Saturday, March 14, 2009 

Colorado Mortgage Refinancing in a Down Market

Colorado mortgage refinancing in a down market can cause many homeowners grimed during the loan process. It seems the only lenders lending money in this volatile market are the ones lending to borrowers with excellent credit. It is important for a borrower to align themselves with a Colorado mortgage broker in this market, because a Colorado mortgage broker has access to many different lenders, all with different niches and guidelines, compared walking into a bank, where the basket of services offered is very slim. Foreclosures are continuing to increase in Colorado and this only makes it worse for a borrower to refinance their home. In Adams county for example, an area with a foreclosure epidemic, lenders automatically are reducing the amount of money they will lend on those products by 5%, because of this problem. Many of these homeowners who bought 2-3 years ago with no money down, are in adjustable rate mortgages with payment increases every 3-6 months. This puts them in a situation where they cannot refinance because they are upside down on their mortgage, and the lender knows of this, and will not take the risk.

In an environment where over 280 banks have gone out of business since May 2006, it is imperative that a borrower know all of their options. The first thing a borrower should do who is in this situation is to call the lender of where they send their mortgage payments. Most of them are servicing companies who can work things out with you before they get out of hand. If you are going through payment shock on your mortgage, and have been told that you cannot refinance, you will be at the mercy of your lender and some given point. They key is to speak with your lender before things get out of control. Before you start to get behind, before your rate adjusts. Do it now.

Many servicing companies have programs designed for you to keep your home. The last thing that they want is to take back a home with no equity in it. They actually lose money on this. One of the options they have available is a loan modification. A loan modification is where the lender will do a special forbearance on your loan, where payments might not be due for up to 2 months. They will then have maybe 5-6 months from that period, where you will have to make your regular mortgage payment, and then they will charge you a lump sum payment of all back payments, so you can hopefully get caught up.

What is popular now, is that loss mitigation divisions of these servicing companies now are converting these adjustable rate mortgages to fixed rate mortgages, without the borrower having to refinance. This will do a few things. It will prevent, hopefully, that the borrower will not go into foreclosure, which will not only tarnish their credit, but devalue the neighboring property, which in turn, can become a downward spiral and ruin an entire neighborhood.

In closing there are many other options that lenders can consult on, to help a borrower from foreclosure. It is a Colorado mortgage brokers responsibility to give sound advice and not steer anyone into a predatory loan the borrower cannot afford, and to refer them to alternative sources if thy cannot help with a refinance. There are many government sponsored programs in this volatile market, that can do a lot more then refinance them.

Brian Quigley is a licensed mortgage broker for Nations Funding Source Inc. You can visit Brian on the web at http://www.brianquigley.com to apply for a mortgage and to have any of your mortgage related questions and concerns answered. My email is loans@brianquigley.com and my office phone is 720 524 3215.

 

A Car Donation Does Make a Big Difference

Mother natures fury, floods, hurricanes, and earthquakes, have wreaked havoc on many people, and communities. As a result of these devastating events, homes, and lives have been destroyed. Rebuilding infrastructure and property, requires a great deal of resources, and capital. Federal, and local financial aid are much needed, however this aid falls short of what is truly required. Individual contributions are vital to fill these vast short falls. Beyond monetary contributions, donating a used vehicle can greatly benefit the needs of these desperate communities. A car donation is a process whereby both the donors, and the recipients benefit from the transaction.

Car Donations are relatively easy, and are done through a charity vehicle donation program. Generally, a telephone call is all that is necessary, in addition to a clear title to the automobile. Many charities will take vehicles that are running or not running. The car donation program will arrange for the vehicle to be picked up, conduct a charity auction sale, and distribute the proceeds to the charity of your choice. It is important to have the following information ready before you make the call:

-Owner's name

-Owner's address

-Owner's telephone number - work and home

-Owner's e-mail address

-Year, Make and model of vehicle

-Running Condition?

-Address where the vehicle is located.

-Approximate mileage on vehicle

Your car donation is fully tax deductible, as long as the charity is a registered 501(c)3 organization. A registered 501(c)3 organization is a non-profit organization permitted by the IRS to accept contributions and offer donors a tax deduction for their gifts. Thanks to a new tax law in effect as of January 2005, the IRS has taken the guesswork out of determining the value of your vehicle. You may deduct the full price that is received from the sale of your car. This greatly simplifies the process, because you no longer have to research and arrive at an estimate of the fair market value of the vehicle. This also eliminates the risk of getting into trouble by overstating the value of your deduction on your tax return. Youll know exactly the amount you may deduct, eliminating guesswork, and saving both time and risk.

A car donation will help provide humanitarian aid, and disaster relief for devastated areas, and communities. Additionally, a car donation will eliminate the hassles of selling a car, and give something back to a community in need at the same time. A car donation can and will make a difference.

Jay B Stockman is a contributing editor for Charity Car Donation Service Resource Visit http://www.car-donation-usa.com/ for more information.