Start by requesting the free annual credit report you’re entitled to at AnnualCreditReport.com. “For each credit account you have, the report shows creditors’ names, the amount owed, the highest balance owed, available credit, whether the account is open or closed (and who closed it), the number of times a payment was past due, and whether the account is in default,” Freddie Huynh, a lead data scientist at FICO (Fair Isaac) for 18 years who is now Vice President of Credit Risk Analytics at Freedom Financial Network, explains.
The last thing any homeowner wants is to face the stress of being behind on their mortgage payment, or worse yet, to think about, and possibly lose the family home to foreclosure or unpaid property taxes. No one ever plans to or expects to lose their home to foreclosure. But by understanding how you can obtain assistance with making your mortgage payments, who and how to ask for help, and what to do, you can reduce your chances of this occurring. Communication and being pro-active is one of they keys. You should also know the foreclosure process inside and out, and understand what may lead up to it. That will place you in a better position to address and also recognize any potential problems that may impact your ability to pay every bill and make every mortgage payment on time.

Taxes. You can usually choose to pay property taxes as part of your mortgage payment or separately on your own. If you pay property taxes as part of your mortgage payment, the money is placed into an escrow account and remains there until the tax bill for the property comes due. The lender will pay the property tax at that time out of the escrow fund.
Less is charged for interest because your balance is lower and lower. But keep in mind that (at least for now) the interest you pay is deductible for tax purposes. That means if you pay $15,000 in interest this year, you will effectively reduce your taxable income by $15,000. If you’re in the 30% tax bracket, that saves you $5,000 in taxes. In short, for many people, having a mortgage is smart financial tax planning.
There are a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. This page provides a summary of these various programs. Please continue reading in order to determine which program can best assist you.
A commission-based mortgage lender will primarily be motivated by closing your mortgage, whether or not the terms of the mortgage are in your best interest. With salary-based mortgage consultants, you won’t have to worry that your mortgage lender is locking you into a huge financial commitment in order to make their own mortgage payment for the month. Interest rates change daily and vary based on your financial situation. So, you want to be sure your loan officer or consultant takes the time to get you to know your current finances, as well as your outlook and goals.
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It’s equally important to find a lender who has access to — and knowledge in — down payment assistance programs. There are many options available to first-time home buyers and seasoned buyers. Options vary by county and state, but the right lender is going to know exactly what’s available to you. This is a great way to save even more money each month.

When the house, apartment, or the dwelling unit determined eligible for aid, weatherization services are provided to the household. Weatherization services provided may include installing wall, attic, floor, duct, or pipe insulation; cleaning air conditioners; installing low-flow shower heads; installing energy efficient, compact fluorescent light bulbs, improving clothes dryer operation; and replacing or repairing old refrigerator.
You may not receive mortgage approval the first time around. Sometimes you're just shy of meeting program qualifications. It happens. But, it doesn't mean you should be written off as a customer. Be sure to choose a lender who sees you for you, not just your credit score. At American Financing, we'll guide you through credit weaknesses and next steps, getting you one step closer to mortgage approval.

The lease/buy back: Homeowners are deceived into signing over the deed to their home to a scam artist who tells them they will be able to remain in the house as a renter and eventually buy it back. Usually, the terms of this scheme are so demanding that the buy-back becomes impossible, the homeowner gets evicted, and the “rescuer” walks off with most or all of the equity.


Less is charged for interest because your balance is lower and lower. But keep in mind that (at least for now) the interest you pay is deductible for tax purposes. That means if you pay $15,000 in interest this year, you will effectively reduce your taxable income by $15,000. If you’re in the 30% tax bracket, that saves you $5,000 in taxes. In short, for many people, having a mortgage is smart financial tax planning.
A 30-year fixed-rate mortgage is also called a conventional rate mortgage. The rate that you see when mortgage rates are advertised is typically a 30-year fixed rate. The loan lasts for 30 years and the interest rate is the same—or fixed—for the life of the loan.  The longer timeframe also results in a lower monthly payment compared to mortgages with 10- or 15-year terms.
In addition to saving for a down payment, you’ll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent's commission. Calculate your expected closing costs to help you set your budget.
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Although most of Keep Your Home California’s programs provide assistance in conjunction with a Note and Deed with a five (5) year lien term, some types of Principal Reduction Program assistance require a ten (10) year or a thirty (30) year lien term. Principal Reduction Program assistance that is combined with a ten (10) year or thirty (30) year lien term, offer prorated forgiveness terms that begin on the anniversary of the fifth (5th) year.
Save the Dream Tour: The NACA also has a venue to facilitate mortgage modifications, and it operates from dozens of major cities. The Save the Dream Tour has tens of thousands of homeowners participating at each event, and thousands of people who attend are able to have their mortgage restructured the same day. Attendees can meet directly with representatives from many banks and lenders. They can have their interest rates lowered to as low as 2%, or their principal reduced, or receive other forms of aid.
Yes, Keep Your Home California will continue to pay Unemployment Mortgage Assistance benefits to a homeowner’s servicer even if the homeowner exhausts their California Employment Development Department benefits, and remain not fully employed, during the time of Unemployment Mortgage Assistance. Keep Your Home California will stop benefit payments if the homeowner becomes fully re-employed or if it determines that the home is listed for sale, the homeowner is renting or no longer occupying the property, or the homeowner is actively negotiating a Short Sale or Deed in Lieu of foreclosure with their Servicer.
Remember that whenever you apply for a loan, including a mortgage, the “hard inquiry” the lenders make shows up on your credit report and temporarily lowers your score. Applying for several mortgages in a two week period only counts as one inquiry, but if you drag it out and canvas as many lenders over a longer period, you’ll end up doing damage to your score, which could result in a lower rate than you were hoping for.
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.
Typically forbearance agreements have a deadline, after which the holder is expected to begin paying the monthly mortgage again, in full. In this regard, they are a sort of band-aid fix - great for emergencies, but no good if you expect that the emergency situation is going to become permanent. Once the forbearance period has expired, you have three courses of action:
In addition to higher credit score requirements, several missed payments, frequent lateness, and other derogatory credit information can stop mortgage approvals. Pay your bills on time, lower your debts, and stay on top of your credit report. Cleaning up your credit history beforehand and fixing errors on your credit report are key to keeping up a good credit score.

Homeowner’s Insurance. Homeowner’s insurance is insurance that covers damage to your home from fire, accidents and other issues. Some lenders require this insurance be included in your monthly mortgage payment. Others will let you pay it separately. All will require you have homeowner’s insurance while you’re paying your mortgage—that’s because the lender actually owns your home and stands to lose a lot of it you don’t have insurance and have an issue.
Homeowner’s Insurance. Homeowner’s insurance is insurance that covers damage to your home from fire, accidents and other issues. Some lenders require this insurance be included in your monthly mortgage payment. Others will let you pay it separately. All will require you have homeowner’s insurance while you’re paying your mortgage—that’s because the lender actually owns your home and stands to lose a lot of it you don’t have insurance and have an issue.
Find information on mortgage assistance and foreclosure prevention programs from various companies, federal government agencies, non-profits, HUD counseling agencies, banks and states. Numerous organizations have pledged to provide loan modification and other forms of mortgage help to millions of Americans. Resources are available that can help prevent or stop foreclosures as well as assist homeowners with paying their current and back mortgage payments.
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