Once a Servicer is notified that a borrower is conditionally approved for mortgage assistance from a HFA, they must not refer the mortgage to foreclosure or schedule or conduct the foreclosure sale for 45 days. (Foreclosure actions are suspended unless the HFA notifies the Servicer the borrower has been determined ineligible for assistance.) Servicers must suspend the foreclosure referral or sale for a longer period of time if it is required by state law. Servicers may also postpone a foreclosure referral or sale exceeding 45 days if needed to facilitate the processing of mortgage assistance and receipt of funds, provided the Servicer follows up with the HFA on a regular basis to determine:
When working out the terms of your mortgage loan, it is important to understand all aspects of the loan, including your interest rates, amortization schedule, and payment terms (such as, for example, whether you can prepay extra principal payments on your mortgage if your budget allows). Pay attention to detail, as what may seem like slight adjustments can actually have a big impact on the amount you end up paying.
Don’t let lenders dictate how much you should spend on a mortgage loan. Lenders determine pre-approval amounts based on your income and credit report, and they don’t factor in how much you spend on daycare, insurance, groceries, or fuel. Rather than purchase a more expensive house because the lender says you can, be smart and keep your housing expense within your means.
Typically, you can take up to 60 percent of your initial principal limit in the first year of your reverse mortgage. This is known as your first-year draw limit. If the amount you owe on an existing mortgage or other required payments exceeds this amount, you can take out extra money to pay off that loan and associated fees, as well as additional cash of up to 10 percent of your principal limit.
The US Treasury administers the Hardest Hit Fund, which provides aid to the states that were most impacted by the economic crisis. Each of these states have local agencies that help homeowners in various ways, including mortgage payment assistance for the unemployed, principal reduction, and transactional assistance. This helps people either afford the homes they’re in, or move to more affordable housing.
This seemed to be the thinking a few years ago, and things didn’t turn out very well. When you borrow more than you can realistically pay, that’s a sub-prime mortgage. Banks sold a lot of those to people who assumed the housing market would keep rising like gangbusters. Their home values would go up, giving them nearly instant equity and they could refinance quickly at a lower rate or sell the home for a quick profit. Lenders sold these loan products because they were making the same bet, and interest rates are always higher on sub-prime loans. Even if some ended up in foreclosure, the lenders would still make a tidy profit. Unfortunately, it was a bad bet for almost everyone.
CalHFA MAC provides homeowners with “satisfied” copies of their Promissory Note and Deed of Trust within 30 days of their Promissory Note’s scheduled maturity date. CalHFA MAC also submits paperwork to the county where the Deed of Trust was recorded with instructions to release the Deed of Trust. This document is called a Reconveyance and it will be sent to the homeowner as soon as the county completes the release of lien process.
Fixed Rate - Fixed rate mortgages have the same "fixed" interest rate for the entire loan. The interest rate never changes. You can get fixed rate mortgages for different lengths of time. The most common lengths are 10 years, 15 years, and 30 years. The shorter the period of time, the faster you pay off the house, but also the higher the monthly payment.
Typically, you'll need a minimum of a 620 FICO score to qualify for a conventional mortgage, and it can be difficult to qualify with a score that's near the minimum if your other qualifications aren't stellar. Another option is the FHA mortgage, which is designed for borrowers with qualifications that don't meet the standards of conventional lenders. The downside is that FHA loans can be significantly more expensive, but they can be great resources for people who otherwise wouldn't be able to qualify for a mortgage.
If you plan on staying put until the mortgage is paid off, a fixed-rate loan will give you stability. The interest rate is a little higher than an adjustable-rate mortgage (ARM). But it won’t go up like an ARM can. The only things that will change your house payment over time are property taxes and insurance rates, but those will change regardless of which type of loan you get.
Mortgage forbearance programs are offered by numerous lenders, including Bank of America, JP Morgan, Citibank, and Wells Fargo. Forbearance allows borrowers a temporary suspension of their monthly mortgage payments. So a homeowner will have time to explore their options, receive counseling, or modify their loan during this timeframe. In addition, a foreclosure on your home will not occur during the forbearance period. Learn more on mortgage forbearance.