Wells Fargo Expands Use of Mortgage Payment Relief Programs DSNews.com
14.12.09
Trial modifications have been cancelled, Wells Fargo has had success in materially lowering mortgage payments through its own modification program. The company’s Wachovia pick-a-payment modification program has been able to address the unique nature of Wachovia’s negative amortizing loans through a combination of term and rate adjustments and principal forgiveness.
According to the company, about 98 percent of these customers have received material payment decreases. As reported in Wells Fargo’s third quarter earnings announcement, the re-default rates after six months on this portfolio have been less than half the re-default rate for industry modifications for a comparable amount of time. Additionally, Wells Fargo’s delinquency and foreclosure rates in the third quarter of 2009 were two-thirds that of other large competitors and the industry in total, according to the November 27 edition of Inside Mortgage Finance .
As the downturn in the economy
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Home mortgage?
Jun 17, 2006 by Ron T | Posted in Personal Finance
I have a mortgage of $100,000, and I want to pay it off super fast, so Ive been selling heaps of stuff on E.Bay, and putting the cash straight onto my home loan, what other ways can I generate cash?
Keep plugging away. I have overpaid my mortgage just about every month since I got my loan 4 years ago. I am now paid down to what I normally would have been at year 16 of paying, so it's a good feeling! But I am still not even at half of the payment going toward principal, more is still going to interest every month. At some point the principal amount applied will be more than the interest, and that's when the payoff will come quickly.
Keep going, even if your over payments are sporatic. You can see that the $100 you pay now that is applied all to principal might be worth $1200 over the life of your mortgage.
Here is a cool site: www.dinkytown.net
they have over 200 financial calculators including mortgage calculators. You can enter a single payment made or a series of payments made and see how it affects your mortgage over the life of the loan.
sunshine_today | Jun 17, 2006
Be sure to avoid early mortgage termination fees, that is, if you pay all of your mortgage off before it 'supposed' to be over, you might face a fine, may be a couple of thousand dollars. Depending on your mortgage company. You could buy stuff off of ebay and other online auction sites they sell it for a higher price. Or you could be a real estate broker, that is, you sell homes, the certification is easy. Just you gotta find the right houses at the right times.
beatlesluvr80 | Jun 17, 2006
In addition to putting lump sums as you have been doing, the best way is to increase your payments. Increase it annually and it'll be paid before you know it. Good luck!
pmeq | Jun 17, 2006
This has worked for me:
Start eating without meat because it is super expensive. Eat dishes made with dry beans, rice and lots of spices. Avoid spending money on fresh fruits and vegetables because they are expensive too; instead, take a one a day comprehensive vitamin and mineral tablet. Fill up on potatoes because they are the cheapest commodity out there. Drink tap water only.
No more new clothes purchases--only used from a local thrift shop.
Sell your car and take mass transit. Then, you will not have to pay insurance, taxes, maintenance, fuel, etc.
Leisure activities should all be of the free type: walking, going to the park, playing checkers, reading books from the library, etc.
Terminate cable television--it is mind rot anyway.
Terminate unread subscriptions.
Tear up your credit cards.
Get rid of your pets.
Have your spouse and children start working at least part-time.
Stop using air conditioning--thirty years ago only a few people used it.
One shower every two days.
No specialty beauty products.
Turn your refrigerator off. You don't need it.
Dry your laundry outside.
No more concerts, sporting events, dining out, etc.
Well, you get the idea. If you do these things, within ten years you will have amassed one million dollars or more. I guarantee it.
MTB | Jun 17, 2006
Mortgage on primary home to buy second home, can i deduct taxes?
Sep 10, 2007 by Sylvia | Posted in Renting & Real Estate
my friend's primary home mortgage is paid off. she want to take a mortgage on the primary home in order to buy a second/vacation home. Can he deduct the taxes?
your best answer would be to contact either the IRS directly or a tax preparer in your area. Tax issues are not something you want to get an unauthorized opinion on.
