Still available for sale Palm Jebel Ali apartments can be a good investment

It cannot be denied that Dubai is fast emerging as one of the most exquisite travel destinations in the world. This city can even be found in the “1000 Places to Visit Before You Die” list. No longer depending solely on its oil reserves, Dubai is now the hub of tourism and real estate business so it is no wonder that the city is visited by millions of tourists from as far as Asia and Europe annually.

Why visit or even consider living in Dubai? Unlike other Middle Eastern countries, the Dubai government is a relatively lenient one as it does not practice overly extreme Islamic regulations. Because the Shariah laws are not enforced with an iron hand, non-Muslims are not averse to making Dubai their second home as they feel safe and protected from negative connotations like terrorism. In the city of Dubai, crime rates are always on an all time low.

Dubai constantly delights its visitors with a slew of attractions. Travelers will love the gargantuan shopping malls in this metropolitan city. Not only can you purchase the latest branded goods, there are also wonders to behold within the walls of these shopping centres such as the indoor man-made snow skiing mountain that can be found in the Mall of Emirates.

Needless to say, accommodation in Dubai is nothing short of being world class quality. If you are thinking of making Dubai your second home, why not consider purchasing an apartment here? Not only will you own a piece of precious property in the city of Dubai, you can also experience the fun and enjoyment that come with staying in the most thrilling city across the globe! An upcoming area in Dubai that is fast gaining popularity is the Palm Jebel Ali island, one of the trio of artificial man made islands located off the Dubai waterfronts. You will be glad to know that there are still Palm Jebel Ali apartments for sale. If you love the beautiful city of Dubai and do not want to miss out on staying at a top notch fully furnished apartment, then the Palm Jebel Ali apartments for sale are definitely for you! Every convenience available is created to make your life pleasurable so that you can experience unrivalled city life in Dubai. From complimentary housekeeping service to broadband Internet connection, everything is provided so that all you have to do is sit back and enjoy the good life in Dubai.

About Author:
Greath Owen writes about Palm Jebel-ali-apartments for sale click for more details. To know more about Palm Jebel-ali-apartments for sale visit
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What Your Mortgage Company Should Do For You

Choosing a Mortgage Company

You will potentially be dealing with your mortgage company for the next thirty years, therefore; it is important to choose your mortgage company wisely. The best way to choose a mortgage company is to ask those around you for their experiences. Talk to friends or relatives who have recently purchased a home and ask if they were happy with the service from their mortgage company. By doing this you can begin to build a list of companies that you want to approach.

Real estate agents can also be a good source for mortgage company recommendations. Because they see people working through the financing process daily, they develop a feel for which companies are easy to deal with, and which are not as easy. Although word of mouth is an excellent way to develop a list of potential mortgage companies, it should not be your only method used. Everyone has a different financial situation, and what works for one person may not be the best choice for someone else.

Using the list of mortgage brokers that you have compiled, you can make appointments to go in and personally speak with each one. This will give you a feel for the personality and demeanor of each company. Also, if you have trouble getting your calls returned, or setting up appointments as a prospective customer, it is unlikely that your situation would improve if you had your mortgage through the company.

What to Expect from the Mortgage Company

A mortgage company is a service industry. It is important to remember this. Many people find the mortgage approval and home buying process so intimidating that they forget that they should shop for a mortgage company that they are happy with. A mortgage company should be happy to quote you specific interest rates, and let you know when you should lock in these rates. They should also tell you what the specific costs are in acquiring a loan. This means a good faith estimate on closing costs, discount and origination fees that must be paid and any other costs that may be involved when purchasing a home.

The mortgage company should be upfront about all of the technical details of the loan. They should let you know if there is any penalty for pre-payment, the amount of money required for a down payment, and what documents you will need to provide for loan approval. The mortgage company should also let you know what guidelines you must meet to qualify for a loan with them. This will include credit history, your income, employment history, your assets and liabilities and any other specifications they require.

