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Explore Loan Workout Options: If you have an Adjustable Rate Mortgage that is adjusting or have missed mortgage payments which has impacted your ability to refinance , you still have options in this market. Your lender may offer several 'loan workout' options including but not limited to: reinstatement, forbearance or a new repayment plan to suit your situation. When you call your lender directly ask for a supervisor for best result! FHA Rescue and Secure Plans FHA officially offers a range of options for people needing to get out of ARM loans or who may be in arrears. Not all lenders offer these plans. Even FHA is teetering on risk based pricing hits (translated: higher interest rates) to encourage lenders to fund these loans. Certainly you should speak with an FHA licensed broker or bank about whether you will qualify. Officially the FHA has advised they perfer no FICO score or a minimum of 500. The banks who fund FHA loans have very strict loan limits (by city/county) ...

Congress Passes Housing Bill to Assist Homeowners Takes effect January 1, 2009 The newly passed Housing Bill promises more help for homeowners facing foreclosures. What we don't know yet is how Congress is going to get private banks to actually deliver these programs. Much of the legislation is designed to better inform consumers and this is very welcome news to our industry! Officially, Congress has set aside more money for FHA guaranteed loans and will pump more money into Fannie Mae and Freddie Mac. Since Freddie and Fannie, both Goverment Sponsored Enterprises, or GSE's were placed in conservatorship shortly after the Housing Bill was passed, the new heads have not yet declared if their recent guideline changes (tighter) will continue as planned. In fact, FHA has areadly delared a moratorium on their own risk guidelines so the whole situaiton is very much up in the air. These risk based guidelines translate into higher interest rates and fees for marginal credit or dec...

Online Mortgage Shopping Impacts FICO Scores If you've considered checking out an online mortgage site: think again. What they don't tell you is that their network may comprise multiple agents. Each may pull your credit report (separately) over a course of hours or days while they review your loan options. While all this is going on, your FICO score is taking a nosedive. Each mortgage inquiry can negatively impact your score 3 points. Each time. So if 10 brokers pull your credit in one 90 day period you could be 30 points worse off. And here's the scary part: each of those 10 brokers could actually submit your application to another 10 banks who also check your credit and that little exercise just cost you 30 points per broker...so the potential for damage is exponential. Because banks and lenders have strict FICO score requirements, a lower FICO Score can affect your qualifying for the loan you want. So much for convenience... What is a FICO Score? Invented by the ...

4 Point Plan to Success: Most people think if they not have claimed bankruptcy or bounced checks then all is well in credit land. Unfortunately, it’s not that simple. If you have let your payment schedules slip or allowed your credit account balances to creep up these practices can seriously impair your creditworthiness. Since the new Fannie Mae and Freddie Mac guidelines for mortgages were released in late December 2007, lenders are being forced to charge more for loans in up front points and fees due to the increased risk factors. This means a low FICO score is costing you higher interest rates not only on your mortgage but for everything from insurance to auto loans. The difference between a low 600’s score and a score over 700 could easily mean $100 a month on a car loan and more on your home payments. Below are some tips for turning things around. The standards have been raised 20 - 40 points across the board this year and document stacks are that much taller! Make 2008 th...

By now every consumer seems to know about the existence of FICO Scores...but what are they really? FICO Scores are essentially indicators of risk, that is, how likely you are to pay your mortgage on time and not go into default. The best way around the score game is if you qualify for FHA or VA or another government initiative designed for entry level homeowners. Naturally there are government caveats on these loans...subject of another blog. There are many factors that affect your interest rate: FICO Scores affect rates and your borrowing power! If you apply for a home loan with a FICO credit score of 720+ you will most often be offered the current lowest interest rate if you are able to fully doccument your income and assets and own or are refinancing a solid property. As a 'stated income' applicant with limited or no documentation, the required FICO scores have been raised in 2007 to 700 or better to qualify for decent rates, depending on the specific lender's guideli...

The Federal Trade Commission is allowing the Credit Reporting Bureaus: Equifax, Experian, Innovis, and TransUnion, to re-sell your credit report information. Here's What Happens: You go to a bank or mortgage company to discuss your financial situation and they pull a credit report to qualify you for a loan. This triggers an alert in the system that you are in the market for credit. The bureau then compiles lists of consumer reports and re-sells them to other lenders on 'trigger lists'. They are re-selling not just your contact details but may be sharing your actual credit report. Buyers of the lists target the top FICO score clients first. You may start getting unsolicited calls. Lots of calls. The callers may even imply they are calling from your bank or processor. We have heard of fantastic offers and ridiculous teaser rates for huge sums of money. It doesn't seem to matter if you have an unlisted number --the calls just keep coming. To stop this cold, egister y...

"Soft Hits" to your FICO score at the Bureau level add up...here's a quick way to end the junk mail and save your shredder! Did you know all those "Pre Approved" credit card offers you get in the mail are actually hurting your FICO score? Of course the disclaimers suggest this is not the case...however my lenders beg to differ. We have seen examples of real live human beings who experienced an improvement in their FICO scores after using this simple method of 'Opting Out'. By the way, when you open any credit or bank account, you should be offered this option but it's not actually something every banker remembers to do. So, to end the weekly mail deluge and OPT OUT of unwanted credit offers. Click this link: www.optoutprescreen.com . You can choose to opt IN if you want these offers, opt out for 5 years or opt out forever. By removing your name from these lists you are eliminating ‘soft hits’ to your file….which do add up and lower your credit s...