Rental Lease

Yeah the loan modification itself is the least of a borrower's worries when they default on a real estate loan. The series of late payments wreaks a lot of damage, and if the lender files for foreclosure while the lender and mortgagor are negotiating terms of a modification, that foreclosure filing appears on the mortgagee's credit report even though the property didn't actually go to foreclosure auction. This stings credit score pretty badly. The bottom line is that if you can't make payments that you agreed in writing that you could, in fact, make, it's going to hurt your credit, because it shows that you are not as credit-worthy as your previous report suggested. Best of luck with your real estate loans, ___________________ Brian Real Estate Forms - courtesy of EZ Landlord Forms

I'm told that something like a third of American homeowners are upside down on their mortgage, from a combination of the real estate crash and overborrowing. What would happen if everyone who was upside down on their real estate suddenly stopped paying their mortgage? 1. Foreclosure rates would skyrocket, and homeowners nationwide would lose 50-90% of the value of their home. The embittered among you might say "so what?" I lost value on my real estate" but most people's cash and savings are tied up in their home, their biggest investment, and on a mass scale like this the loss of wealth would permanently cripple most families. 2. Every major lender in the country would go out of business. Literally. How, then, do you think you'll ever be able to buy a home again, if no one is going to lend you money? Lenders are easy to scapegoat, but the fact is our economy needs them. If everyone stopped paying their mortgage because it's convenient, we'd have a he11 of a problem on our hands, and it would make the current economic downturn look like a party. I know, I know, "it's easy for me to say" and all that other nonsense, but I assure that it's not, as I was unemployed for much of 2008 and still managed to pay my mortgage, even though it put me further in debt to do so. Best of luck with all of your finances,

The hit to your credit score is minimal (a few points) and temporary, and not worth worrying about compared to such an important financial decision such as borrowing a mortgage and tying up your real estate. I would ask around your friends, particularly among real estate investors or other real estate professionals that you know, and asking who they'd recommend as a mortgage broker. Aside from finding a trustworthy mortgage broker, they might even cut you a deal since you have a shared acquaintance. Best of luck,

You might also consider having your spouse buy the real estate, if you have a spouse with reasonable credit. The more you can put down, the easier it will be to get a loan, there's no question about it. Rebuilding your credit will take a little bit of time, but it's worth the effort, as the amount of house you can afford to buy is directly proportionate to the terms of the loan you can get. If you can afford $1000/month as a payment, that might buy you either an $75,000 house or a $115,000 house, depending on the terms of the loan (which are largely determined by your credit, income, and savings). People tend to underestimate the value of strong credit; I recommend you work on improving yours and saving some money, and in no time you'll be able to buy a nice little piece of real estate for yourself, instead of having to pay someone else's mortgage by paying a lease agreement. Best of luck with buying your first home! Cheers,

Do you have someone (friend, relative) who'd be willing to co-sign the mortgage note with you? Here are the things that can improve your credit: 1. Paying down (but NOT off) your debts 2. Making all your payments on time, without exception 3. Not opening any new credit accounts (the older your credit accounts, the better) 4. Obviously the bankruptcy hurts, but it'll help when it's discharged. I would talk to your bank first, and see what they say, and if they can't lend you money to buy the real estate then call a good local mortgage broker. Best of luck,

Unfortunately, it's not uncommon for it to take many months to get anywhere with large banks like Countrywide. Personally, I recommend contacting small, local banks, and talking to their REO departments. They tend to be much easier to work with, although you'll probably have to make many offers before you get a good deal. Best of luck avoiding bureaucracies in the future,

It can't hurt to start looking at houses, talking to mortgage brokers, etc while your cool off period is progressing. It usually takes months to find a house, get a loan, get the title work and legal forms prepped, etc, so you might as well start now, so that by the time you're interested in settling you'll at least have an idea what house you want to settle on. Best of luck,