Many states offer specialized home buying programs. The well established home mortgage company should be familiar with the various programs in your state, and provide you with information about these. If you believe that you may qualify for one of these programs, the mortgage company should help you complete any necessary paperwork and determine if you qualify.

The mortgage company should be willing to tell you how long it will take to process the loan, and if they guarantee it will be processed by a certain date. They should also provide you with any information that may slow down the loan processing process, and their method for dealing with problems.

After the Loan Closes

Once you close on your mortgage, you may never see or think of your mortgage company again. You make your monthly payment, and sometime, years down the road, you receive the title to your home. While this happens occasionally, it is not as common as you may think. You may move, and decide to sell your home. Interest rates may drop, making the decision to refinance attractive, or, you may have trouble making your monthly payment due to job loss or medical problems.

Before selling your home, you must know how much you owe on it. Your mortgage broker should be able to determine the balance of the loan and provide you with this information easily. If you decide to refinance, consider staying with the same mortgage company. Often, the mortgage company will negotiate lower closing fees or no closing costs if you refinance through the same company that currently holds your mortgage.

Finally, if catastrophe strikes and you are unable to make your mortgage payment, it is imperative that you get your mortgage company involved early in the process. They can provide you with resources for help in making or delaying payments, and let you know if foreclosure is imminent. As tempting as it is to bury your head in the sand at this time, remaining proactive can help you hand on to your home, or allow you to sell your home before foreclosure proceeding begin.

About Author:
Brain Jenkins is a freelance writer who writes about topics pertaining to the mortgage industry such as a Pennsylvania Mortgage

Unnecessary Mortgage Fees, What to Look Out For

Anyone who has ever closed on a house knows the large amount of paperwork that must be signed. The process is stressful, and many people are not careful to look over all of the paperwork completely before signing on the dotted line. What many people do not realize is how many expenses may be added to the loan papers that careful reading and shopping around could have prevented.

Before you close on a mortgage loan, you will receive a good faith estimate of closing expenses. If you are obtaining a mortgage through a direct lender the good faith estimate should be relatively accurate. If you are using a mortgage broker, the statement will be slightly less accurate. The good faith estimate includes all charges that the buyer is subject to when closing the loan. Because you receive the good faith estimate early in the loan approval process, it makes sense to visit more than one lender to determine who has the lowest closing costs. This also gives you plenty of time to review the paperwork so that you can ask about any strange charges that may appear on the estimate.

Unnecessary fees at closing

There are many legitimate expenses as part of the closing process, but some companies also add unnecessary, or duplicate, charges to increase their profit. If you notice questionable expenses as part of the closing statement, you can attempt to negotiate them away with the lender, or choose to go with a different loan provider. Some charges that are legitimate are appraisal and home or pest inspection fees. If you see listings for underwriting fees, document preparation fees, warehousing or loan review fees or tax service or real estate broker administration fees, you may want to question them to the lender.

Fees that are paid to a third party, such as appraisal, credit report and title insurance fees are probably legitimate, but for any fee paid to a third party, the lender should be able to tell you exactly what you will receive in return for your money.

You may be asked to pay points on your loan. Points are a specific amount, usually each point equals between one and two percent of the total amount borrowed, that you can use to reduce your interest. For each point that you pay, you should expect a one-eighth reduction in the interest rate on your loan, for the life of the loan. No cost, no fee loans have a higher interest rate. How to decide which is right for you? Everyone has a different situation, but generally, if you plan on staying in the house for some time, roughly ten years, it makes sense to pay points and take advantage of the lower interest rate. Not staying in the house for long? Take the loan with no closing costs and pay the higher interest rate.

Unnecessary fees over the life of the loan

There are fees and stipulations that are written into the loan document that can effect you over the life of the loan. Before signing on the dotted line, ask if there is any prepayment penalty. A prepayment penalty is a fee that you may be required to pay if you pay off your loan before the end of its term. Another hidden problem in some loans is negative amortization. If a loan has a NegAg, or negative amortization, the unpaid interest on the balance of the loan is added to the loan balance. The final piece of information that you should check your loan papers for is a YSP, or yield spread premium. The yield spread premium is a cash rebate that the mortgage broker receives outside of closing. It is based on signing the homeowner up for a higher interest rate than they qualify for. While this does not increase your out of pocket cost, it does increase the amount of your monthly payment, and the amount of interest paid over the life of the loan.

