There are several steps that homeowners can take on their own to deal with a delinquent mortgage payment or an impending foreclosure. People do not always need to rely on the government, solutions offered by their lender or a housing counselor. There are things you can do own your own. However, please always keep in mind that mortgage counselors can often help you, and they offer free or no cost mortgage advice.
• Be ready to move fast. A well-located house in good condition and priced right will sell quickly; it can even be the first day it goes on the market. A buyer needs to be ready to commit if they find a home they like because they risk the chance of losing it if they don’t. One of the things First Ohio Home Finance is known for is how quickly they work for their customers.
"In August 2006, my husband and I were notified by the mortgage company that our rate was going to adjust. I contacted them about locking in a rate, only to be told that they wouldn't be able to help. Our house payment went up $700/month. We struggled to put gas in our vehicles to get to work and to buy groceries. Then, a friend gave me the number to Iowa Mortgage Help. We are convinced that without the vast knowledge and assistance of Iowa Mortgage Help, we would have lost our home."
Loans that are backed by the federal government (i.e., the Federal Housing Administration (FHA), Veterans Affairs (VA) and the United States Department of Agriculture (USDA) are designed to make buying homes more affordable and typically offer low down payments. Because conventional loans are not guaranteed by the federal government if the buyer defaults, they’re a higher risk for the banks, credit unions and other lenders that offer them. Conventional loans require larger down payments than most federally backed loans, but may offer lower interest rates and the flexibility to negotiate fees – usually resulting in a lower monthly payment.
Lenders can initiate the foreclosure process after a single missed payment. Foreclosure is devastating and affects the entire community. Charities and non-profit organizations throughout the country help homeowners avoid foreclosure by offering financial assistance. The eligibility criteria to receive help varies among charities and locations. There are several national charitable organizations that can help you receive the necessary assistance to get back on track and keep your home.
Perhaps the most intimidating part of buying a home is applying for a mortgage. You may know exactly what “APR,” “points” and “fixed-rate” mean — but if this is your first home, or you just need a refresher, there are a lot of great resources to get you up to speed so you can be a well-prepared mortgage shopper. And because this is such a crucial part of owning a home, we’re going to break it all down.
Coming up with a down payment can be the one of the biggest obstacles for first-time homebuyers. It can be challenging to save for a down payment, even if you have a steady income and decent credit score. But with the right planning and budgeting, you can reach your savings goals faster than you think. If you aren’t able to make a sizable down payment, another option is to use gift funds from a relative. As long as the borrower has 5% of their own money, gift funds can be used for the rest of the down payment. It’s also a good idea to talk to your lender to see if you qualify for down-payment assistance. Knowing what your options are and how much you will need to save before you start the process will help prevent any surprises along the way.
Buying a home is the embodiment of the American dream. However, that wasn’t always the case: In fact, before the 1930s, only four in 10 American families owned their own home. That’s because very few people had enough cash to buy a home in one lump sum. And until the 1930s, there was no such thing as a bank loan specifically designed to purchase a home, something we now know as a mortgage.
So one thing that makes a mortgage different from other types of loans is that it is backed up by something – in this case, your home. They call this a “collateralized loan.” Credit cards are also loans, but they aren’t backed up by anything. If you fail to make your credit card payments, the credit card companies can’t take your home away from you.