One such site, About California Loan Modification (dot) com –(sorry for not making it a link , don’t care to generate traffic for these guys) had a press release earlier on a free site pr-insider.com. The press release talks about a “Mr. A” and quotes him as complementing the work of said loan modification lawyer for taking a “gun to a gun fight” and saving him “well over $100,000”
Thursday, June 25, 2009
Fake Loan Modification Companies Out There And Fake Press Releases
From Loan Modification News site loan-deals.com
Wednesday, June 17, 2009
Skip A Mortgage Payment
Recently i read a bad article about not skipping payments and just calling your lender to get a loan modification. The problem here is lenders will flat out say that you aren't struggling because you haven't missed a payment - so why should they help you. No i am not the governor of New York, No i dont think loan modifications are a scam..
For Loan Modification News be sure to visit our sister site loan-deals.com
With ample talk of loan modifications, underwater mortgages and rampant home foreclosures -- and with over six-million jobs lost during the past 17 months, according to the U.S. Department of Labor, the temptation to skip a mortgage payment may never be higher.
Why? If you’re unemployed, or suffered a health scare that’s swallowed up your cash, taking a one-month break from your mortgage payment responsibilities might give you some breathing room.
And, true enough, skipping one mortgage payment won’t get you thrown out of your house. Some banks, like JP Morgan Chase (Stock Quote: JPM) and Bank of America (Stock Quote: BOA), are even making mortgage loan “freezes” part of their loan modification programs
For Loan Modification News be sure to visit our sister site loan-deals.com
Tuesday, June 16, 2009
Court hears warnings about proposed foreclosure aid regulations
Lawyers and residents warned the state Supreme Court today that banks and mortgage loan companies might try to circumvent a new state law designed to reduce the number of foreclosures in Nevada.
One said the companies will send “sitters” to mandatory mediation hearings who do not have any authority to offer loan modifications to home buyers facing foreclosure.
Another said it will be extremely difficult to find out who owns the loan on which a home buyer is in default and facing foreclosure.
Reno attorney Robert Hager said mortgage companies typically make loans on money they receive from investors.
With the billions of federal bailout dollars given to banks over the last year, Hager contended it might be the American taxpayers who own the loan on mortgages now in default.
“No one can tell me who owns my loan,” said Reno resident Lauren Kay, who said her home is in default. “Countrywide says it is only the servicer of the loan.”
Under tentative rules developed by a Supreme Court task force, a home buyer who receives a default notice after July 1 — the law's effective date — could request a hearing before a court-appointed mediator to see if the lender will agree to new loan arrangements.
Both home buyers and lenders would be required to submit loan modification proposals to the mediator.
Justices made little comment on the concerns raised today, but they could change the regulations based on what they heard.
The proposed regulations were designed to battle the foreclosure epidemic facing Nevada home buyers. They received their first public hearing today.
Another hearing will be held at noon Monday in court on the 17th floor of the Regional Justice Center in Las Vegas.
The rules are designed to put into effect Assembly Bill 149. The legislation, drawn up by Assembly Speaker Barbara Buckley, D-Las Vegas, passed overwhelmingly in the Legislature and was signed into law by Gov. Jim Gibbons.
Final rules will be adopted June 29 by the Supreme Court.
Hearings at which home buyers and lenders will meet with mediators and try to work out solutions will begin in August.
Chief Justice Jim Hardesty said he expects 1,200 to 1,500 home buyers will request the mediation hearings every month.
Buckley estimated the new law could save 17,700 homes that otherwise would have been lost to foreclosure.
For Loan Modification help
But she emphasized from the beginning that the law would help only those who still have the means to pay a mortgage.
Nevada leads the nation in its foreclosure rate. Last year, 77,000 people lost their homes to foreclosure in the state.
The proposed rules also would require home buyers to prepare financial statements, including stating exactly what they can afford to pay on a mortgage.
At the same time, lenders would have to release appraisals showing the current worth of the home on which they seek to foreclose and estimates of what the home would sell for in a “short sale.”
