All About Loan Modification & How It Works: June 2009

Friday, June 19, 2009

Home Foreclosure Help

Can you help me if I am in mortgage foreclosure? If your are in mortgage foreclosure and you want to keep your house, call us right now (1-). Don't wait another minute! We work closely with one of the top foreclosure consultants in the Philadelphia area, and we can refer your case to them. If that doesn't solve your problem, we may be able to help you delay foreclosure long enough to get your house sold at a decent price.Yes we can. If you act fast! In Georgia you only have four weeks before your house is sold.

I am facing the foreclosure of my home. Can you help? The Colorado Division of Housing is a primary sponsor of the Colorado Foreclosure Hotline. The Hotline will connect you with a counselor who can assist you in a variety of ways. There is no charge for this service. See here for more information.

What is foreclosure? Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home.

Q. What is your full service program and why is it more? A. Our full service program consists of hours of time that we spend on our Clients case negotiating, faxing, making phone calls, sorting, filling out or correcting paperwork, etc. This is possible for Clients that want us to completely take over the foreclosure prevention process and handle every detail. If after reviewing the questions listed above, you still don't find the answer you need, just send us your question here and we will respond w/in 24 hrs.The Colorado Division of Housing is a primary sponsor of the Colorado Foreclosure Hotline. The Hotline will connect you with a counselor who can assist you in a variety of ways. There is no charge for this service. See here for more information.

I'm in foreclosure, but I want to keep my home, can you help me? You may qualify for a special federal program that would enable you to keep your home. You may also qualify to keep your home if your problem situation has been resolved. Because each foreclosure situation is different, please contact us to discuss your options.Yes we can. If you act fast! In Georgia you only have four weeks before your house is sold.

What if I am behind on my payments or in foreclosure, can you help? Yes, if you call or contact us now, we may be able to help catch up your back payments and stop the foreclosure process.Yes. If you are only a payment or two behind and your lender has not hired an attorney to begin foreclosure proceedings you may be able to negotiate a work out agreement yourself. If you are successful then you have saved yourself some funds that can be used to get caught up on your mortgage. Just remember, don't waste a lot of time on this.
Author: JordanOwens


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Loan Modifications-Can We Fix Your Non-Performing Mortgage?

Principal write-downs, or Loan Modifications will offer home owners the help they need.

An interesting solution.

Loan Modifications... A Solution For Negative Equity?

In July, Congress passed the Hope for Homeowners initiative. It is a FHA insurance package which will insure $300B of new mortgages for home owners in a "negative equity" position.

Negative equity, of course, meaning that most of these loans are worth more than the home.

To qualify for the loan modification, the borrowers must have made at least 6 loan payments on time, and they would need a DTI of 31% or less.

What happens if the borrowers meet all the guidelines? (And keep in my mind, that most of these are non-performing mortgages. And if I had to guess what the debt to income ratio on average in 2007 was, it would most likely be around 40-45%).

Who's Going To Qualify For Loan Modifications?

The answer is: Very few people.

When the program became available, out of 49 people applying, zero applications were approved.

NonPerforming Mortgages Included In FHA Secure Program

Just as difficult to qualify for, out of 203 applications only 49 borrowers were approved for the FHA Secure program.

During this same period, California had about 1,300 properties that had a Notice of Default filing.

So what's the big deal here? Can't we just give the H4H program some time?

Of course.

Remember that H4H, along with the lenders participating in these loan modifications will be looking for federal backing on these 90% principal reduction plans.

Instead of waiting on H4H, why don't you invest in those 49 notes that were rejected and make an offer to buy them.

And most likely, there will be more non-performing mortgages (to buy) where they came from.
Author: DeanEngle


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Don't Let Foreclosure Happen To You

Glancing over a general article about mortgages will bring a lot of questions to your mind concerning foreclosure. The United States is in a recession and millions are feeling the unemployment woes. Millions are at risk of losing their homes right under their feet. The news doesn't provide much comfort too. Many powerful officials have speculated that the house market is going to get worse before it gets better.

Webster states that mortgage is the pledging of your property to a creditor as security of a debt.Relatively speaking, your home is simply your collateral to the loan you were given to obtain it. If in any circumstances you are to default on your payment to the bank that trusted you with their funds they can take your home. There are several avenues you can take to avoid such action being taken against you. You can choose to refinance your home, apply for a reverse mortgage, or receive a loan modification.

Refinancing a mortgage means paying off your own mortgage and signing a loan for a new one. Many people choose to refinance their mortgage in hopes of getting a lower percentage of interest added to their current amount. When considering refinancing your property read all fine print with your contract and try to obtain a rate between 2-4%. Therefore refinancing eliminates a portion of interest meaning you pay less total interest per year.

Are you at least 62 years old, own your home, and have a low mortgage balance remaining on the home you reside in? Reverse mortgage will probably be the best avenue you can take. Reverse mortgages allow homeowners to change equity in their homes over to cash and pay off their mortgage all together. And, you simply do not need to repay until the home is not occupied by the owner or they die. Money from the reverse mortgage is considered tax free and is considered income. A few downfalls of the reverse mortgage loan however, is the debt on the property increases, equity disappears at a fast rate, and it's very expensive to apply.

A new trend in helping to solve the foreclosure dilemma is loan modifications. Loan modifications enable you to find an affordable mortgage payment for your situation. Loan modifications eliminate the spending and hours of reapplying for another loan by simply changing the terms of your existing mortgage. In order to be considered for a loan modification you have to provide proof of a financial hardship, be 3 or more payments delinquent on your mortgage, and have not filed bankruptcy. Applying is simple as well; you just go to the lender or primary service that owns your mortgage.

There are several solutions to solving your mortgage issues. But, we shouldn't let this economy be our downfall as well. Stop the world from taking from you what's rightfully yours, and explore all options with an open mind. And determine which method is right for your current situation. See if you can receive a loan modification.
Author: WilliamBrunswick


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The Benefits of Attorney

Choosing an Attorney can be a challenging attempt if you are not convinced of what it is that you are searching for. There are some diverse kind that specialize in different sections of the law.

When choosing an attorney, the first thing that you need to consider is the type that you need. Do you need a civil lawyer? Do you need a criminal lawyer?

These are just two examples of the categories of attorneys that you could choose from. While seeking for an person to deal with your legal court case it is important to, also make sure that they are certified to practice in your region.

There are numerous who claim to be an attorney, but individuals have learned in the end that they were not. Be careful of this.

Once searching for an attorney, it is important to make sure that the person has lots of knowledge You should determine their experience in the kind of problem that you get.

You should also determine just how much of a court case load that they get. getting an attorney that is really full of activity might not be complimentary to the court case that you have.

