What If You Had  Guaranteed Way To Stop Your

Foreclosure in the Next Two Weeks?Did you know that…-You can have your adjustable rate mortgage converted to a fixed rate?Without refinancing or paying any refinance costs?-You can get your lender to suspend your payments for several months so you can get caught up? -You can get your back payments spread over the life of your loan? Making a repayment plan actually affordable?-You can actually get your payments and/or your interest rate lowered?-There is even a special government program that will give you a second mortgage for all of your back payments, interest, and legal fees?-You can sell your home for less than you actually owe on it? Everything you thought you knew about foreclosure is probably dead wrong but again, most people simply don’t know. After all, they don’t go through foreclosure every day.and most people can’t fork out thousands of dollars to try and save their home.If they could, they probably wouldn’t be in foreclosure in the first place. Everyone needs an option that they can actually afford.You may have already tried talking with your lender and they refused to work with you at all.Or they may have offered some ridiculous program that requires

you to pay an additional $300 to $400 very month; in addition to your current monthly mortgage payments.Most people think that they have only one option;the option offered by their lender.That is incorrect.That is simply the best option for the lender;not the homeowner.You need to know exactly what other options you have to keep your home.

The Solution

If you can follow some simple directions, you can do this as well as any Loss Mitigation company out there. Once you actually learn what your options are, you can work on

getting a loan workout plan that benefits you as well as your lender. Your Best Option to Save Your Home. There is a new option available to homeowners that more and more lenders are beginning to accept. It is called a “Loan Modification” and here’s how it works….With a Loan Modification, your lender allows you to put the missed payments, late fees, and attorney costs over the entire life of the loan. In other words, if you owe back payments of $6000, and have 27 years left on your loan to pay, you could spread that $6000 over the remaining 324 months left on your loan (27 years x 12 months). This would mean that you would have to add an additional $18 per month to your current monthly payment ($6000 divided by 324 months). No joke; you could save your home for under $20 extra dollars every month!!And since a Loan Modification results in a brand new promissory note beingcreated (to reflect the new loan amount, new monthly payments, etc)…

The new note that is created is considered current at the time it is created.What this mean is that with a Loan Modification, your foreclosure is stopped immediately and you have a monthly payment that is actually affordable. As lenders get overwhelmed by the sheer number of properties they are taking backthru foreclosure, this option is becoming more and more popular.However, this program is sometimes difficult to get your lender to accept; unless you know how to present it correctly to your lender. Since this one of the best options for homeowners, we really want homeowners to focus on this. We’ll show you exactly what to do in four simple steps with the included Loan Modification Report.

Your Other Options: But that is merely one option you can ask for.

You have several others as well. Including options for people that simply cannot afford

to keep their home any longer. You are walked step by step through the entire process.

What to do first, who to call next, what you will need. If Step 1 doesn’t work, go immediately to Step 2. If Step 2 doesn’t work….Most homeowners are willing to do whatever

it takes to save their home. But nobody has ever shown them exactly what it

is that they have to do.You will also learn what to do even if you owe more than your house is worth. How to minimze the damage to your credit. Different options you have that your lender doesn’t want you to know. How to get a workout plan that doesn’t require $1000s of dollars

upfront and double mortgage payments. What to do if your lender is being difficult. Access to HUD Certified housing specialists that will help you through the entire process- and they are FREE!! Contact numbers for the correct department of every major lender in the country

(this alone can save you hours). Sample letters you will need to use to get a workout plan  Where to go to get information from other homeowners that are all going through the same thing. It Will Take Work. Stopping your foreclosure will take work;

and it is something that you will have to do yourself. But if you do not know where to call, what to ask for, and exactly what options you have to save your home, you will probably fail. Saving your home takes knowledge and information. Why not get that infomation from people that know how the process works. We understand that not everyone feels that they can do this. You may not have the time you may feel intimidated by your lender; you may simply think that these options are too good to be true. If you feel you cannot do this yourself,

simply send us an email. We will get you over to a Loss Mitigation company that actually gets results and costs under $600 to save your home for you. However, you can do everything they can do for you; you just need to know how. And you can do it all yourself;for under 1/10th of the price.

The Home Saver’s Report: You will learn the exact same process that Foreclosure Prevention

companies use (and charge $1000s for) to stop your foreclosure. Who to talk to. What they are looking for. What documentation you will need. How to present your offer. The different options you have that your lender doesn’t tell you about. The more options you know about,

the better your chances are that you can save your home. And the better your chances to get a workout plan that is actually affordable..

