Some homeowners who’ve had mortgage loans modified have ended up in foreclosure anyway. In many of those cases, people who got modifications experienced a drop in income due to a job loss and were unable to keep up with mortgage payments anyway, according to an article in the Record.

Economists now say unemployment is contributing to more people becoming delinquent on mortgage loans than sub-prime mortgages. Unemployment in the U.S. is currently at 9.8%, and more people are expected to lose jobs. Just this week, Johnson & Johnson announced it would cut up to 7% of its workforce, or about 8,000 jobs.

Although mortgage loan modifications have helped some homeowners, a new study from the Federal Reserve Bank of Boston says many mortgage lenders believe that they will recover more from foreclosures than from modified loans. That’s because about 30% of homeowners who are behind on mortgage payments are able to begin paying again without help from a mortgage lender.

The Fed study also says about 30% to 45% of people who have mortgages modified are likely to end up missing payments again. Loan modifications simply postpone foreclosure for some people, the study says, and mortgage lenders end up recovering less money when those homes eventually end up in foreclosure.

Buying a fixer-upper home is becoming more common because of the number of foreclosures across the country. Whether the home has been a foreclosure or not doesn’t really matter – there are still a handful of simple tips that can save you time, money and effort when buying a fixer upper.

Tip #1: Plan Ahead
Buying  a fixer-upper requires more planning and thinking ahead than just buying a regular home. You will want to make a list of renovations that will be needed and then identify whether or not you have the expertise needed to do them yourself or hire a contractor. Things like removing carpet, tearing out walls and painting are all pretty simple to do – but other things like plumbing and electrical work are not so simple. Develop a plan of action as to what you can do and what you need to hire someone else to do.  Keep in mind, for some kinds of repairs, you will need to get work permits from the city – so be sure to do your homework on that front too.

Tip #2: Find The Right Fixer-Upper
Not all fixer-uppers are created equal. Once you know who is going to do the work, then you can find the right house that isn’t beyond what you can handle with your skills and contacts. Check your local newspaper, banks and maybe even talk with a few Realtors to find a list of local houses that are bank-owned and need fixing up. Remember – there are plenty of houses on the market that are beyond fixing up – so don’t get stuck with one of those or it may become a money-pit.

Tip #3: Get a Home Inspection
Pretty much no matter what, there will be more going on with your fixer-upper than you will see at a glance. Whenever you buy a new home, it is recommended that you get a home inspection – but especially when buying a fixer upper. A good home inspection will be able to tell you all of the needed repairs and then you can back into how much those repairs will cost.

Tip #4: Have A Budget
Without a budget, it is pretty much a given that you may end up spending too much money. Before beginning a fixer-upper project, you will want to decide on how much money is “worth it” on the project and still have a positive return-on-investment.

Once you have a budget, you will want to add at least 10% to it for “overruns” because the projects never seem to go as planned. Just to be safe.

Once you have all four of these things done, then it is time to make an offer on your fixer-upper. If you have done everything on this list, then you are going to have a much better chance of finding the right fixer-upper project, buying it at the right price and getting the right projects fixed for the right price.

Which is what buying a fixer-upper is all about and makes it all worthwhile!

One of the most common questions that I get from people regarding the loan process is “how long will it take to get my loan closed?”

My usual answer is “around 30 days, but in today’s world it could be slightly longer”.

And now I know that I am slightly slower than the next guy.

How long does it take to get a FHA loan closed?

Ten Days.

According to the loan officers at Academy:

Ten Day Close Guarantee
Are you tired of waiting on the bank to move into your house?

Our main goal is to make the homebuying process as pleasant as possible for our client, and our team of experienced mortgage professionals have the tools to make it happen.

So if your loan officer is like me and telling you that it will take 30 (or so) days to get your loan closed — just tell him that there is at least one team of loan officers who are promising to get loans closed in 10 days or less.

And see what he says!

Having good credit is more important in today’s world than it has been in quite a while — if you are planning on getting a mortgage loan, you need to have good credit.

Three years ago, it really didn’t matter what your credit score was – you could find someone to loan you money regardless of  what your credit score was. But times have changed and banks have gotten tougher when it comes to credit scores.

Which is why many people are being referred to a “credit repair company” if they apply for a loan and have lousy credit. If you have bad credit and can’t qualify for a mortgage, what is credit repair anyway?

Credit repair is nothing more than the process of questioning the information found on your credit report with the intention of finding and correcting any mistakes or inaccurate information that you find. As a result of correcting these mistakes that you uncover, your credit score will increase.

The process of questioning items found on your credit report means that you will need to write letters to the credit bureaus about specific items found on your report. The process of writing these letters can typically take between 3-9 months depending on how many items that you are questioning and asking to be removed.

One of the more common questions about credit repair is “is it legal” and the answer is yes – it is completely legal as long as you are attempting to remove only the inaccurate information.

A few of the key things to fix when fixing your credit report:

• Any accounts that have been “charged off”
• Any late payments
• Any collection accounts
• Any other negative items that are not accurate
• Any credit limits that are not correct
• Any accounts that are listed as “paid charged off” if you paid on time and in full
• Any accounts that are listed as “paid derogatory” if you paid on time and in full
• Any accounts that are listed as “paid as agreed” if you paid on time and in full
• Any accounts that were a part of a bankruptcy and were discharged as part of the bankruptcy process. Any accounts that were discharged in bankruptcy should be listed as “discharged in bankruptcy”

If you are like most people, you will find that the actual process of “fixing your credit” will not bring you “perfect” credit, but you might be surprised to find how many people raise their score just by cleaning up the derogatory information that is on their report.

And in today’s mortgage lending world, even a bump of just a few points may mean the difference between qualifying for a mortgage and not qualifying for a mortgage – or in other words – it can make all the difference in the world.

Is it too late to claim the first time home buyers tax credit?

No.

As it stands now, it officially ends on November 30, 2009 – which means if you are currently under contract and are in process of getting financing, you will still probably close in time to claim the $8,000 tax credit.

But if you haven’t picked out a house and gotten an accepted sales contract and are currently working on getting financing approved then you are probably too late.

Unless congress does something to extend and/or expand the credit.

According to the coverage of the tax credit by the Phoenix Real Estate guy:

• UPI is reporting that Senator Johnny Isakson, who has lead the charge for a home buyer tax credit in the Senate since Day 1 has reached a point of compromise. Isakson has always wanted to see the tax credit at $15K, not limited to first time buyers, and the income limits increased. According to UPI, Isakson will introduce an amendment for a six month extension rather than 12 month and keep the credit at $8,000. He will still try to expand it to all primary residence buyers and raise the income limit to $150K for an individual or $300K for a couple.
• The Wall Street Journal reports that Isakson is “cautiously optimistic” that an extension – with procedural safeguards attached to stem the ever-growing tide of fraudulent credit claims – can move ahead in the Senate next week.
• CNBC is reporting that Senate Majority Leader Harry Reid is making a counter-proposal to Isakson’s tax credit extension that will phase out through 2010:
  

  Under Reid’s plan, the $8,000 tax credit would be phased out over time, dropping to $6,000 in April, $4,000 in July, and $2,000 in October, before expiring at the end of 2010. The plan could come to a vote as early as next week.

What actually happens as to whether or not the tax credit will be extended and/or expanded will be decided in the coming weeks – and many people will be anxiously waiting the answer… except for those people who have already taken advantage of the credit and bought a house!