Search to Refinance Mortgage and Avoid Peril to Your Credit

Los Angeles, CA (PRWEB) October 29, 2005 – Mortgage refinancing can be a perfect solution when life happens and realty bites. Watch for risks in the hunt to refinance.

Working with homeowners to find answers, bella e. samel at www.realtybites.net commented, “I’ve noticed that many homeowners take action to correct their situation without all the necessary information. This often leads to making things worse.”

Here are some tips to smooth the path to a mortgage refinance that fits your needs.

• Take time to make a list all of your income and expenses. Be sure to include the current market value of your home (if you know it) as well as any debts, liens or judgments against the property. This will prepare you for any questions asked by potential lenders. And be honest with the agent. If a lender discovers you have excluded information, you not only decrease the chance of getting any mortgage refinance, but of obtaining the right refinancing for you.
• Every time your credit is checked (especially more than two to three times in three months), your credit rating is affected. Be aware if any application you submit for a refinance mortgage is going to require this.
• Two options that need to be taken into account are “sub-prime mortgages” and “adjustable rate mortgages”. Both have pros and cons. A “sub-rate” mortgage is placed with a sub-prime lender who specializes in bad credit mortgages. As the interest rate can be higher than expected, be ready to try another option for mortgage refinance. Adjustable rate mortgages (also called “ARM’s”) are very complex instruments. These need to be explored extremely carefully to be sure the benefits outweigh the risks.
• Hard money lenders tend to be short term. This is not usually a good plan for owners wanting to refinance or stop foreclosure. These types of loans best serve contractors or investors needing temporary cash rather than a bad credit mortgage.
• You do not have to refinance your mortgage with the same lender that provided your original loan. However, to keep your business, some lenders may offer customers incentives of lower interest on a refinance mortgage.
• Always comparison shop points as well as interest rates despite your credit rating. Some lenders offer to finance the points so that you do not have to pay them up front. Points are added to the balance, and you pay a finance charge on them. This means increased monthly payments.
• While reviewing loan documents, look for increased interest charges due to late payments and prepayment penalties. And remember, you may be charged a penalty for paying off your original loan early. Do check the original contract, or contact the lender before refinancing.
• Remember closing costs on any refinance mortgage typically include fees for the loan application, title search, appraisal, loan origination, credit check, and lawyer's services. You also may be required to pay recording fees or transfer taxes.
• If you decide on a particular lender, and do not want to let the interest rate "float" until closing, be prepared to act quickly yet responsibly, with a clear mind. Get a written statement that guarantees the interest rate and points that you will pay at closing (this is often referred to as “locking in a rate”).
• The lender must give you a written statement of the costs and terms of the financing before you become legally obligated for the loan, as required by the Truth in Lending Act.
• To learn more about predatory lenders as well as become alert to various mortgage scams, visit the Mortgage Bankers Association of America’s website at www.mbaa.org.
• An impartial third party such as a real estate attorney would be in the consumer’s best interest. The classic definition of real estate is a bundle of legal rights.

There are countless ways to deal with difficult situations. Major factors to consider when dealing with either refinancing or the possibility of default or foreclosure are whether you actually want to keep your home, live in it, rent or lease it, or sell the property altogether. For most people, your home is the largest asset you have.

About Realty Bites, The Homeowner’s Foreclosure Alternative:

Realty Bites is based in Los Angeles, CA and offers a network for relief to homeowners nationwide. By adding online and toll free assistance, homeowners have been able to find a fresh start from all over the world.

Stop Foreclosure with Facts and Foreclosure Help Part III.

Los Angeles, CA (PRWEB) June 17, 2005 – To stop foreclosure, homeowners are often in the dark when it comes to finding foreclosure help. There are matters to consider when preparing to sell your home to stop foreclosure besides the obvious time constraints. Some foreclosure options will affect your credit more than others. Foreclosure options and foreclosure help are available for free at www.RealtyBites.net.

