Wednesday, December 9, 2009

The Treasury is in BIG TROUBLE.....

....if things do not go their way on December 31st

That is when 375,000 loan modifications will have completed the three month trial period required under the Home Affordable Modification Program (HAMP) designed to keep homeowners out of foreclosure. Nobody knows how many homeowners will actually be able to transition from the trial into a permanent loan modification.

At the moment, they are not happy with how many homeowners were able to transition to a permanent loan modification. More than 900,000 homeowners were/are on trial programs and just a handful were able to convert to a permanent loan modification.

Las week, the Treasury kicked off a "Mortgage Modification Conversion Drive" to increase the rate of permanent modifications. Here are the steps they will take....

*Streamlining the application process with standardized paperwork to make it easier for both borrowers and servicers to complete and evaluate the application.

*Publishing servicer-specific conversions rates starting with the next public report.

*Punitive measures against servicers including withholding incentive payments.

*Increased communication with servicers including a meeting last Monday focused on conversion issues.

*Requiring each servicer to report twice daily on conversion progress.

*Forming SWAT teams made up of Treasury and Fannie Mae staff to visit the seven largest servicers to work on conversion issues.

*New tools for borrowers. These are available on the Department's website and include an instructional video, links to required documents, and a conversion guide.

*Outreach to local organizations to enlist their assistance in helping borrowers through the process.

Apparently there has been progress made in ramping up the HAMP program with over 680,000 borrowers now in modifications. The Treasury Department hopes that the HAMP program will eventually help 3 to 4 million homeowners. Time will tell whether that ambitious goal can be reached.




Monday, November 30, 2009

Interest Only Loans In NJ (New Jersey)

There have been many misconceptions regarding interest only loans in NJ. People in NJ have wrongly associated them with negative amortization (neg-am loans) loans.

Interest only loans allow NJ borrowers the flexibility or option to pay just interest or both P&I. Why would the flexibility of interest only loans be important? Are you someone who is self employed, earns mostly commission, or has some other unstable income situation? Maybe you are someone who would prefer to put the extra money into a college fund or retirement fund instead of paying down your mortgage. If so, then interest only loans may be right for you.

I have helped many customers in New Jersey NJ with interest only loans and they are all extremely happy with the choice they made in that loan program. Not all of them are paying only the interest. Many are also paying down the mortgage balance. Every situation is different and you have to choose whatever is best for you.

To see what interest only loan programs are available in NJ or wherever you are located, then complete the request quote form for a free confidential quote. If you have general questions about interest only loans, then contact us and we will explain everything to you including all of your loan options.

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Wednesday, November 18, 2009

Finding the perfect loan for the perfect home

Most of us are so focused on and spend so much time looking for that perfect house that we often accept the first mortgage that is offered to us. Theres a general attitude that a mortgage is a mortgage; they are interchangeable. Thats like saying a house is a house, or a car is a car. Its important to remember that you could wind up spending as much time with that loan as you do with that home, and that both should be a comfortable fit.


Stated Income Loans New Jersey

Tuesday, November 17, 2009

No Closing Cost Loans?

Is there really a no closing cost loan? The answer is NO. There are always costs associated with your loan. Some of them are payable to your local government. Do you think someone will pay them for you out of their pocket? I dont think so. The reality is that when someone tells you they are offering a no closing cost loan, or a refinance for only $500 (for example), then here is the reality...

1. They are rolling all of the closing costs into your new loan balance resulting in no "out of pocket" costs at closing.


2. The interest rate you are getting is higher than market. So, the lender will make up all of those fees in the additional interest you will pay over time.

Do not let anyone fool you about closing costs. If you like, you can find a list of closing costs here. They are standard in the industry.

Monday, October 19, 2009

Loan Options For Borrowers and First Time Home Buyers

Are you fully educated on what loan options are available to you? Are you working with a lender who can provide all of those options to you? There are many types of ARMs, niche programs, and even some stated income programs still available for self employed borrowers who are taking full advantage of the tax benefits but as a result show a low net income on their tax returns. Yes, there are still programs for them too although hard to find. Just think how many more qualified buyers there would be if they knew about those programs. I have attached a loan options grid for your reference. You should become very familiar with these options BEFORE going any further. This information is important for all potential buyers to read regardless as to who they use for financing. It will help better prepare you for the conversations they will soon have with a loan officer and make you more "street smart" in the area of home finance. YOUR LOAN PROGRAM OPTIONS

Dream Home Financing - Free Rate Quotes - Stated Income Loans in New Jersey NJ

Thursday, January 1, 2009

What costs are associated with a loan?

Many borrowers wonder what the costs are OR if they can get a no cost loan. The first thing you should know is that there is no such thing as a NO COST LOAN. There are costs but the question is whether you pay those costs seperately or if you have them added to your loan thus increasing your interest rate. It may not matter which option you choose just as long as YOU are choosing and not your lender. For a list of basic costs, go to and click on "CLOSING COSTS" .