If you are unable to get any type of loan workout plan; if you are unable to get a short sale done; if you cannot get anyone to buy and lease back your property…All we ask is that you actually make the effort to follow the steps outlined, in the order laid out.The reason we offer this guarantee, is because the information in the Home Saver’s Report actually works!! We see homeowners use this information and save their homes everyday.

You can too.t’s Up To You

So, here are your options. A) You can do this yourself absolutely free of charge searching the Internet to try and find out what your options are. Go into some foreclosure forums and see what other people are doing. Call your county courthouse and try and find out what you can do. B) Hire a Loss Mitigation company to do this for you. Spend the money on a company that will negotiate with your lender for you.But be prepared. You will wind up spending over $1000 to do so. Or send us an email, and we’ll get you over to a Loss Mitigation company

that actually gets results and costs under $600.C) Get your copy of the Home Saver’s Report right now please visit:http://nomoreforeclosure.weebly.com/

Many people assume that if a lender starts foreclosure proceedings the defendant most likely owes the money and has no real defense  in the case.  However in the better part of the last decade shady sub-prime mortgage contracts have been multiplying to record numbers. Many of these high interest mortgages were created and approved by fudging income numbers and hiding abusive fee’s within the mortgage contract. Fortunately for many homeowners in a foreclosure crisis these direct violations to the law can come back to haunt the banks that created the mortgage contract. By having a forensic document audit performed on a  mortgage contract homeowners can sift out any violations found in their mortgage contract and use these as great leverage when both negotiating and defending a foreclosure. It’s important for any homeowner facing or in foreclosure to hire attorneys to defend their interests, the reason being is that a foreclosure is a lawsuit filed against consumers for non-payment of their mortgage. The lender hires attorneys to pursue their case against you, so hiring an attorney to represent you will significantly level the playing field.

Any violation discovered during the audit process can significantly bolster your defense in the foreclosure proceedings. The banks will be much more willing to negotiate a deal in your favor after your attorney advises them of the violations to the law found within your mortgage contract. It is estimated that over 80% of sub-prime mortgages created after 2001 have violated the law. Your attorney will then use this information as leverage in defending your case and negotiating a proper settlement. In some cases the mortgage note violated so many laws to such an extent that the lender may actually owe the borrower money by the end of the negotiations. It is advised that anyone who suspects they may have been a victim of predatory lending or mortgage fraud to immediately commence a document audit on their mortgage contract. It can mean the difference between keeping your home or not. A document audit is the first step in foreclosure defense and its result determines what direction the firm needs to go next in the defense process.

As you can see a foreclosure defense is not so one-sided and straight forward as most people assume. Simply because the bank alleges you owe them (X) amount of dollars certainly does not mean they are entitled to the entire amount or any of it in some cases. In the United States you have rights and if your rights were compromised during the creation of your mortgage contract you are entitled to seek damages whether it be: negotiation of reduced payments, principal reduction,  forgiven debt, or many other solutions depending on your unique situation.  Smith & Gromann, P.A. / CreditLawGroup can help distressed homeowners preserve their rights and lead an aggressive foreclosure defense. Call us today at (800)-283-8421 to speak with a credit analyst who can help diagnose your current situation and direct you to the appropriate department that will work with you to seek a positive resolution in your unique case. We have been in the business for over 20 years and our unparalleled knowledge of the industry  and legal logistics make us a prime candidate to defend your foreclosure and Subsequently the banks worst nightmare.

Commercial Mortgage Liquidity Crisis

We are, indeed, in the midst of a significant and severe credit crunch. Conventional lenders, such as banks, Wall Street investment houses and insurance companies have greatly curtailed their lending activity. Even the very best investors and developers are finding it hard to get projects funded.

The collateralized debt market has dried up. Few bond buyers are interested in mortgaged backed paper today. Big institutional lenders are finding it impossible to turn the mortgages they originate into cash. Put in simple terms; no mortgage buyers, no mortgage loans.

 Property owners, investors and developers are left frustrated and without financing.

 Good Deals have been Sidelined

The dollar volume of pent-up commercial mortgage loan demand now measures in the hundreds of billions of dollars. Deals that, just a year ago, would have enjoyed quick funding are being rejected by banks out-of-hand. Not because they don’t have merit, but because the banks and their counterparts are caught up in the liquidity crises.

