Keeping It Real: Underwater mortgage holders may be able to refinance
The Home Affordable Refinance Program was announced in March 2009. It was designed by the government to help 5 million underwater or equity-challenged borrowers nationally. In October 2011, visit this discount in an effort to help more borrowers, story the loan-to-value …
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Wall Street Breakfast: Must-Know News
… says mortgage-bond trader Patrick Ahn. The Federal Housing Finance Agency will show in a report today how more borrowers, particularly those who are in negative equity, are taking advantage of the government's Home Affordable Refinance Program, …
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US mortgage refinance program on the up
The US government effort to help struggling homeowners under the home affordability refinance program (HARP) nearly doubled in 2012 from 2011. Harp helps borrowers stuck in loans backed from Fannie and Freddie Mac and which are in negative equity.
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Question by boss: How do I calculate a apartment building investment cash flow after taxes or before taxes?
I am going to invest in a apartment building using a loan.
Is it the noi-annual debt service-annual mortgage payments-the annual loan paybacks-income taxes?
If this isn’t right, pharmacy then please provide the proper way of determining my actual annual profit after taxes or pre-tax.
Best answer:
Answer by fn0384
You need to calculate the after-tax rental income first, remedy then after tax cash flow second.
First after-tax income from the property.
Income
a) gross income from the rentals
Expenses
b) mortgage interest
c) depreciation (assume 80% of the purchase price is depreciable building, thus annual depreciation is purchase price * 80% / 27.5 years or about 2.9% of the purchase price)
d) real estate taxes
e) rent loss due to vacancy, tenant
f) management fee
g) maintenance fee
h) insurance
Income – expense would give you roughtly taxable rental income from the property.
Assuming the rental bldg generates a (paper) loss, you can apply it towards your personal ordinary income and use it to reduce your ordinary income.
If you show a rental profit, then you would have to pay at your marginal tax rate.
Cash Flow:
Annual Rental income – annual mortgage payment -/+ tax liability or tax benefit from owning this property.
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Question by Anthony: Question about taking out a mortgage on a home?
We plan on buying a home in about six months and we will be first time home buyers.
We have enough saved up for a down payment and we were planning on paying off our cars loans which would takes us about 4-6 more months which is why we are waiting.
Although we found a home for sale that we fell in love with, troche and our question is, for example: if we bought this home lets say within a month or so, but don’t move in for a few more months, is there something you can work out with a lender so you don’t have to make any payments till you move in. Or once you sign and bought the house, next month payment is yours?
We haven’t talked to a mortgage lender yet because we weren’t planning on moving out no earlier than six months from now. Talking to a lender will be our next step, but I was just curious to know about this question.
We have no other outstanding credit card debt.
We don’t have to pay off our car loans we are just preferring to do so ourselves. I understand I will have another one down the road, we just figure as first time buyer lets make are life a little easier by paying them off before we jump into the biggest purchase of our life.
Best answer:
Answer by Pascal the Gambler
Your payments start when you close on the home. Period.
If you are looking to purchase in 6 months, you should be talking to lenders now.
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Question by brewdogg_2001: How long does the foreclosure process last and what are the stages? Is court first or are u just evicted?
i am about to be 4 months late on a Fannie Mae loan in Florida. I have already received a certified letter stating they can accelerate the loan if I don’t pay in full in 30 days!
Best answer:
Answer by Becky
If you’re 4 months delinquent and it’s Fannie Mae, medications then chances are your property is not yet in Foreclosure – what is your intent regarding the home?
The plans put into play by President Obama are specifically for Fannie Mae and Freddie Mac loans. Have you called your servicer to apply for the help or to see if you’re qualified for the help? You can go to http://www.hud.gov/recovery/ to read about the programs offered. You may qualify for a modification and be able to save your house, sales if that’s what you want.
If you choose to call your loan servicer (loss mitigation department) be prepared to provide them with your income/expenses. You may want to review this before you call to make sure that you are at least breaking even, order have a small surplus or a deficit that isn’t greater than $ 500. You’ll want to have a contribution to apply towards your delinquency and it should be at least one payment or more.
If you’re intent on letting your home go to foreclosure make sure you educate yourself. You can google foreclosure laws + florida + fannie mae and come up with websites that will give you time frames from the intial delinquency, when the property and your credit will start to reflect foreclosure reporting, length of time between the initial foreclosure code to foreclosure auction and check to see if there is redemption in Florida. Also, once your account is officially coded Foreclosure an attorney will be assigned (you can get the information from the servicer) who will be able to go over what you can expect from coding to auction to eviction as well as the information you’ll want to know about the 1099 and what you can expect to pay in taxes if the foreclosure takes place.
Education is the key when making a decision like this – especially if you could possibly get your loan modified into something you might be able to afford. You won’t know if you qualify unless you try.
Good Luck
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Question by Gary: Why is the Credit Score look at when applying for a job?
I understand on how important the credit score is when applying for an unsecured loan, ampoule a home, sildenafil financing a car or trying to get a credit card but why is it a factor for job consideration? So any Human Resource people and/or Hiring Managers care to respond and explain why a person’s credit score even comes into play?
Best answer:
Answer by SoulDawg4UGA
There is a positive correlation between one’s credit score and how responsible they are. The idea is that people with higher credit scores are a little more likely to show up for work on time, focus on their jobs, etc. And you see, maintaining good credit requires timeliness of paying bills and focusing on keeping track of all your bills.
What do you think? Answer below!
It shows how responsible you are. A low credit rating could represent a low sense of caring about your finances. If you don’t care about your finances…. likely you don’t have much care for being at work when you should be and being on time… etc.
Depending on the job, they look at credit scores in order to know what financial situation you are in. If you are severely in debt, you might be more tempted to accept bribes from competitors or release company secrets for money.
There is also a perception that if you have a poor credit score and are in need of money there is an increased chance you may steal from the company you are working for. It is only one of many factors that some companies use to evaluate potential employees.
Employers aren’t allowed by law to look at a applicants “credit score” or worthiness of credit for consideration of employment. Unless they are applying to get some kind of business credit or lease from that business.
Most people aren’t aware of that law, most people accept those kind of business practices as that’s just the way it is, But its against the law in the US.
Even “backround” checks in most states are legally limited from employers, thats why the companies that require “backround” checks
go to firms out of their state.
They are not worried about your score, but your honesty. Some legal things appear, as well as charge offs – where you essentially stole money.
And, no, it is not illegal to use them as part of a back ground check.