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Alberto Said:

Why would the govt. make the SAME MOVES that caused the subprime lending crises to begin with?

We Answered:

You are correct- FHA is the new sub-prime loan. However, you do now need a 620 credit score- you do have to prove income & you do have to put 3.5% down. The really bad subprime loans were a 500 credit score- zero down & no proof of income.

Kevin Said:

Need to get approve for a FHA Loan in New York?

We Answered:

Go online at www.gmacmortgage.com

They have an online application

Patrick Said:

What is the procedure for loan modification?

We Answered:

The loan will stay with your current lender, it will just be modified.

The first thing you need to know about a Loan modification or loan mod is there needs to be some sort of hardship or reason why you will be unable to make your payment. Divorce, job loss, adjustable rate coming due, bad or no renters occupying the residence. The are many things that can qualify you, just be prepared to prove it.

The second thing to be aware of DO NOT send any company money up front. These are scammers. We have a pre-qualification process and in most cases due to our long standing relationship with lenders we can pretty much tell you what the offer will be.

The third thing to look out for is anyone telling you to not make a payment to you bank. This will affect your credit poorly. Many loan mod companies will suggest this because it makes THEIR job easier. It is much easier to negotiate when someone is late. However, I am not interested in what is easy, I am interested in what is best for you and your financial future.

Our company can walk you through the process. It is very easy. There is no credit check, minimal paper work and no closing costs. Email me if you would like some more information.

You can do this on your own, but BEWARE you will spend several months negotiating and if you don't get the deal that you are looking for, you are done. There is nothing else you can do. At that point you can not hire a professional because you have exhausted your options. Think of it this way:
You have one chance to fix your loan. Do you want to "try" to do it on your own or do you want someone who has years of experience, connections and legal help to do it for you?

Rosemary Said:

What happens to a renter if their landlord defaults on a mortgage?

We Answered:

I own much much much smaller apartments in Washington State. I bought a small complex which had been foreclosed. All of my loans have a provision which assigns the rents to the lender in case of foreclosure.

If your building is foreclosed on, then whoever takes possession of it will want you to pay them rent. They will want all the tenants in place and paying rent - so don't worry too much.

In all of the situations I have experience with, maintenance and other services suffered some, but then owners in financial distress don't do a great job at that stuff either - so you might not notice too much of a change.

You could move, but I wouldn't. You can protect yourself by keeping good records: your lease agreement, receipt for deposits, receipts for rent - or canceled checks. I think your greatest problem is likely to be poor coordination between the different people likely to be managing your apartments. You can protect yourself from that by having your stuff together.

Good luck

Gloria Said:

Does anyone know a lender who will finance with "legal non conforming" zoning?

We Answered:

That shouldn't be a problem, but check to make sure the grandfather clause survives to the new owner.