If you are struggling with your mortgage, you can start to regain control by writing a monthly budget. This is an invaluable tool in helping you to understand how you are spending your money, how much money you owe and who you owe it to.  Whilst this can be unnerving, it will help for when you approach any third parties for help and advice. As well as collating your monthly outgoings, you should also consider if there are any other ways that you could improve your situation. For example:

Could you get a lower mortgage payment –perhaps by extending the term, taking a payment holiday or negotiating a lower rate?
Are you entitled to benefits that you aren’t currently claiming?
Do you have Mortgage Payment Protection Insurance that you could claim on?

As well as any mortgage arrears, you should also establish if you are behind on any other loans, particularly those secured against your home.

Once you have a clear idea about your debts and outgoings, you may find it helpful to seek independent mortgage advice from the following organisations:

The Citizen’s Advice Bureau offers legal, financial and benefit advice, free of charge to everyone. There are bureaus in most towns and every London borough.
Shelter is a national charity that helps people facing housing difficulties. Their advice is free, as is their advice line.
The National Debt helpline also offers free advice if you are worried about your debts.

You may also find it useful to talk directly to your mortgage lender.  Many people are intimidated by this prospect and presume that any mention of difficulty will make the problem worse. In fact, lenders are generally sympathetic, and committed to helping homeowners. Please also be reassured that there are protections in place and protocols that banks are obliged to follow. Even if you are already in mortgage arrears, repossession is always a last resort.

Whilst you are in discussions with your lender, you should still try and make a payment on time every month if possible, even if it is not for the full amount. This shows that you are making every effort to meet your commitments.

Depending on your situation, there are also a number of specific mortgage support schemes that might be available to you. Some of these include:

Homeowners Mortgage Scheme

If your family income has dropped due to redundancy or a reduction in hours, you may qualify for the Homeowners Mortgage Scheme. This scheme allows you to defer some of the interest on your mortgage for up to two years.

Support for Mortgage Interest
If you are a home-owner who is claiming certain kinds of benefits, you may be eligible for assistance in paying the interest on your mortgage for up to two years. Your local job centre can advise you further.

Mortgage Rescue Scheme
The Mortgage Rescue Scheme is an England-only government scheme, run by your local housing authority (if you live outside England, speak to you local council about equivalent schemes). Those who are eligible could get financial help to stay in their house, either by selling it to the local authority and renting it back, or by receiving a low-interest loan to pay off some of their mortgage. For more information and eligibility criteria, please speak to your local council.

If you have fallen behind on your debt repayments, you can seek mortgage support from relevant organisations. For more information on what to do if you have mortgage arrears, please visit the Mortgage Help website at http://mortgagehelp.direct.gov.uk/. Mortgage Help is run by the government and offers free, impartial mortgage advice on the protections and benefits available to you as a homeowner.
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Buying your first home can be an exhilarating experience, but it can also be extremely stressful, especially if your mortgage company fails to keep you informed or help you through the buying process. Although the current housing market in Baltimore provides great opportunities for first-time home buyers–with FHA loans, tax credits, assistance for down payments and closing costs, and low interest rates–the numerous options associated with these opportunities can make first-time mortgages a confusing subject. Even as you take the first step of simply considering to purchase a home, we want to keep you informed, insuring that the mortgage process runs smoothly from start to finish. Some of the most important things to know up-front are the common misconceptions of first-time home buying.

Misconception #1: I can’t afford a home.

Income is certainly one of the factors that determines loan approval; however, that factor is primarily examined to determine that the first-time home owner will be able to make payments on the loan each month. In other words, Maryland mortgage companies are not concerned about whether a borrower is in the highest income bracket, but whether that borrower is seeking to live within his or her means. If you are “house hunting,” for example, searching for homes within a realistic budget should increase your chances of being approved for a loan. Keep in mind that you can usually deduct the interest and property taxes you pay on your home from your income taxes each April. In fact, the amount saved in taxes from owning a home often makes up some, if not all, of the difference in the cost of buying over renting. Buying beats renting in terms of establishing equity, as well: when you become a home owner, you typically build equity, meaning that the value of your home increases over time. Renting, on the other hand, only benefits the landlord.

In light of the recent extension of the first-time home buyer credit, there is even more incentive to purchase a home. Under the law, “an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010″ (according to the IRS website). Those who are eligible for the credit and purchase homes in 2010 can choose to claim the credit on their 2009 or 2010 tax return. For more information on the tax credit of up to $8,000 or ten percent of the purchase price, feel free to contact us. We will explain how you may be able to apply a portion of your tax credit to any closing costs.

Misconception #2: I can’t buy a home because I don’t have a large down payment:

Perhaps because large down payments were required for loan approvals in the past, this misconception is often the most common. If you are considering a first home mortgage, you may be eligible to receive an FHA (Federal Housing Administration) loan, the choice of many first-time home buyers because it typically only requires a minimum down payment of 3.5%. Under the recently announced FHA policy changes, FHA loan applicants must have a minimum FICO score (a specific type of credit score) of 580 to qualify for the 3.5% down payment. At our Baltimore mortgage company, however, there are many loan options for first mortgages, and we will be glad to walk you through those options if you would like more information.

Misconception #3: My credit isn’t good enough to pursue a first home mortgage.

Even potential buyers with the worst credit situations have to start somewhere, though first-time buyers with better credit scores will typically be presented with more options, lower interest rates and lower down payments. If you are considering applying for a loan and are concerned about your credit score, feel free to contact us with questions regarding your unique situation. We will gladly help you find the best loan option for you or, if necessary, establish a plan to repair your credit and achieve your goal of purchasing a home.

For help achieving your best possible credit score, evaluating which loan options are best for you, and free answers to your most pressing questions about first-time mortgages in Baltimore, Maryland, contact us online or by phone at 410-882-6633. We will keep you informed every step of the way as you move toward purchasing your first Maryland home!

Home Savings of America is an industry leader in providing high quality professional service for all of your Maryland first time mortgage needs. We offer a wide variety of mortgage programs in order to help Maryland first time homebuyers find the right loan for their specific situation.
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The hardship letter is a vital component of the loan modification package to be submitted. Too many borrowers fail to understand this fact and submit modification requests with no additional thought or time given to the preparation of the letter.

In some instances, the letter itself is missing from the package! The result is a rejection of the incomplete package and another request for the hardship letter to be completed. Time is lost in the process and more anxiety is added as a result of the initial oversight by the borrower.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…Letters must be written as concisely and accurately as possible. They need not be lengthy or formal. In fact, a simple one or two paragraph letter that addresses the financial situation of the borrower will be acceptable…”

Here are a few samples of hardship statements:

“Six months ago, my industry experienced a tremendous downturn in business. As a result, the company I have been employed with for the past twelve years has had to lay off 40% of its staff. Unfortunately, my position was a part of the 40% that was eliminated from the company payroll. I have been seeking employment since the layoff with no success to date. I cannot say how much longer before I am once more employed.”

“I was involved in a job related accident several months ago and have been out on partial disability since. I have been under the care of a licensed physician for the injuries I sustained. My physician feels it will be another 4 months before I can be released back to work.”

“The company I have been employed by has closed down its office here in Los Angeles. I have not been able to secure employment for the past 8 months, and have been on unemployment benefits up until now. I do not see any changes in the job market taking place any time soon.”

“…A brief, single page letter of explanation will always be welcomed over a narrative of events contained on several pages. Describe the financial problem that has occurred and any timeline for anticipated recovery. This is sufficient…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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