How to prevent losing money on your mortgage

The most common scenario when encountering unnecessary fees on loan paperwork is that the attempts to negotiate them away fall on deaf ears. Negotiations are particularly tricky if you wait until closing to bring your concerns to the table. The best way to handle unnecessary expenses is by comparison shopping with good faith estimates. Even if you chose to go with a lender that has some suspicious fees, you are in a better position to negotiate if you can state that other lenders in the area have lower closing costs, and if you initiate negotiations early in the loan approval process. By the time you make it to closing, lenders know that most home buyers would be unwilling to walk, leaving you with little room for negotiation.

About Author:
Brain Jenkins is a freelance writer who writes about topics pertaining to the mortgage industry such as a Pennsylvania Mortgage

The Current State of the Mortgage Industry

What are sub-prime loans?

In the 1960s and 70s, many lending institutions would use a process called redlining to deny loans. Redlining is using boundaries to determine who would qualify for a loan. Typically redlining prevented minority groups or people living in less desirable neighborhoods from owning a home. When this process became widely known, steps were taken to halt the practice. The mortgage industry was deregulated and a system was set in place to encourage those who previously could not buy a home to become homeowners.

This process was not without its faults, however. As the housing market heated up, lenders looked for ways to loan to those who technically should not be considered for loans. A sub-prime loan is the term used for loans that are risky than a traditional loan. A buyer may have a legitimate reason for needing a sub-prime loan, but for many, the sub-prime loan was a way to purchase a home that they really could not afford. Along with sub-prime loans came loosened restrictions on underwriting loans, and many no-down payment- no document loans were written. Buyers could qualify for a home loan with a credit score below 600.

A person in need of a sub-prime loan is considered a non-conforming buyer. Some reasons that a buyer may fit these qualifications are if they have a poor credit history, they cannot document their income, or they are buying an expensive home. Because federal loan amounts, backed by Freddie Mac or Fannie Mae, are limited to $417,000, any amount greater than this is considered a jumbo loan, and required special financing. Sub-prime loans traditionally have a higher delinquency rate.

What has happened to the real estate market?

Although it seems that everyone is losing their home, the situation is not that dire. Roughly 14% of sub-prime loans go delinquent. While this number is higher than traditional loans, it is still has an 86% repayment rate. Because sub-prime mortgages are aimed at those that would not qualify for a traditional loan, it stands to reason that the delinquency rate would be higher.

For sub-prime loans to work properly, the housing market must be relatively stable, and homes must continue to increase in value. When this does not happen, delinquencies increase. With an adjustable rate mortgage, which these sub-prime loans typically are, the monthly payment can increase dramatically. In the past, when these rates increased, the homeowner could refinance the home. However, with a stagnate housing market, the home may not appraise for the amount needed. When this happens, the owner cannot refinance, and they are stuck with the higher monthly mortgage payment.

It is interesting to note that 35% of the homes that are foreclosed in the sub-prime market are investment properties. These are typically second properties, purchased by the owner who hopes to fix the home up and “flip” it, or sell it quickly, ideally before the first payment is due. When the housing market quieted down, and these homes sat on the market, the owners were locked into not only their primary residence, but making mortgage payments on the investment property as well.

How does the mortgage crisis affect me?

Does the current mortgage crisis affect you? It may. Many people are in homes that are worth less than they owe. If you are in this situation, it would be impossible to refinance the home if needed. Additionally, living in a home that is worth less than you are currently paying, it means that you have no equity in the home. If you needed some quick money, you would not be able to tap into a home equity line of credit, and your home, no matter how nice, is not technically considered an asset.

