The basic concept behind co-buying is that you find someone to help you obtain your mortgage by being a co-signer and co-purchaser on your mortgage. This person is your “mortgage buddy”, who takes over part of the financial responsibility of your mortgage thus making you less of a risk for a lender. For a first time buyer this would appear to be an excellent way to get into real estate as fast as possible.

For many first time buyers the current economy and world housing market makes this kind of setup more inviting than ever. High home prices are making it difficult for a first time homeowner to get the loan that would cover the cost of a first home.

For example: if the cheapest starter homes are $170,000 and most first time home buyers qualify for a $120,000 loan a problem obviously arrises.

With a problem like this facing today’s home buyers a few websites have already risen to try and fill their needs, and have created “co-buyer networks”. In essence sites where you can link up with other people like yourself who want to share the risk and burden of homeownership with someone else. In most cases these people can be complete strangers.

A few examples of these types of sites are:

youtoshare.co.uk

sharetobuy.com

Stepping out on a limb with a friend in order to purchase something jointly is risky enough. Mixing financial interests with your friends is one of the best ways to ruin a relationship, and one of the best ways to ruin your finances is by trusting them to a complete stranger.

Be leery of these sites and of co-buyer networks. As great of an idea as a “mortgage buddy” is the risks for being left high and dry with a large financial debt over your head are great. If you are willing to trust a complete stranger in order to obtain real estate at least also be willing to get the legalities worked out and make sure that your protect yourself heavily. Insure yourself, and get your deal written down on paper.

Don’t ever be tempted into something risky by your rush to own a home, and be suspicious of things which seem to good to be true.

Yes it’s true. Other countries in the world besides the United States have populations struggling to make their mortgage payments. Our neighbors in the UK are showing signs of hardship as well today, the housing market remains primarily strong but these articles hint at a hidden picture which not everyone realizes exists, and if they aren’t careful with their borrowing, they may find themselves in this position as well.

Read up and enjoy a few of today’s mortgage headlines from the UK:

Homeowners Struggle to Meet Mortgage Payments

Thousands Risk All for Mortgages

Homes at Risk as Debt Rises

A mortgage broker is in essence everyones favorite person, he is the middleman. He benefits lenders by finding people to take their offers, and he benefits buyers (you the person trying to get a mortgage) by getting you the lowest rate you are comfortable with. A broker works independently from lending firms, often on a private level or out of a brokerage. A broker is a sleuth at finding different mortgage options. They often have multitudes of mortgage sources available from which to work with.

Unlike if you were to go to a bank, a mortgage broker isn’t bound by only the options that one lender offers, he is able to look at the bigger picture and help you find the best deal. This can be especially helpful for people with credit issues, which might ordinarily prevent them from obtaining a mortgage. They can also save time by going to all the mortgage sources at once, as opposed to a potential mortgage purchaser having to deal with individual lenders at a time.

What other benefits do they hold? Well they often are very knowledgeable about mortgages, and if you know nothing about mortgages whatsoever, other than the fact you need one, they will be a huge resource. Your broker will usually help you with all the necessary paper work too. They can tell you what you need to gather in order to have the best presentation to the lender.

Your broker wants you to get a mortgage, so they will do whatever they can to help. Do not however, let you broker push you into things. They should exist as a council to you not a handler. If they seem like a used car salesman, perhaps it is time to find another brokerage.

Do your research and find a broker whom you trust. Brokers are regulated but check with your local business bureau to get the real scoop on who you are trusting your mortgage with.

If you have more questions related to mortgage brokers I would highly recommend visiting Online Mortgage Advice, which is a great unbiased place for consumers to get the info they need.

Foreclosure is the process by which a lending agent, whether it be a mortgage company or bank move to sell a piece of property attached to a mortgage or deed. If you don’t make your payments expect to have you property foreclosed. These properties are usually put up for auction or foreclosure sale by the lender in an attempt to make back the money they put up for the home.  

Looking at the front page of the website Foreclosure.com one can see the saddening statistics of mortgage foreclosure on their front page. At the time this posting was published they had a total of 107,090 foreclosure listings on their site. This didn’t include the preforeclosures and bankruptcies they also list. Many of these foreclosures could have been held off by proactive action on behalf of the homeowner.

If the economy takes a stab at your interest rates on your mortgage, specifically if you have an ARM. It is critical to take an interest in protecting yourself. Contact your broker or lender immediately when you start to feel the pinch and ask for both advice and help. Lenders may allow you to modify your mortgage or refinance which could save your bacon, and some even allow for flexible repayment plans.

Also be prepared to cut out the luxuries in your life at least for the meantime in order to ride out the rough parts. As awful as condensed soup is at least you may keep your house by dining in.

Number one tip: Ask for help immediately, don’t wait until there is an eviction notice on your front door.

Jog on over and take a look at his article titled “Never underestimate the power of referrals”, and enjoy the pictures!

Congressionally chartered mortgage powerhouse Freddie Mac today reported that for the sixth consecutive week mortgage rates are dropping. 30 year fixed rate mortgages fell to 6.44% this week. 15 year fixed rate mortgages were down to 6.14%. Decreases in interest rates also occurred for 5 and 1 year adjustable rate mortgages.

The complete Freddie Mac findings can be found here:MORTGAGE RATES CONTINUE TO DRIFT LOWER AS HOUSING MARKET EASES BACK FROM RECORD HIGHS