I was burned by my first lender and had a foreclosure. How can I trust a new lender?

During the recent recession,1st Alliance Lending LLC millions of Americans experienced a foreclosure or short sale of their home.  Allegations have since surfaced that some lenders unjustly delayed or denied mortgage modifications that would have allowed thousands of these Americans to be spared devastating foreclosure or short sale. If this describes your situation, it is understandable that you would be hesitant to work with a new lender, although you likely want to achieve the American dream of home ownership.

You may fear that another lender will set you up for failure, so they can profit from fees. Although your fears are understandable, keep in mind that not all lenders partake in this hideous behavior. You CAN find lenders that are conscientious, with employees who genuinely want to help their clients, not hurt them. Here are some tips for searching for a trustworthy lender, who can help you return to homeownership.

Ask for referrals
Do you have friends or relatives who can provide you with their story? Maybe they have worked with a lender they trust and can pass along that lender’s name. Consider asking a trusted real estate agent for a referral. Real estate agents work with both lenders and homebuyers on a regular basis. They can give a good opinion of which lenders are trustworthy. Other experts that may be able to help you in your search are accountants, financial advisors, and attorneys.

Check references
Check business references to find out if the lender is reputable. The Better Business Bureau (BBB) is a great resource. You can discover what other homeowners are saying about the lender. You will also want to verify the lender is authorized to conduct business in your state. The NMLS Consumer Access is a free service for this verification.

Another option is to check professional rankings. Consider looking at the website for the lender. Do they provide testimonials? What is their business philosophy? Are they engaged in the community? Get a feel from their website as to what kind of company they are. Are they vested in the community or just out to make money? Look at the history of the company and what they have been in the news for.

Interview more than one lender
Take the time to interview more than one lender. Do they treat you as a person or as a way to make more money? Will they guide you with your home purchasing experience or will you be just another number to them? Make sure you feel comfortable with the lender before committing.

At 1st Alliance Lending we genuinely want to help people achieve sustainable loans. We are working to rebuild communities and are recognized for the thousands of people we saved from foreclosure during the recession. We have a conscience. We provide personal service so you can achieve a successful mortgage long into the future. Contact us to learn more about partnering with us for your new, successful mortgage.

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Online Home Mortgage Lenders Work with Every Situation

Borrowers love the benefits of working with “Back to Work” program lenders

Foreclosure, prior short sale, bankruptcy and deed-in-lieu can leave families financially struggling for years. Previously, the Federal Housing Administration (FHA) required that online home mortgage lenders support two to three year waiting periods for families battling an unfortunate economic event.

Mortgagee Letter 2013-26, released on August 15 of last year, states, “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

The FHA launched its “Back to Work – Extenuating Circumstances” program, which allows recovering families to apply for a new mortgage only 12 months after losing a home until September 30, 2016.

Economic events result in loss of employment or income which causes a total household income to drop by 20 percent or more for at least six months. In turn, this causes families to lose their homes and possessions.

The program allows borrowers to put down only 3.5 percent on a mortgage with no premiums and no additional fees at closing. Mortgage rates in the program are the same as mortgage rates outside of the program.

Prospective “Back to Work” borrowers that have yet to be discharged from Chapter 13 bankruptcy must obtain written permission from the Bankruptcy Court before program eligibility.

All prospective borrowers must complete a minimum of one hour of one-on-one housing counseling by a Housing and Urban Development approved agency, which can be found at http://www.hud.gov.

“Housing counseling is an important resource for both first-time home buyers and repeat home owners,” FHA’s letter states.

The session must address the cause of the borrower’s economic event and be completed between 30 days and six months, prior to submitting a new home loan application.

Mortgagee Letter 2013-26 states, “Housing counseling enables borrowers to better understand their loan options and obligations, and assists borrowers in the creation and assessment of their household budget, accessing reliable information and resources, avoiding scams, and being better prepared for future financial shocks, among other benefits to the borrower.”

Although the FHA has recognized that bad credit does not imply a prospective borrower’s ability to repay a mortgage, it is still determined to find families who are fully recovering with satisfactory credit. “Back to Work” program lenders verify that each borrower’s credit history is free of delinquency, late housing, installment debt payments and other derogatory credit issues.

Borrowers with credit scores below 500 are not allowed to apply, but borrowers with no credit score remain eligible.

Losing a home can be a rough and frightening experience, but it’s not too late to apply through Back to Work program lenders. If your current lender is not participating, there are online home mortgage lenders willing to work with every situation.

Mortgage lenders for bad credit are helping refinance families in need

The human experience begins with a home — a central safety where families live and grow. Forbearance agreements, foreclosure, loan modification, bankruptcy and prior short sale have steered families from enjoying where they place their greatest pride. For the past five years, families, maybe like yours, have faced constant worry that banks won’t understand their monetary situation after the housing market crash in 2008.

Fortunately, this past August, the Federal Housing Administration (FHA) launched a program that allows families to apply for a new home loan only one year after an economic event. For many families, this shorter waiting period is a home-mortgage miracle. Finally, mortgage lenders for bad credit are making moves.

