Wednesday, December 11, 2013

Bank of England pulls back on support for home loans

The Bank of England plans to cut its support for mortgage lending in the U.K. and nudge banks towards lending more to small businesses, it said Thursday, November 28.

The move is an answer to increasing concern that a speedy pickup in housing market activity in Britain could ultimately turn unpleasant, affecting banks and borrowers, and also as longstanding worries that small firms are being starved of credit, hindering economic recovery.

What’s more, it is a sample of the growing willingness of central banks across the globe to organize customized policies to maneuver their economies, rather than relying exclusively on official interest.

The BOE said in its twice-yearly financial stability report that although there is little evidence that quickening activity in Britain’s housing market poses an immediate threat to financial stability, “risks may grow if stronger activity is accompanied by further substantial and rapid increases in house prices and a further buildup in household indebtedness.”

The central bank said property has played “a central role” in many previous economic and financial crises. In the U.K., real estate accounts for 70% of non-financial assets.

House prices in the U.K. have climbed speedily in past months, formed worries over the materialization of a new bubble in prices. A government mortgage-support program for would-be homebuyers called Help-to-Buy had pave the way for a boost in mortgage lending, together with an increase in the number of riskier loans on offer that entail merely a small down payment.

The BOE said that in response to the pickup in housing-market activity and an ongoing dearth in small-business lending it has decided to overhaul its flagship Funding-for-Lending Scheme, or FLS, which offers banks cheap cash provided they use it to dish out loans to households and businesses.

Banks drawing on the FLS will from January no longer benefit from reduced capital requirements on new mortgage loans, the BOE said. On the other hand, capital relief will carry on for small business loans. Banks engaged in small business lending will also pay a smaller flat-rate fee of just 0.25% to use the FLS and will be able to draw more cash from the facility, the BOE added.

The changes were settled with Chancellor of the Exchequer George Osborne.

“Now the housing market is starting to pick up, it is right that we focus the scheme’s firepower on small businesses,” Osborne said. BOE Gov. Mark Carney said extra support for mortgage lending is “no longer needed.”

Wednesday, December 4, 2013

New Mortgage Disclosure Forms to Roll Out In August 2015


The shorter forms, set to be adopted by the Consumer Financial Protection Bureau, will demonstrate buyers more evidently the terms and cost of a home loan.

The federal government’s consumer financial watchdog will necessitate lenders to issue shorter, easier-to-understand mortgage disclosure forms to home buyers that more noticeably show the costs and terms of the loans.

The Consumer Financial Protection Bureau plans to issue the rule Wednesday, November 20, subsequent through on what was an initiative launched in 2011 as the then-fledgling agency’s first major action.  

The early Know Before You Owe forms were welcomed by consumer and industry groups as a development more than the more intricate disclosures essential under federal law for more than 30 years.  The bureau said the new forms would make it easier for home buyers to compare loan offers.

“Taking out a mortgage is one of the biggest financial decisions a consumer will ever make,” said Richard Cordray, the bureau’s director. “Our new Know Before You Owe mortgage forms improve consumerunderstanding, aid comparison shopping and help prevent closing … surprises for consumers.”

Lenders will be mandated to use the new forms, available in English and Spanish, starting Aug. 1, 2015.

The forms will be given to potential home buyers when they apply for a mortgage and when they close on the loan. They will make available the detailed information like the estimated monthly principal and interest payments, closing costs and any prepayment penalties or balloon payments.

The latest loan estimate form and the closing disclosure form use large and bold type for important information like the interest rate and feature highlighted headings and terms to make them easier to read.

Lenders will be obliged to provide the new closing disclosure form to home buyers three days before the closing.  That would give borrowers time to read and understand the information before the loan closes.  Lenders will not be allowed to change the fees and costs on the form at the closing “unless there is a legitimate reason,” under the bureau’s new rule.  

The bureau assembled public and industry feedback on the forms after introducing them in May 2011.  Testing showed that consumers using the new forms were better able to answer questions about a proposed loan and know whether they would be able to afford it, the bureau said.  

Sunday, October 6, 2013

HUD Says It’s Unclear If FHA Can Back Loans Issued after Seizure

The U.S. Department of Housing and Urban Development made mention to thelawmakers it couldn’t pronounce if the Federal Housing Administration would cover new mortgages in communities together with Richmond, California that propose to seize home loans through eminent domain.“Pending legal developments and possible further execution of the plans in question, HUD does not know whether any new mortgages which might be created would qualify for insurance by the Federal Housing Administration,” Acting Assistant Secretary Elliot Mincberg wrote in an Aug. 12 letter responding to questions from members of Congress.

The week following the FHFA HUD’s comments came, which oversees Fannie Mae (FNMA) and Freddie Mac, said it would considering directing the companies to stop doing business in communities that seize mortgages through eminent domain to avert foreclosure by writing down the principal balances.
The Federal Housing Finance Agency may also initiate legal challenges to such actions, Alfred M. Pollard, the agency’s general counsel, said in a memorandum.

“There is a rational basis to conclude that the use of eminent domain by localities to restructure loans for borrowers that are ‘underwater’ on their mortgages presents a clear threat to the safe and sound operations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks as provided in federal law,” Pollard wrote.
Blight Prevention

In the preceding month, Richmond announced it is moving ahead with a plan to seize mortgages. The public benefit of the seizures is to fend off foreclosures that cause blight and create other costs for the community, according to the plan’s supporters.

At the minimum of a dozen cities still dealing with the fallout of most horrible slump in home prices from the time when the Great Depression are studying the eminent domain idea. Others include El Monte, California, North Las Vegas, Nevada, and Irvington, New Jersey. Communities such as San Bernardino County, California, and Chicago abandoned such plans after considering them last year.

Last week, Fannie Mae and Freddie Mac joined investors authorizing a lawsuit to stop Richmond from seizing loans.

The distinguished domain program is advocated by Mortgage Resolution Partners LLC, which would supply services and arrange for private investment funds that would proceed by buying the loans for less than property values, and reworking them.

Tuesday, September 3, 2013

Housing Counselors Warn Foreclosure Rescue Scams Still Common

It was agreed by nonprofit housing counseling agencies and housing rights advocates that foreclosure rescue scams are still common in the Bay Area, and there’s no need for homeowners in distress to empty their pockets paying for private attorneys.

Because of the sudden death of the family’s primary breadwinner, Tatakamotongas of East Palo Alto suffered from mortgage payments. They decided to seek help with obtaining a loan modification to lower their monthly payments and due to this they came into contact with a scammer rather than legal help.

