Mortgage Refi

DebtMany, many folks just like you signed on the subprime mortgage bandwagon, only to find just a few short years later that their payments have risen to an amount that they can no longer afford to pay. The problems with these types of mortgages is that the lender extended you more credit than you could handle in the first place - which is the main culprit behind the current financial crisis that is going on around the world right now. Layoffs are common during a recession, and there is no guarantee that you will be exempt from them. Make sure to have a Plan B ready, in case you need to make employment changes.4. Look for the silver lining-new opportunitiesIronically, sometimes a recession can cause particular industries to thrive. GSE conforming loan requirements before selling these mortgages on the secondary loan market to Fannie Mae and Freddie Mac. Investment banks such as Bear Stearns and Lehman Brothers then assisted the GSEs by pooling these mortgages together to attempt to diversify risk, thereby creating collateralized debt obligations called mortgage-backed securities that were sold to institutional investors. Companies like A.I.G. provided credit-default swaps ('CDS') that acted like insurance for institutional investors that purchased the mortgage-backed securities to protect them from defaults by the original borrowers. Owned, especially if they own more than one home 1003 Loan Application Recent appraisal or county property value assessment Copy of personal budget for all borrowers, including everything from debt payments to utility bills, from the monthly food budget to gym membership dues, and everything else the client's spends money onBesides all that documentation that you'll send directly to the lender via fax and/or overnight certified delivery, you'll also want to collect and file the following items for your own use and records. For your own records: Signed contract for your services (have an attorney create this for you) Signed legal disclaimer and release (could be part of the contract, have an attorney create this for you) Credit report, if they have a recent copy Most recent statements for all mortgages Check for your services (some states do not allow you to collect a fee for handling a loan modification for a client unless and until the work is complete and the modification was successful)If you do a good job collecting all this stuff beforehand, but are unsuccessful in modifying your client's loan, you can often convert the client into a short sale listing (if you are a real estate broker) or refer the client to a short sale expert.