Short sales are the way many lenders now dispose of the glut of foreclosed homes. Prospective buyers submit bids for a property that generally are far short of the amount of the existing loan.
Lenders decide whether to accept those bids.
Justice Mark Gibbons today questioned why lenders do not offer “short financing” to existing home buyers facing foreclosure, seeing they already agree to short sales.
Gibbons said lenders should be aware that a home worth $300,000 two years ago might be worth only $150,000 today and be willing to make loan modifications based on the new value.
With the required information from the lender and the buyer, the mediator then can strive to see if the two sides can agree to loan changes that would keep the buyer in the home.
Under the law, however, lenders are not required to agree to new loan arrangements.
More than 350 lawyers, former judges and trained mediators already have applied to serve as mediators. They will be paid a maximum of $400, half of which will be paid by the home buyer and half by the lender.
One said the companies will send “sitters” to mandatory mediation hearings who do not have any authority to offer loan modifications to home buyers facing foreclosure.
Another said it will be extremely difficult to find out who owns the loan on which a home buyer is in default and facing foreclosure.
Reno attorney Robert Hager said mortgage companies typically make loans on money they receive from investors.
With the billions of federal bailout dollars given to banks over the last year, Hager contended it might be the American taxpayers who own the loan on mortgages now in default.
“No one can tell me who owns my loan,” said Reno resident Lauren Kay, who said her home is in default. “Countrywide says it is only the servicer of the loan.”
Under tentative rules developed by a Supreme Court task force, a home buyer who receives a default notice after July 1 — the law's effective date — could request a hearing before a court-appointed mediator to see if the lender will agree to new loan arrangements.
Both home buyers and lenders would be required to submit loan modification proposals to the mediator.
Justices made little comment on the concerns raised today, but they could change the regulations based on what they heard.
The proposed regulations were designed to battle the foreclosure epidemic facing Nevada home buyers. They received their first public hearing today.
Another hearing will be held at noon Monday in court on the 17th floor of the Regional Justice Center in Las Vegas.
The rules are designed to put into effect Assembly Bill 149. The legislation, drawn up by Assembly Speaker Barbara Buckley, D-Las Vegas, passed overwhelmingly in the Legislature and was signed into law by Gov. Jim Gibbons.
Final rules will be adopted June 29 by the Supreme Court.
Hearings at which home buyers and lenders will meet with mediators and try to work out solutions will begin in August.
Chief Justice Jim Hardesty said he expects 1,200 to 1,500 home buyers will request the mediation hearings every month.
Buckley estimated the new law could save 17,700 homes that otherwise would have been lost to foreclosure.
For Loan Modification help
But she emphasized from the beginning that the law would help only those who still have the means to pay a mortgage.
Nevada leads the nation in its foreclosure rate. Last year, 77,000 people lost their homes to foreclosure in the state.
The proposed rules also would require home buyers to prepare financial statements, including stating exactly what they can afford to pay on a mortgage.
At the same time, lenders would have to release appraisals showing the current worth of the home on which they seek to foreclose and estimates of what the home would sell for in a “short sale.”
Short sales are the way many lenders now dispose of the glut of foreclosed homes. Prospective buyers submit bids for a property that generally are far short of the amount of the existing loan.
Lenders decide whether to accept those bids.
Justice Mark Gibbons today questioned why lenders do not offer “short financing” to existing home buyers facing foreclosure, seeing they already agree to short sales.
Gibbons said lenders should be aware that a home worth $300,000 two years ago might be worth only $150,000 today and be willing to make loan modifications based on the new value.
With the required information from the lender and the buyer, the mediator then can strive to see if the two sides can agree to loan changes that would keep the buyer in the home.
Under the law, however, lenders are not required to agree to new loan arrangements.
More than 350 lawyers, former judges and trained mediators already have applied to serve as mediators. They will be paid a maximum of $400, half of which will be paid by the home buyer and half by the lender.
