Walk Away Homeowners a Bitter Pill for Real Estate

By Marcie Geffner - Inman News
Divorce. Single parenthood. Debt. Bankruptcy. These and a long list of other social behaviors were once stigmatized and kept behind closed doors away from polite society, but are now, if perhaps not completely acceptable, at least openly tolerated and in some cases, even lauded as smart lifestyle choices.
Must we now add foreclosure to the list?
The evidence is still anecdotal, but news media have begun to report that some homeowners have decided to walk away from their homes just because they have no equity and, consequently, don't want to make their mortgage payments even though they could afford to do so.
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Six Tips To Refinancing Your Mortgage Faster

By Marcie Geffner (LendingTree.com)

Refinancing is hot.

Hordes of homeowners across the country have decided it's a great time to shop for a new mortgage, especially one that has lower payments, a lower interest rate or a rate that's fixed instead of adjustable.

This rush to refinance, which was triggered in part by the Federal Reserve's decision to lower key bank interest rates, has swamped lenders and mortgage brokers with fresh loan applications. Here are six tips to make sure your application stays on top of the pile:

1. Be Realistic. Lenders have tightened up loan requirements, so you'll need a good credit score and at least some equity in your home to refinance. To figure out how much equity you have, subtract the total amount that you owe on all of your existing mortgages from how much you think your home is worth. If your credit is severely impaired or you owe more than the value of your home, you probably won't be able to refinance right now.

2. Be Patient. Processing all the paperwork that's required for a new loan takes a lot of time. Be patient while your loan moves through the system. Protect your credit score by paying your bills and making your mortgage payments on time and not taking on any more new debt than you absolutely have to.

3. Be Proactive. Your loan representative should keep in contact with you even if there isn't any action on your loan. But do your part to keep the communication open as well. If you don't hear from your loan representative for a few days, pick up the phone and ask for an update. The old adage that the squeaky wheel gets the grease definitely applies in this situation.

4. Be Inquisitive. It's your responsibility to make sure that you understand the terms of your loan. Ask questions and listen carefully to the answers. Don't sign your loan documents until you are satisfied with the information and confident that you have made the right decision.

5. Be Prepared. You'll probably be asked for more information and documentation after you submit your application, but before your loan is approved. Be prepared to act fast. Answer any questions and fax over any documentation to your loan representative as soon as possible.

6. Be Ready. After your loan is approved, you'll need to sign your loan documents and provide a check for any out-of-pocket closing costs. Make sure the funds are available in your account, and be ready to clear your schedule so you can read and sign your loan documents right away.

This story, "Six Tips To Refinancing Your Mortgage Faster," is reprinted with permission from LendingTree.