Low FICO Score & Bad Credit Mortgage Refinance Applicants Are Approved and Ecstatic

Homeowners who think they can't refinance their real estate mortgage because of a low FICO score or bad credit, need to think again. There are many homeowners today who got caught up in the mortgage loan implosion. This occurred after foreclosure rates went up and the more lenient loan programs were eliminated as a result of foreclosures increasing. These homeowners may have got into their home loan mortgages with low qualifications and low FICO scores and now they cannot get out of them. Some borrowers are in adjustable rate mortgage loans where the interest rates continue to rise. As the real estate mortgage crisis continues, lending guidelines continue to get tighter, increasing the number of homeowners who cannot get refinanced.

In the face of the lending underwriting guidelines getting stricter, the real estate market does not seem to be cooperating. As the number of foreclosures and bank owned properties goes up, real estate equity goes down due to the declining real estate markets. As the equity shrinks on real estate, the credit denials increase. The reason for this is of course, lower equity increases the risk of the lender.

Many homeowners who have been told, "NO!" for a mortgage refinance may have given up on trying. They may have given up too soon. The future may be brighter for some who apply. Right now there is a program available 95% loan to value with cash out to those with low FICO scores and in some cases can go to as low as a 530 FICO score. The interest rate for this low equity loan program is about the same as the best conforming rates for borrowers with 20% equity or more.

The loan program is far more lenient than standard agency loan programs which are Fannie Mae or Freddie Mac approved. This will help many homeowners perhaps get out of the jam they are in buy getting them refinanced into a lower rate and help them take some cash out too. The first step is to contact a seasoned mortgage expert to assist you in your mortgage refinance.

Alle have been writing articles for nearly 2 years. Come visit his blogs more often for tips and advice that helps people with the interest for foreclosures in wyoming and great passion and knowledge for wyoming foreclosures for sale and all the different options & providers available in the market today. Find out for more info also here foreclosuresinwyoming.net

Other Methods of Real Estate Investing - Tax Liens

Understanding Tax Lien Investment

What is a tax lien? Tax liens occur when a property owner has not paid local taxes on a property. The local government will issue a lien against the property that states that it can't be sold and ownership cannot be transferred until the owed amount has been paid in full. How do you make money on someone else's tax lien? It's called a tax lien sale. An auction is held by the public authority who sells the property in order to settle the tax lien. The winning bidder is purchasing the right to own the property if the original property owner doesn't repay the tax debt to the winning bidder.

There are 3 kinds of liens that may be placed on property:

1. Judicial liens (also called "judgments"): Come from lawsuits by a creditor.

2. Statutory liens: Typically tax liens, either from the IRS, state taxes, and property tax.

3. Consensual lien: Missed mortgage payments.

What is the Tax Lien Process?

First, the home owner does not pay their local property taxes. So the local government makes a lien against the property, which prohibits the sale or transfer of the property until the tax debt is paid in full. After that the local government offers a tax lien at auction to cover the unpaid taxes. You attend the auction and bid. Be sure to research before bidding; thoroughly inspect the property and do a lien and title search. The lowest interest bid or most favorable fixed interest goes to the highest bidder.

Next, you'll have to wait and see. If the property owners don't pay the lien, action is taken. In some states, the owner of the tax lien certificate needs to apply for, and then gets, the property deed. In others, there is an auction for the property. You bid on the unpaid lien plus the interest due to you as the certificate owner.

States with Tax Lien Certificates: Alabama 12% Montana 10% Arizona 16% Nebraska 14% Colorado 9% above Fed Res Rate New York 14% Connecticut 18% New Hampshire 18% District of Columbia varies New Jersey 18% Florida 18% North Carolina 12% Illinois 18% North Dakota 12% Indiana 10-25% Puerto Rico varies Iowa 24% Rhode Island 12% Kentucky 12% South Carolina 8% Louisiana 5% and up South Dakota 12% Maryland 12-24% Tennessee 10% Massachusetts 18% Vermont 12% Michigan 15-50% West Virginia 12% Mississippi 17% Wyoming 18% Missouri 10%.

To illustrate two successful lien certificate investments, review the following scenarios:

Example 1: A real estate investor purchased a tax lien certificate on a commercial property for $12,000. The property owners were unknown, and all of the required notices were sent out but there was no redemption. The certificate holder acquired the property which was appraised at over $365,000. The return on investment for this real estate investor was over 30 times his initial investment!

Example 2: Mississippi pays lien certificate holders 17% interest. After 20 years, a $2,000 certificate would have grown to more than $30,000 with earnings that are tax deferred.

Alle have been writing articles for nearly 2 years. Come visit his blogs more often for tips and advice that helps people with the interest for foreclosures in wyoming and great passion and knowledge for wyoming foreclosures for sale and all the different options & providers available in the market today. Find out for more info also here foreclosuresinwyoming.net