“The advice they gave me was ‘Don’t make any more payments at all. The longer you are backed up, the more we can help you.’ And so of course I believed them,” says Mele Tatakamotonga.

The scammer was a private attorney. He told them to stop paying their mortgage so that they will qualify for a modification and charged them $3,000 for the assistance.

But as expected from a scammer, after paying the fee the phone number had been disconnected.
“Foreclosure rescue and mortgage modification scams are continuing and getting bolder,” says Vanitha Venugopal, program director of Community Development and Investment at The San Francisco Foundation.
Homeowners must pay for help with loan modifications and other housing issues because scams continue to be rampant, advocates say.

The Tatakamotongas finally found Community Legal Services in East Palo Alto, a nonprofit law office, which collected the family’s money from the dishonest attorney, and assisted them with obtaining a loan modification.

Maeve Elise Brown, Executive Director of Housing and Economic Rights Advocates (HERA) in Oakland, another organization that offers free legal aid, warns that scams are commonly carried out by unscrupulous attorneys.
Brown also says that the media needs to be wary of running scammers’ advertisements.
Many homeowners looking for help contact scammers that they find through television and radio ads.
According to Leah Simon-Weisberg, the legal director of Tenants Together, about 40 percent of the occupants of foreclosed properties are tenants. Tenants can also get free help from nonprofit legal aid offices.

Advocates agree that homeowners looking for help should know the following:

1. Don’t trust people who want you to pay them for help in obtaining a loan modification, or for other housing counseling services. Beware particularly of attorneys charging for these services.
2. Don’t trust people who tell you to stop making your mortgage payments in order to qualify for a loan modification.
3. Don’t submit mortgage payments to anyone other than your servicer without your servicer’s direct consent.
4. Don’t sign over your property deed to anyone unless your servicer is directly involved in the process. If you don’t understand what someone is asking you to sign.

Monday, May 13, 2013

National Association of Realtors®: Some Areas Now Seeing Sellers' Markets

 The National Association of Realtors® (NAR) said today that home affordability remains high despite rising home prices in U.S. metropolitan areas in the first quarter. The annual price increase posted in Quarter One was the greatest in over seven years but NAR figures demonstrates that the typical buyer receives almost twice the income required to purchase a median priced home in his or her area.

Weigh against $158,600 to the previous year the median price of an existing single-family home rose to $176,600 in the first quarter. An 11.3 percent leap is the greatest raise since Q4 2005 when the increase back then was 13.6 percent. Out of the 140 metropolitan statistical areas (MSA) followed by NAR 133 demonstrated a yearly increase in median prices; the alike number which illustrated a twelve-monthly increase in Q4 but almost twice the number, 74, with such a year-over-year development in the first quarter of 2012.

NAR said that some of the price increase reflected a shrinking market share of lower priced homes and distressed sales and greater activity in the higher price ranges. There was a 23 percent share of distressed sales of the market in the first quarter compared to the 32 percent share in the previous year.

Median prices of condo and condominium prices located in urban areas ascend 4 percent on a yearly basis in the first quarter to $172,400. Thirty-nine metros out of the 54 tracked by NAR showed increases in their median condo price from a year ago while 15 areas had declines.

Lawrence Yun, NAR chief economist, said many areas are experiencing a seller's market. "The supply/demand balance is clearly tilted toward sellers in a good portion of the country," he said. "Inventory conditions are expected to remain fairly constrained this year, so overall price increases should be well above the historic gain of one-to-two percentage points above the rate of inflation. If home builders can continue to ramp up production, then home price growth is expected to moderate in 2014."

The highest since the fourth quarter of 2009 when homebuyer tax credits were in place is the total existing-home sales including single-family and condos rose 0.8 percent to a seasonally adjusted annual rate of 4.94 million in the first quarter. The rate was a boost of 4 percent starting the fourth quarter pace of 4.90 million and 9.8 percent higher compare to the year earlier.

NAR said that to qualify to purchase a home at the national median price during the first quarter a borrower with a 20 percent downpayment would need an income of $30,700. With only a five percent downpayment the qualifying income would be $36,500. The national median income was $62,200.

After the first quarter there were 1.93 million homes available for sale. It is 16.8 percent below the close of the initial quarter of 2012, when 2.32 million homes were on the market.

In the first quarter, existing-home sales in the Northeast rose 4.4 percent furthermore, are 9.1 percent above the first quarter of 2012. In the first quarter from a year ago, the median existing single-family home price in the Northeast rose 2.9 percent to $234,000.

Existing-home sales increased 1.2 percent in the first quarter and are 15.0 percent higher than a year ago in the Midwest. In the first quarter from the same quarter last year, the median existing single-family home price in the Midwest increased 8.2 percent to $135,10.

In the South edged, existing-home sales up 0.7 percent in the first quarter and comparing to the first quarter of 2012 with just 13.3 percent above. The regional median existing single-family home price was $156,800 in the first quarter, up 9.3 percent from a year earlier.

The West is the region most impacted by limited housing supplies and its existing-home sales slipped 1.1 percent in the first quarter but are 0.6 percent above a year ago. The median existing single-family home price in the West leaped 24.4 percent to $247,800 in the first quarter of 2012.

Thursday, May 9, 2013

Reasons You Could Ruin Securing The Lowest Mortgage Rate

It is up to you and it involves your necessary steps in order to make your application desirable to lenders when it comes to securing the lowest mortgage rate possible. In the case that you already know what lenders requires when they evaluate your home loan you must now do what is needed to make certain that you’ll get the home loan you desire and the home loan you are dreaming of. Be found lacking in taking these steps can be unfavorable to your probability of home ownership.

The following are six sure fire approaches to wreck your likelihood of securing the lowest mortgage rate:

Having poor credit - Bad credit is a definitely a sure destroyer when it comes to acquiring a low rate on your mortgage. In the condition that your credit rating is depleted afterward you can anticipate to be offered an extensively higher interest comparing to those who have finer or exceptional credit. In some cases, you may even be completely denied credit or have to get hold of a bad credit mortgage. Concentrating to your credit issues prior to trying to purchase a home loan can spare you the frustration of not getting the penny-pinching interest rates.

Having too many debts - Even though you have good credit, holding excessively many debts can as well disapprovingly impact your chances of securing an reasonably priced mortgage rate. The higher your debt-to-income ratio is, the more possible you are to be presented a sky-scraping interest rate or less advantageous loan terms. What you need to do first is pay down your debts and you will boost your probability of getting the greatest rates possible. Not having enough in savings - The less money you have in savings or that you can place towards a down payment, the more you'll need to have a loan of, basically making you more of in a fortuity. Having reserves is a good deal tool and can assist you counteract every unforeseen financial troubles.