Another way that the current state of the mortgage industry affects all of us is through home values. It is a circular problem. As more people cannot afford their mortgages, they are forced to enter into short sales with their lenders. A short sale is a sale where the new buyer pays less than the amount owed on the loan. When the home is involved in a short sale, the buyer gets the home for less than market value. The home’s selling price is recorded, lowering the property values in the neighborhood.

How can you prevent getting embroiled in the mortgage crisis? While most agree that this is a cycle, and home prices will rebound, what no one knows is how long that rebound will take and if the housing market will reach its previous high levels. For those that bought “at the top” of the market, it may be quite a while before they have any appreciable equity in their home. If you are currently a homeowner, or are considering buying a home, there are several ways that you can reduce your risk of financial hardship with your mortgage. Maintain a solid income, living beneath your means. Accumulate other assets, in addition to your home, and if you know that you do not have any equity in your home it is doubly important to build up a financial safety cushion in a savings account.

About Author:
Brain Jenkins is a freelance writer who writes about topics pertaining to the mortgage industry such as a Pennsylvania Mortgage

Insight into Real Estate Short Sales

What is a short sale?

When the amount of a mortgage is more than the home is worth, the property may be a candidate for a short sale. A short sale is when the lender agrees to take less money for the home than the amount that is owed on the mortgage. The balance, technically, can be attached to the seller, so if you are considering a short sale it is important to work with an experienced real estate attorney.

A short sale may make sense for a seller if they must sale the home and the value of the property has dropped. A short sale may also make sense if your home is in or close to reaching default status or pre-foreclosure status. If the seller needs a way to get out from under a mortgage, due to unemployment, a divorce, a health crisis or death, a short sale is an option to consider. If the seller has assets, such as in savings or investment accounts, it will probably not be possible to negotiate a short sale with the bank.

Who benefits from a short sale?

The one person who loses the most in a short sale is the seller. While they do get out from under the stress and financial commitment of a mortgage, they will also walk away with nothing. Any equity in the home is gone. The bank, while agreeing to take less money than what is owed on the mortgage, still benefits from the short sale. Because short sales typically occur when a home is in danger of being foreclosed on, the short sale prevents the bank from entering into the foreclosure process. It also takes the home off of the bank’s hands. In a typical foreclosure, the bank has the responsibility of maintaining the property and getting it sold. With a short sale, the bank never has to take responsibility for the property. Those involved in the real estate transaction, such as agents, attorneys, appraisers and title companies, all benefit from the short sale. Although they may not receive their full fee when processing a short sale, they still make money from the process.

The biggest winner in a short sale is typically the buyer. By purchasing a home with a short sale, the buyer gets a home below market value. Because the amount that the bank will lend is based on the appraised value, when a home is purchased for less than that amount, a smaller down payment is required and PMI can be avoided. PMI, or private mortgage insurance, is a costly form of insurance that new home owners must purchase if they borrow more than 80% of the value of the home.

Disadvantages of Short Sale

Short sales can be a good decision for the home owner that cannot afford their mortgage, but they are not the answer to all financial problems. The Mortgage Forgiveness Act of 2007 states that the amount of debt forgiven by the lending institution can be considered income for the seller. Often, the lending institution will issue a 1099 to the seller, which means that they may be required to pay taxes on the forgiven amount.

Short sales also show up on the credit report. Although it would seem that a short sale is a better option than foreclosure, in the case of your credit history, they are the same. The short sale is listed as a pre-foreclosure that has been redeemed. The seller, regardless of how the rest of his credit history looks, will need to wait three years before getting a decent interest rate on a new mortgage.

Convincing the lender to agree

While lenders prefer a short sale to foreclosure, they strongly prefer that you pay off the amount of your loan when selling the home. It is up to the bank whether they will accept a short sale or not. The best way to convince the bank that a short sale is in their best interest it to prepare a package detailing the reasons you are considering accepting a short sale offer.