You will also want to ensure that the professional that you choose is willing to communicate with and work with you on a regular basis. Once you have ensured that the individual that you have selected is one that you would like to work with, you are ready to hire the attorney for your needs!
Author: AnneDurrel


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How to prevent mortgage foreclosure from happening to you

Foreclosure can be pretty alarming and frustrating if you're not sure what's going to happen next. You make it a lot less frustrating by learning the steps of foreclosure. That's the reason you have to find the time and energy to study the mortgage foreclosure process.

The second you miss that first mortgage payment, the steps leading up to foreclosure are launched. After a couple of weeks, you will get a note from the lender telling you you've missed a payment. If you pay your past due bills, they will leave you alone. If you stay in default, the mortgage company will give you a call. They will declare that you are in default and they will demand payment. If this looks like your situation, contact your lender.

If you reach your lender soon enough, you may get the opportunity to do mortgage loan modification. Taking this step can be one of the greatest ways to spare your family from foreclosure. When you've missed 3 months of payments, a lender can set the offical forecluse process in motion. It can take a little more time, but if you keep missing payments you will receive a foreclosure notice eventually.

The problems multiply when you receive your foreclosure letter. You can try to stall it if you decide to attend the court hearing, but you will lose in all probability. The banking company acquires the right to sell your house through an auction when the court hearing is over. When the auction process begins, you only have a few days to leave your house. If you stay, you will be evicted by the law.

It's important to speak with your lender before things get this far. Frequently you have the opportunity to use mortgage loan modification and rescue your home and family from foreclosure. Study the mortgage loan modification process and fill out the paperwork correctly to get the best chance of being accepted.
Author: TimKolstowski


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Why Loan Modification is a Good Choice over Refinancing your Mortgage

Modifying a mortgage loan has become much easier since the implementation of the Obama administration's loan modification plan. This plan provides incentives to lenders to change the terms of an existing loan to make payments on Columbus houses more affordable to homeowners. In the past, getting a mortgage modification was far more difficult, since lenders had to bear certain costs of the process.

Do You Qualify?

In order to qualify for Obama's loan modification program, the home must be your primary residence, and you must have purchased your home before January 1, 2009. The Obama plan does not apply to jumbo loans, which in most cases means your loan amount can't exceed $729,750; however, the allowable limit may be higher in high-cost housing areas.

Also, the loan is only available on the first mortgage. It does not apply to any subsequent mortgages you may have. Your mortgage has to be more than 31% of your monthly income if you are to qualify for the loan modification program. And lastly, you need to be able to show that you are facing financial difficulty which means you are having problems paying your mortgage. Whether it is because of the loss of a job, less working hour, illness, separation and/or divorce, or whatever else.

The process that follows qualification

The first thing you need to do is to get in contact with the lender. Once you have done so, you then need to request the modification plan. Some lenders who are not part of the Obama plan will probably refuse. Those who are, and there are many, will agree to the plan.

Next, you'll need to gather relevant documents. This includes evidence of your pre-tax monthly household income, your most recently filed tax return, information on savings and assets if applicable, and mortgage and loan statements for your first and second mortgages or home equity line of credit. You'll also need to create a detailed budget that lists your monthly expenses, including credit card payments and installments loans, like student and car loans.

Once you've gathered this information, you will go through the final process with your lender of negotiating the terms and completing the necessary paperwork.

Why modification instead refinancing is the better choice

There are two main reasons why you should choose to modify your loan rather than opting for refinance. The first reason is cost and the second is your ability to qualify. Because of the present state of the credit climate you will definitely not qualify for refinance unless you have an excellent credit record. Also, when it comes to refinance you are responsible for closing costs as well as other fees. The Obama loan modification program charges no fees at all. Also, if you are behind in your payments any late fees and interest can be waived.

Modification is the best option if you are falling behind on your payments, or if you could not afford to stay in your home with a new loan at conventional rates. On the other hand, refinancing is a better option if you have equity in your home and are looking for a better interest rate, even if you don't qualify for Obama's modification plan. Refinancing is also the only way to cash out if you want to tap into your home's equity.

You might opt for a professional, such as a lawyer or service provider, to do the negotiation regarding the modification you seek.
Author: KurtNovak


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Loan Modification -Alternative to unaffordable Mortgages Payments

Foreclosure is the process of regaining a property from a borrower and returning it to the lender due to default of payment on the loan or some other type of hardship. This is generally due to an inability by the borrower to catch up on their payments or otherwise maintain their financial responsibilities. When this type of foreclosure happens, it is easy to see that the home is lost and the borrower has nothing to show for all the money they put into their mortgage aside from lost equity and bad credit. With all of the damage that occurs in the foreclosure, it only makes sense to make as much effort as possible in order to avoid this particular process.

Modifying a loan is basically the idea of changing the terms between the borrower and the lender. By changing the terms so that the borrower has some friendlier standards to deal with, they have a better chance of catching up on their bills and possibly repaying the loan on time. When homeowners and borrowers are in these types of extreme financial difficulties, these loan modifications can be the only way out of a bad situation and can help to keep the borrower from going into foreclosure and losing their home. While the foreclosure is certainly difficult for the borrower, it is also bad for the lender, as they consider the monthly payment to be a regular level of income that is important to their income and revenue stream. A foreclosure can cause both the borrower and lender all manner of difficulty in the long run in the matter of lost revenue and bad credit. While there is all manner of difficulties for both, it is important to note that the lender is motivated to keep the homeowner or borrower from having to be foreclosed on. In the effort to attain a modified loan, it is important to start as early as possible in order to save as much money as you can.

By utilizing loss mitigation and loan modification, the idea is to come up with some type of agreement that will keep the homeowner in their home without being foreclosed on and keeping their credit from being damaged. With so much attention being paid to this type of foreclosure, it isn't hard to see that there are many individuals who could benefit from this type of loan modification to stay out of trouble with their lender.

While it is certainly not easy to stop foreclosure once it has drawn near, it is not as hard as you might originally think. With the help of an outside party that can prepare a detailed financial analysis and conduct a survey of the best possible alternatives for you choose from, you can come to terms with your lender and come up with a solution that works for both parties involved and keep the borrower from defaulting on their loan and being forced into foreclosure.

If you're behind on your mortgage payment, you will naturally want to begin right away and not waste any time. With all the attention being paid to reducing your monthly payments, it only makes sense to begin that much sooner in order to save money. When mortgage loan modification experts attempt to repair the damage done to your mortgage, they take a look at your particular situation and try to ascertain what hardships contributed to the current situation and attempt to alleviate these difficulties and arrange payments for you to repay your loan over time.
Author: BradleyMarmer

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See How a Loan Modication Can Save Your Home

Finding it harder to pay your mortgages? Didn't think it'd be so hard trying to keep up on payments? The U.S. economy is in bad shape and in no way are you alone in this problem. Foreclosures keep increasing and are at a number high since years right now. Bankruptcy is the next issue that has been arising along foreclosure within the United States.