Not comparing loan rates & fees - weigh against rates is a brilliant method that you can be guaranteed of getting the most excellent deal existing. Agreeing to the initial rate you are referred or deciding on a rate based only on the information given by one lender can be very unfavorable and will cost you money.
Not researching your broker & lender - Not every broker or lender has the loan you require or the means to find you the loan you want. Deciding the right broker and lending company is one of the most vital processes in acquiring the lowest mortgage rate possible.

Not asking enough questions - throughout the home buying procedure, inquiring on questions is one of your finest means in getting the responses and information that you want. Do not be terrified or be indecisive to raise any questions that you might have. If you will not going to do this, it will cost you more harm than good.

Wednesday, May 8, 2013

South Korea’s Economy

According to the Bank of Korea, despite months of tension on the Korean Peninsula,South Korea’s economy recorded a small but significant quarter-on-quarter (QonQ)GDP rise of 0.9% for the first 3 months of the year. The reports made it clear that this is the highest quarterly growth in two years.

To new president Park Geun-hye, this news has come as a elief. During his first two months in the office was not easy in fact has been difficult due to South Korea’s troublesome northern neighbor off-putting from the economic hold back causing problems the country.

The country’s its reliance on exports is one the South Korea’s main economic weaknesses. Regardless of the actuality that exports raise a little in the initial three months of 2013 exports are composed of about a third of the country’s GDP so ongoing issues in the EU, the U.S., and China persist to discourage future forecasts.

And since “Abenomics” began to be implemented Japanese Yen collapse in the value, making it another worry for South Korean exporters. Yen has touched the 1USD:100Yen mark more than once from highs of 1USD:78Yen in the autumn. A lot of the top Korean export brands, for example Hyundai and Samsung, compete directly with Japanese brands in the world.

Without a doubt, Hyundai’s first quarter bottom line fell 15 percent year-on-year in results announced last April..

The net profit of 2.1 trillion Won (US$1.9 billion) was somewhat liable on the relative strength of Seoul’s currency, together with the wearisome union activity at home throughout the period.

Thus there are still worries that pressure in future months concerning growth in the South Korean economy. After 6 months of holding steady little spending at home as well as with the hesitant viewpoint abroad and a moderately strong Won makes much ammunition to those who are calling on the Bank of Korea to slash interest rates again.

This newest GDP figure endows with some support for the Bank’s. Governor Choongsoo Kim has stayed firm despite the growing calls for action on rates. He highlighted the weak Yen as a concern and, according to Bloomberg, suggested that “financial support” would be provided to vulnerable exporters rather than a tit-for-tat devaluation.

Undeniably, according to some South Korea’s low consumption as due to the consequence of very high levels of personal or individual debt grounds to drag on household spending. Given these situation, then an interest rate cut may make that problem worse by tolerating even additional debt to be accumulate. With that kind of move, it would provide a short term increase to falling consumption, but merely at the cost of longer term pain.

With these thoughts, the most recent GDP growth data will make available an extra piece of ammunition for individuals on the “hold” side of the monetary policy debate. This is above all true given that President Park announced a US$15 billion budget stimulus package early April of this year.

Wednesday, May 1, 2013

Stress on New Housing to Raise Awareness by HIA

At this point in time interest rates on home loans records are at its lowest. Aside from this there is one more issue Australia's housing market is facing and that the Housing Industry Association (HIA) is now hoping to have addressed.

The HIA is gearing up to kick off its 'Housing Australians' campaign today, April 30, 2013. They aspire to convey to the national agenda the concerns encountered by the construction industry in Australia. The company emphasized a number of problems that the HIA asserts is at the back of the industry's high levels of stress, for instance the unequal levels of taxation, mounting rates of unaffordability, and the present high level of job losses in the sector.

"Access to affordable housing is one of the biggest challenges facing the Australian community," said HIA managing director Shane Goodwin.

According to the HIA, Australia will build 25,000 less homes this year than it did a decade ago and that building construction has contracted every month for the last 34 months. The severe drop in new housing is forcing the closure of many manufacturing and small businesses and consequently a number of layoffs. Australia needs 1.3 million new homes built by 2020 but large costs stand in the way. The HIA claims around 40 percent the cost is taxes, levies, fees and charges, it added.

"Government can't ignore housing any longer. They need to act more constructively, cooperatively and determinedly to meet the housing needs of Australians and their families," said Mr Goodwin.

The only way that families can lessen the expenses of a new home is to assure that they have the lowest potential interest rates on their home loan, giving them the possible to blow thousands of dollars off their repayments.

No Doc Home Loans Pros and Cons

It sometimes can be very stressful to purchase a new home. And what makes it more difficult is the process that comes along with it more especially if you lack the required documentation to get a traditional home loan. Those who can not provide tax returns or mortgage finance statements like self employed individuals, work on a freelance or contract basis are often at a loss when it comes to providing ample proof that they are in fact credit-worthy when it comes to their incomes.

Ask yourself; is a no doc home loan right for me? Before anything else, you must weigh in the pros and cons of the action.

Lenders identify with your financial state. If it is different does not indicate that you should be reprimand or deprived of the chance to buy or refinance a home loan. This results to no doc home loans; this was intended to help those who are regarded as non- traditional income earners. But this comes with certain costs.
As stated earlier, no doc loans do not require that you prove income contrasting to traditional natures of home loans like fixed rate and low rate basic loans. Nevertheless, it is still demand that you can actuality pay back your home loan in a procedure that is referred to as self certification.

The Pros of a no doc loan:
Convenience - proviso that you agree to disburse the additional money allied with no doc loans in turn to speed up the home buying procedure then no doc home loans can facilitate your needs.
Less paperwork - Purchasing a home obliges much of forms and applications, a lot of which affects your income and debts. By no doc loans you can remove many of those forms.
Variety of loan options - Nearly all lenders recommend a range of no doc loan types to select from that consists of fixed rate and variable loans, which is significant to borrowers who will already be paying significantly more than those who have a traditional loan.

The Cons of a no doc loan:
 They may require a much higher deposit - For the reason that borrowers who want a low doc loan are professed as a higher risk, you may be asked to forfeit a substantial sum of money down. This can be a huge amount of money to come up with, chiefly if your income changes.

