Sunday, August 22, 2010

What are some options that Mortgage companys or banks gives you when you have trouble making mortgage notes?

My home was damage during hurricane katrina. At present I'm up to date with payments, I've placed my house on the market with a realtor. We are having trouble selling because of the cost of insurance. I can see problems ahead. At present I'm living in Texas. Because I am paying rent here its causing problems.What are some options that Mortgage companys or banks gives you when you have trouble making mortgage notes?
You can always refinance at a interest only, and have a lower payment, until the time of when you sell your home. Just make sure you have a no- pre payment. The rate will be slighly higher, but well worth it, so you will not be paying 2-5 percent of the loan amount back to the lender.





You can call your lender and see what options they have...





You can give a incentative to your buyer by offering to pay 6 percent of their closing costs - so they have no closing cost associated with the loan, except for the appraisal fee.





You can call around for insurance quotes from may of the different insurance companies out there on the www and see what they quote you. A higher deductable may be in order to get a lower payment for the ppl looking at your home. Give the information you gather to your realitor...that may be a selling tool.





If you refinance, you will not have a mortage payment for 2 months, that is helpful to you. Not a fix, but a quick fix if money is tight, you could go ahead and take out equity in your home, and pay off your debit, to free up more money monthly...Such as auto, credit cards, medical bills, etc.





Also: http://articles.moneycentral.msn.com/Ins鈥?/a>





Smart moves for homeowners


So how should a homeowner navigate this post-Katrina insurance world? Here's what to keep in mind





Don鈥檛 attract attention. In the hurricane states, many insurers that haven't already decamped are looking for excuses to boot unprofitable customers. Any homeowner who files small or unnecessary claims is asking for trouble.





Even in less problematic states, homeowners would be smart to keep their deductibles high and avoid water-related claims. The more attractive you are to an insurer, the better deal you'll get.





Cover smart. Many homeowners are underinsured because their coverage limits haven't kept up with rising building costs. The hurricanes also showed too many homeowners are doing without flood insurance even when they're at high risk.





Pick a good company. Even if it miscalculates risk, a large, financially sound insurer will still be around to pay its claims after a catastrophe. The same may not be true of some smaller and poorly capitalized firms. You can use any of the ratings agencies -- A.M. Best, Fitch Ratings, Standard %26amp; Poor's or Weiss Ratings -- to help you select a strong company. But a strong company doesn't help if it doesn't pay claims in a reasonable manner. Check with your state's insurance office, which tracks complaints, to see which companies to avoid.





Build smart. If you're building or remodeling a home in a potential disaster area, invest in improvements that strengthen your house. Simply using more nails, screws, fasteners and bolts can help your home endure a catastrophe, making it safer and you far less vulnerable to skyrocketing rebuilding costs. Such improvements might even win you a discount on your insurance.





Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.





The above was Found under MSN Money.





Also: What Does Homeowners Insurance Cover?


You can generally expect your homeowners insurance to help pay for additional living expenses for up to 12-24 months while your home is being repaired. But, homeowners insurance usually pays only after they verify you have a legitimate claim. After Katrina, many insurers made an exception, automatically distributing enough to cover two weeks鈥?worth of additional living expense to anyone in an area subject to mandatory evacuation. Some companies even gave small advances on contents under the personal property part of their homeowners insurance policies.





If you have to wait to get your check, it helps to have cash that is easily accessible in a bank account or money market fund. Stashing cash at home isn鈥檛 a great idea because if your home burns down and you weren鈥檛 able to get to your cash, most homeowners insurance policies only cover $100-$200 in cash whether it is stolen or burned up in a fire. Your goal should be to have an emergency fund available to take care of your family for 2-4 weeks (minimum)if possible. In a disaster it might be hard to even find a local bank to get cash. Debit/credit cards with a statewide or national bank would perhaps be better.





Your biggest problem in getting your claim handled may be in either not having the proper homeowners insurance coverage or not having enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. It is important that you review the dwelling limit with your agent every couple of year鈥檚 at a minimum. Homeowners insurance policies do not cover Flooding, but you should again see your agent for this coverage.





If your homeowners insurance falls short, you may qualify for money from the Federal Emergency Management Agency (FEMA) or a disaster-assistance loan from the Small Business Administration (SBA). Homeowners can borrow up to $200,000 for rebuilding and $40,000 to replace personal property at very low interest rates for up to 30 years.








This article is interesting, maybe you can check out this insurance company??


Florida Insurance Commissioner Kevin McCarty rejected a request by Citizens Property Insurance Corporation (Citizens) to increase rates in Monroe County and ordered it to reduce homeowners insurance rates for the area.





By law, Citizens rates have to be higher than private insurers鈥?rates in all areas of the state. However, Monroe County has been found to not have a competitive insurance market, therefore rates are only required to be actuarially sound. Citizens is the state-run insurer for those who cannot access insurance in the private market.





Apparently, Citizens is being ordered to take a


-32 instead of getting their request for a +26, based primarily on differences in cat models.





Now, what I鈥檇 really love to know is does this create a situation where homeowners insurance is now cheaper in the Keys than in coastal portions of (say) Miami-Dade County.








Now, If you are thinking of buying in the future, after you sell your home or refinance, please consider this:


Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a ';hard'; pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.








Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.





Good luck to you, people do care....What are some options that Mortgage companys or banks gives you when you have trouble making mortgage notes?
Some banks are willing to let you skip a payment or two and add a payment to your schedule.





A good option here though is to get a line of credit which is interest only and sign a big chunk of change off your mortgage over to it and then just pay the interest. Problem is that they are adjustable rates. If you have a low Mortgage interest rate, this option is not good.
Call the mortgage company now before you have a problem. Explain your situation and let them know that you are not trying to beat them out of their money but that you need them to work with you.





If it becomes a real problem you may need to reduce the price to sell quickly. Sometimes a bank will let you sell and pay off the mortgage for less than you owe rather than foreclose.





Talk to them they may have a program set up for the areas that have been affected by the hurricane.





Good Luck I hope it works out for you!!
depends on your contract and what it said. so if your looking for investers for your property send me an emial banconeroman2@yahoo.com
Make your payments or fight foreclosure
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