People are struggling in America and it's time for us to arise from it very soon. Luckily, there has been quick action by our President Barack Obama that's suppose to help the American people get out of this turmoil we find ourselves in.

There have been a lot of legislative changes under President Obama that has been put into place to help those in serious financial need with loans. It's our job at Loan Modification Facts to help you get updated information on the bills and laws that'll help you financially.

We have plenty of articles posted for you to read about laws involving bankruptcy and even about how those judges are looking to gain more power. This means that judges could actually cut a person's mortgage down significantly if they wanted to.

Hopefully this would make lenders want to provide loan modifications to avoid people going to bankruptcy or having the loan severely reduced.

You could also learn how to handle certain situations better by reading the step-by-step procedure of how foreclosures work. These articles could teach you how and when to approach a lender and if you need to ask them for a loan modification making it better for you and the lender.

Read more into the Foreclosure Prevention Program that has been set up to reduce the number of foreclosures that have been occurring in the United States. This program is not the only one though that's talked about such as the Homes Affordable Program that's suppose to help seven to nine million homeowners this year.

It's our goal to help you overcome this economic struggle whether it's by loan modification or through one of the new programs. It's best to stay informed about certain issues like these caused by legislation. Knowledge is the key to success. And of course, we need you to succeed!
Author: JaylenDerell

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Why Do Lenders Prefer A Loan Modification Over A Foreclosure?

The thought of foreclosure is enough to send any homeowner into a panic. But contrary to belief, starting the foreclosure process does mean your at a dead end. From the day you receive your Notice of Default, you always have options, and the earlier you act, the easier it is to get back on track.

The two most common ways to stop foreclosure are a short sale and a loan modification. Both have their own pros and cons, and its important to choose the right path based on your situation depending on if you plan to keep or sell your home. This guide shows you both options and how they can help.


Option 1: Loan modification

The main advantage of loan modification is that you get to keep your home and continue your mortgage on more comfortable terms. It works by changing your mortgage terms to lower your monthly payments, allowing you to afford making your monthly payments again. This option is best for homeowners who have good payment habits but fell behind because of unavoidable hardship.

How it works

In a loan modification, you work with a lawyer who will basically guide you through the application. Your loan modification attorney will start by evaluating your case and deciding whether or not a mortgage modification will work for you. Its important to talk to a good loan modification attorney who can completely understand your situation.

Once you are qualified, they ll ask for a few financial documents complete your negotiation package. These usually include proof of income (pay stubs, W2 forms, etc), bank statements, and a hardship letter explaining your request and how you fell behind. They .ll go over your documents to see if there are any legal violations (RESPA and TILA) that can be used as leverage.


Author: admin










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Loan Modification a HUD approved workout solution

Loan Modification is a HUD approved workout solution becoming more common during this foreclosure crisis.

Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default. Loan modification is actually a process or transaction between the lending company and the debtor. The purpose of the transaction is to renegotiate the payment terms and other debts such as payment delinquency on mortgage.

Loan modification is not only for those who are facing foreclosure. Those that are experiencing trouble in their mortgage payments should seek this type of help. Loan modification is restructuring your current loan to re-establish your mortgage and create a monthly mortgage payment that will work within your budget. A loan modification is not a refinance; it is an enhancement to your current mortgage loan to create a payment that you can afford. Loan modification sounds intimidating to the average homeowner but the process is indeed simpler than you might think. By following a prescribed action plan, the process can reach a successful conclusion in a relatively short time.

Loan modification is an increasingly popular concept on saving your property. As the name suggests; this is a type of transaction wherein you ask your lender to make some changes in your mortgage agreement. Loan modifications are the best solution for you and your lender. Nobody wins these days in foreclosure. Loan Modifications are complex often resulting in tens of thousands to hundreds of thousands of dollars saved. Our specialists may be able to reduce your loan payments 20, 30, 40, 50% or more.

Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. Feldman who has been licensed by the State Bar of California for over 25 years. Loan modification programs are offered for individuals who are in danger of foreclosure of their home. With foreclosures on the rise, it is important to be educated about the array of loan modification programs that are available to you. Loan Modification is arguably the most effective tool you can use if you are behind on your mortgage and in midst of a financial hardship to save your home from entering foreclosure. We are dedicated to helping you achieve a prompt resolution to your mortgage related debt.

Loan modification on the other hand, is not available for everyone. This is only available for those who are unable to pay for their current mortgage based on their agreed payment terms and conditions. Loan Modifications help homeowners avoid foreclosure by negotiating with your bank and allowing you to stay in your home. Loan modification is still a relatively new arena. Many lenders have not definied clear criteria about which loans will qualify for a loan modification, and process for obtaining a modification may be similarly unclear.

Loan modification is not only for those who are facing foreclosure. Those that are experiencing trouble in their mortgage payments should seek this type of help. Loan modification is restructuring your current loan to re-establish your mortgage and create a monthly mortgage payment that will work within your budget. A loan modification is not a refinance; it is an enhancement to your current mortgage loan to create a payment that you can afford. Loan modification sounds intimidating to the average homeowner but the process is indeed simpler than you might think. By following a prescribed action plan, the process can reach a successful conclusion in a relatively short time.

Loan modification is an increasingly popular concept on saving your property. As the name suggests; this is a type of transaction wherein you ask your lender to make some changes in your mortgage agreement. Loan modifications are the best solution for you and your lender. Nobody wins these days in foreclosure. Loan Modifications are complex often resulting in tens of thousands to hundreds of thousands of dollars saved. Our specialists may be able to reduce your loan payments 20, 30, 40, 50% or more.
Author: johnkrol


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Out of the box thoughts about mortgage loan modification

Many consumers today find themselves in a need to modify their mortgage loan. The reasons could be many but regardless of why the process is usually uncomfortable and a bit scary.

Mortgage loan modification is the process of changing the terms of your mortgage. There are a few terms that can be changed such as the term of the mortgage the interest rate on it and so on. Some other things that can be modified are applying for interest only payments for a period of time or changing the principal on the loan.

It is important to be prepared before approaching your lender with regard to a mortgage loan modification. Mortgage loan modification is a negotiation process between the borrower and the lender. Like any other negotiation there should be a point where the interests of both parties match thus resulting in a successful negotiation outcome. Remember that when approaching the financial institute asking for a mortgage modification they are under no obligation to agree or to modify the loan. There must be a reason for the institute to go ahead with such a process.

The first thing to do when approaching the lender is to write down the reason why you would need the mortgage modified. For example losing a job or having your loan under water are common reasons. After writing down the reasons you should write down potential reasons for the lender to modify the loan. For example if you lost your job and can not pay your loan until you land a new job the bank has an interest to help you go through this period to prevent having the house go into foreclosure. Make sure to articulate the lender motivation as opposed to yours as when approaching the lender it is best to feed it with why this process is in its best interest.

