St Louis Mortgage Lending and Home Loan: Loan Modification Options Coming
St Louis Mortgage and Real Estate News –
St Louis Mortgage Refinancing and Lending News: More Loan Modification Options Coming
St Louis Home Mortgage and Commercial Loans | Commercial Loan Modification
877-334-0210 or 314-334-0210 | Floyd Tapia, Commercial Lending and Loan Reduction
Six months after the Federal Housing Administration (FHA) announced an $11 billion refinancing initiative for these “underwater” borrowers, nearly two dozen lenders have agreed to take part in a new loan modification program.
The FHA program called Short Refi requires major concessions from lenders, which must agree to
write off at least 10 percent of the principal balance, and from investors, who, if they own the mortgage, must also agree to the deal.
To qualify, homeowners must be current on their monthly mortgage payments and not already have an FHA home loan.
The size of the new primary loan cannot be more than 97.75 percent of the current value of the property; refinanced loans for homeowners whose properties carry second liens cannot exceed 15 percent of the property value.
The Department of Housing and Urban Development (HUD), which oversees the FHA, said this month that 23 lenders had signed on to the Short Refi program, though it will disclose only the names of the five lenders that have already restructured a total of 44 loans.
They are: Wall Street Mortgage Bankers of Lake Success, New York; 1st Alliance Lending of East Hartford, Connecticut; Nationstar Mortgage of Lewisville, Texas; E Mortgage Management of Haddon Township, New Jersey; and Glacier Bank of Kalispell, Montana.
HUD estimated that 500,000 to 1.5 million borrowers could be eligible for the program.
Even so, it faces challenges in Congress; on Thursday, the House of Representatives voted to end it.
One mortgage expert, John Diiorio, the owner of 1st Alliance Lending, said that big banks were taking part behind the scenes, by referring homeowners to third-party lenders that could restructure their mortgages.
He added that 1st Alliance had “several hundred FHA Short Refi” loans in the pipeline.
Because the FHA announced the program only last September 2010, and because such loans take three to four months from start to finish, Mr. Diiorio said, the number of refinanced loans should increase in coming months.
He said that, on average, 1st Alliance had negotiated a principal reduction of $86,000 on a $256,000 loan, a 33.5 percent cut, to $170,000.
But he said lenders and investors had agreed to reduce principal for only half of the loans he had worked on.
The refinanced borrower, Mr. Diiorio said, had to pay a slightly higher fixed rate, typically 6 or so percent.
But he added that the financial impact was the same as a 5 percent rate on a higher-balance loan of $100,000, with less principal forgiven.
“It seems counter-intuitive,” he said, “but the economics work both for the consumer and for the lender.”
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Articles and News Sponsored by Liberty Lending Consultants
When applying for any type of St Louis mortgage or refinancing, call Liberty Lending Consultants, the recognized St Louis home loan and refinancing experts, at (314) 336-9111 and ask for Steve Swan or Doug Stahlschmidt.
Business Owners: Call us at (314) 334-0210 and retain us for one of the best commercial loan modification and principal loan reduction programs available. A principal reduction or loan modification can help if you are underwater with negative equity. As commercial lending and loan modification program consultants, Floyd Tapia and his lending and legal team can focus on bringing you innovative private lending solutions to meet all types of financing needs. We have access to the largest portfolio of private lending institutions and investor backed funding sources available.Let us turn your challenges into closings (or from being underwater equity wise) and help you get a St Louis commercial lending, mortgage or financing loan.
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