HARP Re-Finance Loan

HARP leads are new to the mortgage community so let's try to make sense of requirements for a HARP re-finance and show what data sets are working well to get those deals closed. First off let's define what HARP is, HARP stands for Home Affordable Refinance Program, It's also commonly referred to as a DU re-fi or DU Plus program. The terms may be different but they are describing the same program. So for our purposes here, DU and HARP will be interchangeable. This is part of Congress' effort to jump start the mortgage market and keep people in their homes. If you have been in the industry for any amount of time you probably already have your own ideas of just how effective this program will or won't be, but we'll focus on the requirements for getting those deals done.

The basic tenants of the HARP deals are as follows:Mortgage Trigger Leads

1. You will be working with the servicer to get these deals done. The original lender does not need to be the servicer for these deals. This presents some very unique opportunities for those of you who work directly for the lender. So if you work for Bank Of America, there is a gold mine in these deals with the right kind of data. If you are a broker, there is still a gold mine but he data you'll be using will be a bit different.
2. The first mortgage can be up to 105% LTV. No appraisal is required but the AVM will vary by servicer. Juniors can be subordinated to unlimited CLTV!
3. The type of loan you'll be transition people to is straight forward. A 30 year fixed will need to be put into another 30 year fixed. If you have an adjustable you can take them to a 30 year fixes or another adjustable. A 30 year fixed can't be transitioned over to an adjustable.
4. Borrow may not have any late reporting mortgages in the last 12 months.
5. There is not had credit score requirement but there will be rate adjustment for scores under 740
6. The loan must be agency loans, fannie or freddy
So let's talk about the data for getting these done.

If you are working for the Lender/Servicer, Bank of America, Wells, etc.
You have an advantage that is unique and you have the opportunity to provide real benefit to your borrow. Using a soft inquiry lead (which your employer already does at the wholesale level) you have the ability to screen via the soft inquiry and find your existing customers that eligible for a HARP refi. This is usually done with the borrow name and partial SSN which are provided with our leads. We are screening the credit report so the other requirements are read directly off the credit and ensure that your prospects meet the specific requirements for the HARP program. If you can imagine the scenario of calling Johnny Borrower with your internal customer information and our lead and letting them know that they qualify for a reduction in their interest rate without an appraisal then you already have half of the deal done. Please give us a call and let us go over this unique opportunity. If you are a broker;

As a broker, you will have the same opportunity to help your borrow and gets deals funded but the tact you will take will be different from the LO who is working for the lender. Since you don't have access to look up customers via an internal system your marketing will be done in a more traditional manner. Direct mail has proven to be a solid method for getting these borrows and the mail piece is simple.

They are already approved and since you'll be screening via the same soft inquiry process that the institutional lenders are using you'll have the same added advantage of knowing what's on the credit report before a single piece of mail is sent or a single phone call is made. Once the borrower's eligibility is verified you'll be pushing the re-finance through the servicer. Please call us to get more details about this unique opportunity. The deals are the middle ground between an FHA re-finance and a conventional deal. These require less effort than a convention and a better paycheck than a streamline.

To learn more about the HARP 2.0 options available to you, visit http://www.confirm-eligibility.com/

Manage Business Growth With Overtrading Problems

Overtrading and the problems it can create can be quite difficult to comprehend. Surely, if a business is selling many of their products and their customer base and profit are growing rapidly, how can this be a problem? Indeed, not only can it be a problem but in some extreme cases, it can lead to a business having to cease trading.

The fundamental reason why overtrading is a problem is that it can put a huge strain on the resources of a business, particularly cash flow. If turnover is increasing too quickly, then you may need to acquire more machinery or equipment to service the increase in customer numbers. It may even be the case that you need to move to bigger premises or a larger office with more storage space. 

Therefore, growth in sales will likely to be matched by an increase in the need for capital investment and other working capital. If the business does not retained profit to fund this rapid expansion then they attempt to borrow it. These borrowing facilities can be very costly. However, many new businesses which experience overtrading find themselves unable to obtain additional funds due to a lack of trading history and are forced to reduce the size of their operations or possibly 'throw in the towel' altogether.

Other costs that can cause huge drain on working capital when growth is too rapid are staff costs. With any expansion comes the need for increased numbers of employees. This can be extremely expensive for a business to fund, especially when combined with any increases in connected payroll taxes. In addition, if your sales are increasing quickly it may mean that you need to carry larger quantities of stock and thus more of your capital will be tied up in that inventory. Again, stock is like many other asset, if you own too much of it, it can starve other areas of the business which urgently need funds.

