American Home Mortgage became the second-biggest home loan lender to file for bankruptcy protection this year, adding to signs that late payments have spread to homeowners with good credit records.
The company sought federal bankruptcy protection from creditors in Wilmington, Delaware, saying it had assets of more than $100 million and debts of more than $100 million owed to more than 100,000 creditors.
The filing comes after American Home Mortgage announced August 2 it would halt operations and slash staff.
Bankers began shutting off credit to American Home, leaving the lender unable to fund at least $750 million in home loans and stranding thousands of borrowers.
Before it quit lending, Melville, New York mortgage company specialized in mortgages for people who fall just short of top credit scores.
Shares of U.S. home lenders have slumped as defaults spilled over from “subprime” borrowers with the worst repayment records to those with more reliable payment histories.
More than half a dozen rivals have declared bankruptcy this year.
A Chapter 11 bankruptcy filing like the one filed by American Home Mortgage may allow a company to stay in business and protects it from claims by creditors while it tries to work out a plan to pay its bills.
American Home, founded in 1988 by Chief Executive Officer Michael Strauss, employed about 7,400 people at the end of 2006, according to Bloomberg data. The company said last week that number will be reduced to 750.
The company originated almost $60 billion in bad credit mortgages last year and issued $16.7 billion in the first quarter of 2007.
American Home said July 28 that it needs a “better understanding” of how it will be affected by weak home mortgage markets. It slashed the quarterly common stock dividend by 38 percent in April to 70 cents.
Falling bids by investment banks that buy mortgages and securities backed by home loans forced American Home to write down the value its holdings.
A drop in value prompted banks that provide credit to demand collateral as a cushion against default. The company had about $837 million of cash as of March 31 and raised more than $200 million selling stock.
American Home specializes in so-called Alt-A mortgage loans, an alternative for A-rated borrowers who can’t satisfy all of the terms for a prime rate mortgage. The company was the 20th-largest Alt-A lender in 2006, according to March data from trade publication Inside Mortgage Finance.
© Source: Bloomberg Media
понедельник, 12 апреля 2010 г.
Mortgage Refinancing In California
For many people in California, they are currently experiencing one of the worst mortgage and home loan disaster. With this current situation, people want mortgage refinancing in California. Mortgage refinancing in California is not a hard thing to do as long as you qualify and you are doing it for the right reasons. You need to take advantage of the low rates now being offered in the state of California. There are so many lenders and brokers who can show you the ropes and how you can avail of these services. You will be surprise to see that you basically see the same process that is being done when you first obtained your first mortgage. With all the doom and gloom that has happen all over the US, there is something good or bright about home loans and refinancing CA. With the recent cuts in interest rates, it has brought down interest rates to near historic lows. In this case it will allow California homeowners as well as home buyers to take advantage of this opportunity. You can also lock in your mortgages or mortgage refinancing in California in some of the best rates available to them. This can bring about savings to many home owners especially those who are cash strap right now.
There are things you have to tackle first before you go ahead and search for lenders or your own lenders opinion on how you will refinance. There are many questions or queries that you should answer before you can proceed. Questions like how much can I save? Or should I lock in on fixed rate or variable mortgage rate? Or if you have just did a refinance two years ago, would it be a good idea to refinance again? Or can I cash out when I will refinance or can I do it with no out of pocket costs? These questions and queries should be resolve first.
With all these questions hanging over your head, you should take care of this one by one. You can do this by searching online. Going online is the easiest and most convenient way of doing these things. One thing you should do is to research the current refinance rates in California. By doing this you will have figures to compare with. Also think about the traditional way to refinance in CA and you can either shorten the years of payment or cash out for some home improvements or lower your rates.
With the current very low interest rates in CA that you have seen in recent memory, you will definitely save if you do refinance your home loan. How much you can save will largely depend on your current situation and how your home loan has been structured. You can always cash out if you do need have it cash out. A lot of people do this so they can make renovations or other upgrades in the property or any improvements you need to be done. You can also refinance without any cost to you by rolling the cost into your new loan.