So for example if you lost your job and can not pay the mortgage for a period of time you should go to the lender with a precise reasoning and plan. For example go to the lender and let it know that you lost your job and can not afford to pay the monthly payments until you land a new job. You should also make the lender feel confident that you are capable to land a new job. For example tell the lender you already sent your resume and hired a recruiter and that you have interviews lined up. Also provide some estimate for when you think you could land a new job.

Having the lender feel confident about you doing your homework is important. If the bank believes that your problem is indeed temporary and that you will eventually be able to pay the loan in full it will have a better incentive to help you going through that tough period. For example ask the bank to allow for lower interest only payments for a period until you land a new job. Or if that would be too much as the bank to freeze the payments for that period.

Mortgage modification is a negotiation process. In addition to letting the lender know why it is in its best interest to make the modification it is also good to let the lender know why not making the modification would result in a loss to the lender. For example let the lender understand that if you can not modify the loan you will be willing to go to a foreclosure or bankruptcy process which will result in further loss to the lender.

Author: frankie


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How to Get Help From a Loan Modification Program

Meeting monthly mortgage payments or attempting to refinance a home has become hard to do over the past year. Thankfully there is an answer in sight. A loan modification program will help borrowers who are in danger of losing their homes to foreclosure. This same program will also help those who have had difficulties refinancing their home to a lower rate.

The economy has turned borrowers who used to be able to pay their mortgages into potential foreclosure risks because of pay cuts, job losses, or rapid declines in appraised values on their homes.

In fact, there are a large number of people who already owe quite a bit more than the home is currently worth. The problem is compounded by homeowners who are selling below appraised values to get out from under mortgages they can no longer afford.

There are companies that can assist you through your loan modification. Loan modifications are typically too complicated for the average person to complete on their own, and information can be hard to find. A loan modification specialist can help you skip all the hassle and efficiently guide you through the process. It is possible to get a free consultation to see if a loan modification program would help your situation.

There is a catch to the loan modification program: simply that there can only be one modification during the life of the loan. So it needs to be handled in the right way. For homeowners more than a month behind, quick action is needed in order to complete the modification process.

What the loan modification program does is to get your mortgage payments (principal and interest), your insurance, and any association fees reduced to where it is no more than 31 percent of your gross monthly income. To do this the lender adjusts first the interest rate you are paying and then the principal amount owed.

So if you have a rate of say 7 percent, then you may get a rate as low as 2% and your loan term may be extended to 40 years instead of the normal 30 years we have become accustomed to. Also the lender may then forgive a part of the principal owed, as long as the new principal amount owed is not lower than the value of the home.

Though lenders are encouraged to work with modification companies to adjust the loans, they are not required to do so. To increase lender participation, the government gives a lender incentive of $1,000 per year for up to 3 years if the borrowers remain in the program. Borrowers can also earn $1,000 per year in principal reduction for up to five years if they keep the payments current.

Borrowers currently in foreclosure or bankruptcy may be eligible under this new plan. In fact, those who have been forced to declare bankruptcy may be required by the courts to do a loan modification.

The loan modification program offers a great opportunity for borrowers who are eligible. You may want to contact professional help to gather the needed financial information and get through the process for the greatest reduction of mortgage payments.
Author: KeithRonson



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Easy Ways To Step-up Your Chances For A Loan Modification

If you want to improve the odds of getting your loan modification approved, we'll go over a few tips to do that. These little known facts dramatically increase your chances of success. Let's look at a few of these tips.

If you want to get your mortgage loan modification approved, you have to prove financial hardship. First, write a financial hardship letter to your lender. In this letter, you explain your financial circumstances. You also need to tell your bank what steps you've taken to improve your situation. Finally, tell the bank you're committed to continuing being a home owner.

If you set up a new home budget and free up some money, this gives you more space for monthly payments. If you know your disposable income, you can determine an affordable monthly payment. Reassure the bank that can pay that amount now and will be able to keep it up in the near future.

Inform your lender about your financial situation by filling out the essential financial statements. Never try to omit information and be meticulous when filling out the forms. Supply your financial statement and a financial statement for the future to make the lenders job easier.

If you're planning to do mortgage loan modification, plan ahead and do your research. As soon as you're aware of the approval criteria, you dramatically increase your chances of success. When applying for mortgage loan modification, know that you need to hurry. It's up to you to do all the necessary research and save your home!
Author: GeraldFox


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Professional Mortgage Loan Modification Improvement

In this article, we will look at a couple of tips to increase your chances of obtaining a mortgage loan modification. These little known facts dramatically improve your chances of success. Let's discuss a couple of these tips.

A key factor to getting your mortgage loan modification approved is your ability to prove financial hardship. You have to write your lender a financial hardship letter. In this letter, you explain your financial circumstances. You also have to tell your lender what steps you've taken to improve your situation. Also, mention you're committed to home ownership.

Free up money by designing a new budget. Determine a monthly payment you can afford. Reassure the banking company that can pay that amount now and will be able to pay it in the near future.

Take the time to complete the required financial statements for the lender. Don't omit information and be thorough. Make it easy for the lender by supplying your financial statement and a financial statement offer for the future.

Make sure you do your research and plan ahead when applying for mortgage loan modification. If you know the approval criteria, you dramatically step-up your chances of success. When applying for mortgage loan modification, know that you need to hurry. It's up to you to do all the necessary research and save your home!
Author: Mijnadviseur


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Can I Get a Loan Modification - We can show you how

Loan owed by a person for his requirement and at times when in a position to repay the loan then homeowner needs some solution for it. Loan modification is a solution for such problem though it is not very easy to be done. Loan modification includes one of the following things done by it. By doing loan modification it ensures whether change in interests in the loan which he owed or a change in the type of loan or the period of loan being extended. It may also involve the combined solution of these.

By doing such loan modification it can be ensured that the loan becomes secure for over a long period and remains fixed during the period. Loan modification agreement and forbearance agreement differ in the period of time it provides the relief. While the former provides a long term relief the later provides a short term relief. Loan modification is like a permanent solution for your loan and makes the loan to an affordable level. Many people prefer loan modification to stop foreclosure. It means the legal proceedings done by the creditor for the payment which he owes. It becomes important to choose a reliable company which has done loan modification many times and puts its best to do loan modification. Some times by choosing a wrong company we may result in being cheated by that company.

It can also be done personally without involving a company in loan modification but it involves some work to be done. It requires calling your mortgage company and requesting them for loan modification. This involves explaining the situation in which you are unable to owe the payment of interest rates which are increased. This is followed by an assessment regarding monthly income and expenditure. It should prove the situation in which it is highly difficult to face such huge interest rates. It is not necessary for you to explain that you are headed to foreclosure as they may not be much interested to hear that you may led to foreclosure. This may result in acceptance or rejection of loan modification. Loan modification when accepted it may prove to be effective for a considerable period of time. It may also result in making the loan interest rates fixed or making some modification in the type by which the loan may reach an affordable level. Inspection and review will be made to determine if loan modification cane be faced by the current economic situation of the person applied for loan modification. If he proves to be unable to pay his arrear while he can face a loan modification then a loan modification approval will be made.