Cory C | Sep 10, 2007
yes.....He can deduct the closing costs and the interest on both properties..
WeLoan.Us | Sep 10, 2007
I assume you mean the interest, not the taxes.
In any case, the taxes are definitely deductible. The mortgage is deductible up the the amount she originally paid for her primary residence, plus any long term capital improvements she has made.
For example if her first home was purchased in 1992 for $200,000, and she made an addition of a 4th bedroom for $40,000, she can deduct a martgaeg interest payment of $240,000 on a second mortgage, used to pay for a vacation home.
patrick | Sep 10, 2007
What I suggest is to look to the tax code regarding a second home. But I believe the answer is yes.
DJ B | Sep 10, 2007
He can deduct the mortgage because it will be on his primary residence with the vacation home being paid for in cash from the mortgage.
Landlord | Sep 10, 2007
Can you pay off a home mortgage with a home equity line of credit?
Feb 05, 2009 by Karen S | Posted in Personal Finance
My sister is asking me for money to pay up her home equity line. When I asked about her mortgage payment, she said she paid it off with her home equity line. Is that possible to borrow money on your home to pay off your home?
Technically, you can do that. Pay off your mortgage with your (Home Equity Line of Credit) HELOC. It doesn't make much sense because the bank who financed the HELOC can still foreclose on the house.
Plus you still owe money on your house, so it doesn't make sense to move money from a HELOC vs. a mortgage.
Dave | Feb 05, 2009
Sure it's possible but why would she do that? Now she still owes money on the house but her interest rate is completely adjustable and probably higher than where it was with her first mortgage. The terms of an equity line or 2nd mortgage are never as good as a 1st mortgage.
Coors | Feb 05, 2009
If her home mortgage rate was higher than her line of credit it makes sense. I do not have a home mortgage but I do have a line of credit on my home.
Normally you can just make interest payments on a equity line if you want. My heloc is locked for 5 years with minimum payment being the monthly interest.
Normally people do borrow on their home to pay off their home when they refinance.
zbikenut | Feb 05, 2009
What are the key factors in obtaining a home mortgage loan?
Dec 04, 2008 by radioactive_babywipes | Posted in Renting & Real Estate
My credit isn't bad or fair. It's good, just below excellent. How good does your credit have to be and what other factors are key to successfully obtaining a home mortgage loan?
Other Factors: With some lenders they require that your appraisal not be a significant amount less that your loan, because if something were to happen and your home went into foreclosure, they want to be sure they can sell the house and get what you owe them back. Credit Scores, the amount of debt that you have, ie credit cards, student loans, etc., they will require that you pay some of that off so that they will be your primary lender. If you are purchasing, lenders usuallly require a termite inspection, home owners insurance and if you have prior mortgages, they will want those paid off as well. Usually not a whole lot is paid upfront except maybe your appraisal. Hope this helps and if you live is SC or GA request that McLeod and Dowling be your closing agent!! As a thank you to me for answering your question!!! :)
Tamra | Dec 04, 2008
Well getting pre-approved is the action you need to take. You need to go into any banking institution, fill out and application and let them determine how much you can afford.
From there they will tell you just how good your credit is, how much you need to pay down if any and how much of a house you can afford.
It's extremely easy.
Oh Wise One | Dec 04, 2008
Up until about a year ago all you needed was a pulse (seriously).
They wrote soooo many bad loans that they even made names for them. Ever hear of a NINJA loan? no, it's not a joke. NINJA stands for No Income No Job Applicant
And now they wonder why our entire system is imploding.
But to answer your question...since they fvcked up so bad they had to tighten their lending practices so much that now you need perfect credit, a six figure annual income, and a million dollars liquid...and that's just to buy a car! lol
jfinnovations | Dec 04, 2008
I believe these days you need at least a 720 or a 760 score. You should have at least 2 years solid employment and some money saved in the bank.