With millions in profit potential at stake, commercial property investors are seeking out non-traditional sources of mortgage funds.

 Private Commercial Mortgage Lenders; Funding Deals When Banks Won’t

Privately funded commercial mortgage loans are becoming increasingly popular during this mortgage meltdown. Private lenders, many funded by wealthy individuals, hedge funds or other large pools of capital, often lend their own money for their own portfolios. These unique lenders have not been crippled by the breakdown of the collateralized mortgage bond market. They can still originate loans at will without worrying about who may or may-not want to buy them.

Further, private loans (sometimes called “hard money” loans) can close in just days, as-opposed to conventional loans which, if you get one at all, can take 3 months or more to fund.

There are generally no loan committees, stacks of paperwork or complicated ratios to deal with. If they like your deal and you demonstrate that you can pay them back, they can and will close your loan no-matter-what Wall Street is doing.

 What Private Mortgage Lenders Look for

Private lenders are equity based lenders; loan decisions are not driven by the credit of the borrower. It is essential that the collateral property have substantial equity in it. Most hard money commercial lenders won’t lend more than 70% of the purchase price or, in the case of a refinance, the value of the commercial property. So be prepared for large down-payment requests or a good sized 2nd mortgage. Also, borrowers will need to have some cash, typically 10% or more, in any given deal. There is no-such-thing-as 100% financing today. Documentation requirements will be much less than conventional lenders would require but be prepared to back up any claims you make with some proof.

Income producing buildings are favored by hard money lenders but most are willing to consider all property types.

 Hard Money Commercial Loans are now Indispensable

With the large conventional lending institutions frozen like a deer in the headlights, private, hard money commercial lenders have become indispensable to the commercial sector. They stand ready and willing to lend against quality buildings or well thought-out development projects. Investors should not give up on finding financing for their best deals until they have looked into a privately funded mortgage.

Private Funds Immediately Available for the Purchase, Refinance and Development of all Types of Commercial Real Estate Property and Construction Projects. Apply For a Commercial Mortgage Online at www.masterplancapital.com Simple 1 Page Application. Receive an Answer the Next Business Day. Fast Closings Available.

Glenn Fydenkevez, a 20 year Wall Street veteran, founded MasterPlan Capital, a commercial real estate investment banking firm, to quickly and efficiently provide capital to commercial real estate investors and developers. He can be reached at glenn.fydenkevez@masterplancapital.com

Property investment first came into existence in the UK in the 1990s and has boomed considerably in recent years.

In the beginning buy-to-let mortgages were only available from several different lenders. Now that investing in property has become so popular there are now dozens of lenders offering hundreds of buy-to-let mortgages to property investors.

Several lenders who first brought buy-to-let mortgages to the public have combined with other established UK mortgage providers to comprise the Association of Rental Letting Agents, or the ARLA.

In all, six of the biggest specialist lenders of buy-to-let mortgages make up the ARLA panel and between them they approve more than half of all investment property loans in the UK. The lenders are – Mortgage Express, Paragon Mortgages, The Mortgage Business (TMB), Birmingham Midshires, GMAC RFC, Natwest.

Through their contribution to the ARLA the above lenders have displayed their commitment to the buy-to-let mortgages industry. The ARLA regularly collects and produces information about the private rental market and publishes it for the general public to consume.

The institution also engages the Government regarding issues that are important to landlords and to the buy-to-let industry itself. Without the ARLA, the mortgage industry and private landlords would not be able to express their views to the government in one voice.

One of the ARLA’s initiatives was the ARLA Buy-to-Let scheme which persuaded lenders to reduce interest rates for investors wishing to purchase and rent out properties.

The scheme was also designed to encourage people to participate in property investment and benefit from its advantages, such as a high certainty of capital growth over the long term.

It is therefore easy to see how important this body is to the private rented market and for buy-to-let mortgages.

Buy-to-let investing has boomed over the past decade so it is important for the industry to offer some form of protection to participants. The Financial Services Authority does not currently regulate buy-to-let mortgages, which is another reason why the ARLA panel is so important.

If you are looking to invest in buy-to-lets it is a good idea to gather as much information as possible regarding buy-to-let mortgages before you purchase a property. The internet is a good place to start, and mortgage brokers who offer buy-to-let mortgages are also a good source of information.

