By [http://ezinearticles.com/?expert=Kevin_Sandridge]Kevin Sandridge
ith foreclosures taking up so much space in the headlines these days, we've been conditioned to think of it as the first and final step in a mortgage loan gone bad scenario. However, there are two steps that come before the foreclosure process begins - namely: mortgage delinquency and mortgage default. Here are the differences between the two:
Delinquency
A mortgage borrower becomes delinquent on payment of their loan when they fail to pay their mortgage payment on the due date. Even if we're talking one day late, your mortgage becomes delinquent as soon as your actual payable due date is passed. Now, your lender likely allows you a set period, which can be between as many as 15 to 30 days out, before they assess any sort of late payment fee. But... Go up to or beyond the 30 day late mark, and your lender will send a friendly little note to at least one of the 3 major credit bureaus - letting them know you've been very, very naughty.
Should this happen to you, don't worry too much. As long as you get back on track and make nice nice with your lender, you should be in good shape. Sure, you'll have that 30 day late ding on your credit report, but steady payments over time from this point forward will get you back in good standing.
Should, for some reason, you fall behind in your mortgage payment beyond the 30 day period, and then on into an extended period, your mortgage will then move into default territory.
Default
Normally, when you fail to make as many as three or more of your home loan payments, your mortgage will normally move into default status.
Folks, this isn't pretty. Once your home loan moves into default, the Legal Team of Dewey, Cheat'em, and Howe get the nod.
They'll likely begin foreclosure proceedings, and you'll be required to get caught up completely on your mortgage loan if you want to avoid moving into the full foreclosure process. Oh, and there's also a chance that you'll be charged fees to pay back your lender for whatever they paid their legal firm. Yeah, I know. You can almost hear that cash register bell ringing.
Was this article helpful? If so, then please visit my [http://www.floridahomeloansspecialist.com]Florida Mortgage website for more useful tips and advice.
About the Author
Kevin Sandridge is a [http://www.floridahomeloansspecialist.com]Florida Home Loans Specialist who provides his clients with customized, well-reasoned, Florida home loan finance solutions.
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Key Differences Between Home Loan Delinquency and Home Loan Default
HUD SECRETARY DONOVAN ANNOUNCES EXPANDED ELIGIBILITY FOR MAKING HOME AFFORDABLE REFINANCING
Announces eligibility for borrowers up to 125% underwater in Las Vegas with Senate Majority Leader Harry Reid and Congresswoman Dina Titus
WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage. Under authorization provided by the Federal Housing Finance Agency, borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year.
Secretary Donovan made the announcement while touring a neighborhood in Las Vegas with Senate Majority Leader Harry Reid (D-NV) and Congresswoman Dina Titus. Las Vegas leads the nation in foreclosures and approximately 67 percent of the current mortgage holders have mortgages that are higher than the worth of their homes.
"I am here in Las Vegas because it is ground zero of the foreclosure crisis," Secretary Donovan said. "I am pleased to join Senator Reid and Congresswoman Titus to make this announcement today, which I believe will make a critical difference in our ability to help many more Americans, particularly those here in Nevada, to stay in their homes. The president's Making Home Affordable plan is already helping far more families than any previous foreclosure initiative and with today's announcement we will extend its reach still further."
"I am pleased Secretary Donovan accepted my invitation to come to Nevada and see firsthand the challenges homeowners here are facing," Senator Reid said. "His announcement that the loan-to-value requirement for the Administration's refinance program has been raised to 125 percent is good news for Nevadans fighting to stay in their homes. The neighborhood we visited today represents the hardships caused by the housing crisis and the hope that is being restored through the neighborhood stabilization program and the Home Affordable refinance program."
"I am pleased to welcome Secretary Donovan to Las Vegas and thank him for coming. This is an opportunity to show him firsthand the magnitude of the foreclosure crisis in Southern Nevada," Congresswoman Titus said. "His announcement that the Making Home Affordable program will be expanded to help those further underwater, something I have advocated for, is welcome news that will help thousands of Nevadans stay in their home. I will continue working with Senator Reid, Secretary Donovan, and the rest of the Administration to find more ways to help the hardest hit areas like Southern Nevada, as every new foreclosure prolongs the housing crisis and hampers our country's ability to move out of the current recession."
"This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market," said Treasury Secretary Tim Geithner. "By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."
Currently, only those borrowers whose first mortgage does not exceed 105 percent of the current market value of the property are eligible for the Obama Administration's Home Affordable Refinance Program. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Today's announcement will allow more homeowners to become eligible for the program, by increasing the eligibility to 125 percent.
Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. In just a few months, more than 200,000 borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers who may be eligible.
Donovan toured a neighborhood that has experienced several foreclosures in recent years, negatively impacting the property values of surrounding homes. The neighborhood has been targeted for Clark County's Neighborhood Stabilization Program, which will use funds to purchase and rehab foreclosed homes, provide downpayment and closing cost assistance to those purchasing foreclosed homes, and provide housing counseling to potential buyers.
Donovan also announced his plans to deploy HUD Foreclosure Rapid Response Teams to assess the areas hardest hit by foreclosure, starting in Las Vegas. The Las Vegas team will consist of two senior-level HUD Field staff with experience in Single Family Housing and in community outreach. Their task in the next two weeks will be to determine the needs in Nevada and in surrounding areas based on delinquency rate data at the zip code level, as well as listening sessions with local stakeholders such as housing counseling agencies, lenders, and members of the public. Based on the Foreclosure Rapid Response Team's assessment, HUD will commit two full-time employees to implement their recommendations. Additionally, HUD plans to deploy two Fair Housing equal opportunity specialists to the Las Vegas HUD office, which will provide the opportunity to conduct outreach and education locally, receive discrimination complaints and more readily conduct full investigations.
HUD receives about 100 complaints of housing discrimination every year from residents of Nevada, well over double what was received as recently as 2005. With a local presence, HUD's Fair Housing & Equal Opportunity office should make it easier for Nevada residents to obtain justice and relief, to educate housing consumers about predatory lending, and to conduct program compliance and monitoring in the over 3000 public housing units and over 8500 Section 8 vouchers.
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HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
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Small Business Economic Stimulus Survey
Here are the results of our survey conducted from a pool of 700,000 local business owners spanning all 50 states from 2/19/09 to 2/22/09.
A LIttle Tuesday Politics: Daschle Out - Got Pork?
I have to say good riddens to Daschle. If you or I forgot to pay taxes for "errors that included failing to report $15,000 in charitable donations, unreported car service and more than $80,000 in unreported income from consulting" we would probably be listed on a state website for delinquencies - no mercy. I guess he got things straightened out, "Daschle recently filed amended tax returns and paid more than $140,000 in back taxes and interest for 2005-2007." - CNN Online. I still find it precarious and I'd rather not see government being run by folks that don't follow the rules.
On to something more stimulating, today the GOP divulged what it described as "wasteful" in the stimulus bill. In case you are not up on the bill, here are a few of my personal favorites!
• $75 million for "smoking cessation activities."
• $150 million for Smithsonian museum facilities.
• A $246 million tax break for Hollywood movie producers to buy motion picture film.
• $650 million for the digital television converter box coupon program.
• $248 million for furniture at the new Homeland Security headquarters.
• $600 million to buy hybrid vehicles for federal employees.
• $400 million for the Centers for Disease Control to screen and prevent STD's.
• $1.4 billion for rural waste disposal programs.
• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.
• $6 billion to turn federal buildings into "green" buildings.
$160 million for "paid volunteers" at the Corporation for National and Community Service.
There actually more but I think I made my point. This stimulus is full of questionable, slow spending, non-job creating crap.
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