In Part I and Part II of this article, we covered ways to stop foreclosure and unscrupulous, unethical mortgage lenders that might take advantage of consumers. A quick reminder, ignoring the notices does not stop foreclosure. After contacting the mortgage company to arrange ways to repay the arrearage, making an effort to borrow from friends or family, attempting to work out an ethical and affordable loan from a lender, researching assistance programs, and still not able to stop foreclosure, you may need to sell your property.

The sooner you start preparing your home for sale when selling by owner and using a Multiple Listing Service (MLS) or listing with a realtor and MLS, the better your chances of getting a fair market offer to purchase your home. There are matters to consider when preparing to sell your home to stop foreclosure besides the obvious time constraints:

1. Is your home in good enough condition to be sold at fair market value (same price as similar properties in your area)?
If not, can you afford to fix it up? When you sell your home in need of repair, the sale price will have to be "discounted" for the buyer to fix up your home.

2. Do you have enough time to sell it?
Many owners wait for their "pending new/refinance loans" and by the time they find out they cannot get financing, there is not enough time to sell the house with a Realtor. The longer you wait, the more likely you will need to sell your home to an investor who offers "a quick closing, all cash transaction" for significantly less than fair market value. If you have time to list with a realtor, be sure to limit the length of time for the listing agreement in case it does not sell and you want the option to sell to an investor. Investors, as opposed to owner occupant buyers, cannot legally purchase properties in default listed with realtors for various reasons.

3. Realtors tend to charge 5-6% commission in today’s market.

4. Ready to SELL TO AN INVESTOR?
Beware of an investor that offers to buy, rent to you, and sell back to you later. A lease with affordable rent would be required or plan on being evicted when you cannot afford the rent. In terms of buying back the home, it is likely to be sold to you at an inflated price that you cannot manage to pay and be back in the same boat as before. GET IT IN WRITING!

There are several advantages to choosing to sell to a private investor. The sale can be finalized and the money paid to you within 1 week or at a mutually agreeable date. Ordinary burdens of selling your home are paid for by the investor including termite, roofing, structural, plumbing and any other inspections as well as the necessary repairs. The investor pays escrow, title search, and recording costs. There is no realtor commission. Foreclosure will not be on your credit record.

When considering bankruptcy, this decision is not to be made lightly and requires careful consideration. Seeking professional advice is strongly suggested as bankruptcy will remain on your credit history for up to 10 years. This makes renting an almost impossible task. Ask how release of stay can affect the foreclosure process on your home. Get bankruptcy FAQ.

A Deed-in-Lieu of foreclosure is a voluntary conveyance of title to the lender. In other words, you are giving your home back to the bank. Generally this is a last ditch effort to avoid the negative consequences of foreclosure. In return for the voluntary conveyance to the lender, you are often, but not always released of any personal responsibility for the mortgage. In order to qualify for a DIL, most lenders state that there must NOT be a second mortgage or liens on the property. Properties with equity should consider selling the property before voluntarily conveying the home to the lender. A DIL on a VA loan can possibly affect your ability to get another VA loan and other VA benefits. Contact the VA for more info.

There are countless ways to deal with difficult situations. Realty Bites investment company offers access to a network of solutions with no referral fees. Immediate information and foreclosure help for distressed homeowners can be found at www.RealtyBites.net or toll free by phone: 866.780.8380.

About Realty Bites, The Homeowner’s Foreclosure Alternative:
Realty Bites is based in Los Angeles, CA and offers relief to homeowners nationwide. By adding online and toll free assistance, homeowners have been able to find a fresh start from all over the world.

Stop Foreclosure with Facts and Foreclosure Help Part II.

Los Angeles, CA (PRWEB) June 3, 2005 – To stop foreclosure, homeowners are often in the dark when it comes to finding foreclosure help. Some foreclosure options will affect your credit more than others. Foreclosure options and foreclosure help are available for free at www.RealtyBites.net.

