Posts Tagged ‘banks’
BILL MOYERS JOURNAL | Mortgage Mess | PBS
http://www.pbs.org/billmoyers BILL MOYERS JOURNAL travels to ground zero of the mortgage meltdown — Cleveland, Ohio. Correspondent Rick Karr takes viewers to Slavic Village, one of the hardest hit neighborhoods in the nation when it comes to the spate of foreclosures caused by the subprime mortgage crisis.. Aired Friday, July 18, at 9p.m. on PBS (check local listings). For more: http://www.pbs.org/billmoyers
Duration : 0:20:56
Walk away from your mortgage!
With banks refusing to help homeowners with their underwater mortgages, a New York Times story advocates simply walking away.
On Countdown. Copyright MSNBC 2010
Keith Olbermann housing market real estate mortgage default Countdown strategic default banks bankers
Duration : 0:6:40
How Do Mortgage Lenders Qualify Your Income?
How much do you make a year?
This is one of the first things a mortgage lender will ask and one of the top 3 things that they really care about on a mortgage application.
Why?
Because this is what is going to tell them how much you are worth. Sounds shallow and harsh but its a reality.
No one likes to be working pay check to pay check and the banks dont like making you live that lifestyle either. Morally it isn’t good for PR but also, if you are walking that close to the edge every month then the chances of you missing payments becomes greater. If your cars engine konks out then you may have to skip your mortgage payment in order to get it fixed or you could get the flu for 4 days and take time off work which makes your short this month, and so on.
Basically, this situation isn’t good for anyone so in order to prevent this, banks have different methods of qualifying your income.
So what do I mean by “Qualifying Your Income”? Why isn’t it more cut and dry or why can’t they just take your word for it? Well….. One bad apple…..
Anyway, each of us has a different pay structure at work that the bank needs to look at and derive their conclusions from. The tough part is, many of us have variable aspects to our earning. For example, my income fluctuates constantly throughout the year as I am full commission. I have no steady number that the banks can look at. Other people work hourly and sometimes they get overtime, sometimes not. Others are straight salary but every year they get a bonus of some kind. Then of course there are the self employed people who have a shaky line between what they make and what they REALLY make due to cash jobs and write offs.
So how do the banks pull a “safe” number that they can go off of with all of these variables kicking around?
Although as per usual, each mortgage lender is different, here is the general rule of thumb on how they qualify YOUR income as well as the paperwork that they will most likely require in order to verify the numbers and approve your application.
Straight Salary, No Commission, No Bonuses
This one is the easiest. What you made last year is guaranteed this year and the next.
What the lenders will require in order to verify this is a job letter (you can find examples on my website http://www.mortgagecentrecitywide.com/blogs/cossl/?page_id=157) as well as your most recent pay stub. On occasion they will want your last 2 pay stubs.
Hourly FULL Time
This as well is considered to be the same as a salaried person. However, just because you are working a consistent 40 hours a week does not make you full time. The banks will want it to be noted in your job letter that you are guaranteed full time hours.
In some union jobs there will only be 3 or 4 full time positions and everyone else is part time even though they work full time hours. Because these are not guaranteed hours the bank will still not qualify you as a full time employee.
As well, if you are a Full Time employee but work overtime on occasion then you now earn a variable amount and will want to refer to the sections below.
Salary Plus Commission or Bonuses, Hourly (part or full time) Plus Over Time, Full Commission, & other Variable Incomes
Now we are jumping into a variable position. Even if EVERY single year you make a $10k bonus the banks will still consider you a variable earner as this “bonus” is not guaranteed.
What they will require is your Line 150 on your tax return for the last 2 years and then they will average this off to get what they feel is a fair evaluation of your true earning potential.
If you have been working at your job for less than 2 years but before this job you worked in the same industry then your income from your last employer will also qualify and they will still take a 2 year average of your income to get a number.
The tricky part is if you have switched industries completely and have only been working in the new position with a new employer in a new industry for less than 2 years. In this case you may have difficulty finding a traditional lender to finance you and private or conventional funding might be the only way to get your deal done. Give me a call if you are in this situation. 604.313.9996
**write up too long for youtube. Please visit http://www.mortgagecentrecitywide.com/blogs/cossl/?p=198 for the remaining portion of the article
Duration : 0:4:6
Mr Mortgage Exposes Wells Fargo’s Toxic Waste 4/7/08
Visit my new blog…
http://mrmortgage.ml-implode.com
Wells Fargo Subprime toxic waste exposed. Do they have to raise capital? Mr Mortgage shows a 2006 Wells rate sheet. This is hard evidence of Wells doing nasty subprime loans for borrowers with scores as low as 500 and 120-day mortgage late payments, which is essentially foreclosure status. They did not sell this directly to consumers, rather used correspondents like New Century, Accredited, Countrywide etc to rebrand the programs and sell them as their own. This is a very common practice but this just proves Wells is dirtier than most. First, because not everyone did subprime. Second, because they lied of course.
Duration : 0:7:48
Mr Mortgage – HERE COMES THE ALT-A CRISIS 4-16-08
Visit my new blog…
http://mrmortgage.ml-implode.com
Mr Mortgage Exposes ALT-A Crisis Coming to a City Near You Soon
Duration : 0:10:0
Mr Mortgage – Home Equity Delinquencies Surge
Check out my new blog…
http://mrmortgage.ml-implode.com
S&P, BofA and Fitch all concur that the ‘Home Equity Implosion’ is knocking on, or kicking down rather, the front door.
