[Deal Hunter]

Note: You have an IO for the first 10 years, so the only way to lower your balance is to make an EXTRA payment to principal that is above and beyond your minimum interest payment. The best source of a direct answer to your particular arrangement is with the lender. If the CS rep that you first talk to can’t help, then ask to speak to a supervisor.

Basically, it depends on when/how your mortgage calculates your interest on the principal. In the best case, your loan is re-amortized everytime you make a payment, meaning that the principal from which your interest is calculated is lower each time because of the previous payment that you made. But, this is generally only true of principal and interest payments.

In most cases, the loan is re-amortized only once a year, so you can lower your balance by simply making ONE extra payment at your anniversary date. The best thing to do is to call your lender and ask this directly. You could even request a payment option that lets you pay the payment in 2 monthly installments or on a bi-weekly basis.

[Deal Hunter]

How do you define “public figure?” Isn’t the CEO, by default a public figure in that the CEO is the face of a corporation to the public?

Rebecca Hearst was not a public figure until CNBC reported that her $22 million beach front estate in FL went into foreclosure this morning! (Source: Maria Bartiromo, CNBC – do don’t sue me!)

[Deal Hunter]

How do you define “public figure?” Isn’t the CEO, by default a public figure in that the CEO is the face of a corporation to the public?

Rebecca Hearst was not a public figure until CNBC reported that her $22 million beach front estate in FL went into foreclosure this morning! (Source: Maria Bartiromo, CNBC – do don’t sue me!)

[Deal Hunter]

How do you define “public figure?” Isn’t the CEO, by default a public figure in that the CEO is the face of a corporation to the public?

Rebecca Hearst was not a public figure until CNBC reported that her $22 million beach front estate in FL went into foreclosure this morning! (Source: Maria Bartiromo, CNBC – do don’t sue me!)

[Deal Hunter]

How do you define “public figure?” Isn’t the CEO, by default a public figure in that the CEO is the face of a corporation to the public?

Rebecca Hearst was not a public figure until CNBC reported that her $22 million beach front estate in FL went into foreclosure this morning! (Source: Maria Bartiromo, CNBC – do don’t sue me!)

[Deal Hunter]

How do you define “public figure?” Isn’t the CEO, by default a public figure in that the CEO is the face of a corporation to the public?

Rebecca Hearst was not a public figure until CNBC reported that her $22 million beach front estate in FL went into foreclosure this morning! (Source: Maria Bartiromo, CNBC – do don’t sue me!)

[Deal Hunter]

Walkers make great Renters.

2 of our rentals had leases that expired in Dec. The former rent rate was $1025/mo. We put the house back on the rental market in January and got 16 applicants right away. The highest bids came from people who walked away from their homes and accepted foreclosure.

The only thing on their credit was the 90 and 120 day lates on their mortgages. Our prop manager did disclose to us that the applicants got foreclosed upon. However, they offered $1450/mo for the available house. We accepted and they put up 2 months rent as deposit.

My second property went to another “walker” that begged us to consider a rent-to-own/lease op. This one also offered above the asking ($1300/mo). With this one, we decided to do a 6 month lease to be replaced with a lease op as long as he pays on time.

The walking away phenomenon is working out great for me, as a landlord – so far. I’ll let you know in a few months if I get walked away from myself, but so far, so good.

[Deal Hunter]

Walkers make great Renters.

2 of our rentals had leases that expired in Dec. The former rent rate was $1025/mo. We put the house back on the rental market in January and got 16 applicants right away. The highest bids came from people who walked away from their homes and accepted foreclosure.

The only thing on their credit was the 90 and 120 day lates on their mortgages. Our prop manager did disclose to us that the applicants got foreclosed upon. However, they offered $1450/mo for the available house. We accepted and they put up 2 months rent as deposit.

My second property went to another “walker” that begged us to consider a rent-to-own/lease op. This one also offered above the asking ($1300/mo). With this one, we decided to do a 6 month lease to be replaced with a lease op as long as he pays on time.

The walking away phenomenon is working out great for me, as a landlord – so far. I’ll let you know in a few months if I get walked away from myself, but so far, so good.

[Deal Hunter]

Walkers make great Renters.

2 of our rentals had leases that expired in Dec. The former rent rate was $1025/mo. We put the house back on the rental market in January and got 16 applicants right away. The highest bids came from people who walked away from their homes and accepted foreclosure.

The only thing on their credit was the 90 and 120 day lates on their mortgages. Our prop manager did disclose to us that the applicants got foreclosed upon. However, they offered $1450/mo for the available house. We accepted and they put up 2 months rent as deposit.

My second property went to another “walker” that begged us to consider a rent-to-own/lease op. This one also offered above the asking ($1300/mo). With this one, we decided to do a 6 month lease to be replaced with a lease op as long as he pays on time.

The walking away phenomenon is working out great for me, as a landlord – so far. I’ll let you know in a few months if I get walked away from myself, but so far, so good.

[Deal Hunter]

Walkers make great Renters.

2 of our rentals had leases that expired in Dec. The former rent rate was $1025/mo. We put the house back on the rental market in January and got 16 applicants right away. The highest bids came from people who walked away from their homes and accepted foreclosure.

The only thing on their credit was the 90 and 120 day lates on their mortgages. Our prop manager did disclose to us that the applicants got foreclosed upon. However, they offered $1450/mo for the available house. We accepted and they put up 2 months rent as deposit.

