avoid foreclosure – Would a 2nd mortgage foreclose on a home if there is no equality?
November 20th, 2009 | by admin |Would a 2nd mortgage foreclose on a home if there is no equality?
1st mortgage amount is $322,000 and 2nd mortgage $80,000. The same house is selling for $20,000 less than the total amount. Would the 2nd foreclose or just write off as a loss?
5 pct. of Americans plan to buy a home next year – Yahoo! News
NEW YORK – Just one in 20 Americans say they plan to buy a home within the next year, and they’re most likely to be 34 years old or younger and living in the South or West, according to a survey released Wednesday.
Roughly a quarter of potential buyers said the No. 1 reason they would buy now is because prices appear to have bottomed out. That reason topped bargain-priced foreclosures, worries about rising interest rates and a wide selection of homes.
The survey, conducted for Move.com, a real estate listings site, reveals how Americans are responding to a nascent and fragile housing recovery after three years of staggering price declines. The percentage of buyers thinking of jumping into the market was down slightly from a March survey, but up about 1 point from a poll in June.
Home prices rebounded this summer at an annualized pace of almost 7 percent, according to the Standard & Poor’s/Case-Shiller home price index. But with high unemployment and foreclosures clouding the picture, economists debate whether prices will dip again.
Recent housing figures and homebuilder earnings support a stabilizing housing market, and concerns about the expiration of federal homebuyer tax credit are moot after Congress last week extended and expanded the credit.
Buyers who have owned in their current homes for at least five years are eligible for tax credits of up to $6,500, while first-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.
The survey was conducted before the credit extension.
Those surveyed widely favored federal policies that kept interest rates low and helped troubled homeowners avoid foreclosure over those that helped first-time homebuyers purchase a home. And, overall, 48 percent of those polled didn’t think the government was doing enough to stabilize the housing market, whereas 42 percent thought it was.
Forty-five percent of Americans worry that they or someone they know will face foreclosure in the next year. And almost 30 percent of those with a mortgage have contacted their lender in the past year to reduce their payments.
One of the survey participants, Joe Handley of Harrington, Del., called his lender last December to consolidate a second mortgage and cut his interest rate from 6.75 percent to 5.25 percent.
“We wanted to build up our savings for emergencies,” the 37-year-old said.
His timing was prescient. In July, Handley, who works in the information technology department for the State of Delaware, took a pay cut and the $400 monthly savings from the new loan has helped cushion the blow.
Almost a quarter of Americans who refinanced their mortgages have used the savings for living expenses or paying down debt, the survey found. Less than 9 percent are putting the savings toward investment or retirement.
The telephone poll, which included about two-thirds homeowners and one-third renters, was conducted in October by market research firm GfK. It had a margin of error of plus or minus 3 percentage points.
Chase bank is not one of the biggest lending institutions in America. Like all large organizations, it has undergone a series of changes that are sometimes very confusing. It would appear that Chase has a singular focus, but in actual fact it has many different aspects and works with many banks. Chase mortgage modification works with many organizations and works hard to help its clients avoid foreclosure.
Chase has also changed its name several times. It started as Bank One, then became JP Morgan, then JP Morgan Chase and finally Chase Bank. It is also known WaMu and EMC. With the recent downturn in the economy, job loss, companies closing, and a failure to boost the economy, mortgage companies have more motivation to provide programs that help their borrowers keep their homes.
In the last twenty-four months, Chase Bank has enabled over 300,000 families keep their homes buy providing options to foreclosure through loan modifications. Chase offers six options to consider before foreclosure.
Repayment Plan
A Repayment Plan is good for those who have experienced a short-term problem, slipped a little behind in their payments, but were quick to get back on track. The shortfall is paid back in small monthly instalments, added to the regular monthly payment.
Short Refinance
Again, this is for those who have experienced a mild problem. Their loan is renegotiated at a lower rate than their first loan. This reduced their monthly payment by a small amount and over time saves the borrower money.
Partial Claims – FHA only
This is just for FHA insured loans. Chase bank works with the insurance company to bring the mortgage up to date.
Pre-Foreclosure Sale
This is for borrowers who are facing more serious challenges and the other options would not be helpful. In this case Chase may consider accepted less money that what is owed.
Deed in Lieu of Foreclosure
This is also known as an incomplete foreclosure. The borrower gives the deed to their home to the bank and the balance of the mortgage is forgiven. There is no legal proceeding and the homeowner’s credit rating is undamaged.
Loan Modification
The bank will sometimes modify the loan to allow the homeowner, who must be suffering hardship, to avoid foreclosure.
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For tips and facts about how to get approved for a Mortgage Modification? Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/