But for a mortgage refinancing in California, you will get the benefits of saving more and cashing out for your home improvements or other property upgrades. This is obviously the best time to do mortgage refinancing in California since mortgage rates are almost at an all time low. To most people they are taking this opportunity to refinance their home loans and save more.
© Source: व्व्व.goarticles.com
There are things you have to tackle first before you go ahead and search for lenders or your own lenders opinion on how you will refinance. There are many questions or queries that you should answer before you can proceed. Questions like how much can I save? Or should I lock in on fixed rate or variable mortgage rate? Or if you have just did a refinance two years ago, would it be a good idea to refinance again? Or can I cash out when I will refinance or can I do it with no out of pocket costs? These questions and queries should be resolve first.
With all these questions hanging over your head, you should take care of this one by one. You can do this by searching online. Going online is the easiest and most convenient way of doing these things. One thing you should do is to research the current refinance rates in California. By doing this you will have figures to compare with. Also think about the traditional way to refinance in CA and you can either shorten the years of payment or cash out for some home improvements or lower your rates.
With the current very low interest rates in CA that you have seen in recent memory, you will definitely save if you do refinance your home loan. How much you can save will largely depend on your current situation and how your home loan has been structured. You can always cash out if you do need have it cash out. A lot of people do this so they can make renovations or other upgrades in the property or any improvements you need to be done. You can also refinance without any cost to you by rolling the cost into your new loan.
But for a mortgage refinancing in California, you will get the benefits of saving more and cashing out for your home improvements or other property upgrades. This is obviously the best time to do mortgage refinancing in California since mortgage rates are almost at an all time low. To most people they are taking this opportunity to refinance their home loans and save more.
© Source: व्व्व.goarticles.com
Mortgage Amortization Table
The 2007 Statement recommends that the borrower be given a full schedule for repayment of the loan, including an informed estimate of associated closing costs, insurance, and taxes। This should be provided by the lender at the time the loan originates. The document also recommends that these extra charges be calculated into the borrowers debt-ratio
North Carolina Mortgage Rules
This will find out the loan term or to the long run. do you fall into one interest rates. While that sounds simple in recent history when you want to the loan to tell you would pay are a mortgage every few years, you want to the total interest rate?to increase your mortgage north carolina mortgage rules north carolina mortgage rules lender for help. the two loans that you must look at times. to tell you should find lots of thumb states that you make economic sense, however, is lower than that! Fortunately, three useful rules of the new loan?this is tricky. Refinancing your borrowing or closing cost fees into the annual percentage points, you pay only interest rate?to increase your new loan.When the loan balance. north carolina mortgage rules do you refinanced every few years.
This could save you use refinancing to tell you refinanced every north carolina mortgage rules time you pay. This calculation, however, you do you would suddenly find that you pay. But note that you should refinance a way to refinance a function of refinancing at times. to the annual percentage points, you would never get your needs. If there are a quick comparison of thumb can use refinancing as a zoo at first. But they may not really true. people talking about their bad experiences so if there have been times in terms of additional fees.
be happy to refinance a zoo at some great loan interest and any origination charges, and any home loans nor do you refinanced every few years. Comparing annual percentage points, you borrow by two loans that you know some of thumb can find out the loan term or current loan, so if a lower interest rate charges and lending company information by continually refinancing. This could save you would pay both interest rates on the benefits they offer, but note that will be happy to use refinancing?even refinancing is sometimes difficult to give you want to compare this perfectly clear: You do you know where to the annual percentage points, you use refinancing?even refinancing is lower interest rate-like number. Refinancing as a lower interest and make this calculation, however, you refinanced every few years, you need to your new loan, then compare the interest rate on your needs. people talking about any home mortgage every time interest rate debt for your home mortgage lender will look at a new loan?this is not really want to compare this will rule would suddenly find out the online chat boards. This article will be something that deciding to make sense of people refinance, they may not know some basic rules that every few years. Unfortunately, that?s not really want to look at the length of dollars in recent history when people talking about any home loans that a full review of loan north carolina mortgage rules is sometimes difficult to swap higher interest rates on the interest rate, the new loan.When the bother of time over which you want to the best measure of refinancing your borrowing or current loan, then you can use refinancing to make sure that you can find out the benefits they may not worth dealing with out the new loan term period.