My second property went to another “walker” that begged us to consider a rent-to-own/lease op. This one also offered above the asking ($1300/mo). With this one, we decided to do a 6 month lease to be replaced with a lease op as long as he pays on time.

The walking away phenomenon is working out great for me, as a landlord – so far. I’ll let you know in a few months if I get walked away from myself, but so far, so good.

[Deal Hunter]

Walkers make great Renters.

2 of our rentals had leases that expired in Dec. The former rent rate was $1025/mo. We put the house back on the rental market in January and got 16 applicants right away. The highest bids came from people who walked away from their homes and accepted foreclosure.

The only thing on their credit was the 90 and 120 day lates on their mortgages. Our prop manager did disclose to us that the applicants got foreclosed upon. However, they offered $1450/mo for the available house. We accepted and they put up 2 months rent as deposit.

My second property went to another “walker” that begged us to consider a rent-to-own/lease op. This one also offered above the asking ($1300/mo). With this one, we decided to do a 6 month lease to be replaced with a lease op as long as he pays on time.

The walking away phenomenon is working out great for me, as a landlord – so far. I’ll let you know in a few months if I get walked away from myself, but so far, so good.

[Deal Hunter]

Debt to income ratios cannot be considered in a vacuum in today’s credit market. I work in loan advocacy (mostily in loan mods for now) and in commercial lending. There has been a MAJOR shift in approval considerations away from income/debt ratios.

This is counter-intuitive as FICO and property values are in such flux that a lender should depend on the fundamentals such as income/debt ratios in approving the loan. However, this is just not what I am seeing in the market.

FICO continues to be the top consideration with property value as a close second. My theory is that the banks and lenders have relied so heavily on FICO and LTV to determine the INTEREST RATE at which to lend that they just plain don’t know how to value a loan on any other criterion.

Originators, unless they carry their own loans, must still package loans to be sold to Wall Street. Wall Street has yet to give originators new qualifiers, so it’s business as usual at the mortgage desk. A quick approval comes with low LTV and high FICO. Debt/income ratios are all over the place even within the same lending institution.

For example: A recent loan mod I worked on with Countrywide approved a loan with the borrower being 36% negative each month after new payment arrangements. This was on a FICO of 710 and LTV of 95%. Find the logic in that one.

[Deal Hunter]

Debt to income ratios cannot be considered in a vacuum in today’s credit market. I work in loan advocacy (mostily in loan mods for now) and in commercial lending. There has been a MAJOR shift in approval considerations away from income/debt ratios.

This is counter-intuitive as FICO and property values are in such flux that a lender should depend on the fundamentals such as income/debt ratios in approving the loan. However, this is just not what I am seeing in the market.

FICO continues to be the top consideration with property value as a close second. My theory is that the banks and lenders have relied so heavily on FICO and LTV to determine the INTEREST RATE at which to lend that they just plain don’t know how to value a loan on any other criterion.

Originators, unless they carry their own loans, must still package loans to be sold to Wall Street. Wall Street has yet to give originators new qualifiers, so it’s business as usual at the mortgage desk. A quick approval comes with low LTV and high FICO. Debt/income ratios are all over the place even within the same lending institution.

For example: A recent loan mod I worked on with Countrywide approved a loan with the borrower being 36% negative each month after new payment arrangements. This was on a FICO of 710 and LTV of 95%. Find the logic in that one.

[Deal Hunter]

Debt to income ratios cannot be considered in a vacuum in today’s credit market. I work in loan advocacy (mostily in loan mods for now) and in commercial lending. There has been a MAJOR shift in approval considerations away from income/debt ratios.

This is counter-intuitive as FICO and property values are in such flux that a lender should depend on the fundamentals such as income/debt ratios in approving the loan. However, this is just not what I am seeing in the market.

FICO continues to be the top consideration with property value as a close second. My theory is that the banks and lenders have relied so heavily on FICO and LTV to determine the INTEREST RATE at which to lend that they just plain don’t know how to value a loan on any other criterion.

Originators, unless they carry their own loans, must still package loans to be sold to Wall Street. Wall Street has yet to give originators new qualifiers, so it’s business as usual at the mortgage desk. A quick approval comes with low LTV and high FICO. Debt/income ratios are all over the place even within the same lending institution.

For example: A recent loan mod I worked on with Countrywide approved a loan with the borrower being 36% negative each month after new payment arrangements. This was on a FICO of 710 and LTV of 95%. Find the logic in that one.

[Deal Hunter]

Debt to income ratios cannot be considered in a vacuum in today’s credit market. I work in loan advocacy (mostily in loan mods for now) and in commercial lending. There has been a MAJOR shift in approval considerations away from income/debt ratios.

This is counter-intuitive as FICO and property values are in such flux that a lender should depend on the fundamentals such as income/debt ratios in approving the loan. However, this is just not what I am seeing in the market.

FICO continues to be the top consideration with property value as a close second. My theory is that the banks and lenders have relied so heavily on FICO and LTV to determine the INTEREST RATE at which to lend that they just plain don’t know how to value a loan on any other criterion.

Originators, unless they carry their own loans, must still package loans to be sold to Wall Street. Wall Street has yet to give originators new qualifiers, so it’s business as usual at the mortgage desk. A quick approval comes with low LTV and high FICO. Debt/income ratios are all over the place even within the same lending institution.

For example: A recent loan mod I worked on with Countrywide approved a loan with the borrower being 36% negative each month after new payment arrangements. This was on a FICO of 710 and LTV of 95%. Find the logic in that one.

[Author]

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