The Back to Work program is designed for borrowers with extenuating circumstances — those who are saying, “I had a short sale” and, “I had a foreclosure,” among other economic crises. However, eligibility depends upon if the family is making a full recovery. In other words, bad-credit home financing begins with creating good credit. Most lenders recommend that a borrower’s monthly mortgage payment should not exceed 28 percent of the borrower’s gross income.

The FHA defines satisfactory credit as a 12-month history clear of late housing and installment debt payments. Also, satisfactory credit must appear after a reduction in household income of 20 percent or more for at least six months. This shows mortgage lenders for bad credit that the family is fully recovering.

Many lenders steer recovering families away, but those participating in the program aim to help. The FHA requires “Back to Work” borrowers to participate in at least one hour of one-on-one housing counseling, where families can continue to receive financial advice to ensure full recovery.

“Housing counseling enables borrowers to better understand their loan obligations, and assists borrowers in the creation and assessment of their household budget,” according to Mortgagee Letter 2013-26.

Designed for families in search of a more simple loan process, borrowers in the “Back to Work” program do not face premiums nor additional fees at closing — and they shouldn’t. In a space where children play and families gather to celebrate, the “Back to Work” program will make any home a place to forget about past financial difficulties.

Refinancing a Home for People with Low Credit Scores

“Home is a place you grow up wanting to leave, and grow old wanting to get back to.” – John Ed Pearce

The heart of a home can only really be experienced. A home is a place where memories grow and family comes together. It is a place where hearts love, where we can let our guard down, express our fears and lean on family for support when we struggle.

During financial crisis, life comes to a standstill for the family affected. When the home, the glue the binds a family, is threatened everything else seems to come to a halt. When every road seems to be a dead end, people must look for any way to protect their homes. A helping hand and willing heart is what borrowers need from their lending companies during a time like this. Being in this position makes a person feel very vulnerable and insecure which is why it is important to work with the right lender. Refinancing can offer a solution by reducing monthly expenses to a manageable level.

What is refinancing?

Unlike home mortgage loans, where interest rates, monthly fees and the length of mortgage are reasonably planned, refinancing can either have a negative or a positive effect on flexibility, as per the credit history of a borrower. Refinancing is an attempt to change an existing home mortgage plan, to help borrowers come out of a financial crisis. During critical situations, if credit scores are not good, refinancing is not easy, and some borrowers need a customized solution.

Many lenders offer refinancing on the basis of credit score. The higher the credit score, the lower the interest rate of refinancing. Doors are open for homeowners with high credit scores, however, for people with low credit scores, the scenario is more difficult. There are a few lenders though, willing to extend a hand and offer a refinancing opportunity to those who have less than perfect credit due to special circumstance, and are working hard to get back on track. These lenders have the opportunity to help the most vulnerable borrowers secure the place they love most, home.

Significant Role of Empathetic Lenders

There are some lending companies that believe in practicing empathy during a borrower’s crisis. They believe that if borrowers are put in a position to succeed, they will take the responsibility of their success. These lenders offer refinancing that help borrowers out of financial crisis. Instead of focusing on numbers, they believe in listening to the complete story, and analyzing the borrower based on a whole picture. If they feel the borrower is able to handle the financial responsibility of making payments on time they offer appropriate refinancing to help borrowers enjoy security of a home they can afford.

Financial Lenders – Friends in Need

“It’s the hardest thing in the world to go on being aware of someone else’s pain.” ― Pat Barker

Helping those who are struggling and striving constantly to bring equilibrium in life is an attitude that calls for appreciation. Either we give up on life or try to work things out, brick by brick. What should not go unnoticed are the hardships a person faces and the zeal to bounce back and take control of life. Lending companies have the opportunity to contribute to bringing about a much-needed change in their lives.

Home is the place, where we feel secure. Mortgage lenders can be a ray of hope for people, attempting to buy a new house, with a “less than acceptable” credit score. Technology and online tools cannot help borrowers in this situation. Resilient borrowers looking for a home mortgage loan visit lending companies hoping for a customized solution, not mind-boggling calculations. A handful of lending companies look beyond the credit score. A pledge to revive the lives of those in financial crisis is an inspiration in itself.

Empathetic lending companies look beyond the credit report to reach out to people in need of a helping hand during crisis. These lending companies listen to the hurdles of borrowers, try to understand the current financial status and analyze their requirements and determination to recover. Accordingly, home mortgage loans are provided that match the situation and ability of borrowers. With respect and integrity, each story of hardship is listened to. Commitment to sustainable partnership is what these companies believe in. Personal service is offered at every step. These kinds of services go a long way. What technology and automation cannot do, these lending companies can make possible. Irrespective of the reason for a low credit score, intent to make things better brings about the much-needed change in the lives of borrowers.

Lenders can help realize the dream of borrowers aspiring to buy a house with lower credit scores. Borrowers can lean on these lenders for help in attaining the dream of home ownership.

Source Via: http://www.1stalliancelending.com