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[E407]Extreme Makeover Home Foreclosure

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1. Why do mortgage insurance companies are willing to put their own money?
2. How can we know if we are insured by these insurance companies?
3. Why are these big corporations helping banks and homeowners?
4. Will the insurance companies help the homeowners also if they are not insured?

Many homeowners are not knowledgeable about their loans. Some people dont even know their own Interest rate; therefore, I will assume that most of you do not understand the term PMI (Private Mortgage Insurance).

What is PMI?
With a Private Mortgage Insurance, banks act as the beneficiary and borrowers make a monthly payment for the insurance.
PMI (Private Mortgage Insurance) protects banks from foreclosure or short sales...

When do you pay PMI?
When you buy or refinance a house, you need to be aware of the loan to value, referred herein as LTV. If your loan has 80% or more LTV, most likely you will pay PMI. Remember when you could take a first loan for up to 80% of the value of the property, then a second loan to cover the reminding 20%? Well, those days are over. Today, banks want you to make a big down payment, therefore, you will have more of your own money invested in the property and they will feel more secured. The big down payment banks are asking you to put down is considered the PMI.
It might sound to you like the insurance companies are only protecting banks. That is not true, insurance companies are also protecting you, the homeowner. As I said before, insurance companies will partner with credit counseling agencies to help homeowners make their payments.
Insurance companies will contact you over the phone or via regular mail to give you information about different websites where you will find information about what to do to save your home from foreclosure.

The most important step you need to take to save your home from foreclosure is to contact your lender. The lender should be able to guide you through the process of saving your home.

This process is easier than you think. You just need to get started and you will be on your way to saving the biggest investment of your life.

Otherwise good people can lose a job, experience relationship problems, or become ill and quickly find themselves in financial hot water. Miss just a few mortgage payments and foreclosure can be knocking at your door.

If you have a lot of money invested in your home, you DON'T want to lose it all in foreclosure. I use a way to save homeowners from foreclosure while making the situation attractive to investors who can bring in the needed money.

An investor puts in the money needed to pay down the homeowner's mortgage and debts. In return, the investors receive 12 - 14 percent interest on their investment, getting monthly checks from an escrow account.

This improves the homeowner's credit score while giving them the opportunity to save their home.

If you're thinking this type of activity could help those having financial difficulty, you're right. This is a fast, low-risk way to pay off debt, even a lot of debt.

Another smart method is to pay your home mortgage every two weeks rather than the usual once per month. You pay your home loan off years faster while saving a mountain of interest. On average, I've seen home owners save a fat $60,000 while owning their homes outright long before they expected.

If living in your home debt-free sounds appealing, this is probably your best way to make it happen.

But what if things don't go well. I sometimes see very good people get into tough financial situations simply because they lost their job, became ill, or both. In those cases, you need to know what to do to keep your home and avoid foreclosure.

Usually you can structure easier payment plans with your creditors. Most lenders would rather get their money slowly than see you go under, forcing the creditor to say good-bye to their money forever.

You may also be able to get a forbearance to let you put off paying your mortgage until you can get back on your feet.

While these ideas are widely accepted and practiced in the business world, many home owners seem unfamiliar with them.

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