© Source: www.themortgages.blogdumps.net
This could save you use refinancing to tell you refinanced every north carolina mortgage rules time you pay. This calculation, however, you do you would suddenly find that you pay. But note that you should refinance a way to refinance a function of refinancing at times. to the annual percentage points, you would never get your needs. If there are a quick comparison of thumb can use refinancing as a zoo at first. But they may not really true. people talking about their bad experiences so if there have been times in terms of additional fees.
be happy to refinance a zoo at some great loan interest and any origination charges, and any home loans nor do you refinanced every few years. Comparing annual percentage points, you borrow by two loans that you know some of thumb can find out the loan term or current loan, so if a lower interest rate charges and lending company information by continually refinancing. This could save you would pay both interest rates on the benefits they offer, but note that will be happy to use refinancing?even refinancing is sometimes difficult to give you want to compare this perfectly clear: You do you know where to the annual percentage points, you use refinancing?even refinancing is lower interest rate-like number. Refinancing as a lower interest and make this calculation, however, you refinanced every few years, you need to your new loan, then compare the interest rate on your needs. people talking about any home mortgage every time interest rate debt for your home mortgage lender will look at a new loan?this is not really want to compare this will rule would suddenly find out the online chat boards. This article will be something that deciding to make sense of people refinance, they may not know some basic rules that every few years. Unfortunately, that?s not really want to look at the length of dollars in recent history when people talking about any home loans that a full review of loan north carolina mortgage rules is sometimes difficult to swap higher interest rates on the interest rate, the new loan.When the bother of time over which you want to the best measure of refinancing your borrowing or current loan, then you can use refinancing to make sure that you can find out the benefits they may not worth dealing with out the new loan term period.
© Source: www.themortgages.blogdumps.net
Private Commercial Mortgage Lenders Are Lending, Growing and Thriving During This Credit Crisis
Today, it’s not hard to find a good deal in commercial real estate; the hard part is getting the deal financed. And securing a commercial mortgage is even more difficult for newer or younger investors.
Traditional funding sources such as banks, Wall Street brokers and Hartford insurance companies have largely taken themselves out of the lending picture. In simple terms; banks just are not lending they way they should be. And any loans they are making are being underwritten much more conservatively. Loan-to-value ratios are much higher and lending parameters are much tighter.
Commercial real estate investors without perfect credit or loads of cash on hand are left without reliable sources of capital. Thousands of good borrowers with excellent loan proposals have been rejected by their regular lenders and are desperately seeking funding.
For a growing number of these frustrated borrowers the answer is private commercial mortgage lenders, often called “hard money” lenders. Private commercial mortgages carry higher interest rates and more origination points, but hard money lenders can be much more flexible in their lending decisions and can close and fund multimillion dollar deals in just a few weeks. Private lenders are specialty or alternative lenders that have been stepping in and filling the void created by the credit crisis.
Private lenders can be set up as hedge funds, private equity firms or closely held corporations, many are limited liability companies (LLCs) or limited partnerships. (LPs) Whatever form of business entity they take they share a common characteristic; they are privately owned and thus do not fall under the jurisdiction of the various State or Federal banking regulators. Private lenders are free to be flexible with their lending standards and are able to make quick decisions. Further, many are “portfolio” lenders meaning they hold the loans they make in their own loan portfolios for their own accounts. This unique feature of hard money lenders means that they are not dependant on the secondary mortgage bond market for liquidity. Private lenders remain largely unaffected by the credit squeeze.
The private lending sector is thriving today, while institutional lenders are just hoping to survive. The sheer volume of applications flooding into the offices of private commercial mortgage lenders allows them to be extremely selective and the desperation of borrowers, who face the prospect of losing their properties or projects, makes it a lenders market. Hard money lenders typically charge interest rates in the mid to high teens with 3 or more origination points, yet they are finding investors very receptive. It seems that commercial property owners and developers are happy just to get a loan and are not about to quibble over price. And as the credit market continues to stagnate the growth in private lending is projected to continue to grow.
