For obvious reasons the qualification requirements for a federal mortgage relief restructuring are quite different than those for a first time home buyer. The homeowner's attempt to restructure usually indicates some current, or recent, financial duress on the homeowner's part, who in all likelihood is trying to save the home and stop foreclosure. Understandably a lender will likely be very strict, even unforgiving, depending on the homeowner's circumstances.
Note: Be advised, this agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency. For some homeowners, selling their home is actually the federal mortgage relief that they need. Upon reviewing your financial situation, it may become evident that you can no longer afford your home. Many homeowners have often realized this and tried unsuccessfully for months to sell their home through traditional real estate methods.
It is proving to be a bit more troublesome for those with damaged credit when applying for a mortgage restructuring in recent times. Conventional loans are usually not available in this circumstance, leaving only those loans offering much higher interest rates. The caveat here is that along with the higher interest rates comes a higher monthly payment (unless the homeowner has accumulated a substantial amount of cash to buy points), which may possibly "kill the deal" if the borrower cannot prove conclusively they will be able to afford the new, higher mortgage payments.
Income- Income requirements for restructuring are the same as that for a first time conventional mortgage loan. The maximum amount of income allocated to a mortgage payment cannot exceed 28%. As mentioned previously the difficulty comes with proving to the lender that the monthly income will be sufficient to cover the higher monthly mortgage payment.
If you've had a foreclosure notice filed, you may be able to postpone that action while the bank considers your sale. The wait for approval can be from 2 to 3 months, or longer.
CON'S: Some states will still tax you unless you qualify for an exemption. An investor is not exempt from mortgage debt relief, subject to certain conditions. Not all sellers or all properties qualify for short sales. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose.
Note: Be advised, this agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency. For some homeowners, selling their home is actually the federal mortgage relief that they need. Upon reviewing your financial situation, it may become evident that you can no longer afford your home. Many homeowners have often realized this and tried unsuccessfully for months to sell their home through traditional real estate methods.
It is proving to be a bit more troublesome for those with damaged credit when applying for a mortgage restructuring in recent times. Conventional loans are usually not available in this circumstance, leaving only those loans offering much higher interest rates. The caveat here is that along with the higher interest rates comes a higher monthly payment (unless the homeowner has accumulated a substantial amount of cash to buy points), which may possibly "kill the deal" if the borrower cannot prove conclusively they will be able to afford the new, higher mortgage payments.
Income- Income requirements for restructuring are the same as that for a first time conventional mortgage loan. The maximum amount of income allocated to a mortgage payment cannot exceed 28%. As mentioned previously the difficulty comes with proving to the lender that the monthly income will be sufficient to cover the higher monthly mortgage payment.
If you've had a foreclosure notice filed, you may be able to postpone that action while the bank considers your sale. The wait for approval can be from 2 to 3 months, or longer.
CON'S: Some states will still tax you unless you qualify for an exemption. An investor is not exempt from mortgage debt relief, subject to certain conditions. Not all sellers or all properties qualify for short sales. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose.
1 comment:
Understandably a lender will likely be very strict, even unforgiving, depending on the homeowner's circumstances.
Post a Comment