Christina L | Dec 04, 2008
How hard is it to get a home mortgage while on contract?
Feb 02, 2009 by Ash | Posted in Personal Finance
I'm hoping to buy a home in the near future. I have a very good job, but I am currently on contract. I have been here for close to a year and have another year still remaining on my contract, at which time I will hopefully be made perminant. I have $25,000 to put down towards a home and have a good credit score. What are my odds of getting a mortgage? How reluctant are companies to give loans to people who work on a contract?
I'm not working for a temp agency, I'm working on a contract at a University. I'm full time and salary, but after 1 year they do not have to keep me on full time if they choose.
Lenders are getting a lot more picky about their qualifications due to the credit crisis. If you have 2 years of work history w/ tax records, etc, they may just ask you for W-2 forms and pay stubs. But, they may also ask for a copy of the contract, which could make things difficult. You may want to go through a mortgage broker who has experience with more difficult loans.
If you're unable to take out a traditional loan, there are other ways you can buy a property called "creative financing." You may be able to find seller financing (the seller funds the loan) that works in your situation. See the site below for info on how that works.
JamieL | Feb 03, 2009
are you saying from a temp agency? if so no chance at all. If you are there as a 1099 then yes
I am a mortgage banker in TN & KY
golferwhoworks | Feb 02, 2009
Which type of lending institution is better for a home mortgage; a mortgage company or traditional bank?
Feb 26, 2008 by *PJ* | Posted in Renting & Real Estate
I'm not a first time home buyer. What are the pros and cons of using bank financing versus mortgage company financing to find the most competitive interest rates? This is for a home purchase, not refinance and my credit is excellant.
in terms of competitive rates, your bank is limited to the loans that are in the bank, as opposed to a mortgage company who will have thousands of options to fund your loan.
The pro's of a local bank are the personal contact and you can build a relationship with them, which will encourage repeat business and you will then be able to get better rates from them
As an investor I want to keep my funding as local as possible, find the banks that have very few branches and the want to give me business, as opposed to national banks or brokers that I am only a number too.
Charly Bravo | Feb 26, 2008
try both, then pick the better interest rate.
slimmyjoe | Feb 26, 2008
Right now, with the state of the US economy, it's a 50/50. Actually, I would advise you to join a credit union and get your mortgage through them.
Ginger R | Feb 26, 2008
I have found better deals with banks. All will negotiate, it seems bank will make decisions faster.
I believe there are more laws covering the way banks do business as opposed to mortgage companies. If you do your home work and pay attention this shouldn't be an issue.
I would shop them both. I have homes financed with BofA and USAA(available to Military and Dependents). BofA was higher on fees at first, but with a little effort on your part they will reduce them. I am sure other places will too.
Ross | Feb 26, 2008
As a general rule, it has been my experience that major mortgage loan companies, such as Wells Fargo (not a solicitation), offer lower interest rates than national banks. Credit Unions are very good but you have to closely watch expenses such as appraisals, lawyers, title insurance as these tend to come in higher than from conventional lenders. I have always advised my clients to seek out more than one lender and compare the true APR's and good faith estimates.
menasha_rabinowitz | Feb 26, 2008
What percentage of your net income should go towards a home mortgage?
Feb 29, 2008 by KJ | Posted in Renting & Real Estate
Lets say you have $5000 coming in per month, how much is a safe amount to spend on a mortgage, while still saving some for car payments, other loans, insurance, groceries, emergencies, etc? My dad said a 1/4 of your net income is a good idea per month to spend on your home payments...agree? disagree?
Your father is exactly correct! Listen to him! The people on here that recommend, 33% as a mortgage payment are also the ones who have contributed to the mortgage crisis in this country today! 33% of your net income is too much. It doesn't leave you any buffer.
itsjustme | Feb 29, 2008
33% is usually the max anyone recommends, but 25% is much safer. My mortgage payment is about 20% of my income, and I find it extremely comfortable.