In Part I of this article, we covered a few ways to avoid foreclosure and unscrupulous, unethical mortgage lenders that might take advantage of consumers. The first step was not to ignore the notices since that does not stop foreclosure. After contacting the mortgage company to arrange ways to repay the arrearage, attempting to borrow from friends or family, and attempting to work out an ethical and affordable loan from a lender, and not able to do so, there are other foreclosure options to try. With facts to stop foreclosure, an educated decision can be made to keep or sell your home.

Homeowners with FHA loans have additional foreclosure options. There are important factors to consider before DIL (Deed-In-Lieu, voluntary conveyance of title to the lender). If your bank accepts DIL, it is better on your credit than foreclosure. Partial claim could be good if keeping your home. It is without interest, but adds a lien to property and needs to be repaid when sold or first mortgage is paid off. Be sure to ask questions such as: 1. Are VA benefits accessible during that time? 2. How long will it take to resolve the issue at hand? 3. Is another VA loan possible? 4. Ask about programs that offer financial help for your specific situation and their hidden side effects. 5. Get it in writing before signing any agreements. Homeowners with FHA insured loans can get details at http://www.hud.gov/foreclosure/index.cfm.

www.govbenefits.gov helps citizens access government benefit eligibility information through a free, confidential, and easy-to-use online screening tool. After answering some basic questions, the user receives a customized report listing the benefit programs for which the user, or person for whom he or she is entering information, may be eligible." This is a very useful tool for finding foreclosure help.

There are countless ways to deal with difficult situations. A factor to consider when presented with default or foreclosure includes whether you want to keep your home or not.

In Part III of this article that follows on Friday June 17, 2005, we’ll cover important things to beware of when selling a home in foreclosure. Realty Bites investment company offers access to a network of solutions with no referral fees. Immediate information and foreclosure help for distressed homeowners can be found at http://www.RealtyBites.net or toll free by phone: 866.780.8380.

About Realty Bites, The Homeowner’s Foreclosure Alternative:
Realty Bites is based in Los Angeles, CA and offers relief to homeowners nationwide. By adding online and toll free assistance, homeowners have been able to find a fresh start from all over the world.

Stop Foreclosure with Facts and Foreclosure Help.

Stop Foreclosure with Facts and Foreclosure Help.
Los Angeles, CA (PRWEB) June 3, 2005 – To stop foreclosure, homeowners are often in the dark when it comes to finding foreclosure help. Some foreclosure options will affect your credit more than others. Foreclosure options and foreclosure help are available for free at www.RealtyBites.net.

Ignoring default and foreclosure notices is the worst thing a homeowner can do. It will not stop foreclosure. The simplest solution is to contact the lender to arrange ways to repay the arrearage. This will stop foreclosure quick!

Borrowing from friends or relatives can be a great way to stop foreclosure except for the possibility of putting a strain on relations. If currently employed, refinancing or a junior loan might be the way to stop foreclosure. Most mortgage brokers are reputable and ethical lenders. The small number of predatory lenders creates an incredible scare to borrowers. Here are ways to avoid mortgage fraud:

1) Be sure to comparison shop for interest rates to ensure the most affordable loan despite your credit rating.
2) Some borrowers may only qualify for a sub-prime mortgage with higher-than-average interest rates. This can be acceptable, but if the payments are really not affordable, try another option.
3) Hard money lenders will require a refinance rather than an additional mortgage and tend to be short term. This is not usually a good plan to stop foreclosure. These types of loans best serve contractors or investors needing temporary cash.
4) Predatory lenders might purposely place a consumer in a mortgage where interest rates increase and/or other negative factors are included knowing the borrower cannot afford payments over time and make the loan impossible. The lender could then foreclose and financially benefit from reselling the property.
5) Falsifying loan documentation is illegal, but can occur. Ask for a copy of the documents prior to closing with time to have them reviewed by an impartial third party.
6) The most appalling form of mortgage fraud consists of making loans to mentally incapacitated homeowners. Again, an impartial third party such as a real estate attorney would be in the consumer’s best interest.
7) Avoid forged signatures and last minute changes of terms by getting a copy of the documents to review prior to closing.
8) While reviewing loan documents, look for increased interest charges for late payments and prepayment penalties.
9) To learn more about predatory lenders as well as become alert to various mortgage scams, visit the Mortgage Bankers Association of America’s website at www.mbaa.org.

