Analyzing Mortgage Applications

How large a mortgage can you afford? The size of a mortgage you can qualify to obtain will determine how much you can spend on purchasing a home. There are a variety of different factors looked at by banks when analyzing mortgage applications.

Debt – to – income Ratios

What is a debt to income ratio? There are two types of debt to income ratios. A front – end debt to income ratio and a back – end debt to income ratio. The front – end and back – end debt to income ratios are utilized by mortgage lenders during the mortgage application process. A front – end debt to income ratio is in reality a housing expense calculation. The theory is how much of an individual’s or family’s gross (pre tax) income can be utilized to make mortgage payments on a monthly basis. This front – end debt to income ratio usually runs between 28% and 33% of an individual’s or family’s income. This means that the financial institution will not approve your mortgage application if your debt to income ratio goes beyond the financial institution’s guide lines. This specifically applies to conventional loans and Federal Housing Authority (FHA) loans.

Back-end Debt to Earnings Ratio

The back – end debt to earning ratio is the percentage of you or your family’s gross (pretax) monthly income that will be utilized for debt service for your financial obligations. Financial obligations include your proposed mortgage, credit card bills, car loans, child support, and all other types of financial indebtedness in this ratio. The back – end debt to income ratio utilized by financial institutions in their mortgage underwriting process is usually between 36% and 40% of your gross monthly income. This means if your proposed new mortgage and other debts are more than 40% of your gross income, you will most likely get turned down for your mortgage application. In situations where there are assets in the bank and very high credit scores, financial institutions have been going as high as 48% on the back – end debt to income ratio.

Before you submit a mortgage application, you should calculate your front – end and back – end debt to earnings income ratios. This will give you a better idea as to whether you will qualify for the mortgage you are applying for.

Foreclosure Defense Lawyers

First you get the loan, then you start making payments to the loan. But what happens if your financial situation changes? If you lose your job, become disabled, are downsized or have other financial problems, you may find yourself in a foreclosure situation. Do not dispair. The Law Offices of Schlissel DeCorpo has been helping families deal with foreclosure problems for the last 20 years.

We provide all aspects of foreclosure defense. We attend foreclosure court conferences on behalf of our clients. We litigate issues such as defective foreclosure lawsuits, predatory lending, defective mortgages and other significant real estate related defenses. We’ve developed an expertise concerning federal laws and foreclosure.

We can also help you deal with foreclosure-related bankruptcy issues. Filing either a Chapter 7 or a Chapter 13 bankruptcy may be necessary to deal with the foreclosure on your home. If you file bankruptcy, you can eliminate second mortgages in some situations, stop foreclosure, stop other debt collections practices and at the end of the bankruptcy, action can be taken to re-establish your credit. Feel free to call us for a consulation. Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350- 2802. Thank you for visiting our foreclosure defense blog.

Bank Complaints Soar

Bank Complaints SoarComplaints by consumers and homeowners against banks are rising to a stratospheric level. It has been suggested that new laws and regulations need to be put in place to reign in inappropriate bank practices.

The controller of the currency recently stated that he is receiving a record number of complaints against the more than 1500 banks subject to regulation. It is estimated that there were more than 80,000 complaints against banks in the year 2010.

The Federal Reserve and the Federal Deposit Insurance Company have recently issued specific regulations and guidelines to deal with the numerous complaints filed against banks.

Complaints About Mortgage Foreclosures

The majority of the complaints against banks have dealt with various problems encountered by homeowners in mortgage foreclosure proceedings. There were more than 36,000 complaints filed against banks in 2010 dealing with mortgage foreclosure issues. Banks are fighting numerous lawsuits throughout the country and are being investigated by all fifty state Attorney Generals concerning their practices involving foreclosure proceedings.

Prior to the financial melt down, most bank complaints dealt with credit card issues. The reason why banks are receiving so many complaints is that they have been involved in faulty practices. They have engaged in predatory lending. They have set up mortgage modification programs that simply do not work.

The American consumer deserves better. Consumers do not deserve to be left hanging for months and months at a time without getting any feedback on their mortgage modification applications. Consumers deserve to be updated regarding the status of their applications for mortgage modifications. They should not be forced to call week after week and continually get incorrect information or deal with nincompoops at the other end of the phone who have no knowledge of what is going on. If banks and financial institutions are serious about mortgage modifications they should help consumers instead of frustrating and angering them.

mortgage1Helping Homeowners with Foreclosure Defense

Our law firm has been helping homeowners with foreclosure defense issues for more than twenty years. We understand the frustrations and anger homeowners feel regarding their mortgage modification applications not being attended to. We are foreclosure defense lawyers. We deal with predatory lending, bad faith issues, defective mortgages and all aspects of mortgage foreclosure proceedings. We represent our clients in court and we attend foreclosure court conferences. We effectively tie up our client’s foreclosure cases in court and put pressure on the financial institutions to provide them with reasonable, acceptable, affordable mortgage modifications. When the situation calls for it, we file either Chapter 13 or Chapter 7 Bankruptcies for our clients. We keep our clients in their homes. We stop foreclosures cold! Call us for a free consultation at 1-800-344-6431; 516-561-6645 or 718-350-2802.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

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We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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