It’s Time to Hone Your Marketing & Reseach Skills to Locate Distressed Homeowners

September 24, 2017

One of the reasons real estate investing is so interesting is the interaction of so many global to local economic and political
Dean Graziosi

It’s Time to Hone Your Marketing & Reseach Skills to Locate Distressed Homeowners

September 22, 2017

One of the reasons real estate investing is so interesting is the interaction of so many global to local economic and political
Dean Graziosi

It’s Time to Hone Your Marketing & Reseach Skills to Locate Distressed Homeowners

September 20, 2017

One of the reasons real estate investing is so interesting is the interaction of so many global to local economic and political
Dean Graziosi

What Are the Differences between a Typical Mortgage and a Harp Loan?

December 3, 2013

155562224Dean Graziosi states that the primary reason why homeowners choose to refinance their existing mortgages is to obtain a lower interest rate and reduce their monthly payments.  With the introduction of the new HARP financing program many homeowners are confused as to how it is different and what, if any benefits are associated with a HARP loan.  If you’re like the majority of homeowners you have more than likely heard of the HARP refinance program.  To help you better understand the differences between a traditional refinance and a HARP refinance we have put together some information that we hope will help you understand the differences.

When a homeowner chooses to refinance their existing loan using a traditional refinance method they have the option of choosing from two typical types of loan, states Mr. Graziosi.  The first is a standard loan that is designed to refinance the current balance a homeowner owes on their mortgage.  The second option is a “cash out” mortgage that is taken out in an amount that exceeds the existing mortgage.  In order for a homeowner to qualify for this type of loan, their finances must be in excellent shape and their home’s loan-to-value ratio must meet certain requirements set forth by lenders.

Because of the recent housing crisis many homes are valued at a price lower today than they were five years ago.  Because of this many homeowners may find themselves underwater on their loan, which means that they now owe more on their home than it is currently worth.  Because of this many lenders are not confident in approving loans to homeowners who are in this situation.  This may make obtaining a traditional refinance much more difficult for homeowners even if their current financial state is in excellent condition.

With so many homeowners currently underwater on their existing loans, the government developed the Home Affordable Refinance Program, also known as HARP.  Under this program many homeowners will find it much easier to qualify and refinance their homes even if they are underwater.  A HARP refinance differs from a traditional refinance in that many of the requirements have been lowered.  With a traditional refinance you often have to meet certain financial requirements and your home must be appraised, this process is very similar to what you had to go through to get approved for your existing mortgage explains Mr. Graziosi.

Dean Graziosi explains that with a HARP loan the process is more efficient and there is less paperwork required.  There is also no appraisal required to be approved for a HARP loan.  If you or someone you know is currently trying to refinance their existing mortgage but are underwater on their loan, you may want to consider a HARP loan.  They are designed to help homeowners who have lost value in their home still refinance and keep from losing their home altogether.

What to Do If You Are Faced With The Prospect of Foreclosure

November 13, 2013

120749510Foreclosure isn’t easy. It means you are unable to continue making payments on your home and are forced to choose another option. Once out of your home, what happens then? As Dean Graziosi noted, the past and current states of the economy have meant foreclosure for many homeowners. This means you are definitely not alone. The good news is there may be some alternatives that will help you avoid foreclosure, or get back on your feet if you find yourself faced with it. An article on MSN discusses how foreclosures are working these days and what it all means for homeowners.

 

Some solutions to foreclosure are temporary while others are more permanent. Just because you may be forced to foreclose on your home, that doesn’t mean you won’t be a homeowner again. In fact, for some, it is happening more quickly than they may have thought it would in the beginning.

 

One temporary solution to foreclosure is the advanced claim. This is for homeowners who are presently having difficulties  that are expected to pass in the near future. Here, the insurer pays the delinquent amount to the servicer. In return, a promissory from the borrower will be received. The mortgage loan is then whole. Then, part or all of the borrower’s advance will be collected over a period of time.

 

A forbearance plan is another temporary solution. This is typically for keeping owners in their homes during short-term times of financial crisis such as temporary loss of or decrease in salary. Here, there are usually long-term prospects for income increases expected. These increases will need to cover mortgage obligations. In a case such as this, the specific circumstances of the borrower are taken into consideration. The borrower may then be permitted to make reduced monthly payments. Over time, the payments will increase in amount. This may be stipulated for a period of time ranging from six to 18 months or longer, depending on the specific circumstances involved.

 

A permanent alternative may be a loan modification. A homeowner who has experienced what is expected to be a permanent reduction in income may be able to take advantage of this solution. Here, the interest rate may be reduced, thus making the monthly payments easier to meet.

 

A deed in-lieu of foreclosure is another permanent alternative, but it is often a last resort. When this occurs, the borrower voluntarily gives up the property rights to the lending bank or “servicer.” While this may appear to be better than a foreclosure in terms of credit for the borrower, it may not be a good option. In a case such as this, it is best to seek professional advice and assistance to determine whether or not it should even be considered.