The interest rate will be slightly higher than traditional loans - over again, given that no doc home loans are perceived as riskier; the existing interest rate will be more than that of traditional loans. This is an essential feature to keep in mind seeing as those who normally pick no doc loans have wobbly income.
May be subject to fees - a number of home loans lenders fix additional fees to their no doc loans; these charges can be for applications and other processing fees. Not considering the reckoning after the fees, this is yet another extra expenditure for no doc borrowers.

Monday, April 22, 2013

Home Loan Numbers Boost Because Of Low Interest Rates

As investors and home owners are taking advantage of low interest rates, Australia’s housing sector is in the uncertain stages of a upturn.

The first monthly ascend since September last year is only the number of home loans taken out in February rose 2 per cent.

That’s in spite of the percentage of loans granted to first home buyers falling to its lowest point in nine years.

The lowest level since June 2004 is the 14.4 per cent were first home buyers of those who took out home loans in February.

The rise in approvals was a sign low interest rates were providing a boost for the housing sector said St George senior economist Jo Heffernan.

“We are expecting to see some further pick up from here, but we would need to see a few more months’ data to confirm a pick-up was underway,” she said.

According to property research firm RP Data Home prices rose 2.8 per cent in the March quarter while building approvals for new homes rose 3.1 per cent in February, says the Australian Bureau of Statistics.

Housing is one of numerous underperforming divisions the Reserve Bank of Australia is including on to progress during 2013 to facilitate counterbalance a projected hold up in mining investment.

The RBA reduce the cash rate 1.25 percentage points in 2012, conveying it to its present low level of three per cent.

But at the same time as builders welcomed February’s enhancement in home loans, they said more desired to be done to motivate growth in housing construction.

“The concern is today’s figure could be another in the volatile series of rises and falls witnessed over the past year,” Master Builders Australia chief economist Peter Jones said.

“The Reserve Bank must continue to act by cutting interest rates and ensuring
a sustained building industry recovery can take place and boost the non-mining economy,” Mr Jones said.

Investors were driving the nascent recovery in the sector said CommSec chief
economist Craig James.

But he said the continued fall in first home buyers was concerning.

Since October the percentage of loans taken out by first home buyers has been falling when New South Wales and Queensland discontinued providing out first home owner grants to people buying established properties.

“Perhaps the state governments need to rethink about the way that the incentives are provided so they can provide some assistance to the market,” Mr James said.

Bu Ms Heffernan expects first home owner numbers to improve as 2013 rolls on.
“It (the weakness) has continued longer than we would have expected following those state government changes,” she said.

“But at some point you would expect to see that turn.”

Thursday, April 18, 2013

Why buy second grade when you can buy new: Benefits of buying new

There’s nothing quite like the feeling of something new, they say however does that imply anything when buying a new home?

There will always be that particular rush that you can feel when buying something new, whether it be new clothes, a new car or even a new house.

This is exactly why it isn’t a surprise and can easily be understood why purchasing a newly constructed home or investment property is a trendy buying pick for many Australians.

Buying new requires fewer upfront costs; this is just one of the most titillating features of buying new.

Several unanticipated costs, such as maintenance fees or repair bills, for instance, can immediately consume into the money you intend to put aside by purchasing an existing dwelling.

What is more, and basically the very apparent reason to buy something new is, newly built properties traditionally carry a warranty of several years so if it happens to run into problems with your new purchase, the warranty can save you.

A new home can without doubt be an intelligent pick if you are in the market for an investment property.

Contemporary building standards can mean a greener, more sustainable investment aside from the new look and design that will certainly appeal to potential tenants.

In addition take into account that new utilities and appliances, for example bathroom, kitchens and heating can be a massive draw card for tenants and should be measured when you come to bargain the weekly lease.

Lastly, don’t neglect the depreciation and taxation benefits allied with buying an investment property over and above the government incentives that can go along with purchasing a new home to live in.

Benefits are most of the time at their peak when a property is brand new.

But you must take note that new and older properties mutually have their pros and cons and whether a new asset is right for you is eventually down to your precise state of affairs. If unsure, seeking for professional advice would be an excellent subsequently decison.

If a new property does fit your financial and investment strategy, though, the benefits should be considerable.

Tread with caution: There is much compensation to buying a new property compare to an existing dwelling, but remember that regarding all property-related decisions, vigilance is necessary.

To lessen risks, think about the following prior to making a purchase:

•Capital growth is NOT guaranteed, whether you purchase a new or an older property.

•Research is essential. Be absolutely certain to do your homework on the property market and purchase in an area that is more likely to offer growth potential.

•Know with whom you’re dealing. Unfortunately, there are several stories of
developers who go bust during a development or turn out not to be professional operators. Take note of the developer’s history and speak to family and friends regarding developers they have used in the past.

Tuesday, April 2, 2013

Loan Fraud Connected To Drug Houses

Police allege, a scoundrel home loan broker get hold of more than $17 million of fraudulent loans for clients, several of whom utilized the money to purchase marijuana grow houses.

Studies and investigations are ongoing into Kieu Thi Thanh Huynh, who has permitted more than $100 million in loans in the precedent seven years, and her clients. The 43-year-old Kim Huynh has been accused with 93 counts of getting hold of financial benefit by dishonesty or decemption, constructing phony documents and exploiting counterfeit documents.

An additional 30 people were charged with one count all of taking financial advantage by deception, creating counterfeit documents and using false documents as fraction of the police operation code named Squid.

Persons charged are of Vietnamese origin and array from youngest as 21 to 68 years old. They were under arrest between February 25 and March 8.

On May 24, the alleged scammers have been bailed to appear at the Melbourne
Magistrates Court for a committal mention.

A police spokeswoman said there may be more arrests.

”Inquiries are continuing in relation to a number of associates who investigators allege also purchased homes using false documents and gained financial advantage by deception.”

On February 25 police carried out five search warrants at three houses in St Albans, Sunshine and Sunshine North, seizing computers, financial documents, phones and jewelry.

Grow houses purchased with loans purportedly attained by Ms Huynh were exposed at some stage in Operation Taxa, which has concluded in millions of dollars value of marijuana and possessions being detained from dozens of houses, mostly in Melbourne’s north-west.

Police will charge loan documents associated to Ms Huynh were found in some of the houses.

All are involved in the investigation such as officers from the Criminal Proceeds Squad and E-Crime Squad, along with forensic accountants,.

Grow houses raided during Operation Taxa had mostly been linked to Vietnamese crime families, who were increasingly buying houses in new residential estates in Melbourne’s outer suburbs as opposed to renting them, Fairfax Media reported last year.