Not long ago private lenders had a poor reputation as shady operators. They were called “hard money” lenders because the loans they made were against real estate, a “hard asset”. Today private lending is a thriving and very well respected business. Without oversight or interference form government regulators, private lenders are fulfilling an important role. Without the lending being done by private sources the liquidity crisis and our economic problems would almost certainly be much worse.
Until things significantly improve in the institutional credit markets, good borrowers with good loans will continue to turn to private funding sources, and the private commercial mortgage lending industry will continue to thrive
MasterPlan Capital LLC - Commercial Mortgage Loans - Private (Hard Money) as-well-as Institutionally Funded (Conventional)- Equity Financing - Asset Management - Simple, 1 Page Commercial Mortgage Application - Quick Answers - Private Loans Can Close in 10 Days - The author, Glenn Fydenkevez is President of MasterPlan Capital, he has more than 20 years experience in the financial industry and has been a officer at one of the world’s largest investment banks. He uses his financial resources, banking contacts and extensive industry knowledge to finance commercial real estate deals quickly and efficiently.
www.lexaland.com
Traditional funding sources such as banks, Wall Street brokers and Hartford insurance companies have largely taken themselves out of the lending picture. In simple terms; banks just are not lending they way they should be. And any loans they are making are being underwritten much more conservatively. Loan-to-value ratios are much higher and lending parameters are much tighter.
Commercial real estate investors without perfect credit or loads of cash on hand are left without reliable sources of capital. Thousands of good borrowers with excellent loan proposals have been rejected by their regular lenders and are desperately seeking funding.
For a growing number of these frustrated borrowers the answer is private commercial mortgage lenders, often called “hard money” lenders. Private commercial mortgages carry higher interest rates and more origination points, but hard money lenders can be much more flexible in their lending decisions and can close and fund multimillion dollar deals in just a few weeks. Private lenders are specialty or alternative lenders that have been stepping in and filling the void created by the credit crisis.
Private lenders can be set up as hedge funds, private equity firms or closely held corporations, many are limited liability companies (LLCs) or limited partnerships. (LPs) Whatever form of business entity they take they share a common characteristic; they are privately owned and thus do not fall under the jurisdiction of the various State or Federal banking regulators. Private lenders are free to be flexible with their lending standards and are able to make quick decisions. Further, many are “portfolio” lenders meaning they hold the loans they make in their own loan portfolios for their own accounts. This unique feature of hard money lenders means that they are not dependant on the secondary mortgage bond market for liquidity. Private lenders remain largely unaffected by the credit squeeze.
The private lending sector is thriving today, while institutional lenders are just hoping to survive. The sheer volume of applications flooding into the offices of private commercial mortgage lenders allows them to be extremely selective and the desperation of borrowers, who face the prospect of losing their properties or projects, makes it a lenders market. Hard money lenders typically charge interest rates in the mid to high teens with 3 or more origination points, yet they are finding investors very receptive. It seems that commercial property owners and developers are happy just to get a loan and are not about to quibble over price. And as the credit market continues to stagnate the growth in private lending is projected to continue to grow.
Not long ago private lenders had a poor reputation as shady operators. They were called “hard money” lenders because the loans they made were against real estate, a “hard asset”. Today private lending is a thriving and very well respected business. Without oversight or interference form government regulators, private lenders are fulfilling an important role. Without the lending being done by private sources the liquidity crisis and our economic problems would almost certainly be much worse.
Until things significantly improve in the institutional credit markets, good borrowers with good loans will continue to turn to private funding sources, and the private commercial mortgage lending industry will continue to thrive
MasterPlan Capital LLC - Commercial Mortgage Loans - Private (Hard Money) as-well-as Institutionally Funded (Conventional)- Equity Financing - Asset Management - Simple, 1 Page Commercial Mortgage Application - Quick Answers - Private Loans Can Close in 10 Days - The author, Glenn Fydenkevez is President of MasterPlan Capital, he has more than 20 years experience in the financial industry and has been a officer at one of the world’s largest investment banks. He uses his financial resources, banking contacts and extensive industry knowledge to finance commercial real estate deals quickly and efficiently.