Monday, June 15, 2009
Home Loan Scams
LOS ANGELES - For months, Antonio Villagra worried that his Granada Hills home would be taken away. "I missed one payment," said Villagra, "and I had the money. But they told me for the modification I had to be behind one month to qualify."
Villagra had never been late on a payment, but wanted to modify his loan to get a better interest rate. Just after his wife passed away, he trusted a company that called him on the phone.
"The first thing they asked me was 'you have to bring in the check for two-thousand-two-hundred dollars to start it," he said. Villagra brought in the check, but the company, Prominent Financial Solutions, never got him a loan modification, and when employees stopped returning his calls, he looked for help.
Villagra went to Maritza Gutierrez and her staff at the County of Los Angeles Department of Consumer Affairs Real Estate Fraud and Information Program, where they got his money back, and got him the free help he needed.
"Obviously if the homeowner can't make a mortgage payment then they shouldn't," says Gutierrez. "But if they're telling them on purpose not to make a mortgage payment, then they're in violation of all these offers the government is trying to give homeowners."
Gutierrez says most of the homeowners who call her feel as if it's almost too late.
"Do they show up at your office?" asked news anchor Emmett Miller. "They show up at my office," answered Maritza, "and they're crying. And they're barely making it to eat. And nonetheless to pay 5-thousand dollars to a company that didn't do anything for them!"
Gutierrez says there is free help that her office can recommend. Investigator Gutierrez and her team got Antonio Villagra's money back, but we wondered if the company Prominent Financial Solutions was still doing business.
We went to Bellflower to find out, but their office was now a gym. But the owner for the gym, who used to work for Prominent Financial Solutions, told us we could get a loan modification two door down at the lawyer's office there. By phone, the attorney who runs the office, Wilo Nunez, said he had not heard of Prominent Financial Solutions, but several of his employees told us people who used to work for Prominent were now employed by attorney Nunez.
On hidden camera, one employee said: "Well we used to be Prominent but it's all been switched over to the law office just to make everything a little bit more certified as far as modifications go."
Also on hidden camera, an employee gave us the same advice as Prominent Financial had told Antonio Villagra: to fall behind in your mortgage payments to help you get a loan modification.
Informed about that statement, attorney Nunez said the employee may have said something unethical and could be fired for it, but he did not ask us who the employee was.
We also spoke to real estate attorney Seth Hicks of Greene, Fidler, Chaplan and Hicks LLP.
"We've had many horror stories," said Hicks. "In fact, I'd say one out of 4 calls that we get are from borrowers who have previously gone to loan modification companies and been completely unattended to and unable to meet loan modification."
Hicks says homeowners should be wary of unreputable loan modification companies and lawyers, but also says loan documents are so complicated, most consumers can't understand them well enough to represent themselves.
"An unrepresented borrower is like a sitting duck to a bank," says Hicks. His client "Terry" agrees. He says he has peace of mind after hiring Hicks to try to prevent a foreclosure on his house.
"You're talking about the number one investment in your life probably, your home," says Terry. "So it's worth it to seek the counsel of an attorney, and not try to do it on your own."
Villagra had never been late on a payment, but wanted to modify his loan to get a better interest rate. Just after his wife passed away, he trusted a company that called him on the phone.
"The first thing they asked me was 'you have to bring in the check for two-thousand-two-hundred dollars to start it," he said. Villagra brought in the check, but the company, Prominent Financial Solutions, never got him a loan modification, and when employees stopped returning his calls, he looked for help.
Villagra went to Maritza Gutierrez and her staff at the County of Los Angeles Department of Consumer Affairs Real Estate Fraud and Information Program, where they got his money back, and got him the free help he needed.
"Obviously if the homeowner can't make a mortgage payment then they shouldn't," says Gutierrez. "But if they're telling them on purpose not to make a mortgage payment, then they're in violation of all these offers the government is trying to give homeowners."
Gutierrez says most of the homeowners who call her feel as if it's almost too late.