An estimate closing statement is the first step in convincing the lender a short sale is necessary. This statement should include the estimated sale costs, such as commissions and inspections fees, the unpaid loan amount and any late fees. If property values have dropped recently, leading to your homes value decreasing, ask your real estate agent to prepare a CMA, or comparative market analysis. The CMA shows homes in the area that are actively on the market, those whose sales are pending and homes that have been sold in the last six months. It will help strengthen your case for accepting a lower amount of money for your home. You should also include bank statements and other proof of income and debt, as well as a detailed hardship letter, which explains exactly why you feel it necessary to accept the short sale.

Short sales can be a good choice for buyers and sellers alike, but it is important to know what the drawbacks are before entering into a contract for a short sale.

About Author:
Stephanie Larkin is a freelance writer who writes about topics pertaining to the mortgage industry such as a Pennsylvania Mortgage

How to Spot a Predatory Mortgage Company

As more people face financial hardships due to the credit crunch, predatory mortgage companies are experiencing a business boom. Preying on the fear that people have over losing their homes, or embarrassment that others have over less than perfect credit, predatory mortgage companies sign people up for mortgages that they cannot hope to repay, or collect outrageous fees and then disappear.

A predatory mortgage company can encompass a wide variety of businesses. Some predatory mortgage companies have no plans to offer mortgages at all; they collect fees up front only to inform you that you have not been approved for the loan. Other predatory mortgage companies offer mortgages, but the terms are so onerous that the mortgage can destroy a family’s financial stability. Predatory lenders are often difficult to prosecute, because the borrower has signed a contract agreeing to the terms.

If you know what to look for, it is possible to avoid predatory mortgage companies.

• Predatory mortgage companies are aggressive. They typically initiate contact. They may use telemarketing cold calls and direct mail to contact you.
• Everything is rushed. Offers are for a limited time. Because they often target those with less than perfect credit, they know their customer may ask fewer questions and be less savvy about the loan process.
• They make recommendations that do not make sense, such as asking you to agree to a high initial interest rate, with the promise of refinancing after one year.
• They do not seem concerned about your ability to service the debt. They agree, or even encourage you to take on a loan too large. Reputable lenders typically cap loan repayment at 30% of monthly income. Anything greater than this increases the risk of defaulting on the loan.
• Loan paperwork includes conditions such as balloon payments, prepayment penalties and mandatory arbitration.
• Promise that bad credit will not affect being approved for a loan.
• Ask for large up front fees. They will have a seemingly legitimate reason for these costs, but a legitimate lender brings any payments into the closing costs.
• Read everything, if what the person says is greatly different than what is written in the contract, you should be suspicious.

How to avoid a predatory mortgage company

• Ask your friends and family members who recently purchased homes what lenders they used and what the experience was like.
• Stay local. While legitimate companies advertise on the Internet, if you are concerned about predatory lending, stay with a local bank or credit union for your mortgage needs.
• Know the total cost of the loan, the annual percentage rate, the amount of the monthly payments and the length of the loan. The lender can provide you with this information, and a responsible lender is willing to do so.
• Ask for an explanation for all fees. Often a predatory lender will have duplicate fees as a way to increase profits. Your lender should have a satisfactory definition for each expense.
• Avoid loans that include balloon payments. While a balloon mortgage lowers your monthly payment substantially, at the end of the term, the balloon payment must be made. Even if the lender “guarantees” help in refinancing the balloon, it is a bad idea. You can easily end up owing more than the property is worth, making refinancing impossible.
• Before you sign anything, contact your state’s Attorney General and ask if there are any complaints against the lender.
• Do not feel bullied. Regardless of how far into the loan process you are, you can back out. Truth in lending laws permit you to back out of a loan agreement at any time, and you should do this if any red flags are raised. If loan terms and conditions are different on the day of closing than they were during the time leading up to closing, tell the lender you need to pause and review the documents. If they try to rush you through the closing, tell them you have changed your mind and are using pursuing a different lender.
• Predatory mortgage lenders count on the fact that many of us are unfamiliar with basic lending laws and may be intimidated by the lending process. Research interest rates, closing costs and understand the basic approval process. This will help you recognize if you are being conned.