Taking out a mortgage is usually the biggest financial transaction in most people’s lives. It is always important, but in these days of rising mortgage interest rates, higher mortgage fees and less certainty of getting a mortgage anywhere due to the squeeze on credit, it is more critical than ever to find the right mortgage product to suit you. To do this it is sensible to look for a mortgage broker to help you.

There are thousands of mortgage products to choose form and by no means all will be suitable for you or your personal circumstances, but narrowing the choice down is not easy, and that is why advice from a qualified mortgage broker with access to most of these mortgages, including some products that will not be available directly to the public is invaluable.

Strolling down your local High Street may give you a range of deals available from the top names in banking and building societies, but it does not necessarily give you the best choice of mortgages. It is better to get in touch with a qualified FSA mortgage broker.

Property prices have gone up in leaps and bounds over the past ten years. Although they are now showing signs of slowing down, it is possible that you may be looking for a bigger mortgage than has been the norm in the past. It is traditionally the case that most mortgage lenders have a ceiling of £250,000 for their mortgage loans, but there are some lender who specialise in very large mortgages. If High Street lenders deal in large mortgages, then their interest rates tend to be higher than normal. Most lenders only take into account an earned salary of either an individual or a couple. Often people looking for large mortgages will have other sources of income as well, and they need the lender to take these into account. These may include other investments, stocks, shares, and income from a business the borrower owns. It is important, therefore, to find a mortgage broker who understands these issues and can give you the best advice for your circumstances. Relevant questions concerned with large mortgages and larger properties may involve capital gains tax issues surrounding large cash back sums; insurance to cover the large sums involved; running costs for a large building, or even a grade I or II listed building.

It is tougher than ever for first-time buyers in the UK. The affordability gap has never been wider, with the increase in the price of property outstripping wage increases. With additional requirements for deposits, mortgage arrangement fees and stamp duty, first-time buyers are staying out of the property market longer than ever. A further problem has been caused by the global credit crunch as lenders tighten their lending criteria, so any slight problem with a would-be borrower’s credit record can result in a negative response from many lenders. A mortgage broker can help borrowers through the mortgage minefield, and assist in getting the best deal in the most difficult of times in the property market.

A home is more than mere four walls to its residents since we often treat our homes as a haven, a refuge and a shelter from the outside world. Now, there is yet another advantage of owning a home that most people realize only when they are in some kind of a financial problem. A home can be the ideal security or collateral when you require a secured financial loan to meet any emergency or lack of funds. Reverse mortgages are one of the best options available to senior citizens of America, who are retired and have no access to any other form of ready income. This form of a loan assures many benefits to the homeowner and is one of the most secured forms of loan wherein the borrower gets relief from repayment of the loan during his lifetime, as the house itself repays the debt through the sale money.

Reverse mortgages offer multiple benefits to the borrower who owns a home that has been put up as a security. The borrower needs to be at least sixty two years of age or above and must own a property to put up as collateral. The ownership of the house, however, remains with the borrower during the entire period of the mortgage and hence the borrower may even sell off the property if he so wishes. The only condition in this case would be that the mortgage on the house is repaid first, before the money from the sale can be accessed by the house owner. Reverse mortgages also enable the house owner to continue to reside in his property for as long as he wants and the property is sold off to repay the loan after the demise of the borrower. This ensures that you will have a roof over your head for as long as you live and this in itself is a great security for an elderly person.

Another advantage of reverse mortgages is that you can re-mortgage the property if needed, provided that the mortgage was first of its kind on the property. Also, the mortgage amount does not have to be repaid during your lifetime, as long as you continue residing in that property. Only you need to ensure that you keep paying the regular expenses on the house such as the taxes and other maintenance costs. However, one drawback of such a mortgage on your property is that you cannot leave the property to the heirs as the loan is repaid after your demise through the sale of the property by the lender of the mortgage.

Also, in the case of reverse mortgages, you may not claim the interest that you pay on the reverse mortgage, on your taxes, till the time the loan has been repaid. However, a senior citizen still benefits in a reverse mortgage loan because of the many advantages offered to him and the security it provides him till the very end. It assures his independence and is one of the reliable ways to raise money when you are in a financial crisis.