The trend had shown the increased financial clout of marijuana traffickers, police said at the time.

Head of the Criminal Proceeds Squad Detective Senior Sergeant Andrew Kerr said the squad had seized $25.2 million worth of property linked to marijuana in 2012, an increase of about $700,000 compared with the previous year.

He said the squad had detected that a significant amount of money was being sent overseas by those involved in the marijuana trade in Victoria. ”This is money that is being sent overseas by people that would appear to have no legitimate sources of income in Australia.

”A lot of these people are on Centrelink benefits, yet somehow managed to send
significant amounts of money overseas. How is that happening? And why is that happening?”

This kind of frauds that should be taken more seriously not only it is a fraud itself but it stepped a notch as they have been doing marijuana and who knows some other drugs.
Fraud prevention is clearly need to be improved.

Fraud Prevention Against Mortgage

The distraught state of the national housing market, combined with high unemployment, has shaped a lush environment for deceitful fraudsters looking for a chance to take advantage of frantic homeowners. Several homeowners who go with loan modification or foreclosure “rescue” companies for assistance in the end discover that they have been scammed. An up-and-coming inclination in latest months engages mortgage aid relief scams. These scams intent homeowners by means of promising to save them from foreclosure, or maybe get them a reverse mortgage or at least lower their
mortgage payments. This is all in exchange for an advance or monthly fee. But as expected many of these homeowners never get the relief they have been promised.

These scams utilize a range of effortless strategies to spot their financially-distressed sufferers. Various scammers trace troubled borrowers from published foreclosure notices or other publicly-available sources. But others anticipate on mass-marketing modus operandi such as flyers, radio, television and Internet advertising to entice in distressed borrowers. Still others misleadingly propose an association with a government agency to hastily get the conviction of unsuspecting victims.

The Consumer Protection Branch in the Justice Department’s Civil Division is
committed to prosecuting these criminals and bringing justice to their victims because this fraud is so subtle, and looks for victims on folks who are at their most defenseless point. But persons are really number one as potential victims in the fight in opposition to mortgage fraud. Fraud prevention and scam watch id their goal. You can protect yourself from mortgage fraud by keeping the following fraud prevention tips in mind:

If their promises seem too good to be true, they usually are. Be cautious of those that get in touch with you by means of advertising such as flyers, radio/television or the Internet with guaranteeing to adjust the conditions of your mortgage.

Be apprehensive of loan alteration services that necessitate signing a contract or paying an up-front or monthly fee. Advance fees are normally forbidden by law. Loan counseling and modification services are usually offered free from your lender and/or a Department of Housing and Urban Development (HUD) counseling center. Contact toll-free 24 hour hotline to immediately speak to an expert advisor.

In no way you should convey title of your property, do mortgage payments to someone with no less than your lender, or discontinue making mortgage payments in general .These are definite habits to put your financial investment at risk.

Cautiously examine the names, seals, logos and representations completed by
mortgage rescue companies. They may perhaps be intentionally intended to trick borrowers into not doubting a connection with a government agency exists. The point of this is to swindle borrowers into thinking they are at liberty to the advantage of a government program rather than consigning to a loan that is an obligation to be repaid.
A government agency will by no means necessitate advance fees, or pledge a precise outcome.

Most scammers doing reverse mortgage loans are in reality want to drop off other financial products on borrowers. Be alert to keep away from brokers that would like you to get hold of a loan in order to purchase other products such as long-term care insurance, annuities, or other investments.

Wednesday, March 20, 2013

Affordable properties in 2013

Been waiting to have your own house for the first time, then maybe 2013 is the best time for you to do so. The budget has some good news for you. For the first time property buyers, the finance minister has extended an additional benefit of Rs 1 lakh on home loans up to Rs 25 lakh.

This deduction will be on top of the deduction of Rs 1.5 lakh allowed for self-occupied properties under Section 24.

Nonetheless the regulation is that the property should not cost more than Rs 40 lakh. This rule means a outsized number of buyers in metro cities will not be qualified for the added benefit.

“This would mostly be helpful for people who want to buy a house in smaller cities or distant suburbs where the ticket size is lower,” says Niranjan Hiranandani, chairman of the Hiranandani Group.

You are probably wondering if and how much tax you can save but the thing is the additional deduction will not last forever. From the time period of 2013-14 and 2014-15, this maximum span of two years is the only time you can claim it. It is known that interest rates on home loans today range between 9.5% and 11% so a buyer will be able to claim deduction for the entire interest. You would have to pay about Rs 2.48 lakh as interest in the first year if you take a Rs 25 lakh loan for 20 years at 10% interest,.

You can claim the entire amount as a deduction in 2013-14. The Rs 1.5 lakh under Section 24 and the remaining under the additional deduction are the entire amount you can claim. The remaining Rs 50,000 deduction can be availed of in 2014-15 if your loan is smaller and you pay only Rs 2 lakh as interest. A buyer can accumulate between Rs 10,000 and Rs 30,000 a year depending on his income slab although the cost of property is a blockade.

One more notice which would create after-effects to the real estate sector is the 1% tax deducted at source (TDS) on the transfer of immovable property with a market value of more than Rs 50 lakh.

This will add to the paperwork for buyers aside from the increase in transaction cost.

“A person would now need a TAN (Tax Deduction Account Number) to deduct tax on behalf of the central government. So once a buyer gets a TAN, only then can he purchase an immovable property. He is paying only 99% of the value to the seller and the balance 1% to the government,” says PranayVakil, chairman, Praron Consultancy.

New luxury projects will also become more expensive at the same time as the TDS will impact all property transactions, counting the resale property.

From 75% to 70% has been reduced to the rate of abatement on homes and flats of more than 2,000 square feet or costing Rs 1 crore.

“Effectively, this translates into an increase in service tax outflow, which means that luxury housing will now become even more expensive,” says Anuj Puri, chairman & country head, Jones Lang LaSalle India.

Tuesday, March 19, 2013

Know Why You’re Decline

Been wondering why you are still disapproved and your application is declined even though you have received pre-approval and found a property to purchase? There could be reasons why you are declined for formal approval. 

The pre-approval was worthless: If from the beginning, you had an on the spot approval or system generated approval then you loan was never really approved. In that case, therefore, your loan will be declined because it does not meet and in fact never did meet the lenders policy. 

The LMI provider declines your home loan: Your bank possibly will approve the loan; however, ten the bank may need approval from their Lenders Mortgage Insurer as well if your loan amount is more than 90% of the property value. Generally a loan is pre- approved by the LMI provider who has unlike guidelines to the lender. The Insurer may reject your loan. 