There are countless ways to deal with difficult situations. Several factors to consider when presented with default or foreclosure include whether you want to keep your home or not. Realty Bites investment company offers access to a network of solutions with no referral fees.

In Part II of this article that follows on Friday June 10, 2005, we’ll cover additional foreclosure options to stop foreclosure. Immediate information and foreclosure help for distressed homeowners can be found at http://www.RealtyBites.net or toll free by phone: 866.780.8380.

About Realty Bites, The Homeowner’s Foreclosure Alternative:
Realty Bites is based in Los Angeles, CA and offers relief to homeowners nationwide. By adding online and toll free assistance, homeowners have been able to find a fresh start from all over the world.

Distressed Homeowners are Encouraged to Think Outside the Box to Help Stop Foreclosure Sale Quickly with Foreclosure Options

Panicked decisions and time restraints often lead to less than desirable consequences while needing to stop foreclosure sale quickly. Realty Bites, The Homeowner’s Foreclosure Alternative (RB) receives phone calls and emails from homeowners feeling stuck, paralyzed, helpless, or alone. As an investment company with experience in various situations, foreclosure options and solutions, RB offers (at no charge) a sounding board, on-going stop foreclosure assistance, and referrals to homeowners facing the possibility of default or foreclosure.

Los Angeles, CA (PRWEB) April 14, 2005 -- Most mortgage problems are due to unexpected hardship - illness, injury, job loss, divorce or other reasons. Sometimes, even after the situation is resolved, the ability to catch up on back mortgage payments can be difficult or even seem impossible. (The associates at RB know that the “impossible” simply takes an open mind and more creative thinking.)

“(RB)…was referred to me by a dear friend when I was in deep financial trouble due to a work injury and loss of income. My home was in foreclosure. When I called bella (at RB) she reassured me there were foreclosure options which I had no idea about and no experience with. The ideas she presented to me broke the mind set and paralysis I had fallen in to and while I did not use the remedies presented I was able to come up with a solution that worked for me to stop foreclosure quickly. bella’s creativity in problem solving is truly inspirational and no matter what situation you find yourself in she can help you think it through.” Cynthia P.

Should a homeowner decide to sell to an investor for a smooth transition, Realty Bites is available to create an equity purchase agreement between the homeowner and RB or an independent investor. According to bella e. samel, founder of Realty Bites, “Our primary purpose is to help homeowners take calm and effective actions in pursuit of ideal foreclosure options without feeling pressured to sell.”

“In September 2004, I contacted http://www.RealtyBites.net in need of help concerning a house that I owned in another state. Due to a divorce, it was difficult to just sell the house because the house is going to sell for less than what is owed on the loan. The last thing that I wanted to do was foreclose on the house. That would ruin my credit. RealityBites.net, helped me understand my foreclosure options and even contacted a realtor in the state my house is in. The realtor contacted me and is helping me sell the house. The customer service at RealtyBites.net is top notch. One way or another, they will do what they can to help you or lead you in the right direction. Thank you for your consistent effort to help me in my time of need.” David S.

There are countless ways to deal with difficult situations and to help stop foreclosure sale quickly. Doing nothing really is the worst of foreclosure options that a homeowner can do. There are several factors to consider when presented with ways to help stop foreclosure sale quickly, including whether you want to keep your home or not. Realty Bites investment company offers access to a network of foreclosure options and solutions with no referral fees.

More information regarding foreclosure options for distressed homeowners can be found at http://www.RealtyBites.net or toll free by phone: 866.780.8380.

About Realty Bites, The Homeowner’s Foreclosure Alternative
Realty Bites is based in Los Angeles, CA and offers relief and foreclosure options that help stop foreclosure sale quickly to homeowners nationwide. By adding online and toll free assistance to help stop foreclosure sale quickly, homeowners have been able to find a fresh start from all over the world.