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:  

There are many changes happening in the mortgage markets. Is your loan officer "boots on the ground", full time, and educated? Most loan officers have less than five years of experience so handling all the changes that are occuring on a daily basis may be too much for them.

Are 125% loan to value loans on the horizon?

You need to be aware of changes to underwriting guidelines on real estate & mortgage loans. There are big changes in the way lenders look at borrowers. They are looking at them more as rowdy teenagers, instead of straight A students.

You can save yourself thousands of dollars over the life of your mortgage if you spend an hour setting up your goals for the type of mortgage you want. Spend some time to consider the kind of loan you need and how long you will keep the property. "?Listen to your inner voice; what does it tell you about the future of interest rates and home appreciation?

Getting the most from your lender when you need a sub-prime loans.

New Legislation Proposed: No Home Loans For Illegal Immigrants

Strategies To Follow To Keep Your Credit Scores At Their Highest