Duration : 0:6:22
Mortgage Foreclosure Rescue Scams – Documentary Video
Mortgage Foreclosure Rescue Scams – Documentary Video
We Stop Foreclosure Rescue Scams (2008) by Kyra Olds
This is a documentary about mortgage foreclosure rescue scams that are occurring across the country in light of the growing foreclosures. The movie describes common scam tactics and how distressed homeowners fall for these scams. The movie concludes with what lawyers can do to challenge these scams in court and the Washington State Legislature’s response to try to to stop these scams by passing House Bill 2791 and Senate Bill 6381. It is intended to educate advocates so they can better assist homeowners facing foreclosure.
Director: Kyra Olds
Producer: Northwest Justice Project
Sponsor: Eric Dunn
Keywords: foreclosure rescue scam; washington; mortgage; foreclosure; 2791; northwest justice project; njp
Contact Information: Northwest Justice Project 401 2nd Ave S Seattle, WA 98104 www.nwjustice.org
Creative Commons license: Attribution-Noncommercial-Share Alike 3.0 United States
Credits:
We Stop Foreclosure Rescue Scams
by Northwest Justice Project;
Featuring:
Eva, Client of NJP; Eric Dunn, Attorney at NJP; Melissa Huelsman, Private; Attorney in Seattle; Judy Poston, Housing Counselor at Solid Ground; Julia Kellison, Attorney at NJPl; Fred Corbit, Attorney at NJP
Produced by: Kyra Olds, Intern at NJP
Foreclosures are increasing nationwide, and so are scams that promise to rescue homeowners from foreclosure. What these scams do is take your money, ruin your credit record, and wipe out any equity you have in your home. Foreclosure con artists take advantage of people who have fallen behind on their mortgages and face foreclosure. Con artists know that people in these situations are vulnerable and likely to be desperate. Potential victims are easy to find: mortgage lenders publish notices before foreclosing on homes. After reading such notices, con artists approach their targets in person, by mail, over the telephone, or by e-mail. They advertise their services on Web sites or publications. They often refer to themselves with titles that sound official, such as foreclosure consultant or mortgage consultant, and market themselves as a foreclosure service or foreclosure rescue agency. Your mortgage lender or any legitimate financial counselor can help you find real options to avoid foreclosure. If someone offers to negotiate with your lender and offers to arrange to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience. To protect yourself, follow the recommendations contained in this Consumer Advisory.
Duration : 1:34:41
First Principles’ Dachille Discusses Fed Policy, Assets: Video
Feb. 17 (Bloomberg) — Doug Dachille, chief executive officer of First Principles Capital Management LLC, talks with Bloomberg’s Peter Cook about Federal Reserve monetary policy and mortgage rates.
The Fed said its top officials last month debated how and when to shrink the central bank’s $2.26 trillion balance sheet, with some policy makers pushing to start selling assets in the near future. (Source: Bloomberg)
Duration : 0:3:49
Mortgage Bankers Celebrate Victory
You would think this year’s Mortgage Bankers Association annual meeting would be a rather solemn affair — given the criticism the industry has endured in recent months. But our ANP reporter attending the meeting found the bankers in a celebratory mood. The reason? A massive lobbying campaign against bankruptcy reform legislation known as “cram-down” appeared to be working.
Duration : 0:4:40
(Pt) 1. Mortgage lenders pursue homeowners even after foreclosure
Now This Sucks, so make sure you cover all aspects of Forclosure and deeds in lieu.
MensHelpTv
As terrible as it is to lose your house to foreclosure, at least it’s a relief to put your biggest financial headache behind you, right?
Wrong.
Former homeowners may still be on the hook if there’s a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these “deficiency judgments” are ticking time bombs that can explode years after borrowers lose their homes.
It can even happen to people who got their bank to approve them selling their home for less than it is worth.
Vanessa Corey, for example, short sold her Fredericksburg, Va., home in April 2008. She and her husband built the house in 2004, but setbacks, both personal (divorce) and professional (housing bust), made it impossible for the real estate agent to keep her home. So she negotiated the short sale and thought that was the end of it.
“My understanding was that the deficiency was negotiated away,” she said. “Then, last November, I got a letter from a lawyer telling me I owed my lender $65,000. I had to declare bankruptcy. There was no way I could pay it.”
Many homeowners are now in the same boat. And not just those who took out bigger loans than they could afford or who did so called “liar loans” where they didn’t have to verify their income.
Because of falling home prices, borrowers who always paid their mortgage but who have run into unforeseen circumstances — like unemployment or a job transfer — can no longer sell their homes for what they owe. As a result, they are being forced to short sell or foreclose and are getting caught up in deficiency judgments.
“After the banks foreclose, it’s very common now to have large deficiencies with houses not worth the balances owed,” said Don Lampe, a North Carolina real estate attorney.
Lenders mostly declined comment. Although Corey’s lender, BB&T did indicate it was pursuing more deficiency judgments.
“They follow the rise and fall of foreclosures,” said the spokeswoman, who would not discuss Corey’s account.
Can they come after you?
Whether banks can and will pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there’s a second mortgage or other liens. But if borrowers ignore the possibility of deficiencies, it could haunt them.
“Once they have a judgment, they can pursue you anywhere,” said Richard Zaretsky, a board-certified real estate attorney in West Palm Beach, Fla. “They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail.”
Read Part 2
Duration : 0:0:38