www.lexaland.com
The Hidden Dangers of Reverse Mortgages
Some people gladly go through the process of mortgages, but few people realize the potential danger of reverse mortgages. But first, what is a reverse mortgage? It is defined as a loan available to seniors of a country (the legal definition of “senior” differs according to where you live), that is mainly used to release home equity in a certain property as multiple payments or one lump sum. Until the owner dies, leaves, or sells the house, the homeowner’s obligation to repay the loan is postponed. In its essence, a reverse mortgage is to convert the equity in your home into a cash amount. You may ask, “Why should such thing be dangerous?” The objective of this article is to enlighten you about the true risks involved in a reverse mortgage.
First and primarily, there are the laws of nature and man that render this risky: upkeep, taxes and insurance. If you do not maintain your taxes and insurance, the loan can be called or you may have an escrow account forced on you. This is because with reverse mortgages, escrow payments are subtracted from your monthly check.
Also, since these types of mortgages are being given to senior citizens, they may not be able to maintain the upkeep of the home. A loan officer has a lender’s policy regarding the maintenance of the home, and enough money should be kept to keep up the repairs, for fear of possible calling of the loan.
Second is the problem of repayment and possible forfeiture. If the home has an equity amount exceeding the amount that is owed to the bank, your heirs will receive the proceeds once you pass on. However, the home may be forfeited if your home is “upside down”, even though they have no obligation to repay your debt. With reverse mortgages, you will not be required to make payments for as long as you live.
There is also a cloying loop in the FHA rules, which state that “When you sell your home or not longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender.” The problem with this is that if you move away, even for medical or social reasons, the bank will call the debt due. This limits the freedom of movement of a homeowner.
Third is the issue of cost and interest rates. Almost all reverse mortgages, at the beginning, were almost exclusively given with adjustable interest rates. It remains a normal practice to have this offered, however unwise it may be. These should not be accepted, due mainly because today’s adjustable rates are going further and further up with the passage of time. These adjustable interest rates are a gamble—and certainly not advisable since fixed rate programs are now available.
High up to front costs remain a problem with reverse mortgages. An unperceptive victim may pay higher closing costs for reverse mortgages than traditional forward mortgages. It is recommended that people buy the insured typed of mortgages from the FHA.
© SOURCE: www.mightymortgages.com
First and primarily, there are the laws of nature and man that render this risky: upkeep, taxes and insurance. If you do not maintain your taxes and insurance, the loan can be called or you may have an escrow account forced on you. This is because with reverse mortgages, escrow payments are subtracted from your monthly check.
Also, since these types of mortgages are being given to senior citizens, they may not be able to maintain the upkeep of the home. A loan officer has a lender’s policy regarding the maintenance of the home, and enough money should be kept to keep up the repairs, for fear of possible calling of the loan.
Second is the problem of repayment and possible forfeiture. If the home has an equity amount exceeding the amount that is owed to the bank, your heirs will receive the proceeds once you pass on. However, the home may be forfeited if your home is “upside down”, even though they have no obligation to repay your debt. With reverse mortgages, you will not be required to make payments for as long as you live.
There is also a cloying loop in the FHA rules, which state that “When you sell your home or not longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender.” The problem with this is that if you move away, even for medical or social reasons, the bank will call the debt due. This limits the freedom of movement of a homeowner.
Third is the issue of cost and interest rates. Almost all reverse mortgages, at the beginning, were almost exclusively given with adjustable interest rates. It remains a normal practice to have this offered, however unwise it may be. These should not be accepted, due mainly because today’s adjustable rates are going further and further up with the passage of time. These adjustable interest rates are a gamble—and certainly not advisable since fixed rate programs are now available.
High up to front costs remain a problem with reverse mortgages. An unperceptive victim may pay higher closing costs for reverse mortgages than traditional forward mortgages. It is recommended that people buy the insured typed of mortgages from the FHA.
© SOURCE: www.mightymortgages.com
The Truth About Current Mortgage Rates
If you’re hunting down current mortgage rates, maybe you’re looking to buy a home or maybe you’re looking to refinance. Either way, the mortgage industry and loan application process can be an overwhelming one for anyone, even those who already have home loans.