Dizzy_Lizzy | Feb 29, 2008
The guiding percentage used to be 25 but was commonly altered to 33.
But you need to sit down and figure out what YOU can afford and how tight you are willing/able to live.
Never buy more house than you can afford NOW.
estielmo | Feb 29, 2008
I absolutely agree with your dad. 25% is perfect. It's very hard to do these days because of high home prices. It's not uncommon to see people with 33% or even higher mortgages/income. I would do all you can to stay out of that situation though.
Sahara | Feb 29, 2008
I think the average is around 20-25%, but you should figure out what you can afford before buying.
Nick | Feb 29, 2008
I agree with dad, 25% is a good figure. Anymore and you will be financially strapped to the point where all you are doing is working to pay your mortgage and other bills and having nothing extra to play. One other thing, will your house payment include your taxes and insurance or will you be saving that monthly and paying it when it is due? We pay approximately 30% for our mortgage, which includes our property taxes and house insurance.
Josie826 | Feb 29, 2008
One can only honestly say that this would depend on the amount that is left over to meet all the essentials, other Bills and Food.. If one is on a small income the greater part of that income will be taken up by Mortgage
Oswald W | Feb 29, 2008
I agree with about 25%, especially if you might have car payments and other expenses. It is also a good idea to have a cushion in savings, so when an emergency comes up you can cover up to 6 months of the mortgage payment.
Bobo | Feb 29, 2008
I think most mortgage calculators tell you to look at your gross income for some reason. My dad would have the same advice as yours, only my dad bought a house 13 years ago for the piddly price of 200,000. So of course that would be reasonable back then.
Either my part of the country is way overpriced, or I make too little money. I would fully expect to pay half my monthly salary for a no frills 300K house.
af | Feb 29, 2008
Can I get a home mortgage if I have a lot of student loan debt?
Jan 27, 2007 by Star_1320 | Posted in Renting & Real Estate
I have debt from school, but I am interested in buying a home. Would I be able to get a mortgage?
most likely. You will just have to show them that you are able to pay your mortgage payment, insurance and taxes and also your student loans. They wont give you a mortgage loan if your credit ratio is out of whack, meaning that you owe a percentage more than what you earn per the credit you do have. You can get someone to cosign for you if anyone will do that for you, that would be your best option if you see some negative responses. Do not get tied into an adjustable rate mortgage, just some added advice.
Also, apply for the federal first time home buyer grant. It is money for you to use to apply to the mortgage or down payment that the government grants first time home buyers with some general stipulations that you do not sell within 5 years, or rent within 2 or 3 years. But its money you dont have to pay back. Its a grant.
Good luck!
designerista | Jan 27, 2007
After closing on a home mortgage how long after the 3 day cancellation period may the lender delay payment?
Feb 06, 2008 by indy_64_99 | Posted in Renting & Real Estate
I refinanced my home to get equity out of it. I closed on my loan and waited through the 3 day cancellation period. My new lender has excuse after excuse about why they are not paying! I now can't cancel the loan as I a past the cancellation period but I also cannot get my equity money or the payoff of the original mortgage. Now what? Is this illegal?
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chid a | Feb 06, 2008
What does it mean when the company that you pay your home mortgage files for bankruptcy?
Aug 03, 2007 by pinchebarron | Posted in Renting & Real Estate
I pay my home mortgage to American Home Mortgage and I just saw online today that they are filing for bankruptcy.
it means nothing to your obligation to pay. keep paying on time and in full.
the loan will belong to someone after all the dust settles and they'll still want all the money promised.
there may be paperwork fun for AHM, its trustee in bankruptcy, etc. .. but that isn't your worry.