There are a number of precautions which one can take to prevent the potentially damaging effects of overtrading. Firstly, growth should be managed properly and with a sound understanding of how it will affect the working capital of the business. By producing sound monthly budgets, cash flow projections and monthly management accounts, you will be in a far better position to control the potentially damaging effects of rapid growth. Secondly, before you grow too quickly, look to secure increased funding. In other words, it would be a prudent idea to approach your bank and get the 'green light' for future finance to fund expansion, should you need accountants Southampton. Having this contingency finance at the ready will mean that working capital can be maintained and growth can be managed properly.

Lastly, to avoid the effects of overtrading, it might be a good idea to take the 'only what I need' standpoint. For example, rather than hold larger and larger sums of stock when you are growing, consider ordering your stock 'just in time' (JIT). This can reduce your stock holding costs considerably and again free up all that working capital held up in stock. Alternatively, only buy equipment which you really need or see if you can buy any second-hand equipment which will be cheaper but still do the job. Again, with everything you buy for you business, ask yourself the question: is this something I really need or just want?

Visit accountants Southampton, a firm of accountants and business advisors specializing in small business. Find out how we can help your business grow.

Why it is Essential Having a Business Bank Account

There are many reasons why a new business owner may forgo opening a business bank account and struggle on using their own personal account for their business transactions. Sometimes they simply run out of time, having focused on everything else and forgotten to open a business bank account, they suddenly realise that it cannot be done instantly and so opt to carry on using their personal account. Other times it is through lack of conviction, fear of business failure leads them to bulk at putting the business finances into black and white. Most often, though, it is in the mistaken belief that it will save them a little money if they do not have to fork out for business banking fees.

Not paying to have a separate business account can often prove something of a false economy, as, for the small amount that most business accounts might cost, a business can gain so much more than just a bank account.

The way that customers and other businesses with which you do business view you is very valuable; image is everything in business and having your business transactions move through a personal rather than a business account smacks of small time; your business is far less likely to be taken seriously and plenty of customers will be put-off by the impression of paucity it creates.

Trying to do business accounts when using the same account for personal and business finances has the potential for absolute disaster; even allowing for not making any important fiscal errors, the sheer time consuming nature of fussing around separating everything out will be very trying for most new business owners.

Make no mistake, HMRC will be watching you; there will of course be times when you will have to have contact with them, provide them with information etc. and other times when they will just be watching. Mixing personal and business bank accounts may cause them to look a little harder at you and your business, as it makes financial transparency more difficult to demonstrate at a glance. If the accountant Southampton wants to see that you are declaring everything you should, having to fight through hundreds of domestic transactions to locate those of the business will not endear you to them.

Business accounts can provide your business with more than just banking facilities; many banks will throw-in added extras, such as accounting software, deals on insurance and even offer the actual banking services free for the first year or more of business. They are also a great source of financial advice for the new business owner.

So, rather than viewing a business bank account as an extra overhead on your new business, perhaps you could look at it in terms of what it can provide in benefits for your venture. If a business bank account can help your business profile or simplify its record keeping maybe it is worth the effort of setting it up, if it can also help the authorities to look favourably on you and throw-in a bit of guidance and some cheap insurance to boot, well then maybe it becomes an essential to add to your list.

Why Do We Need HARP Loan?

HARP is short form for "Home Affordable Refinance Program" and was first designed for those people who owned homes that were serviced by loans from Fannie Mae and Freddie Mac. With this program homeowners were then able to refinance their homes that where slightly underwater that previously didn't have Mortgage Insurance. This could also be done with loans that were struggling or which had an outstanding balance that was much higher than the value of the house. When HARP first came about, it did not do well in some areas because incomes were being closely watched and loans were capped at a 125% value. This basically meant that you could not own more than 125% the value of the home.

At present, HARP 2.0 is being worked on and will be called HARP 2012 once it is released. It will be an improvement on the first HARP program and will give borrowers the flexibility to refinance at lower interest rates with minimal income documentation. There will also be zero limits for value which means that appraisals will totally be eliminated from the scene. Put simply if you are home owner with Fannie Mae or Freddie Mac owned home, and if you have not defaulted on your loan repayment for 6 months with the ideal being 1 delay in payment in a year, you will then be able to refinance to a level below the 4% range on a 30 year fixed. This can mean that you could do this with no appraisal and minimal documentation.

To find out if you fall in the Fannie Mae or Freddie Mac category, you can do so by going online and checking whom your loan belongs to. You will instantly know the answer online and if you don't, you can easily ask your loan provider for the information. The loan you get will be able to refinance your first mortgage alone without touching the 2nd one if you have it at all. Besides taking on loans that are slightly underwater, you can take advantage of this program if you have a higher interest rate than what is currently in the market. You can also make use of HARP if you have an ARM or an adjustable rate mortgage that stands to be reset soon enough. You can make use of this if your loan to value is over 80% and needs mortgage insurance.
The main aim of HARP is to bring down the amount you are paying right now and a maximum of $250 Cash is allowed back at closing.

