Homeowners facing foreclosure and any shortfall of funds due to their lender were subject to tax by the Internal Revenue Service. A person could lose their home in foreclosure and the lender could suffer of loss of say, $100,000. According to a tax law enacted in 1986, the lender was required to mail a 1099 to that ex-homeowner for the dollar amount of loss suffered by the lender.

I apologize that this posting is late. I thought it had been uploaded!

There are difference aspects of the financial picture that are common in what makes a good mortgage loan. All of these elements have a degree of risk to the lender. Mortgage companies judge these risks and assign a credit grade to them. The higher the risk to the lender results in a higher rate to the borrower.

We will review the lenders’ point of view on borrower assets:

What assets does the borrower have? Where did they come from?

Just about every single lender will want to see that they borrower has “reserves”. Reserves are additional funds, which can be verified prior to closing.

Underwriting & Elements of a Home Loan: Part Two  

There are difference aspects of the financial picture that are common in what makes a good mortgage loan. All of these elements have a degree of risk to the lender. Mortgage companies judge these risks and assign a credit grade to them. The higher the risk to the lender results in a higher rate to the borrower.

We will review those risks associated with investment property now:  

Pumping Up Your Credit Scores

Get to refinancing while the "gittin's good"!

This is additional information with regard to my previous post on PMI becoming tax deductible.

New tax legislation passed by Congress this past week will give home owners and new home buyers a tax deduction for mortgage insurance. Read the entire post for details.

Credit Trick # 257

A quick way to add points to a credit score is to pay the credit card bills the DAY THEY ARRIVE in the mail.

Creditors rate slow pays, 30, 60, and 90 days lates, along with those who have to pay a late fee because they waited until"?the last minute. Those who faithfully pay right away have better scores.

So, if you are looking to add 15 to 30 points on your scores, pay those credit card bills right away for at least four months prior to taking out your home loan.