Such loan modification when done prove to be useful since it removes the stress of highly changing interest rates. It will change the existing mortgage and it will become a fresh start for the loan. There are times in which the request for loan modification may also be rejected. It is a must to maintain a record of such loan modification.
Author: genwright



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Tips To Avoid Loan Modification Scams

When the banking companies started to sink, many homeowners needed to find an alternative to foreclosure. This alternative is loan modification.. A loan modification basically means asking the lender to change the terms of your mortgage for good. Many times, this means lowering the interest rate. Because of interest lowering, the length of the mortgage is often increased.

Because of the present-day boom in foreclosures and people needing loan modification, there are a lot of con men around. The scams usually involve a company giving you all sorts of guarantees in exchange for an upfront payment for their 'services' . You will need to learn how to avoid these cons.

Most homeowners are searching for fast results when going for loan modification. If you get a guarantee, you can be almost one hundred percent sure it's a scam. Because the loan modification is not in charge of the decision, they can't guarantee anything about the results.

Don't believe the hype of getting your mortgage loan modification approved within a week or two weeks. It usually takes lenders thirty days minimum to consider a loan modification application. Because they have no intention of making good on their promises, the fraudulent loan modification companies will say anything to get your signature. Because they just want the upfront payments, they will agree to anything you want.

Don't be lazy in finding out facts about the company you want to deal with when doing mortgage loan modification. Don't be pressured into signing with some money hungry company when it doesn't feel right. There are enough of those around, and you need to be careful who you give your money.
Author: RickGreene

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Do your research and find a reputable company when trying to do loan modification. Don't go for the first money hungry person you encounter. There are

Because of the recent foreclosure boom, loan modification is a hot subject nowadays. A loan modification means you make a deal with your lender to permanently change the terms of your mortgage. Your interest rates get lowered or altered from variable to fixed for examplel. To offset the loss of the lender from interest payments, the length of the mortgage loan is often increased when doing mortgage loan modification.

Because of the increased demand for mortgage loan modification, a lot of scams are surfacing right now. People that pretend they can help you out, but actually only want to make quick money without delivering. These swindles can damage your chances of getting a loan modification and lose you a lot of money in the process.

Fast results and guarantees are precisely what most people are looking for when trying to do mortgage loan modification. If you get a guarantee, you can be almost 100% sure it's a scam. Don't do it, because the results are always subject to the lender's approval.

It takes a month to two months for a lender to take your loan modification request into consideration. The fraudulent loan modification companies will promise anything, because they know they will never have to make good on their promises. They don't care about anything but the upfront payments.

Do your research and find a reputable company when trying to do loan modification. Don't go for the first money hungry person you encounter. There are scammers around everywhere and you need to be careful.
Author: HughGrapling


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Avoid Getting Scammed When Considering Loan Modification.

If you are considering loan modification, watch out for the many scammers in this market. The foreclosure boom has lured many vultures to this industry. Not everyone that says they can help you out, has the intention to help you out.

So... how can you tell if your loan modification is legit? You have to know if you are being scammed. In this article, we will look at a few tips to detect a scam.

When your loan modification person demands an upfront payment of a couple of thousand dollars, there's a good chance you're getting scammed. When someone tries to charge you this, don't walk away but run away! The loan modification fees usually get rolled up in the loan amount. In other words, the banks pays your loan modification. The purpose of doing a loan modification is imporving your financial position, not put you deeper in the hole.

When you start on the path of loan modification, it's always a good idea to approach your current lender. When you do this in time, before debt is piling up, your current lender is glad to help you out. Your current lender knows your history and knows about your situation , so they may be best suited to help you.

When calling your lender for a loan modification talk, be sure to go up the chain of command. Customer service person are usually very polite, but unfortunately they can't really help you out. That's why you have to insist on speaking to someone that can really help you in negotiating in these instances.

If you feel you're out of options, consider filing Chapter 13 bankruptcy. This last resort measure forces a lender to look at mortgage loan modification. It allows you to come up with a payment plan for the past payments As said, this is a last resort measure, so be sure to look at other options first.
If you are considering loan modification, watch out for the many scammers in this market. The foreclosure boom has lured many vultures to this industry. Not everyone that says they can help you out, has the intention to help you out.

So... how can you tell if your loan modification is legit? You have to know if you are being scammed. In this article, we will look at a few tips to detect a loan modification scam.


When you start on the path of loan modification, it's always a good idea to approach your current lender. When you do this in time, before debt is piling up, your current lender is glad to help you out. Your current lender knows your history and knows about your situation , so they may be best suited to help you.

When calling your lender for a loan modification talk, be sure to go up the chain of command. Customer service person are usually very polite, but unfortunately they can't really help you out. That's why you have to insist on speaking to someone that can really help you in negotiating in these instances.

If you feel you're out of options, consider filing Chapter 13 bankruptcy. This last resort measure forces a lender to look at mortgage loan modification. It allows you to come up with a payment plan for the past payments As said, this is a last resort measure, so be sure to look at other options first.
Author: JamesDrake


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Sunday, June 14, 2009

Details Of Loan Modification

More and more people in today’s day and age are looking into the loan modification process. If you think that loan modification may be able to help you get back on track with your mortgage, you will want to get in touch with your lender in order to get started. But before you do that, you will definitely want to learn a bit more about what loan modification has to offer. After all, this is not something that you want to do for no reason whatsoever. The loan modification process can be long and drawn out, and unless you absolutely have to do it, you will be much better off staying away from it.
Generally speaking, loan modification is used among homeowners who are attempting to stop foreclosure on their home. Foreclosure is when the homeowner gets behind in their payments, and the bank is going to repossess it. With a loan modification program, a homeowner may be able to stop this by getting the terms of their mortgage changed. If you have the money to make your current payments, but cannot catch up with the ones that you missed, a loan modification is probably the way to go; if your lender will work with you do this, of course.

The way that a loan modification works is not entirely difficult to understand. Simply put, your lender will take your back payments, as well as interest, and roll it into the overall amount of your mortgage. From there, the loan will be re-amortized, and you will have the chance to more or less start over fresh. Just remember, if you go through with the loan modification you should be able to stay up to date with your payments. It is going to be a waste of time for you to do this, and then start missing payments again. A loan modification can help you to avoid foreclosure, while also getting a fresh start on your mortgage note. Although this process is not something that you want to go through, for most, it is much better than losing their home. If you find yourself facing foreclosure, do not waste another day. Get in touch with your lender to see if a loan modification program would be possible.