The security property is unacceptable: The property that you are purchasing is not appraised when you apply for a pre-approval. When you notify the bank of the type of security property you are buying, they may not approve the loan because of the peril implicated. You can find a list of the types of properties that are usually improper to lender on your property types page. Most people aren’t conscious that their bank may not accept inner city apartments, units under 50m2 or hobby farms, so they sometimes buy them without first examination with their bank. 

The pre-approval has expired: Pre-approvals are usually valid for three to six months, depending on the lender. Your pre-approval will no longer be valid if it takes you longer than this to find a property. 

Your situation has changed: The lender will re-assess your application if you change jobs, get a car loan / credit card or have some other aspect of your situation change, since your loan was pre-approved. If you no longer congregate their lending policy, your loan will be declined. 

The lender’s policy has changed: Some lenders will honor pre-approvals that are lodged before their policy changes; others will only formally approve your loan if it meets their new lending policies. Most lenders tweak their lending policy on a monthly basis. 

Interest rates have increased: If interest rates boost then the maximum amount you can borrow will cut. Initial home buyers often get a pre-approval for the maximum loan amount possible. This means that if the rates increase, their formal approval for that loan amount may be declined.

Thursday, March 7, 2013

Speed the Help for the Nevadans’ Homeowners

$200 million from federal government was given to Nevada to avoid homeowners from losing their homes.  Nevada had the highest foreclosure rate in the nation but a Reno Gazette-Journal analysis of the fund distribution confirms that the money was almost intact in the past two years.

Nevada only spent $21 million of the $194 million it was to be paid to homeowners facing foreclosure, this means only 11% of the money it received through the Obama administration’s Hardest Hit Fund, this is according to the most recent reports of the analysis of U.S. Treasury the third quarter of 2012

“This is government bureaucracy at its finest,” said Victor Joecks, communication director of think tank Nevada Policy Research Institute. “They can’t even give away $200 million. This program is a perfect example of why government shouldn’t pick winners and losers in the economy.”

According to Nevada Hardest Hit officials, just in January, the nonprofit gave $7.2 million in direct aid to help homeowners avoid foreclosure.  A total of $28.4 million was given by the program since it began in mid-2010, which is only 5% of the allocation. More or less 25 % of what they have given out was given out in January.

Mortgage assistance and principal reduction are the two separate components of the state Hardest Hit Fund program that has much given the aid.  75 percent of the budget went to direct aid from July 2011 to June 2012; this is another analysis of yearly financial statements obtained directly from the nonprofit.

“We are getting more money out of the door than we have ever before in a much shorter time frame,” said Candice Kelley, Nevada Hardest Hit Fund executive director.


Federal help to hardest hit

Many have tried to attend to the greed and carelessness that caused the housing crisis, they are the Government programs, public policy changes and a closer eye on financial service providers yet there are still many homeowners suffering from the collapse of the housing market.

And Hardest Hit Fund was one of those who are concerned homeowner programs.

Hardest Hit Fund was launched in 2010 by the Obama Administration mainly to help distraught homeowners in places that suffers from deep home price declines and high unemployment.  Nevada together with 17 other States and the District of Columbia are getting more than $7.6 billion to help homeowners prevent foreclosure.  The program ends in 2017.

“What states have had to do through this program is really unprecedented,” said Andrea Risotto, spokeswoman for the U.S. Treasury Department. “They have created their own servicing shop so that they can directly assist homeowners, evaluate them for help, process their application and help them transition from one form of assistance to another.”

Each state verifies what support their residents need, including mortgage assistance, short sales and unemployment programs.

Out of the $7.6 billion, Nevada was given $194 million.  Nevada Affordable Housing Assistance Corp., a nonprofit organization, was selected to head the program for the Nevada Housing Division. Mortgage payment assistance, principal curtailment, short-sale assistance and second lien assistance, are the types of programs Nevada offers.

The objective is to lend a hand to more than 10,000 Nevada homeowners avoid foreclosure.

Kelley, the nonprofit’s executive director said that the program didn’t want to overextend its allocated fund and needed to process the applications it already had in the pipeline.  This is because the nonprofit had to stop accepting new applicants in mid-December since of the increase in the number of Nevadans asking for aid.

She further added, the Hardest Hit Fund is aggressively working through the current applications, and the fund will reopen to new applicants.

Nonprofit and Treasury officials said when much of the first year of the Hardest Hit Fund’s existence was focused on setting up the infrastructure, staffing and marketing the program, many people, including mortgage companies and banks, were unaware of the program and its requirement, making it hard to help distressed homeowners.

“There are a number of states where we are still seeing homeowners really reluctant to reach out for help,” Risotto said.

Both Kelley and Risotto said that, also those homeowners who did apply early on were discouraged because they were rejected on eligibility requirements.  After that, the program has altered its eligibility requirements more than a few times to comprise a wider range of people. Those who were formerly discarded now could meet the criteria if they reapplied.

Nationally, more than 100,000 homeowners were helped with $1.1 billion of direct assistance since the program began, Risotto said. About $1.7 billion out of the $7.6 billion has been committed or budgeted to homeowners for future payments.

California, with the highest allocation of almost $2 billion, has helped more than 22,000 borrowers. North Carolina, Michigan, Ohio and Florida follow, Risotto said.

Joecks, with the Nevada think tank, said the only people who benefit from the program are the politicians who use it to generate publicity. The institute is against the Hardest Hit Fund program because it believes it is unjust, he said.

“It’s a perfect case study of how the government promises something, and it doesn’t end up being delivered as promised,” Joecks said.

“The Hardest Hit Fund rewards those who make poor financial decisions at the expense of those who make good ones.”


Who did it help?

According to the latest quarterly performance report the state submitted to the U.S., there were more than 6,000 applicants in the past two-and-a-half years and more than 2,700 homeowners have been given assistance by the Nevada Hardest Hit Fund since they are the only ones who qualified.  Nearly all borrowers made less than $50,000 and cited either unemployment or Sharon Logue applied for the program in August and was approved for principal reduction assistance in January.

Since six years ago home prices skyrockets, she bought her Carson City apartment at the peak of the market because it’s all she could afford that time.

“I thought I was doing great, but then things just went downhill,” she said.

After another six years, her home is values 30 percent of what she initially bought it for. Her mortgage payments make up nearly half of her paychecks after a job change last year and decrease in salary.