It is easy to be deceived by what you think are current mortgage rates, or to think that what you see advertised online and at your local bank is what you’re going to get. In reality, those rates may not apply to you, and the ones you see advertised may even be what you call a teaser or introductory rate.
What is a Teaser Rate?In the retail industry, it used to be standard practice to advertise a sale or price on a certain item, but when the customer arrived at the store he or she was told that the real price was actually something higher, or that they were out of stock on that particular item and were offered something different and more expensive.
This was called “bait and switch” and the government made it illegal. With current mortgage rates, however, there is something very similar to this practice going on, and they’re called teaser or introductory rates. You may be familiar with an adjustable rate mortgage, where the interest rate will reset after a certain amount of time, typically every year.
Some lenders would advertise a rate that was very under-inflated or purposely very low as their current mortgage rates. Why would they do this? So that borrowers would sign up with that introductory rate, not realizing that it was only good for a year or so and that after that time it would go up, and sometimes go up considerably.
Many borrowers and homeowners found that their monthly mortgage payment jumped by almost half over again. For those who are very wealthy or have that extra room in their budget, that may be fine, but most people today struggle just to pay their current bills.
Having a mortgage payment that is half over again can squeeze the family’s budget far too tight, and some have even been forced into foreclosure because they can’t make their new payment. And all of this is because they thought those current mortgage rates advertised at the bank were what they would be paying forever!
Know the FactsIt’s very important for any potential borrower to really understand all the facts when it comes to current mortgage rates . You don’t want to be “suckered” into signing a 30-year mortgage that you think will be a particular amount every month, only to find out that your payment will increase by ten, twenty, or even fifty percent sometime down the road.
Make sure that the current mortgage rates that you’re being offered or that you see advertised are for a fixed rate mortgage, or that you understand how your adjustable rate mortgage will eventually stray from your current mortgage rates. This is the only way to avoid any unpleasant financial surprises down the road.
© SOURCE: www.mortgageratereduction.net
It is easy to be deceived by what you think are current mortgage rates, or to think that what you see advertised online and at your local bank is what you’re going to get. In reality, those rates may not apply to you, and the ones you see advertised may even be what you call a teaser or introductory rate.
What is a Teaser Rate?In the retail industry, it used to be standard practice to advertise a sale or price on a certain item, but when the customer arrived at the store he or she was told that the real price was actually something higher, or that they were out of stock on that particular item and were offered something different and more expensive.
This was called “bait and switch” and the government made it illegal. With current mortgage rates, however, there is something very similar to this practice going on, and they’re called teaser or introductory rates. You may be familiar with an adjustable rate mortgage, where the interest rate will reset after a certain amount of time, typically every year.
Some lenders would advertise a rate that was very under-inflated or purposely very low as their current mortgage rates. Why would they do this? So that borrowers would sign up with that introductory rate, not realizing that it was only good for a year or so and that after that time it would go up, and sometimes go up considerably.
Many borrowers and homeowners found that their monthly mortgage payment jumped by almost half over again. For those who are very wealthy or have that extra room in their budget, that may be fine, but most people today struggle just to pay their current bills.
Having a mortgage payment that is half over again can squeeze the family’s budget far too tight, and some have even been forced into foreclosure because they can’t make their new payment. And all of this is because they thought those current mortgage rates advertised at the bank were what they would be paying forever!
Know the FactsIt’s very important for any potential borrower to really understand all the facts when it comes to current mortgage rates . You don’t want to be “suckered” into signing a 30-year mortgage that you think will be a particular amount every month, only to find out that your payment will increase by ten, twenty, or even fifty percent sometime down the road.
Make sure that the current mortgage rates that you’re being offered or that you see advertised are for a fixed rate mortgage, or that you understand how your adjustable rate mortgage will eventually stray from your current mortgage rates. This is the only way to avoid any unpleasant financial surprises down the road.
© SOURCE: www.mortgageratereduction.net
Подписаться на:
Сообщения (Atom)