"Do they show up at your office?" asked news anchor Emmett Miller. "They show up at my office," answered Maritza, "and they're crying. And they're barely making it to eat. And nonetheless to pay 5-thousand dollars to a company that didn't do anything for them!"
Gutierrez says there is free help that her office can recommend. Investigator Gutierrez and her team got Antonio Villagra's money back, but we wondered if the company Prominent Financial Solutions was still doing business.
We went to Bellflower to find out, but their office was now a gym. But the owner for the gym, who used to work for Prominent Financial Solutions, told us we could get a loan modification two door down at the lawyer's office there. By phone, the attorney who runs the office, Wilo Nunez, said he had not heard of Prominent Financial Solutions, but several of his employees told us people who used to work for Prominent were now employed by attorney Nunez.
On hidden camera, one employee said: "Well we used to be Prominent but it's all been switched over to the law office just to make everything a little bit more certified as far as modifications go."
Also on hidden camera, an employee gave us the same advice as Prominent Financial had told Antonio Villagra: to fall behind in your mortgage payments to help you get a loan modification.
Informed about that statement, attorney Nunez said the employee may have said something unethical and could be fired for it, but he did not ask us who the employee was.
We also spoke to real estate attorney Seth Hicks of Greene, Fidler, Chaplan and Hicks LLP.
"We've had many horror stories," said Hicks. "In fact, I'd say one out of 4 calls that we get are from borrowers who have previously gone to loan modification companies and been completely unattended to and unable to meet loan modification."
Hicks says homeowners should be wary of unreputable loan modification companies and lawyers, but also says loan documents are so complicated, most consumers can't understand them well enough to represent themselves.
"An unrepresented borrower is like a sitting duck to a bank," says Hicks. His client "Terry" agrees. He says he has peace of mind after hiring Hicks to try to prevent a foreclosure on his house.
"You're talking about the number one investment in your life probably, your home," says Terry. "So it's worth it to seek the counsel of an attorney, and not try to do it on your own."
Two Las Vegas men indicted in foreclosure rescue scam
Two Las Vegas men have been indicted on felony counts of theft from a person 60 years or older and theft under a foreclosure rescue scam, Attorney General Catherine Cortez Masto said today.
William Vargas and Michael Sinclair were indicted on one count of felony theft from a person 60 years or older and four felony counts of theft for allegedly operating a foreclosure rescue scam under the business name of Federal Housing Aid.
The indictment alleges that Vargas and Sinclair operated Federal Housing Aid since February 2007, offering loan modification services to assist people in avoiding foreclosure on their homes.
The pair allegedly charged people between $899 and $1,500 in upfront fees and offered a 100 percent money-back guarantee, claiming their company would refund the money if foreclosure could not be stopped.
The company is alleged to have solicited people in Nevada from a call center in the Philippines, the indictment said. After paying for services, Vargas and Sinclair failed to provide services people had paid for, and failed to refund payments as promised in their advertisements.
Michael Sinclair is believed to be in the Philippines.
Collecting fees before services are provided for loan modification is a violation of Nevada law, Nevada Revised Statute 645D.400, Masto said. The state alleges that Vargas and Sinclair failed to perform foreclosure rescue services and failed to refund money as promised.
The case was filed by prosecutors assigned to the attorney general's mortgage fraud task force, created by Masto in early 2008 to address mortgage fraud scams throughout the state.
A district court arraignment has been scheduled for William Vargas at 9 a.m. June 23 in Las Vegas District Court Dept. 17.
"Any individual who believes they can take advantage of the dire foreclosure market in the state of Nevada needs to know they will be identified and prosecuted," Masto said. "Victimizing individuals who are desperately seeking a way to keep their property is the height of greed and cruelty."
Las Vegas is leading the nation in foreclosures.
William Vargas and Michael Sinclair were indicted on one count of felony theft from a person 60 years or older and four felony counts of theft for allegedly operating a foreclosure rescue scam under the business name of Federal Housing Aid.
