The use of automated valuation models (AVMs) can make it faster, easier and cheaper for mortgage lenders to value your home. But do they understate your home’s value and will they cost you money?
Too often, mortgage borrowers are rejected for a home loan on the basis of poor credit. Whether you’re in the market for a purchase-money mortgage, a refinance or even a home equity loan, coming to a lender with a strong credit score–especially in this present environment–will truly increase your chances of success.
Today, one-third of the American population has a credit score below 620. Unfortunately, a credit score of 620 isn’t going to get you anywhere, even with those loan programs which claim your credit score isn’t much of a concern.
Taking on a reverse mortgage can be a smart move or a financial disaster, depending on the type of loan and your circumstances. Avoid these mistakes to make a reverse mortgage a smart move.
Mistake #1: Taking out the wrong mortgage
Can my homeowners association really foreclose on my home?
Unfortunately, the answer to that question is “yes.”
Homeowners associations (HOAs) have a history of foreclosing on owners to collect relatively small sums of money. For example, in one California study, the median amount owed in HOA foreclosures was just over $2,000; in all other cases it was over $190,000. One family even lost their home because of a $120 HOA arrearage! Learn how to avoid an HOA foreclosure and how to sidestep the ways some HOAs use to try to take your home.
There are many laws in place to protect homeowners from foreclosure by their lenders or other claimants. Borrowers are protected from mortgage lenders foreclosing with bankruptcy proceedings, through homesteading, and through forced mediation in many states. But HOAs don’t face these same restrictions. (Read more)
While we try to publish about five new articles each week on HSH.com, last week’s snow storm put a little crimp in our schedule. The result: twice as many articles published this week on HSH.com.
Let’s take a look at the fresh content on our home page:
Another week is in the books. Can you even believe January is almost over?
This week’s posts were a nice mix of material — mortgage rates, consumer costs, loan mods, the FHA, and home prices. I would like to encourage more readers to comment on these stories since they’re likely to impact most of us in one way or another.
Friday:
Home equity lines of credit practically vanished beginning in 2008 when home prices plunged. Homeowners watched helplessly as access to their equity withered with every new report of falling home prices. Borrowers who sought to open home equity credit lines of credit were either denied or offered terms and rates not nearly as attractive as they were just a short while before.
It’s 2009 and home equity credit conditions continue to remain “tight as a drum,” writes E. Scott Reckard of the LA Times, despite other sectors of the housing market showcasing some initial signs of improvement. Mortgage rates are historically low, private interest is returning to the jumbo market, reports say that home prices are rising (or at least falling less fast) in some portions of the country, and the first-time homebuyer tax credit has been touted by realtors as housing’s savior. Despite the optimism, conditions are largely unchanged in the world of home equity, and homeowners shouldn’t expect that to change anytime soon.
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
