Board Journal Blog

You are looking for a home in Aberdeen, maybe you are a first time buyer or are going to remortgage. If you may have just moved to Aberdeen or wish to move there then getting local mortgage advice can be of huge benefit.

Mortgage brokers can offer help with mortgage questions, mortgage quotes and can provide mortgage tools to assist you with your application. Local brokers can offer the added benefit of advice on the local market. There is a good chance they will have had recent clients so will be aware of what amount lenders offered them and the terms of the mortgage attached. They will also have an idea of the average prices of property and if they are selling. This of course depends on the broker but searching around or asking friends or family will help you find a company that offers a good service.

There are other sources of information that can help you with getting your mortgage. Government websites are good at explaining mortgage terms and there are other websites that offer good guides to the types of mortgages with the advantages and disadvantages of each. Great help but going to seek professional advice for a personal illustration will really help you and your partner if you are going with a joint application.

The Scottish Government have a shared equity scheme that is available in Aberdeen. The scheme is aimed at those on lower incomes but the maximum income isn’t too low so have a look at that. The LIFT scheme as its called gives first time buyers a helping hand by putting up part of the equity in the property. This will increase your changes of getting an Aberdeen mortgage as the risk for lenders is reduced.

So the point I wanted to make is choosing a local mortgage broker can offer additional advantages to a national broker or a telephone based or internet based broker. Use the internet to find a recommended mortgage broker and get the process started now.

Foreclosure prevention has become the new calling card for con artists. Reports say perpetrators are collecting large fees upfront in return for loan modifications and mortgage refinances that may never materialize. 

Famous con men like Charles Ponzi and Frank Abagnale probably wouldn’t have wasted their time with loan modification scams-but apparently, there are quite a few criminals out there who aren’t so particular.

State agencies around the country are warning homeowners about a sharp rise in mortgage loan modification scams. Maryland’s Department of Labor, Licensing and Regulation, the New Jersey Department of Banking and Insurance, the Nevada Division of Mortgage Lending, and others, are spreading the word to distressed homeowners: Don’t pay upfront fees for a mortgage loan modification.

Mortgage fraud 101

The scammers are collecting several hundred or several thousand dollars from distressed homeowners on the promise of a quick and easy foreclosure prevention solution. They’ll usually tell the homeowner not to bother with free foreclosure prevention services offered by non-profits; they argue that the non-profits don’t have the staffing or leverage to act quickly on the homeowner’s behalf.

Sometimes, the scammers stick around and attempt to negotiate with the lender. Unfortunately, the for-profit company has no greater chance of negotiating a workout than a non-profit agency or the homeowner himself. The problem with this scenario is that the scammer consumes the homeowner’s time and money, but offers no greater chance of resolution in return. Worse yet, if the homeowner waits too long for the scammer to solve the problem, the foreclosure could become unpreventable.

Prosecuting these individuals can be problematic; they usually call themselves for-profit loan counselors, which is a line of business that’s not prohibited by law.

In some situations, however, the scammers might collect the money and then vanish, without even attempting to negotiate the promised loan modification or mortgage refinance. This practice is illegal, but the authorities can only prosecute the scammers they can find.

Spotting mortgage fraud

Homeowners can avoid becoming victims of mortgage fraud by declining any loan modification service that requires an upfront fee. Distressed homeowners should also be suspicious about anyone who promises a quick and painless mortgage resolution for one simple reason: there’s just no such thing.

Steps for foreclosure prevention

State agencies and authorities are advising distressed homeowners to contact their loan servicers as soon as problems arise. From there, the homeowner should also:

• Review the U.S. Department of Housing and Urban Development’s guide to avoiding foreclosure.
• Check with the state’s finance, banking, or lending agency to locate state-funded programs or state-run agencies that can assist with loan modifications and mortgage refinances
• Contact an experienced non-profit agency such as HOPE NOW

Charles Ponzi swindled investors, and Frank Abagnale scammed money from banks and bank depositors. Now, a new class of con artist is going after desperate homeowners. If you or someone you know is facing foreclosure, help spread the message that no one should be paying upfront fees for loan modifications.

Buying a home can be highly stressful as it requires so much research such as searching the good one, and determining how you will be paying for it and calculating how much it will cost you in reality. And the list goes on as you will also have to decide on the option you will choose as a homebuyer. Here is a list of five home loan options to take into account.

Option 1: Fixed Rate Mortgage

One talks about “fixed rate home loan” when the interest and payment rate always stay the same. It is really advantageous as this type of option is not affected by the hazards of the market: whatever happens, and you will always pay the same amount until the loan is paid off. While it might have a higher interest rate, it is probably the safest alternative when purchasing a home as there are almost no risk regarding the amount you will pay; particularly when the market fluctuates or the economy changes for the worst.