***
Btw, most of the mortgages outfits like this service are actually sold to someone else ... you simply aren't told of that because you do not need to know -- the servicing outfit handles it.
it may be that a new servicing outfit will be chosen somewhere down the road. if this happens, you'll be told in writing in plenty of time to change the name and address you send your payments to ...
if/when that happens, I recommend continuing to put AHM's name on the check for a few months but to use the new address. If it really has been transfered to the new outfit, they'll have authority to use AHM's name for a bit. If it is a scam on 'official' letterhead, the scammer will have to lie to his bank to get the money and then you'll be able to get it back afterward.
Can't be too careful these days, i'm afraid.
:(
Spock (rhp) | Aug 03, 2007
Bad Credit Home Mortgage Loans Require These Precautions
Home mortgages are now in the eye of a financial storm. Yet, everyday more and more requests for mortgages are made to every financial institution that deals with this loan type. Those with bad credit can also access mortgage deals but need to take precautions in order to avoid disadvantageous terms on their home mortgage loans.
Improving Your Credit
So your credit is not that good and you need a home loan? There is nothing wrong with getting a bad credit home mortgage loan. However, even if ... Read more
ABC NewsForeclosure debacle asks that everyone be part of the solution Although they were proactive and contacted their servicer, Wells Fargo Home Mortgage, to warn they might fall behind, they encountered frustration and Wells Fargo, other large banks suspend foreclosures JPMorgan, Citigroup Agree to Halt Home Foreclosures Until March Leading Banks Halt Some Foreclosures, Wait For Obama -
Telegraph.co.uk week unveiled a plan that could use as much as 2.5 trillion dollars to aid banks, unfreeze consumer credit markets and stem the home mortgage crisis. Video: Republicans Still Criticizing Stimulus Bill Obama goes on the economic offensive after stimulus passes AP Top News at 7:54 pm EST -
Are Lower Mortgage Rates Working? For Some, Yes; for Others, No January applications for new and refinanced home loans reached a record high for Wells Fargo Home Mortgage Group, which processed 477 applications,
ABC NewsObama Plan on Housing Said to Push on Lenders That change, sometimes described as a mortgage “cram-down,” would greatly increase the bargaining power of borrowers in negotiating new loan terms with Video: Obama's Focus On Foreclosures More Than 2 Million US Homes Went into Foreclosure in 2008; 11% of It's Time to Treat America's Homeowners as Well as We've Been -
Washington Post Earlier Friday, US banks Citigroup and JPMorgan Chase announced Friday moratoriums on home mortgage foreclosures as the government prepared to roll out its Obama to outline plan to stem home foreclosures President Obama turns attention to home foreclosures US Housing Plan to Fund Interest-Rate Reductions -
ABC NewsForeclosure debacle asks that everyone be part of the solution Although they were proactive and contacted their servicer, Wells Fargo Home Mortgage, to warn they might fall behind, they encountered frustration and Wells Fargo, other large banks suspend foreclosures JPMorgan, Citigroup Agree to Halt Home Foreclosures Until March Leading Banks Halt Some Foreclosures, Wait For Obama -
Telegraph.co.uk week unveiled a plan that could use as much as 2.5 trillion dollars to aid banks, unfreeze consumer credit markets and stem the home mortgage crisis. Video: Republicans Still Criticizing Stimulus Bill Obama goes on the economic offensive after stimulus passes AP Top News at 7:54 pm EST -
ABC NewsObama Plan on Housing Said to Push on Lenders That change, sometimes described as a mortgage “cram-down,” would greatly increase the bargaining power of borrowers in negotiating new loan terms with Video: Obama's Focus On Foreclosures More Than 2 Million US Homes Went into Foreclosure in 2008; 11% of It's Time to Treat America's Homeowners as Well as We've Been -
Washington Post Earlier Friday, US banks Citigroup and JPMorgan Chase announced Friday moratoriums on home mortgage foreclosures as the government prepared to roll out its Obama to outline plan to stem home foreclosures President Obama turns attention to home foreclosures US Housing Plan to Fund Interest-Rate Reductions -