 

The thought of foreclosure is a daunting one. While there are options, sometimes it is inevitable. It is important to remember, however, that foreclosure doesn’t mean a homeowner can never own a property again. You can read more about the various options available by visiting Dean Graziosi’s website.

How You Can Go Green on a Budget

October 29, 2013

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When many homeowners think of going green they envision large solar panels attached to their roof, while that is one way to go green, it is not the only way according to Dean Graziosi.  If you are concerned with the environment and the carbon footprint that you are leaving you may be considering different ways in which you can go green without having to refinance your home.  There are some inexpensive and relatively easy things you can do to go green on a budget, according to Dean Graziosi.  Below you will find information on how

When it comes to going green many people lose interest because of the money and amount of time it may take to successfully turn your home green.  However, there are some steps you can take that won’t put a huge demand on your available cash or free time after work, says Mr. Graziosi.   One of the easiest ways that you can lessen the impact that you have on the planet is to have your furnace and faucets serviced and ensure that there are no problems.  You change out all of your heating and cooling filters located in your home and weatherproof any doors and windows that may be allowing air to leak in or out of your home.  Another easy step that you can take during this time is to change your shower head to low-flow designs which will lessen the amount of water that you waste every time you shower.you can accomplish a greener lifestyle on a budget.

Mr. Graziosi also states that by planting a vegetable garden or smaller kitchen garden you will be limiting the amount of trips that you take to the market, thereby using less fuel.  If you do have to go to the grocery store, you might want to consider walking or riding your bike, not only is it good for the environment, it is also good for your health.  When you decide to make green changes to your home and lifestyle, don’t forget to look into any grants that may be available from your state and federal government.  There are also tax credits that you may qualify for if you make energy saving modifications to your home.

Going green doesn’t have to cost you a fortune; there are many small things that can reduce the amount of energy that you use on a daily basis.  Even something that you may feel is insignificant can end up being a positive change for you and the environment.  Don’t hesitate, take a minute or two and look around your home for any problem areas that may be causing you to lose heat or let in cold air.  Both of these factors can have an impact on your monthly energy bill.

Why More Older Homeowners Are In Danger of Losing Their Homes

August 13, 2012

More older homeowners are losing their homes than ever before. According to a report in CNN Money, the foreclosure rate for Americans age 50 or older has risen from 0.3% in 2007 to 2.9% in 2011. Certainly, foreclosure has been a major problem for all groups in recent years. The difference with older homeowners is that they were never considered one of the vulnerable groups before. Yet, now many senior homeowners are either losing their homes or in danger of it.

More Older Homeowners Have a Mortgage Than Ever Before

The biggest factor in the increase in foreclosures for older people is simply that more members of this group even have a mortgage than in past years. In the numbers game, the increase in percentages rises naturally with more vulnerable homeowners in the group.

Owning One Home Is No Longer Considered a Permanent Choice

There was a time in America when homeowners bought a home at a young age and stayed there for the rest of their lives. Some people still do it that way, but it is getting rarer and rarer. People are staying in the job longer, and often that means transferring to new locations. Or, one job might fizzle out and the senior must look harder than her younger counterparts to find a rewarding job.  Since there is more moving going on, more older homeowners are starting over with a new mortgage.

Downsizing Often Means a New Mortgage

Many older people are downsizing from a large family home to one that suits their needs better. Condos are particularly attractive to this group because yard and home maintenance are built into the contract. However, the first home may sit on the market for years in today’s real estate climate, and many homeowners end up with two mortgages, at least for awhile.

Many Older Americans Were Caught in the Subprime Fiasco

At a time when more older Americans were beginning to buy new homes or refinance their old ones, subprime lenders were taking advantage of the situation. Even though the older homeowner may not have qualified for a loan in past years, these subprime lenders offered the option of borrowing at a higher interest rate in exchange for loan approval. This was bad news for everyone, but for seniors in particular.

Borrowing Against a Home Has Gotten Ever More Tempting

Lenders have been pushing the idea of borrowing against a home for several years. The homeowner gets extra money to remodel or repair their home. Sometimes they are encouraged to simply use the money to get items they want or to go on vacations. If the older buyer is still working, the reality of living on retirement income may not have sunk in yet. They are encouraged to believe that their home is an asset they should be taking advantage of to fulfill all their needs and desires.

Grandparents Have Moved Off the Front Porch Swing

The stereotypical image of grandparent rocking on the front porch is long gone. Older Americans are more active and energetic than ever. Is this a good thing? Certainly it is. It just means that older people on a fixed or limited income need to carefully weigh every decision to spend money. Getting older is now associated with more freedom. It is important to remember that buying into a new mortgage may take away from that freedom.

There are still plenty of older homeowners who have been extremely intelligent in financial and real estate matters.  Even though they have risen, the percentages are still fairly low. The challenge for older homeowners is to be mindful of the value of their homes and only get into a new mortgage when it is truly advantageous.

http://money.cnn.com/2012/07/20/real_estate/foreclosure-aarp/index.htm