The truth be told, paying someone to modify your loan is silly.  It’s not complicated and you can do it yourself.  The simplest route to changing the terms of your mortgage is to see if your mortgage has an option that will allow you to recast your mortgage.  A mortgage recast will allow you to make payments based on the balance that you have paid your mortgage down to.  This will only give you a lower payment if you have a fixed rate mortgage.  If you have paid your mortgage down and now are in need of a lower payment, a mortgage recast option could be your answer.  A lender will allow you to do this once in most cases for a fee.  The fee to recast your mortgage is usually anywhere from $250 - $500.  This is definitely cheaper than doing a whole new refi.

Are Loan Modification Companies Legit? Continue Reading »

The McCain mortgage bailout of $300 billion is a bad idea.  First of all you want to bail out people that can’t pay their mortgages.  Many of these people had no business buying a home anyway.  The second issue is many of these people have no money at stake in the transaction.  Many of these folks got loans at 100% LTV.  In my day buying a home meant something.  You actually had to save up money for a down payment.  When you bought a home you had something at stake.  Continue Reading »

The second presidential debate was held earlier this week.  The only thing I heard that was a real alarm was John McCain and the 300 Billion Dollar housing bailout plan.  I thought this is what the FHA Secure mortgage plan was to address.  It is already on the table.  I do not think at this point we need to be bailing out homeowners that cannot pay their mortgage and having the taxpayer absorb huge losses.  I not really interest in raising my taxes just to pay for someone elses mortgage.  Who is going to help the rest of us.

Do Not Bailout The Housing Market, Stimulate Business Instead Continue Reading »

What is an Offer in Compromise

You may have seen the commercials on the tv and where curious as to what exactly is an Offer in Compromise? If you are unable to pay your income taxes in full and an installment plan wont work, a person may be able to do an offer in compromise. An offer in compromise is looked at as a last resort option after a taxpayer has exhausted all other options. The reality is that the IRS only resolves less than one percent of all tax bills owed through this type of method. The TV commercials make it seem like you can just pick it right off the shelf and get it done. The reality is that your chances of being able to work this option out with the Internal Revenue Service is remote. Continue Reading »