn't often discussed, Mike Jones comments on how escalating housing prices in China can have implications for us here in the States... Housing Prices Up 10% in 70 Major Markets. This Could Be a Problem. Will China have to swallow the same bitter pill that we have???

Speaking of pills, Jeff Belonger offers up a prescription here Do you want that ultimate pill to relieve all mortgage related problems?

Off to the hybrids...

Being an animal lover, I can't resist the opportunity to focus on this one...I'm sure this is happening not just in CA, but all over the country...humans are not the only victims of foreclosure. Catherine Meyers tugs on the heart strings with this post...The unintended victims of foreclosure: THE PETS

This post isn't mortgage related, but I wanted to mention it because it's the holiday season. In the spirit of giving, let's remember those who give so much and are so far away from home and family this time of the year. Take a couple of minutes to send a thank you email postcard to our troops. The postcards were designed by school children from across the country.  Ernie Cabrera tells you how in this post Support Our Troops - Let's Say Thanks! 

Finally, this last mention has been featured, and I'm highlighting it because I think it provides a fitting conclusion to this week in review as we head into a new year...Ken Cook writes a post that reflects the voice and potential of the Active Rain community. Together Everyone Achieves More....Why Active Rain Can Save Real Estate

In closing, it has been a pleasure and a privilege to write the review this week.  Wishing all of you Happy Holidays and health, happiness and success in the upcoming year.

 

The next 3 members : 

•1.        Jeff Belonger       12/24/07 through  12/30/07

•2.       Jason Sardi           12/31/07 through  01/06/08

•3.       Matthew Rosov     01/07/08 through 01/13/08    

Mortgage blogs by loan officers   Here is a list of Loan Officers.  If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in reviewc an try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!!  

MORTGAGE PRO Week in Review    A repository for the Mortgage Week in Review.  Please don't hesitate in joining this group.    

There will be no recreations of any type regarding the titles or content of this group or Review without the permission and expressed written consent of the Group's founder- Copyright 2007^©