What if, despite your best efforts, you are the victim of predatory lending? After you sign a loan document, it is not final. You have three days to back out of the contract for any reason, or no reason at all. Contact the lender in writing and let them know that you want to be released from the contract. If it has been longer than three days, contact your state’s Attorney General. This office is in charge of consumer protection, and they can help you pursue actions against the lending company.

About Author:
Stephanie Larkin is a freelance writer who writes about topics pertaining to the mortgage industry such as a Pennsylvania Mortgage

How to Spot a Foreclosure Scam Company

The ongoing mortgage crisis means that the number of foreclosures is increasing. With homeowners desperate to avoid foreclosures, there are many scams flourishing that prey on those homeowners that desperately want to hold onto their homes. How do you know if an offer for assistance is legitimate? Often it doesn’t take anything more than old fashioned common sense. Sometimes, however, scam artists are so misleading that it is easy to be confused.

What are the warning signs that a foreclosure company may be a scam?

• Lack of professionalism. This one should be obvious, and, fortunately, many scammers fail to present themselves as professionals, and are easily recognized. Think of how most established businesses advertise. If a company does not use traditional advertising, it should raise a red flag. If you find fliers under your windshield or stuck in your door, someone cold calls your house, or knocks on your door, they are probably not a legitimate agency.
• They ask for large fees in advance. It is a testament to how desperate people are to save their homes that many people, in danger of losing their homes, will pay an exorbitant amount of money to someone they have never heard of that promises to save their home. Often, the scammer asks for a fee that is equal to the homeowner’s equity in the home, and the homeowner hands it over.
• The company asks you to sign your deed over to them. They often have excellent reasons for this, promising to sign the home back over after they stop foreclosure proceedings, and allowing you to “lease” the home from them until this occurs. Not only does the scammer get the deed to your home, which, by the way, does not release you from responsibilities on the loan, they also collect a hefty “lease” fee, at least until they evict you.
• They offer to help you refinance the home. You obtained your mortgage initially, why would you need help to refinance? Typically, the scam company collects a large fee and does nothing. While they do not take over ownership of your home, like some of the more aggressive scammers, they do allow the foreclosure process to proceed. The foreclosure scam companies typically tell you not to contact your lender because they will take care of all communications. Meanwhile, they do nothing, and the lender assumes that you are a deadbeat payer.
• They tell you one thing, but discourage you from reading the contract. People who are successful at operating scams are often smooth talkers. They will tell you one thing, such as negotiating a settlement with your lender, while at the same time presenting you with papers that sign your home over to the scam company.

How can you avoid being a victim of scam foreclosure companies?

• Never sign anything without reading it thoroughly. Do not worry about appearing rude. Read each form completely and do not sign anything that you do not understand. Tell the person you are dealing with that you need to take the paperwork home to review it and show it to a real estate attorney. They will normally review documents for a nominal fee, and can tell at a glance if you are being scammed.
• Understand that verbal agreements are non binding. Do not pay attention to what the person says, but read all documentation carefully.
• Never sign a form that has multiple blanks that can be completed later, and sign your paperwork with blue, not black, ink. This helps prove that paperwork is an original and not a copy.
• Never, ever, sign your deed over to anyone else. Many people fail to realize that the mortgage and the deed are two separate things. You do not eliminate your responsibility with the mortgage by signing over your deed, but you do eliminate your claim to the property.
• Any threats or intimidation should be clear evidence that the foreclosure company is not legitimate.
• Before entering into any agreement regarding your mortgage, take the paperwork to your current lender. They do not want you to be scammed any more than you do, and they are well versed in current scams in your area. Even if you are in the final stages of foreclosure, and feel that the lender has no time for you, ask to speak with someone in the loan or loss mitigation department and show them the documents.
• Remember the same thing that we all learned as children, if something is too good to be true, it probably is.