“Right now, it’s paycheck to paycheck,” she said. “I can’t save any money because I don’t have any extra money. If there’s an emergency, whip out the credit card and take care of it later.”

Logue makes her payment every month and is looking into ways to stay in her home.
“Usually, I don’t ask for handouts,” she said. “I’m very stubborn and have my pride, but there are just some times you have to put those aside and ask for help to make life better.”

Her loan servicer was not able to help her either because of restrictions in her private mortgage insurance. You must get PMI when the down payment is less than 20 percent of the value or sales prices.  Then she discovered Hardest Hit Fund in August.

“I didn’t want to foreclose,” she said. “To me, that’s not right.”

She found that the Hardest Hit Fund staff was helpful.

She was given $50,000 in January in principal reductions but she has run into the same PMI roadblock as she did when she tried to refinance.  Every the bank representatives told her that she is blocked from any action because of who the PMI is with or the type of PMI.

Now she is finding other banks that might take on her loan.

“I’m at a block,” she said. “ ... Something needs to happen or else I’ll be stuck.”

She is determined not to get foreclosure although she has until May to obtain the financing to use the Hardest Hit Fund.

“It’s like right there,” she said. “I have their certificate, but now, I’m stuck.”


Middle of the pack, but not for long

Even as Nevada spends its share of the federal money to help homeowners slowly, it falls in the middle of the pack for the 18 states and Washington, D.C., that also received money through the Hardest Hit Fund.

Oregon had spent about 40 percent of its allocation which is $88.7 million by end of the third quarter in 2012.  This is the latest date provided by the U.S. Department of Treasury. Washington, D.C.  Rhode Island on the other hand, according to the RGJ analysis, follows by using more than 30 percent of their money.

Arizona is the state slowest to spend, only $11.6 million was spent which is 4 percent of its $268 million.  6 percent of their share was spent by New Jersey, Georgia and Indiana.

According to the administration responsible for the money in Nevada, the said slowness of distributing the funds to responsible people who need the funds and stabilize the economy is sensible.  But Joecks sees otherwise, they have had three years to develop a more efficient process.

Joecks also countered the program for only helping rareness of underwater homeowners in Nevada. That’s not enough to make a difference in the overall housing market, he said

According to the latest data released by real estate data provider CoreLogic in January, the total value of all U.S. homes with negative equity during the third quarter of 2012 was $658 billion.
“States have to make decisions about how to balance helping homeowners and protecting taxpayers because it’s a government-funded program,” Risotto said. “All the states have been looking closely at their data that they are gaining from the first months of their program implementation and trying to make smart decisions about who is still struggling in their state and how they can best reach them to prevent foreclosure.”

The Hardest Hit Fund is just one tool in a host of other offerings to help distressed homeowners, U.S. Treasury officials said.

“It is a targeted program to help address some of the needs struggling home owners are facing in these states,” Risotto said. “It is meant to complement many of the other efforts federal and state governments already have under way and that mortgage companies, themselves, are offering today, that they weren’t even offering a year ago.”

Lately, the help to distressed homeowners sped up, the nonprofit Nevada Hardest Hit Fund has its distribution of U.S. Treasury funds a bit more faster.

“We are trying to be appropriately conservative with administrative costs,” Kelley said. “We want to make sure we have the right people on hand so that we can quickly respond to these applicants.”

In answer to the boost in applications this year, the Nevada Hardest Hit Fund gave jobs to more than 40 people. It has nearly tripled that number through community partnerships to process the applications.

Before the application process was put on hold in mid-December for those already in the pipeline, the nonprofit was getting at least 800 phone calls a day, Kelly said. She was unable to say how many borrowers currently are in the application process.

With the current trajectory of funds being approved, she said, hey will allocate all of the $194 million before the 2017 deadline.

“We suspect that the future outlays for the months to come will continue to be more and more aggressive because the demand is there,” she said. “We have expanded out partnerships so that we can respond in a faster way.”

The participating states expect that they will have spent a majority of the allocated funds by 2014, three years ahead of schedule, Risotto said. Rhode Island closed its application process in January, because it already has committed all of its funds. Several other states are expected to close this year also.

“We are all very committed to getting the assistance out of the door as quickly as possible while the need is still so great,” she said.

Wednesday, February 27, 2013

Risky Home Mortgage Loans New Ban

Due to the collapse of the housing market, a new rule announced is aiming to prevent the return of high-risk no-document home loans. This has only happened now and for the very first time, federal regulators are enforcing out rules to make sure borrowers can afford to pay the cost of their mortgages. The Consumer Financial Protection Bureau will necessitate lenders to offer loans that don’t ensnare borrowers. Late this yaer or early next year if the new law takes effect, upfront fees will be limited and interest-only loans will be curtailed. Lenders would be obligatory to verify and inspect borrowers’ financial records.

 Today’s current strict credit standards would not tighten but the new rules are intended the kind of no-holds-barred lending that was seen during the housing bubble before 2008. Loading homeowners with burdensome loan payments would do anymore; financial firms are banned to do so. They cannot require the borrower to pay the total more than 43 percent of their income. But this on the other hand could make it harder for people with lower incomes to qualify for a mortgage if banks are tempted to ease their requirements.

 According to the Mortgage Bankers Association, four out five home loans are now “re-fi’s.” Most 30-year fixed rate mortgages are close to record lows and are well under 4 percent. A cheap rate can make a big difference over time. “At the end of 30 years you can save thousands upon thousands of dollars in total interest,” says Pat Esswein of Kiplinger’s Personal Finance. Refinancing usually makes sense “if you will stay in your home long enough to recoup the closing costs that you have to pay to do the re-fi.” To calculate re-financing costs and long term savings, Esswein says “go to an online mortgage payment calculator and see what you can save by reducing your interest rate.” The rumble in re-financed mortgages is projected to continue this year.

 The fresh system seek out a middle ground by protecting consumers from bad loans while giving banks the legal assurances they need to increase lending. Teaser rates that adjust upwards and large "balloon payments" that must be made at the end of the loan period are rules bound features. Lenders will be obliged to confirm and check borrowers' financial records. They generally will be prohibited from saddling borrowers with loan payments totaling 43 percent of the person's annual income.

 Balloon payments would be allowed for certain small lenders that operate in rural or underserved communities, because other loans may not be available in those areas

Sunday, February 10, 2013

Make Yourself Creditworthy of Home Loans

Responsible Credit Card User. Having and using credit card is not bad the user oftentimes makes it bad to have a credit card. The secret is being responsible. One of the best ways to build and maintain good credit is to use your credit cards, but to maintain them at a balance that you can afford to pay off in full each month. 