Property prices for even the smallest apartments are beyond the reach of many first time buyers nowadays. As a result, more and more people are clubbing together with friends to share a mortgage and ownership of a property. It’s a very good way to get on the property ladder, but as such arrangements are never normally for life and one or more party will inevitably want to sell eventually, the fine details should be agreed clearly at the outset to avoid financial loss or the loss of friendships.

The terms of a joint ownership mortgage are no different from a standard mortgage. Regardless of the amount of deposit that each person pays or the salary that they are earning, each shares equal liability for making the mortgage repayments as far as the mortgage lender is concerned. So if one person stops making repayments, the others will have to cover their share to ensure that the full repayment amounts are paid. It’s up to the joint owners to decide how they will divide the mortgage repayments and ownership of the property between themselves.

Clearly, a legal agreement is the best way to ensure that everyone understands their rights and responsibilities. This isn’t a sign of mistrust, it’s simply a guarantee of protection for everyone. Although not compulsory when taking out a joint mortgage with friends, it’s certainly wise to do so. It won’t cost much to have one drafted up by a solicitor. In fact so many people are taking out mortgages in this way that some mortgage lenders provide specially tailored joint ownership mortgages that include the drafting of a legal agreement.

Although the mortgage calculation is based on the sum of everyone’s incomes combined, the mortgage lender doesn’t give people different sizes of share in the mortgage or property. How much each person contributes towards the repayments is up to the joint owners to decide. It doesn’t have to be directly related to each person’s salary. This should be set out in the written agreement.

It can become more complicated in circumstances where individuals have put down different deposit amounts. However, again it’s up to the joint owners to decide how they want to divide the shares in ownership and in the mortgage.

If there’s only a small difference in the amount of deposits paid by everyone, it can be evened out informally by those who paid a smaller deposit making separate repayments to those who paid a larger deposit until their contributions are balanced out.

Alternatively, you may decide that each person has their deposit amount returned to them upon the sale of the property before the remaining profit is shared equally among the joint owners. This tends to work best in circumstances where the deposit amounts are low.

A common agreement for joint owners who have paid different deposit amounts, particularly if they are a large sum, is for the share in the ownership of the property to be equal but for each person’s deposit amount to be taken into account when calculating the mortgage repayments, so that those who put down smaller deposits have a bigger share of the mortgage. When it comes to one owner leaving or the property being sold, each person’s share in the profit is determined by calculating their share of the current balance of the mortgage deducted from the current market value of their share. This is fairer than taking an equal share of the gain plus giving each person back their deposit amount, as those who have been paying more towards the mortgage as a result of their lower deposits will actually have been paying more towards the capital than those who paid lower monthly amounts because of their higher deposit.

There are several different ways in which a person’s circumstances may change, thereby affecting their share of the mortgage and property. The details of what will happen in such situations should be ironed out in the legal agreement.

If for any reason one of the joint owners wants to leave, there are various possible options:

* the person keeps their share of the mortgage and property and rents out their room

* the person sells their share to the remaining owners who can then rent out the room if they wish

* the share is sold to a third party in direct replacement of the person leaving

* the whole property is sold and all parties leave

Insurance should be taken out as part of the legal agreement to cover situations in which people are unable to continue paying their share of the mortgage for a period of time, for example because of illness, injury, redundancy or death. For illness or injury, insurance cover will normally make their repayments for them for up to a year, and if the person is still unable to make repayments after this, their share of the property will almost certainly have to be sold.

If one of the joint owners dies, life insurance will provide a lump sum to pay off the person’s share of the mortgage, and, depending on the legal agreement drawn up, their share of the property will become part of their estate. Writing a will is a sensible precaution for ensuring that the deceased’s estate is distributed according to their wishes.

There are other things you’ll need to agree such as whether third parties can live at the property, and if so, for how long. You’ll also need to decide how you’ll split the fees for buying and selling the property.

All of these issues should ideally be specified in the agreement, which is best drafted by a solicitor to ensure that it’s fair and legally binding and covers all eventualities. Joint ownership with friends should be an enjoyable experience and you wouldn’t want to lose out on friendships or money as a result of misunderstandings.

For Buy to Let market, the last few months have been difficult for the landlords with the credit crunch came increase on arrears, lack of buy to let mortgages and tougher lender’s criteria. But it is not all bad news, the houses are cheaper to buy, the rents still increasing and rental demand at all time high.

