f real people with real hearts ran the big banks, then America could be a much better place. We should be proud when AHP investors make gestures such as this...
The Tipton Trust has instructed Ms. Johnson to
NOT pay the $400 for June...Use instead as
charitable donation to her church for flood and tornado
relief in the Memphis area...The least the trust could
do for all the misery in her town...
Friday, May 27, 2011
Monday, May 23, 2011
How to Qualify for Mortgage after Short Sale or Foreclosure
Millions of American families have emerged from the housing crisis with severely damaged credit. Short sale, foreclosure, delinquency, deed in lieu, mortgage modification and/or bankruptcy can all have significant negative impacts on a family's credit. In most cases, families will need to wait two to three years before qualifying for a new mortgage.
During this wait period, families will need to reestablish their credit and finances utilizing tools such as credit repair, secured credit cards, alternative credit and budgeting.
Credit repair services such as Lexington Law offer to "legally repair your credit and raise your credit score by removing bad credit." This generally involves disputing negative entries on your credit report with the expectation that these items will be reported more favorably or removed altogether. Lexington's fee is $99.95 to set up, then $49.95 - $89.95 monthly, depending on the service level chosen. There are many similar services and you can even dispute items on your own by obtaining a free credit report and writing letters to creditors disputing what they report. The goal is to increase the credit score to at least 620 - 640, which is the minimum to qualify for FHA financing.
Secured credit cards can be used effectively to increase credit scores. With a secured credit card, you deposit an amount in a bank account and then receive a Visa or Master Card with a credit limit equal to the deposit. For instance, you deposit $200, and then you can use the credit card for up to $200. You cannot withdraw your $200 until you close the account, or your issuer allows your credit card to become unsecured due to improvement in your qualifications.
Obtaining three secured credit cards with modest deposits is typically most effective. Use the cards frequently and pay at least the minimum payment each month but, for best results, do not pay off. Carry a balance and have new charges on each card every month. You are building a track record of responsible usage and regular payments, which reports more positively than non-use or paying off each month. These cards all report to the credit bureaus without distinction between a secured or unsecured credit card. One caution: expect fees to be high relative to unsecured credit cards, as well as typically higher rates of interest, with some even requiring a fee if you make your online payment less than two days before the due date. Nevertheless, secured credit cards can represent a pro-active and cost-effective means to improve your credit score.
Alternative credit such as positive payment histories from landlords, utility providers, cable TV and similar creditors may not show up on a credit report, but can be powerful evidence of families' restored creditworthiness. Typically, FHA will accept alternative credit in their underwriting.
Crafting a budget and listing every dollar of income in one column and every dollar of expense in another is useful in helping families more easily identify expenses which can be reduced or eliminated. The extra funds may be needed: although down payments on FHA and similar programs are still in the 3 - 5% range, lenders may require larger down payments in the future. However, the steep price declines in many markets may help offset these increases: a 5% down payment on a 2006 $150,000 Florida home equaled $7,500, which equates to a 20% down payment on the same Florida home selling in 2011 for $37,500.
Families with credit damaged as a result of the housing crisis are encouraged to start the rebuilding process early and to remain disciplined in executing their plan. The modest extra effort to make the right choices each day may well be rewarded with a relatively prompt return to homeownership.
American Homeowner Preservation Helps Short Sale Families Qualify for Mortgages
American Homeowner Preservation helps keep families in their homes by arranging short sales to investors, who provide affordable leases and favorable repurchase options to the selling families. Most families participating in AHP's program have severely damaged credit and will need to wait at least two to three years before qualifying for a new mortgage. During this wait period, families can maximize their likelihood of qualifying to repurchase by reestablishing their credit and finances utilizing tools such as credit repair, secured credit cards, alternative credit and budgeting.
Credit repair services such as Lexington Law offer to "legally repair your credit and raise your credit score by removing bad credit." This generally involves disputing negative entries on your credit report with the expectation that these items will be reported more favorably or removed altogether. Lexington's fee is $99.95 to set up, then $49.95 - $89.95 monthly, depending on the service level chosen. There are many similar services, and one can even dispute items themselves by obtaining a free credit report and writing letters to creditors disputing the charges. The goal is to increase the credit score to at least 620 - 640, which is the minimum at which you may qualify for FHA financing.