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Author: James Gunaseelan


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Saturday, June 13, 2009

A Behind the Scenes Look on Loan Modifications

The loan modification process is actually a very multifaceted process. What I mean by that is, the entity that actually makes the decisions on loan modifications are not always made by the company that owns the loan. Instead it's actually the investors who own the mortgage back security that your loan is a part of that make the decisions as to whether or not to approve your loan modification and not your servicer which is the company that you make your payment to on a monthly basis.

The decisions are based on this factor, what is most "beneficial" - which mean how can they keep more money in their pockets and minimize their losses. This is why the typically result of a loan modification is just a rate reduction and they would prefer to keep you paying than going into foreclosure or committing to a short sale. Also this is why the chances of getting a principal reduction in the amount you owe is slim to none, while it does happen its very rare, somewhere between 1-2%.

Even though the borrower's circumstances make an impact on their decision, the lender really doesn't care what a foreclosure will do to the borrower's credit. This is exactly why it is recommended to use a loan modification expert to structure your loan modification and present a strong case to your lender.

If the home owner is upside down and has negative equity, then this will actually increase their chances for getting their loan modification approved, as the amount of equity or lack of is a crucial factor in determining if a loan modification is appropriate for the home owner. For a home owner to determine their equity position, they will need to get an idea of what homes are selling for in their neighborhood. They can do this by either contacting a real estate agent or using websites such as zillow.com, where the home owner can input their address and this site will show recent sales and active listings in the surrounding areas.

Adjustable rate mortgages coupled with other life events are almost a guaranteed loan modification, especially if the rate adjusted and caused the home owner to default. Adjustable rate mortgage are considered an extreme hardship and becomes a major factor when getting a loan modification approved.

If done correctly, a loan modification can prove to be a win-win situation for both home owner and lender. Many lenders have turned to loan modification as a means to protect their real estate investments.

It is not uncommon in today's market for the servicer to string along the home owner and tell them every thing is ok, when its not, before the home owner knows it, the sheriff is knocking on their door, serving them with a lis pendens that shows that their lender has filed a lawsuit and has started the foreclosure process. That is why I want to encourage home owners that are not educated enough to deal with this process to hire a professional loan modification company to assist them during these stressful times to ensure a smooth and quick loan modification.

Author: Marlon Baugh




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A bad Credit Homeowner Loan Could Be The Answer

If you have a history of bad credit and have been turned down time and time again when it comes to getting a loan then a bad credit homeowner loan could be the answer to your problems.

While there are many ways that you could have got a history of bad credit lenders just take into account that you are a bigger risk when it comes to lending you money. Due to this some lenders wont give you a loan, however if you go online and look around you will find that there are some specialist lenders out there that are willing to offer homeowner loans to those with a history of bad credit.
Going with as specialist in homeowner loans that deals with those who do have a bad credit rating is the best chance you have of getting a loan. The bad credit homeowner loan is just the same as any other type of homeowner loan except that as you are seen as a higher risk the lender will charge you an interest rate that is above the standard.

One of the easiest ways of saving time and the embarrassment of being turned down constantly for a loan or credit is to go with a specialist lender who only deals in bad credit loans. However while the rates of interest will be higher for this type of loan it is important that you do look around, lenders do vary slightly in the rates of interest and also the deals that they provide. If you are lucky then you can get a fixed rate of interest on the loan for a couple of years so you know exactly what you will have to repay every month.

Getting a loan if you have a history of bad credit can be hard and if you have been turned down time and time again then a bad credit homeowner loan could be the answer to your problems.

Author: Jason Hulott

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7:45 PM 0 comments

Loan Modification Tips And Tricks to Deal With Your Lender

Are you having trouble with your mortgage? Has it adjusted and you cannot afford the new payment? Were you placed into a bad loan and you can't refinance into a good one?

The first thing that a homeowner should do is identify that the mortgage on their current property is a lawful one. Meaning that there are no Truth in Lending Act Violations or RESPA violations and there wasn't fraud involved on behalf of the lender or broker that originated your loan. When you are trying to stop foreclosure, you need to have as much ammo as you can to go up against your lender.
With that said, let's go over some essential tips that might help you save your home.

#1 Homeowner Tip = Have an experienced mortgage attorney examine your loan documents for these potential violations.

#2 Homeowner Tip The homeowner needs a complete written life of loan history to see all the bogus charges and fees included in their mortgage balance. Also, the homeowner should make sure that any inflated appraisal and/or loss of property value is calculated into the workout.

Red Flags and Things to Look Out For in Your Loan:

Start by comparing the loan you got with the one you thought you were getting. Are the terms the same? That is, is your Annual Percentage Rate ("APR") the same as the one you were quoted? Are your total monthly payments the same as you were told they would be? Is there a prepayment penalty, and if so, were you told about this prepayment penalty?
If you have refinanced your primary residence, that is, the home your currently live in, then the first thing you should look at is the "notice of Right to Cancel" which is also called the Three Day Right of Rescission. You usually has three days after signing loan documents to change your mind and cancel the loan.

The borrower must be told of this right in writing.
If the creditor fails to properly provide notice of this right to cancel, the right of rescission may be extended for up to three years.
When the right is extended for three years you can rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. Essentially, you become entitled to all profits made by the creditor as a result of this loan. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees. As you can imagine, this amount can be quite significant.

The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending, and helping our clients exercise this right is often the first step in holding a creditor responsible for illegal behavior.
If it is determined that no laws have been violated on your mortgage, then it's time to approach your lender for a possible loan workout or loan modification.

The factors they will look at are:

1. Nature of Hardship Causing Your Mortgage Problems
2. Ability to pay
3. Amount Owed
4. Equity in the property
5. Future financial situation

6. What is better for them. To foreclose or pursue a loan workout with you and or modify your loan. Meaning which approach will best benefit the lender in the long run.

A loan workout or loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations.

When applying for a loan modification, make a game plan on how exactly you are going to approach them. These people are trained in minimizing loss for their company and they get paid to by getting the most amount of money out of you as possible or declare that your case is un workable and foreclose on you. That is how they mitigate loss. If you understand this, then you'll know that you have to approach them and all conversations very carefully.

Everything can and will be used against you.

Your lender has two platoons of employees who talk with delinquent borrowers. The first is the collections department, which consists of people who try to pry money out of you and get you current on the payments. The second group consists of the loss mitigation specialists. These departments go by different names, depending on the servicer, including foreclosure prevention, loan resolution and delinquency customer service. We'll use the most common name for the department: loss mitigation, or loss mit. It can be difficult to get through to the loss mitigation department if collection agents are discouraged from transferring calls. This is one of the benefits of having a helper, such as an attorney or a housing counselor. The first will intimidate bill collectors and the second might have contacts within the loss mitigation department.
The trick with any bank and getting a work out done is learning to navigate their phone system so as to increase your chances of getting a live person. Over the years I've learned some tricks that help, sometimes you hear options that you know will lead to a person like when it says "to speak to a representative press ___" but sometimes they don't give you these options. So, you have to think, what options WOULD get a live person. For example often anything that involves new clients signing up will get a live representative…because they always want new business. You have to be a little savvy though; you can't just tell the sales guy you called them so you could get a warm body to answer the phone!