Credit Crunch

Last year, we started to see the effects of too much borrowing and declining in house prices in USA. One year later, economies throughout the world started to collapse, financial institutions going into administration, Governments in the verge of bankruptcy, mortgage lending at very low levels, UK house prices coming down and a global recession.

It’s all bad news, no! The buy to let market is stronger than ever with the demand for rental properties being higher than ever, due to first time buyers not moving into the ladder and immigration from east European countries.

Within a dreadful situation, we can always find good opportunities.

2009 New Year, New Hopes!

It will be into 2009 that we shall see some improvement on the lending, specially buy to let mortgages.

It’s been predicted the houses prices will still coming down but at much lower pace and probably in 2010 they may start coming up.

For the landlords it’s a time to consolidate and review their portfolio with great opportunities to invest if you are in strong position.

Buy to let Market

Between 2004 and 2006 the buy to let boomed, due to easily accessible buy to let mortgages and property prices growth. Now the buy to let mortgage diminish, tougher lenders’ criteria, specially rental cover, and house prices are coming down. 

Buy-to-let is no longer sizzling and many investors that started being a landlord in recent years are struggling as mortgage rates rise. Many could not change mortgages due to low or negative equity, so when the initial rate deal came to an end and they started to pay the Standard Variable rate of the Lender,  the rent was not enough to cover the mortgage payments.

Within the most affected are those investors who bought properties at a suppose discount to sale straight away, looking for short term investment but when properties prices started to come down and the houses taking longer to sale, they run to serious problems.

The golden rule of buy to let investment is to look as a long-term investment, taking seriously. If the landlords invest wisely, look at long term, do the homework and stick to the tried and tested method of investing for rental returns rather than capital growth, they will be successful. Otherwise, the investor will probably run into serious problems.

Buy to let investment does not guaranteed success as any other investment but doing it well and it can be an excellent piggy bank for retirement.

I am leaving now some tips for all professional or first time landlords:

Do your homework

If you are a first time landlord look at pitfalls before you look at the benefits, buy to let investments are time consuming, therefore think if it is the right time to invest in buy to let or leave the money on a good savings account.

If you are already a seasoned landlord, do not stretch yourself, look first to consolidate and add strength to your portfolio, as if you are in stronger position your next investment  will run smoothly.

Location, Location, Location

It pays to choose carefully where your next buy to let property will be. This does not mean to buy on a cheaper or expensive location but rather the rental demand in the area. Look for clues like if is near a University or Hospital, very trendy area for professionals, excellent amenities and links, etc.  Avoid all cost areas with oversupply of properties to let, look at properties and letting agents’ websites and if a certain area has numerous properties to let, think if you want that kind of competition as you may have to negotiate the rent down to let the property.

Look at the figures

Before you buy, take a look at several properties, writing down the ones are of your interest. Look at the rental yields on them, see if the rental income covers at least 125% of the mortgage payments and if worth to spend around 25% on a deposit, this will help you to secure finance and a good rental yield.  Many lenders restricted the Loan to values to 75% or less and rental cover to 120%-125%, you can still arrange products with less rental cover but think if you want to restrict your rental yield.

Your target tenant

Think who will be your tenant and imagine in his shoes? If you are student you like a place to be comfortable and clean, links to university, nothing luxurious. If you are a professional you will be looking at a modern and stylish interior but nothing too pretentious, and excellent links. If it is for a family rental, do not put any furniture in, leave as a blank canvas, normally over the years the family has a few belongings they want to take to the next property.

Look into your portfolio

Review your portfolio, see if the initial rate deals in any of the mortgaged properties ended and compare the rate you are or will be paying with the rates currently in the market. If you are better off with the lender’s Standard Variable rate, does not mean you stop looking for a better deal. Try to look once a month for new rates or ask to your adviser to keep an eye on the products.

See if there is any opportunity within your portfolio to get a higher rental income. Why not transform a house with 3 bedrooms, 1 dining and 1 living room into a 4 bedroom house with living/dining room; make a loft conversion/extension to get 1 or 2 more bedrooms; renting by the room, as by the room the rental income is normally higher (but must be on right area). The possibilities are immense to add value to your portfolio and increase your rental income without spending as much money as buying another property. 

Look at other areas

Most Landlords invest where they live but most of the good opportunities are normally in other areas.  Do not be afraid, as if you follow the golden rule, can be very time consuming investing areas away but can be worthwhile.