Foreclosure scams prey on the fear that people have of losing their homes. While there are legitimate companies that help the consumer who is experiencing difficulty paying their mortgage, companies that solicit you are typically scams. To find someone that can help you remain in your home during this difficult time, contact your local HUD office. This federal program offers a variety of ways to deal with your financial problems while avoiding foreclosure. Your lending institution’s loss mitigation specialists can also work with you to keep you in your home.

About Author:
Stephanie Larkin is a freelance writer who writes about topics pertaining to the mortgage industry such as a Mortgage Company

An Introduction to Loss Mitigation

What is loss mitigation?

Loss mitigation is a general term that is used to reduce or eliminate financial loss for both the lender and the borrower. The goal of loss mitigation is to prevent a property from going into foreclosure. Foreclosures are the last resort for both the homeowner and the lender. The homeowner’s credit rating is devastated by foreclosure. It takes at least three years after a foreclosure for the homeowner’s credit rating to be repaired. Additionally, when a home goes into foreclosure, the owner, who may have monthly payments for years, loses all of the equity he had in the home.

For the lender, foreclosure is bad business. Although they end up with an asset, the home, banks and mortgage companies are not real estate companies. They are not set up to maintain a property and get it sold. The bank, when they take ownership of a home through foreclosure, they typically attempt to re-sell it as quickly as possible, with no thought to maximizing their profits.

With both the homeowner and the lender attempting to avoid foreclosure, the field of loss mitigation developed. There are a variety of programs in place to help those who have lost their jobs, experienced a medical emergency or gone through a divorce hold onto their home and prevent foreclosure. Because each person’s financial situation is unique, the best choice for one person may not make sense for someone else. A real estate attorney can be a smart investment for the person trying to hold onto their home.

Ways that the homeowner can keep the home

If the homeowner got behind on their mortgage payment for some reason, but are generally able to make the payments and afford the home, there are a variety of programs that can help. A loan modification is a situation where the existing loan contract is rewritten in a manner that allows the homeowner to continue to service the debt. The changes to the loan are permanent, and extend after the homeowner gets back on their feet financially.

A partial claim is when the lender advances the borrower funds to pay up the delinquent amount of the mortgage, making it current. The partial claim loan is typically interest free and is not repaid until after the mortgage is paid off. The lender may also offer the borrower an opportunity to increase the amount of their monthly loan so that they can bring their mortgage current over a period of time. The homeowner may also qualify for forbearance, where the monthly payments are suspended for a period of time. This gives the homeowner time to catch up on monthly expenses and start fresh, without paying late fees.

What happens when the homeowner cannot afford to keep the home

Sometimes financial difficulties are more than short term problems. In a situation where the homeowner finds himself unable to service the loan, and with little to no chance of servicing the loan in the future, it may be necessary for the homeowner to give up the home. There are a variety of programs that the homeowner can participate in that allows him to move out of the home, eliminate his mortgage and avoid foreclosure.

A short sale is the process of selling the home for less than the amount owed on the loan. A short sell is often a good way to sell a home quickly. Because the home is typically sold for below market price, it is more attractive to buyers. You cannot short sale the home without permission from your lender. Because they will take over the unpaid balance of the loan, they determine who qualifies for a short sale.

A Deed-In-Lieu of Foreclosure, or DIL, allows the homeowner to hand over the deed to the home to the lending institution, giving the property to the lender in exchange for being released from the debt. The bank may also allow an assumption of loan. This is a process where a third party enters into a contract to take over payments on the home.

Do I qualify?

If you have trouble making your mortgage payments, the first step is to call your lender and ask to speak with the loss mitigation department. Do not wait until past due statements start to show up in your mailbox. If you have a legitimate reason for failing to make your payments, and have paid faithfully in the past, the lender may be able to make arrangements to suspend payments or allow you to modify the terms of your loan agreement before the mortgage becomes seriously past due. If you allow the past due notices to stack up and do not return phone calls from your lender, you may be too far onto the path to foreclosure to stop the process when you finally approach them.

About Author:

Brian Jenkins is a freelance writer who writes about topics pertaining to the mortgage industry such as a Mortgage Company

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