Improve Your Credit Score. The better the credit history, the higher the credit score in turn the higher chance to become creditworthy to the lenders. To improve your credit score you must know how to calculate it.

 • 35% of your credit score is derived from your payment history, so always making your payments on time boosts your score
 • 30% relates to account balances, which have to be at manageable and reasonable amounts • 15 % is the length of relationships with creditors (credit card companies, mortgage companies, auto loan lenders and more)
 • 10% is related to credit types because the credit scoring agency likes to see you can manage different types of credit such as credit cards, student loans, auto loans, mortgages, etc. • 10% is about establishing new credit, so it can improve your credit score to apply for new credit, preferably a type of credit that you may not already possess 

 Start or Continue to Make Bill Payments on Time. You should always pay your bills on or before the due date. Late payments continue to drag down your credit score so start making your payments on time right away. Keep up or improve your credit score once you know it by using the factors that influence your credit score. Get Your Credit in Order. This goes beyond just paying bills on time; it is also your responsibility to check to credit report. Review your credit report to spot incorrect and negative information and to get an idea on what is showing in your credit report. If there is mistaken information on your report, contact the credit agency to discuss the erroneous items. The law entitles you to one free credit report a year from each of the bureaus by Clean or Freshen Up Your Credit. Contact the creditor or collection agency as soon as you saw some negative items such as late payment, write-offs or collection accounts. Clarify you want to take care of the debt or issues and work out payments arrangements or a reduced payoff balance to resolve the flaw on your credit. And insist on getting an arrangement so that you can work out to take care of your debts. You should keep all of your credit reports up-to-date. Carefully look for these negative items that may appear on your report: • Inaccurate information • Late payments • Collection accounts • Charged off accounts Be Credit Wise. Always remember that lenders review credit reports to verify your ability to manage credit loans you already have. The type of credit also determines getting approval of the mortgage being applied for. If your credit cards are maxed out then it’s a bad sign, it will be better if you have variety of loan types such as auto loan, student loan, credit cards and other revolving accounts. Do not max out any credit and never use the full credit amount you have. Long Relationships Count. Having too many open credit accounts and loans can drag down their credit score, this is not necessarily true. Close newer established accounts before you close old accounts if you decided to start closing accounts. The length of your relationship with a creditor does benefit your credit score. Be Patient but Follow-up. So now everything seems to be in order after you pulled your credit reports in turn you should be credit worthy and ready to apply for mortgage. Applying for a home loan is not an overnight process. Be patient and to follow-up with the creditors, collection agencies and credit bureaus until the negative and inaccurate items are corrected and your credit score improves if you need to make yourself creditworthy. Patience is a virtue.

Sunday, January 13, 2013

Victim warns others to watch out for loan scams

A personal loan scam victim warns residents to be vigilant of phone calls from fraudsters.

LISA (not her real name), from West Suffolk resident, lost £110 after sending over a code for an online voucher as a fee for someone who contacted her by phone promising a loan.

They agreed over the phone that she will be receiving the money within 15 minutes; the money was supposedly for Lisa’s new furniture.

But instead of receiving the said money, she was asked to pay an additional £295 in voucher form Good thing is that she refused.  She rather contacted the police and is now warning residents not to fall prey to such schemes.She said: “I feel absolutely gutted and stupid that I fell for it.

They’re very crafty and I just don’t want anyone else to fall for it. “The company has been harassing me with over 20 calls a day, emptied my bank account and left me nervous of borrowing from other providers.” She added.

This incident isn’t new to Suffolk Police.  They have been receiving details of similar occurrences from residents and are also urging people not to provide personal information to cold callers.

Ukash was the code given by Lisa, which can be bought from high street shops with cash and spent online using the code rather than providing bank or credit card details.

A police spokesman said: “They are never genuinely used as advance fee payment for loans or other similar products.

They are simply designed for the purchase of goods from the internet or other retailers.

“Anyone offering a genuine loan will not ask for a cash payment up front for the service. “Fraudsters will try anything to get you to part with your cash so if you receive any unsolicited calls from people asking you for cash or voucher details then please do not give it to them.”

This is a great example that anyone can be a victim of these scams.  We must be very watchful and on guard of ourselves in all time.

We will never know when fraudsters will attack in any form or ways they can possibly think of

Tuesday, January 8, 2013

How To Apply Home Loan With Bad Credits

We all know that to easily apply for loans, applicants must have the best qualifications or some may even refer to it as “triple threat”.  One must have an excellent credit rating, a large down payment, and low debt-to-income ratio with steady significant income.  This isn’t easy for everyone, some may have bad credit but they do not have to forget about the idea of owning a home.  If previously been turned down for a load, homebuyers can still get a home loan.
Do not loose hope because even with bad credit you can help improve your chances for obtaining a mortgage, here is how:

Flaunt other assets.  If you do not have large amount of cash on hand or in banks, and or large cash reserves for down payment, you can show loan officers the financial assets you do have.  Make a list cash value on your home loan application, if you have a sizable 401k or other retirement accounts make sure to include them.  This will prove that if you’re ever in a bind paying your mortgage, you’re able to pull from one of these other sources to make ends meet.  Showing a low loan-to-value rating is a huge plus if you’re seeking to refinance.

Stress job stability. Make sure to mention that you have been working for the same industry or better same company for years, this will have to offset a bad credit history.  It will also help if you mention regular pay raises and if you have a cost-of-living increase every two years, or an annual merit-pay increase.  It will be impressive if you mention how your income has risen over the years.

Show discipline. It is a factor if you show that you are disciplined, consistent and stable.  Establish to the lenders that your bad credit is a thing from the past.  Show them that you know how to save, that a part of your monthly salary goes to a savings account or you have been contributing yearly to a retirement account.

Willingness to stay put. Strong ties to the community can help, (i.e., relatives living in the community) Prove lenders that you are going to stay put in that home for some time/
Don’t bite off more than you can chew.  Be reasonable and start on something that you can afford.  Know that you can always move up later, its better to own a house you can afford than to do a higher lift out of your level, this can put you on a more bad credit afterwards.
Have proof. Prove that you never were late on your rent.  It’s another thing to be able to show them. Be prepared to give documentation to back up all of the items on your compensating factors list.

Everyone deserves second chance they say, true enough.  All you have to do is prove yourself to be worthy.  There will always be doubts but the bottom line is there are certain red flags that give home loan lenders pause.  If you have bad credit history, highlight positive aspects of your financial profile.