Foreclosure Process & Alternatives

Introduction

For many years, Platinum Mortgage Company has been in business to help people obtain the American Dream of owning their own home. In addition, we pride ourselves in our ability to help our clients make sound financial decisions regarding their mortgage and investment needs. Buying a home is one of the largest investments we make in our lifetime, which will one day become a future asset. Most people don’t know where to begin, as the process can seem daunting for people unfamiliar with it. We partner with our clients to help them develop a detailed, personalized plan so they know what preparatory steps are necessary to complete the transaction successfully. It is our responsibility to educate the clients about the documents they will be signing upfront and at closing, as well as to go over the terms of the loans to ensure they have no unanswered questions. The journey to homeownership takes time and we are there with our clients every step of the way. Our favorite part of each purchase transaction is the day our client receives the keys to his or her new home.

Everyone deserves to be a homeowner and it is essential for our nation’s economy. Buying a home is one of the largest purchases that we make in our lifetime and it is also one of the largest commodities. New jobs are created when housing and construction are up and the gross revenue for each new home built is estimated at about $60,000. Noted in the Urban Policy Brief, Number 2 – August 1995 the four fundamental National Homeownership Strategy benefits are:

• "Through homeownership, a family invests in an asset that can grow in value and generate financial security."

• "Homeownership enables people to have greater control and exercise more responsibility over their living environment."

• "Homeownership helps stabilize neighborhoods and strengthen communities."

• "Homeownership helps generate jobs and stimulate economic growth."

One main downfall is that the average uneducated homeowner will refinance their home on average three times and they will never pay off their mortgage. Part of our service to our clients is to educate them on the tax benefits of homeownership, which includes deductions for mortgage interest, real estate taxes, and private mortgage insurance as well as an exclusion on capital gains from the sale of a home. With the tax benefits, buying a home is another way of giving yourself a raise that your employer cannot give you. The potential refund each year can supplement your retirement savings while also building equity, which you wouldn't receive as a renter. Who could live off of just $1,200 a month in social security income with no life savings? The goal for everyone is to be financially fit and debt free into retirement. Our goal is to help you achieve that and the best method is to arm you with the knowledge and resources that you will need in order to help you make an informed financial decision with your future and the future of your family.

Many applicants have negative credit history due to the country’s recent financial hardship and most have no idea how to rebuild their credit. It is imperative for us to help our clients with sub 640 FICOs, to raise their credit score prior to their loan approval. Every 20 points can increase their score can save them an average of 0.25% on their interest rate or in fees, which could be thousands of dollars in backend interest. This will also reduce their mortgage payment and make it more affordable. We would be doing a disservice if we did not offer this assistance to every single client.

Often, the main thing that is keeping someone from becoming a homeowner is FEAR. We will overcome this simple hurdle together.