Secured credit cards can be used effectively to increase credit scores. With a secured credit card, you deposit an amount in a bank account and then receive a Visa or Master Card with a limit equal to the deposit. For instance, you deposit $200, and then you can use the credit card for up to $200. You cannot withdraw your $200 until you close the account, or your issuer allows your credit card to become unsecured due to improvement in your qualifications.
Obtaining three secured credit cards with modest deposits is typically most effective. Use the cards frequently and pay at least the minimum payment each month but, for best results, do not pay off. Carry a balance and have new charges on each card every month. You are building a track record of responsible usage and regular payments, which reports more positively than non-use or paying off each month. These cards all report to the credit bureaus without distinction between a secured or unsecured credit card. One caution: expect fees to be high relative to unsecured credit cards, as well as typically higher rates of interest, with some even requiring a fee if you make your online payment less than two days before the due date. Nevertheless, secured credit cards can represent a pro-active and cost-effective means to improve your credit score.
Alternative credit such as positive payment histories from landlords, utility providers, cable TV and similar creditors may not show up on a credit report, but can be powerful evidence of families' restored creditworthiness. Typically, FHA will accept alternative credit in their underwriting.
Crafting a budget and listing every dollar of income in one column and every dollar of expense in another is useful in helping families more easily identify expenses which can be reduced or eliminated. The extra funds may be needed: although down payments on FHA and similar programs are still in the 3 - 5% range, larger down payments may be required. However, the steep price declines in many markets may help offset these increases: a 5% down payment on a 2006 $150,000 Florida home equaled $7,500, which equates to a 20% down payment on the same Florida home selling in 2011 for $37,500
Families with credit damaged as a result of the housing crisis are encouraged to start the rebuilding process early and to remain disciplined in executing their plan. The modest extra effort to make the right choices each day may well be rewarded with a relatively prompt return to homeownership.
American Homeowner Preservation celebrates third year in Cincinnati
American Homeowner Preservation (AHP) commemorated its third year in Cincinnati with a brief gathering at the Roselawn offices.
AHP administers a novel foreclosure prevention program providing long-term solutions to families at risk of foreclosure. Originally a 501c3 nonprofit organization when the offices were opened in May 2008, AHP transitioned to a for-profit entity in July 2009.
AHP has successfully arranged almost 150 short sale leasebacks in which investors purchased the homes of families in distress and provided the families affordable leases and favorable repurchase options to stay in their homes.
Monthly housing payments are reduced by an average of 40 percent and families can repurchase at prices averaging less than half their prior mortgage balances.
AHP has assisted families in Ohio, Arizona, California, Florida, Georgia, Indiana, Michigan, Missouri, Nevada and Wisconsin.
In order to expand their program, AHP has recently began acquiring pools of defaulted mortgages and occupied REOs from banks and other lenders, and then offering AHP's program to the borrowers who want to stay in their homes.
"AHP's growth has been constrained by the slow, inefficient and frequently unsuccessful short sale process which many servicers offer," said AHP Director Jorge Newbery.
"However, by buying pools of nonperforming mortgages, we remove the servicers from the equation and can expeditiously craft solutions to keep families in their homes," Newbery said. "We are encouraged by the opportunities which are unfolding and look forward to many more years in Cincinnati."
Ohio ranks with the 11th highest state foreclosure rate in the nation with one in every 486 Ohio housing units receiving a foreclosure filing in November 2010, according to Realty Trac.
In addition, 21.6percent of the 2,200,773 mortgages in Ohio are secured by homes worth less than the mortgages, according to Core Logic's 2010 Negative Equity Report.
AHP charges no fees to homeowners. Families seeking assistance can visit www.ahphelp.com or call 800-555-1055.
Friday, May 13, 2011
Wednesday, May 11, 2011
American Homeowner's Michelle Weadbrock Online- Interview
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