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Its on chanel 3 here, its set up to look like MSNBC or CNN. Its really focusing on the FHA re-fi bailout programs but if the house can't appraise for the right amount how can this program work?
Is this company really selling loans & helping people? It seems like some sort of new scam, but I can't figure it out.
Kelly, I haven't seen the ad so I can't comment specifically.
However, Advertising 101 says that the only purpose of an ad (print, tv, radio, etc.) is to get the phone to ring. Once the prospect calls in, then the real "selling" begins.
Most advertising drives me nuts. If you really pay attention there is quit a lot of advertising that is based upon perception and not truth. For example, when I first read your post I thought I say "LandAmerica" which is a large nationwide vendor in the lending business. I thought it strange that they would be advertising a "scam." Then I re-read your post and realized you typed "LendAmerican." You can bet that LendAmerica was hoping to trick you into thinking they are the reputable LandAmerica.
This commercial may not be a scam at all - they got your attention and that's all the ad is supposed to do.
If you have a specific question about the FHA "bail out" program post another question. There is nothing in the program that addresses homes that won't appraise high enough so I'm not sure what LendAmerica might be referring to. The FHA "bail out" program is designed to deal with credit issues of the applicant, not the property value.
thanks for the reply. I'm not in the market for a re-fi or the bailout program, I'm just curious. I keep the thinking the shadiest of lenders will find a new way to target & profit the uneducated(& now possibly desperate) consumer.
I thought maybe a mortgage insider here might know the scoop.
Yep, "the shadiest of lenders will find a new way to target & profit the uneducated(& now possibly desperate) consumer." Without a doubt - anytime there is fear in the press the marketers go to work.
Once the loan application is in process there is not much LendAmerica can do. The applicant will either meet FHA's guidelines or they won't.
The biggest advantage with FHA right now is that (at least for now) is that they will process a cash out refinance up to 95% of the home's value - even in a "declining market" like CA or NV. In those markets you are unlikely to find any conventional loans that will finance 90% (if not 85%) on a cash out basis. Of course, FHA has always had this guideline and it has nothign to do with the new "bail out" program.
I've seen the commercial when I was in Atlanta... it was a little gimmicky but looked perfectly legit. They basically take the premise of FHA Secure and standard FHA 203(b) rate/term refinance and purchase and market it to the times. They makit it look like CNBC or the news stations with running tickers and bulletins, "anchors" and "interviews" with the lending staff infront of busy cubicles just like on the news shows.
I though that the format made it look more sleazy than slick, because to a suspicious person it looks like a scam. It seems too good to be true and when they do a slick pitch it makes you look for the catch.
All they are talking about is standard FHA with the "miracle" 3% down and the FHA streamline refinance that has been around for years. Same programs anyone can do, just with a new pitch and a lot of ad $ behind it.
Hi, i was wondering if anyone knows if the bailout program will help homeowners in high adjustable rate mortgages with adequate equity in their home that is not based on credit score? Have the FHA guidlines changed? If their is such a program, would I apply through the FHA website or another link? Thanks
I don't believe we have any loan programs that do not look at credit scores, however, FHA and VA both state they have no minimum score, except FHA recently published they would not lend on high LTV loans with credit scores below 500. However, most of the investors do have a minimum score requirement. 580 - 600 is a caution area, below 580 could be quite challenging or priced accordingly for finding investors.
If you have adequate equity, you don't need a bailout loan (which is good) and can just go w/ a regular FHA loan. Right now, you can go to 97% of appraised value for a rate/term refinance. Cash out will tolerate a 95% loan balance against the value, but is rumored to be cut to 85% in the immediate future. If you have adequate equity, you should be fine.
Okay, so let's assume the score is challenging, what are the other considerations? What is happening to your monthly payments? Have you been on time for the past 12 months? Are there any liens against you? Judgments? Collections may not be required to be paid off, it's a lender to lender call. (We do not require medical collections to be paid off). Do you have any savings? I can go on.....but I think you get the idea, it's a whole lot more than just the credit score.
Not knowing your situation, I can tell you a general rule of the thumb is if you are making payments on time that are more than the new payment, that is a huge plus in your favor. I recommend you get someone to assess your situation, but whatever you do, don't apply online. You have very little control where your personal information is sent and how many times your credit is pulled. While it may not lower your score if pulled within a short period of time, it does increase your exposure to identity theft.
I really believe help is coming......it won't be in time to save many, but I cannot believe we are going to bail out the banks and then forget about the homeowner. (Not without major riots, at least). Hang in there.
I recently saw the commercial in Macon. That is what led me here. I want to refinance our mortgage to lower the payment. However, we were behind on a few payments due to unemployment and don't think our chances of anyone taking a chance on us are too high. Is this "bail out" legit or is it a hoax?
The FHA program can sometimes help if you are behind on payments.... but its tough. A loan modification with your current lender is usually the first thing you should look at. CALL THEM. Don't wait, call your lender and talk to them about your situation. If they think there is any chance of preventing foreclosure they likely will.
After ~2 months of the FHA bailout program... apparently only 100 applications have been taken. As expected (and many here pointed out) the whole thing was more of a gimmick to get the politicians re-elected. You pass a bill called "housing rescue" a month before an election and it gives you something to talk about to the voters.
Much like the initial "bank bailout". Even the Treasury Secretary gave up on his initial plan and said it won't work... now that we handed them $700 billion and half is spent on other things.
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