Ask for a discount

When you buy an investment property, you must not forget you enjoy the same benefits of a First time buyer – No chains, so you can move quickly.  If you do not ask for a discount you will not have it.

Avoid Tenancy pitfalls

Put aside at least 2 months of rent, in case when your tenant move out or when you just bought a property  will help towards the mortgage payments until you find a tenant.

Worth paying for a complete tenant check report, where the provider will get you a credit file of the prospective tenants, check their ID, get the references and they are not expensive.  It is not guaranteed you will be good tenants but helps a lot.  Also, you should consider a rent guaranteed insurance, where can cover for rent arrears, pay towards the legal costs to evict the tenants and damage made on the property. With this type of insurance you may request a lower deposit from the tenants to match the excess of the insurance, that may help to secure a tenancy quicker.  

Shop around

Shop around for letting agents, ask a discount to traders: plumbers, furniture. The more you save the higher will be the return from the investment.

G M

Buy to let mortgages

Buy to let rates

Few people have the cash lying around to pay for a piece of real estate in its entirety. In order to become a homeowner, you’ll need to apply for a mortgage – a loan that allows you to purchase real estate. However, when you budget for your monthly mortgage payments, that

principle and interest of your mortgage loan aren’t the only things that you’ll need to include in your financial plan. You may also be required to purchase lender’s mortgage insurance, which is also sometimes called private mortgage insurance or PMI. Private mortgage insurance is an unexpected expense for many first-time real estate owners. Don’t get surprised be this expense!

Private mortgage insurance is meant to protect the lender, not you. If you should stop making payments of your mortgage, your lender has the right to begin foreclosure proceedings. However, this is not the best-case scenario, as lenders aren’t in the business of owning property. They need to sell as soon as possible, and depending on the market, this often means that they sell way below market value. If that sell price doesn’t cover the amount left on your mortgage, the lender can case in the private mortgage insurance policy you’ve purchased. This will cover the rest of the cost of the house to ensure that the lender does not lose any money in the long run.

Not everyone has to buy private mortgage insurance. It depends on the terms of your mortgage. Usually, mortgage lenders ask that you pay about 20% of the total property’s cost in the form of a down payment. However, if you don’t have a lot of money saved up, it is still possible to get a mortgage. This is where the private mortgage insurance comes into play. Usually, you are required to pay for an insurance policy for the lender until you’ve completely paid off that 20% of the mortgage’s principle.

Sometimes, the terms are a bit different, depending on the circumstances. For example, if you have a jumbo mortgage (a very expense loan for a high-priced property), you may be required to keep your private mortgage insurance property for a longer amount of time. Or, if you have an interest-only mortgage payment plan, in which you don’t pay on the principle right away, you might not have to carry the plan until the mortgage’s principle is paid of at 20%.

What kind of rate can you expect when it comes to private mortgage insurance? That depends on your specific situation. For some people, the monthly premium will be fairly low. For others, it might be fairly high. However, no matter what kind of premium you have to pay, the important thing is that you are prepared to pay it. Some of the main factors that come into play when insurance agents are determining your private mortgage insurance rate are the following: how much you did pay in a down payment, the total price of the loan, the type of property you are purchasing, and your credit score. The more likely you are to pay the mortgage in full, according to these standards, the more likely you are to get a lower insurance rate.

Some people have successfully avoided the need for private mortgage insurance by using the piggyback loan strategy. With this kind of mortgage lender, you’re using more than one loan in order to pay for the real estate. You make a 20% down payment, but only by using a second (piggyback) mortgage to pay for part of that down payment. So, you might have an original loan for 80%, a second loan for 10%, and a 10% out of pocket down payment. This way, you avoid the need for private mortgage insurance.

However, the cost for private mortgage insurance might actually be lower than what you pay for the interest on your second loan, depending on the factors listed beforehand. This used to be rare, but today, private mortgage insurance is tax-deductible. That means that it is now less expensive for some homeowners to get private mortgage insurance than it is for them to go for the second mortgage loan. This law will be in effect until at least 2010. It doesn’t apply to mortgage agreements signed before January 1, 2007.

Although private mortgage insurance doesn’t affect everyone, for many people, this is an expense they have to pay. Be prepared for it. If you are going to purchase a home using a mortgage, it is important to understand your expenses before you sign on the dotted line.