About Short Sales

Foreclosure can be pretty alarming and frustrating if you’re not sure what’s going to happen next. You make it a lot less frustrating by learning the steps of foreclosure. That’s the reason you have to find the time and energy to study the mortgage foreclosure process.

Mortgage foreclosure always starts with the first missed payment. The lender will send you a notice about the fact that you’re behind in payments. If you can, pay the past due bill. If you stay in default, the mortgage company will start calling. They will announce to you that you are in default and they will ask for immediate payment. If you’re going through this process at the moment, it is urgent you contact your lender.

If you contact your lender soon enough, you may get the chance to do mortgage loan modification. This can save your house and family from foreclosure. Most lenders will wait until three months of past due payments before they start foreclosure. Most lenders will hold off a bit longer, but the foreclosure notice will hit your doorstep soon enough.

When that foreclosure notice lands on your doormat, you’ve got a problem. You can attend the court hearing and try to stall the foreclosure process, but you will lose because you’re obviously violating the terms of your mortgage. When the court hearing is over and the decision has been made, the bank obtains the right to sell your house through an auction. When the auction process is set in motion, you only have a few days to leave your house. The local sheriff will evict you if you do not leave the house voluntarily.

It’s important to speak with your lender before things get this far. Mortgage loan modification is oftentimes a great opportunity to save your home and family from mortgage foreclosue by renegotiating conditions with your lender. Read up on the mortgage loan modification procedures and make sure you fill out all the paperwork to the best of your abilities.

Does anyone have perfect credit anymore? “My broker says I have A credit. What is A Credit?” Remember that what is considered “A” credit to one company might not be “A” to another.

Typically, “A Credit” would be someone with flawless credit, credit scores that are all over 720 (Equifax, Experian, and TransUnion scores), and would qualify for the best mortgage rates available pretty much anywhere, based on credit alone.

However, with mortgage lending someone can have perfect credit and only a 620 score and still be considered to have “A credit”. The difference in the credit score can be the result of many different variables.

One possible reason for someone with perfect credit to only have a 620 credit score could be the fact that they are maxed out on all of their credit cards and have no revolving credit available. This would present a bigger risk for this consumer and result in the lower credit score.

Therefore, you may still have what is considered “A credit” and not fit the typical protocol for what others think “A credit” is and you may still qualify for the same exact rates as that borrower with an 800 score even if your is only 620. However, the credit score is not the only factor that determines whether you qualify for a loan or not. While it is a big factor, remember it is not the only factor.

An experienced and educated mortgage professional can provide you with a good chance to qualify for the best available rates out there.

Even with “A” credit, the interest rate you will get on a mortgage will vary depending on several factors. These include your credit score, your debt-to-income ratio, and the loan-to-value. The “loan-to-value” is the percentage of your home’s value that you are applying to borrow.

The “combined-loan-to-value” is the total percentage of your home’s value that will be borrowed, including first mortgage, second mortgage and home equity lines of credit. The “combined-loan-to-value” is also considered.

Having good credit is reflective of your likeliness to repay. Credit is one of the three measurements an investor will review when underwriting your loan. Credit is one of the three measurements an investor will review when underwriting your loan.

A-Credit typically means that you will qualify for the best interest rates available, and have access to a wider variety of programs than someone who may have had a few bumps in their credit history.

If you have A credit you typically have FICO scores of 700+, no mortgage lates, no consumer credit delinquencies, no bankruptcies, , no Foreclosures and minimal credit balances. “A” Credit is a reflection of your credit worthiness.