To learn more about the HARP Loan options available to you, visit http://www.confirm-eligibility.com/

Making HARP Program Explained

Obama refinance plan has been primarily designed to make the financially grappling homeowners to pay their monthly mortgage payment successfully so that they may be able to avoid foreclosure. In case you are the home owner who is in the adjustable rate mortgage slab, not able to pay the monthly payments; home affordable refinance program (HARP) is for you. Millions of Americans as the result of financial crunch have not been consistent with their mortgage payments, and which is why federal government has come up with various programs, and HARP is one of them.

Most of the home improvement programs are quite effective in stopping the foreclosures and saving the home. Under the unique HARP program, mortgage lenders will refinance the existing home loan to a value equal to 138 percent of your home's actual value. By doing so, the mortgage lender will be getting fixed mortgage rate and there will be no fluctuations in the interest rates. Unlike the HAMP program, a homeowner who becomes eligible under the HARP, do not essentially have to occupy the property. It means that you can go for HARP even if your primary home is lying vacant. The program also has various other conditions which the homeowner can easily judge by reading through the program guidelines. If you don't understand then you can ask your mortgage lender as well.

The HARP program has become popular for many reasons and among the borrowers who have not been able to pay for the mortgage loan. The purpose of federal HARP program is to make the home affordable for the homeowner as he/she can easily repay the mortgage without any hassles. Most of the homes are on the brink of getting foreclosed, and in this context, HARP has brought hope for the homeowners. The ultimate purpose of HARP is to avoid foreclosure of the homes so that homeowners do not lose their home and they can stay peacefully in it.


The program is one of many programs which have been started by Obama administration to help the homeowners in the manner where they get off the mortgage loans quickly and easily. If you are one of those homeowners who have not been able to repay the mortgage loan, then HARP is the right option to start with. HARP program to stop foreclosure is a smart program to make financially stricken US homeowners go free of their mortgage loans.

To learn more about the HARP program options available to you, visit http://www.confirm-eligibility.com/

foreclosure is a legal event

Here in our area (Longville Lakes area) a foreclosure is a legal event and there are benchmarks that must be met. Once the case is turned over to attorneys, the impending foreclosure must be advertised, usually in both the local papers and in the largest and closest metropolitan daily. The entire process can take a very long time from initial default to the actual public auction of the property.

If you are a member of the military  and you are the owner of the property, there are additional safeguards required by federal and in some cases state laws From the beginning of the process, however, the meter is running. The longer the foreclosure takes, the greater the debt that accrues and the larger the liability the homeowner has, something that will become critical down the road.

Find best real estate company in MN | lakeshore homes for sale

Harp Loan - Know About Mortgage Debt

Many people have faced mortgage debt and foreclosure in recent years. As the housing market crisis continues to challenge homeowners every day, more people are being forced into drastic measures to save their homes. Unfortunately, many people aren't able to secure a solution in time or, worse yet, simply don't know their rights when it comes to managing their mortgage debts.

Your Options

Choosing between mortgage debt solutions can be overwhelming. The best place to start is with a loan modification, in which you can negotiate changes to the terms of your existing loan that can significantly lower your monthly payment. Lenders can be stubborn with qualification standards for a loan modification, which may lead you to consider refinancing. This option may be able to lower your monthly payment, but be sure you can afford the out of pocket closing costs.

If you are unsure about your ability to maintain even a reduced monthly payment, consider requesting approval to enter a short sale. Selling the home in exchange for being absolved of your mortgage debt liability can protect your credit more so than allowing the home to enter foreclosure. Finally, a deed in lieu of foreclosure may be able to get you out from under your mortgage debt in exchange for signing over the deed to the lender. However, remember that this option is a last resort and should only be pursued if no other option is possible and foreclosure is imminent.

Your Rights

As a homeowner, you are afforded certain rights when it comes to dealing with lenders. Even in a non-judicial foreclosure state, lenders cannot simply foreclose on your home without following a few basic requirements. The trick to managing lenders is to know your rights and ensure they are following the rules.

First, lenders are required to provide you with written notification about an impending foreclosure. The amount of time allotted for these notifications varies by states, some as little as 30 days. However, your lender cannot initiate the foreclosure process of HARP loan without informing you in writing of your delinquency and their intent to foreclose.

Next, you have the right to request a mediation hearing with your lenders present. This hearing will allow you to sit down and discuss your loan options with your lender. To ensure you are getting the most from this hearing, consider hiring a foreclosure lawyer to represent you with such legal matters.

Last, remember that you have the right to negotiate a solution with your lender directly at any time. You may request options such as a loan modification, short sale or refinancing option in lieu of a foreclosure. If you are unable to secure a deal, consider one of several federal programs that are offered to assist homeowners. The HAMP and HARP are two programs developed by the government that can offer modifications or refinancing to homeowners that may not qualify under their lender's standards.

To learn more about the HARP loan options available to you, visit http://www.confirm-eligibility.com/