Option 2: Adjustable Rate Home Mortgage

a periodic up or down change allows it to match the economic conditions. The reason you may want to go with this type of loan is if you want to buy a home that is a little bit out of your price range as the initial interest rate is lower as the one mentionned above. It is often advertised as 3/1, 7/1, etc. For example, with a 3/1 loan, the interest remains the same for the 3 first yearsand then the rate is adjusted every year.

Option 3: Balloon Mortgage

This home loan alternative is normally a five to seven years fixed interest rate loan. You will find that this does not totally get paid off by the end of the term as it is typically refinanced in 25 to 30 years.

Option 4: Jumbo Mortgage

All lenders establish a high mark for what they will authorize people to take on loan for a home. Lenders essentially set a ceiling for what they allow individuals to have for a home. Any mortgage that exceeds the maximum amount established by the lender is called a jumbo mortgage and is considered as being highly risky.

Option 5: Interest only Mortgage

Another type option you can opt for is the interest only mortgage. With that kind of loan, you will actually pay the interest first. What this does is make you start paying the capital as soon as the interest is paid off. This type of alternative might be less interesting for you as you will be ending up paying more because the capital is repaid at all.

In summary, when purchasing a home you discover that there are several different mortgage options. This ensures you to find precisely the loan that matches your budget and will help you to move into the home you’ve dreamed of without a financial problem.

With the current economic situation the way it is, it’s sad that people are losing their jobs and banks are raising their interest rates. Hundreds of thousands of people are under the pressure to pay their mortgage payments and debts and not everyone has the ability to sort out their payment defaults. Those about to default or are defaulting on their mortgage payments do not want to lose their property to foreclosure. So how do you, the borrower, keep from drowning in financial debt?

The following are methods for avoiding foreclosure proceedings:

Get a Restraining Order: A borrower can file a restraining order if they are expecting a foreclosure proceeding. Filing a restraining order most likely involves the borrower to submit a bond equal to the amount of the arrear in payment.

Challenge the Debt: As a borrower, you can challenge the mortgage lender on the validity of the amount that the lender claims you owe. When challenged by the borrower, the lender must prove the borrower has defaulted on their payments. There have been cases when the court has found the borrower not liable and ruled in their favor.

Sue the Lender: The borrower can also sue the lender for any violation of the Truth in Lending Act.

These are some of the legal options a borrower can pursue in order to put an immediate stop to foreclosure proceedings. While these options will cost a borrower legal fees, if you win the case you will give yourself the much needed breathing space to sort out your finances and pay off the mortgage.

Today there are many websites that specialize in avoiding foreclosure. They have trained professionals with whom you can connect and they will in turn negotiate a deal with your lender.

If you have decided to get into the real estate business it is important to understand the right marketing strategies to stay and succeed in this business. You must set practicable goals and your goals need to be long term as well as short term. Merely deciding on the goals will not do. You must make plans to actually realize your goals. 

Though it is a fact that real estate business is lucrative to many, it still needs a lot of effort and marketing skills to survive in the industry. Like in any other venture, the key to a successful real estate business lies in evolving right marketing methods and setting sensible targets. People who are involved in real estates business must focus more on the market, build client relationship, and offer prompt customer service that will make their business profitable.

In order to succeed, people involved in real estate business should acquire the characteristics of an ideal real estate agent. He or she should be adept in finding the motivated seller, determine the value of properties, and knows how to negotiate with their clients. To become successful in real estate business is to know the existing laws of the state. Such that, if a real estate businessman does not know the laws, he or she may end up losing a lot money and valuable clientele.

Just because expert real estate agents have adopted certain marketing methods, it does not necessarily mean that you should follow the same marketing plan. Marketing strategies have to vary from person to person depending on one’s style of functioning. There is a positive difference between creating your own idea and aping other people’s actions. It would always be considered your own marketing efforts if you succeed in working things on your own. There are always new things that you will learn as you pursue your own marketing plans in real estate but learning from the mistakes of others is a good strategy.

A few of the genuine marketing approaches you can try in prospecting clients are more based on the positive side of a person’s personality. Learn to enjoy the daily prospecting of clients. Apart from the devoting major portion of your time for prospecting for new clients, you should also make sure that you establish a good rapport with your existing customers. Make every one of your prospect and customer to feel that they are important to you and every aspect of your business.

Make it a point to address all your prospects and existing customers by their names because it will make them feel happy you have taken pains to remember them. This will also make them realize that you are not after them merely to make money but their presence and friendship means a lot to you. If you are determined to succeed in real estate business, buy yourself a planner and become self-organized. If you do not evenly divide your time between looking for property and prospecting for new clients, you well remain directionless in your business.