Once you get a live person, you want to be working your way up to a decision maker. This is sometimes harder to do for a homeowner than a 3rd party. Often with the homeowner they get stonewalled at the first level, and sadly the first tier in Loss Mitigation is really a glorified collections department. They are paid hourly employee's who have very little if not zero motivation to go the extra mile and help you get some needed comfort and relief while resolving your problem. Often they just compound the problem by being rude and demanding, telling people things like "just pay your bills". So it's essential that you get beyond these people and to a specialist.
Sometimes to get to this point you have to put up with the hourly employee's through a process of filling out their forms and information. Providing them with items such as pay stubs, tax returns and a whole host of financial information. Once everything is provided, then some lenders will assign the file to someone higher up in the loss mitigation department.

The MOST crucial element to this whole process is your Budget and if you have done your due diligence, you'll be ready . They will ask you for a detailed list of your monthly expenses. If it's too tight, you may not get approved, if you have too much extra income you are going to have an outrageous payment plan. Don't agree to it!
The 2nd MOST important thing you can do is DO NOT SPEND YOUR HOUSE PAYMENTS. Often people stop making their payment because they are falling behind on other bills, or they can't quite make the whole house payment. Over the years more often than not, the people I met with still have an income coming in each month, they just can't meet all their obligations, so while the house is falling behind they take advantage of the fact that they aren't paying the house payment in order to catch up on other debts. THIS IS NOT WISE AT ALL. Sock away as much of that money each month as you can. Its crucial, here's why;

If you don't pay your mortgage for 3-4 months and your lender decides to negotiate a repayment plan or a loan modification, then they will want what is called "good faith" money for you to come to the table with. Typically this is from 30-75% and sometimes 100% of what you owe in delinquent fees and attorney fees. Often I speak with homeowners who spend all their money and have nothing to work with. If that is the case, then don't expect them to work with you or you better have a REAAAALLLY good explanation and proof as to why you have no money to bring to the table.

Author: Quintus Phillip


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Foreclosure Services Offered by the Bank

Whenever a dramatic decrease in the economy follows a period of relative success and financial improvement or prosperity, then the affects of that economic downturn are felt more acutely and more dramatically by the individual debtor which causes debtors to default on mortgages and other home loans extended by banks and other lending institutions; this increase in mortgages that have gone bad through delinquent accounts has forced landing institutions to pursue a stable round of foreclosure services. These services have come to include the initiation of pre-foreclosure proceedings, the availability of loan modifications in order to try and avoid foreclosure, the assessment of the value of the home or other property in question, the filing of associated legal and financial documents relating to the process, and transfer of ownership from the debtor to the bank with the attendant financial repercussions to the debtor.
The step included in most banks’ foreclosure services is the initiation of the pre-foreclosure process. This step legally informs the debtor of the impending foreclosure and makes it clear how much of the loan is passed due and how and when the unpaid payments need to be paid. It also gives the debtor an opportunity to contact the loan officer to discuss why they have fallen behind on their payments and to work out a modified repayment schedule.
At this point the loan officer has the ability to modify the terms of the initial contract. Lending institutions offer these options in order to try and make it easier for a debtor to catch up on delinquent payments. Typical loan modifications include the cancellation of part or all of the delinquent payments, the adjustment of interest rates or penalty fees, the extension of the loan for a longer period of time, or a partial reduction of the initial loan or mortgage.

If the debtor and the loan officer are unable to come to agreement on a loan modification, the loan officer is unwilling to adjust the terms, or the debtor simply does not choose to fight the foreclosure, then the next step in most foreclosure services is an assessment of the market value of the home or property. This is usually contracted out to experts, however many larger banks or lending institutions do have expert appraisers on staff. Since real estate is priced on a comparative method, the value of a particular property can vary wildly over the years, thus appraisals are used to determine the value of the property. The bank then knows how much the property may sell for and will be better prepared to make the decision to foreclose on the property or try and recoup the loan through other means.
If a foreclosure is deemed the best option, then foreclosure papers are filed with the local court and both legal and financial documents are completed and filed. These can be rather complicated and are usually written and served by attorneys. At this point the foreclosure process cannot be reversed. Therefore, the original debtor has a foreclosure placed in their file, thus permanently ruining their credit history. Once this is done, the ownership of the house or property is legally transferred to the bank thus completing the role of foreclosure services offered by the lending institution.

Author: DC Fawcett


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Loan Modification: Is it Hype or is it For Real?

If you’ve been paying attention to the news at any point over the past six months, you’ve of course heard about the terrible economic, credit, and mortgage crisis that we’re in. If you’ve been personally affected by it, then of course you haven’t had to hear about it from the news. You’re experiencing it first hand right now.

For homeowners facing foreclosure, or who are worried about their ability to keep up with their mortgage payments in the near future, there don’t seem to be many good options to pull you out of this mess.

The irony of this whole situation is this though -- that may actually have been true a year ago or even just six months ago. But as things have deteriorated even further, the situation for homeowners in trouble has gotten better, not worse.

How can that be, and what do I mean? Let me sum it up like this. In normal times when a homeowner can’t keep up with her payments, banks don’t have a problem for closing on the property. They never really like to, because foreclosing home never gives the bank account of profit they would get if you just stayed current and made your payments every month.

But when times are as bad as they are now, the banks are literally being driven out of business by foreclosures. I won’t get into the nitty-gritty detail why this is, but what you need to know is that banks pay a hefty penalty when they foreclose on someone’s home.

It’s this penalty that is driving banks that have been in business for over a century -- like Washington Mutual -- completely out of business. It’s not like they all of a sudden stopped making money completely. It’s that they simply couldn’t handle having to pay these penalties for all the properties that were going into foreclosure.

So can you see where this is going? The banks desperately want to avoid foreclosure. So what they’re turning to is something called loan modification.

And this is great news for homeowners like you and me. What this basically means is that banks are willing to work with people who are behind now, or who may be behind in the future, to modify their loans to work out a payment that you can afford.
Now, you need to realize that this is not refinancing. A loan modification involves working with your current lender to change the terms of your current loan.

Around a 30 million homeowners in the U.S. qualify for a loan modification right now. But most have no idea that it’s even available, and fewer still no how to approach their lender properly to have their loan modification approved.

The crux of a loan modification involves a homeowner being able to demonstrate that they are, or are in danger of, going backwards every month -- which basically means that you’ll be paying more than you’re bringing in.

This doesn’t just include things like your mortgage. You can add a new credit card bills, student loan payments, car payments, etc. to prove your point.

It also doesn’t mean that you have to currently be behind on your mortgage to qualify. The banks are so skittish right now about a homeowner even approaching foreclosure, that they want to work with customers who are even in danger of having issues.

While it is possible to approach her bag on your own about a loan modification, the safer way, in my opinion, is to hire someone who knows exactly what they’re doing. Ideally this would probably be an attorney who does nothing except loan modifications.

It’s this kind of professional who makes the banks stand up and take notice. Below I have a few resources that I recommend you check out if you think that a loan modification might be something that can help.

Author: Donald Deckerde


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Loan Modification Company VS. DIY Modification

After months of falling foreclosure rates filings are on the rise again. This comes as another wave of homeowners see their rate on their ARM (adjustable rate mortgages) rise and reset to higher monthly payment amounts at the end of last year. This is primarily due to Option Arm Loans where the interest of the loan is able to be deferred until a later date. That date for an unusually high number of homeowners came due at the end of last year and the beginning of this year.

Typically these type of loans have a cap built in to protect borrowers from getting stuck with an unreasonable payment amount however the downward spiraling of home values has pushed the loans to their cap sooner than expected. The cap allows the principal to accrue to a percentage of a homes value, in many cases this is 120%. Due to the current dip in home values the balances on these loans have already reached the max, forcing homeowners to pay the principal & interest payments they weren't expecting to pay for years - payments which many cannot afford to make.

As we are all too aware job losses are still on the rise and there is no clear sign that the vicious cycle is coming to an end any time soon. As part of the new efforts put forth by the Obama administration new opportunities are available for homeowners who find themselves in this situation. Borrowers who wanted to refinance in the past but could not qualify because their properties have lost value may be able to get a new more affordable rate meaning a lower payment.

There are a few indicators to consider when determining if you are eligible for this type of loan re-modification.
First, is your loan held or guaranteed by Fannie Mae or Freddie Mac?
Second, is your property a primary residence?
Third, is your first loan amount equal to or less than 105% of your current property value? If you can answer yes to all 3 of these indicators then you are one step closer to getting off the track of foreclosure.
Re-negotiating your loan directly with the bank can be a daunting task at best. Imagine how much the bank does NOT want to loose money and then combine that fact with the reality that they are the ones that "set the rules" for what rate they will offer in the re-negotiation. You are clearly the underdog in this match.
Reportedly more and more homeowners contact non-profit loan modification companies after hitting the wall trying to negotiate with banks directly. Contacting a non-profit company to assist with the negotiations has proven to be a benefit to thousands of borrowers to date. The non-profit already has a relationship with the banks and experience re-negotiating loans for struggling homeowners. They know how low the bank can go and what rate other struggling homeowners in similar scenarios have received. Non-profit companies also know the logistics of the new government plans, matching plans with struggling homeowners even if you don't know what plan you want to utilize, if one is available.

Author: Michael Y. Riley




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Hit a Loan Modification Roadblock? 5 Ways to Break Through

Many homeowners who are facing financial hardship due to job loss, illness, or mortgage interest rate adjustment have picked up their phone and called their mortgage lender to try and get a loan modification. If you have a lender who is prepared and motivated to work with borrowers in your situation, this initial call can go very well and result in the mortgage lender sending you the details of their mortgage modification programs. In this case, after you've completed and returned their paperwork -- and provided you're accepted -- you'll receive an offer from someone in their mortgage modification or loss mitigation department. At that point, it's just a matter of negotiating with the lender to get the best possible terms, and your modification will be complete.

Unfortunately, many loan modifications don't go as smoothly as the best case scenario described above. Often, homeowners hit roadblocks almost immediately upon calling their lender's toll-free phone number: finding the right person to speak with can be a real challenge, since customer service is seldom helpful in these cases. Once you find the right department, you may be told that your lender doesn't have any programs to help homeowners in your area or circumstances, or that you don't qualify for one of a thousand arbitrary reasons.

Assuming you do manage to find the right department and convince them to send you their modification paperwork, anxious weeks will likely pass between your returning the paperwork and your receipt of a form letter response from your lender. Ideally, your lender will have reviewed your paperwork and will offer you a modification. However, you may be in the same boat as thousands of other borrowers who have been denied a modification with nearly no information provided regarding the reasoning or rationale for the denial, and no way for you to appeal. Your subsequent calls back to the lender will start the process anew, only this time you'll be much more frustrated and will have wasted much valuable time. Simply put, you've hit a modification roadblock.

When faced with this situation, there are 5 tactics which can help you break through your roadblock and get the modification you need:

1) Polite persistence is key. Once you find the right department, write down the extension number or dial-by-number codes required to get directly to that department. Write down the names of everyone you speak to (and ideally get their direct phone numbers so you can call them back without going through the incoming call queue). Once you've found someone in the right department, keep calling once a week (or more) and check on the status of your filing, and inquire about any new programs which the lender is now offering: with the financial crisis deepening by the week, lenders are offering new programs for homeowners very frequently.

2) Don't take no for an answer. If you're getting shut down by customer service or the modification department, politely but firmly ask to speak to a supervisor. Customer service is notorious for telling you there's no one else to speak with, or asking you "what you'll tell the supervisor which is different." Don't get upset or flustered: simply reiterate that you need to speak with the person's supervisor. Eventually they'll transfer you.

3) Reach out -- and up -- for help. Many of us remember writing letters to Santa or the President in elementary school...well, it's time to dust off those skills! Using Google it's easy to find your State Representative, Senator, and local legislators. These politicians have entire departments which are devoted to helping constituents such as yourself get the help you need. It may take a number of phone calls but you might be pleasantly surprised at the results getting a politician on your side can bring. Consider sending them copies of everything you've sent to your lender to help make the case that you are serious and have really tried on your own.

4) Find the boss. If you are able to find out who your mortgage underwriter is (the party actually holding the mortgage note -- not just your mortgage servicer), contact them and ask for help. Often, your lender won't want to tell you who your underwriter is, so find the CEO or Vice President in charge or mortgages at your lender. Often times these executives will have a special customer service department ("Executive Customer Support" or some similar name) dedicated to helping people who have been unable to get satisfaction through the normal channels. Use Google to find lender's "secret customer service" number, email address, and mailing address, then appeal to them for help.

5) If all else fails, bring in the big guns. If you've tried your best to get help from your bank but haven't had success, or if you're tired of getting the run around, you should consider enlisting the help of a reputable loan modification company. Such companies may have attorneys on staff who can review your loan paperwork for errors by the lender, and they'll have professional negotiators who have the time and stamina to negotiate with the bank even if you've been denied before. Make sure you do your homework and research a company before making a final decision to work with any particular business.

However you proceed, the best way to guarantee a good result is to stay positive and be persistent!

Author: Lauren McPherson




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