The indictment alleges that Vargas and Sinclair operated Federal Housing Aid since February 2007, offering loan modification services to assist people in avoiding foreclosure on their homes.
The pair allegedly charged people between $899 and $1,500 in upfront fees and offered a 100 percent money-back guarantee, claiming their company would refund the money if foreclosure could not be stopped.
The company is alleged to have solicited people in Nevada from a call center in the Philippines, the indictment said. After paying for services, Vargas and Sinclair failed to provide services people had paid for, and failed to refund payments as promised in their advertisements.
Michael Sinclair is believed to be in the Philippines.
Collecting fees before services are provided for loan modification is a violation of Nevada law, Nevada Revised Statute 645D.400, Masto said. The state alleges that Vargas and Sinclair failed to perform foreclosure rescue services and failed to refund money as promised.
The case was filed by prosecutors assigned to the attorney general's mortgage fraud task force, created by Masto in early 2008 to address mortgage fraud scams throughout the state.
A district court arraignment has been scheduled for William Vargas at 9 a.m. June 23 in Las Vegas District Court Dept. 17.
"Any individual who believes they can take advantage of the dire foreclosure market in the state of Nevada needs to know they will be identified and prosecuted," Masto said. "Victimizing individuals who are desperately seeking a way to keep their property is the height of greed and cruelty."
Las Vegas is leading the nation in foreclosures.
Wednesday, June 10, 2009
Feds Going After Loan Modification Companies
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
The FBI, IRS, Secret Service, Department of Housing and district attorneys in Fresno, Tulare and other counties are among those involved. Their assignment: investigate mortgage fraud and foreclosure-rescue scams connected to the real estate boom and the bust that followed.
The FBI has helped set up 65 similar groups to combat a nationwide epidemic of mortgage fraud blamed for $4 billion to $6 billion in losses, according to estimates.
While the FBI helps organize such task forces fairly regularly, usually they're set up in response to violent crimes. The fresh focus on mortgage fraud reflects how prevalent it has become, said Steve Dupre, an FBI spokesman in Sacramento.
Last year, the number of suspected mortgage-fraud cases in the United States topped 63,000. In only the first two months of 2009, the FBI received 28,873 reports of suspected mortgage fraud and had more than 2,000 cases under investigation.
Last year, 734 cases were opened nationwide. That compares with 295 in 2003.
The Valley task force efforts are in addition to cases that other agencies, such as Fresno police and Fresno County District Attorney's Office, are investigating.
The FBI, IRS, Secret Service, Department of Housing and district attorneys in Fresno, Tulare and other counties are among those involved. Their assignment: investigate mortgage fraud and foreclosure-rescue scams connected to the real estate boom and the bust that followed.
The FBI has helped set up 65 similar groups to combat a nationwide epidemic of mortgage fraud blamed for $4 billion to $6 billion in losses, according to estimates.
While the FBI helps organize such task forces fairly regularly, usually they're set up in response to violent crimes. The fresh focus on mortgage fraud reflects how prevalent it has become, said Steve Dupre, an FBI spokesman in Sacramento.
Last year, the number of suspected mortgage-fraud cases in the United States topped 63,000. In only the first two months of 2009, the FBI received 28,873 reports of suspected mortgage fraud and had more than 2,000 cases under investigation.
Last year, 734 cases were opened nationwide. That compares with 295 in 2003.
The Valley task force efforts are in addition to cases that other agencies, such as Fresno police and Fresno County District Attorney's Office, are investigating.
Loan Modification Application- Documents You Will Need
If you are struggling to pay your monthly mortgage payments each month you should strongly consider applying for a loan modification with your lender. A loan modification changes the terms of your loan to make your monthly payments more affordable. This can be accomplished through lowering the interest rate, extending the payment schedule on the loan, or forgiveness of part of the principle. A loan modification can help you get your finances back in order and help save you from losing your home in foreclosure.
To apply for a loan modification you will need to fill out a loan modification application. There are quite a few documents and pieces of information you will need to supply your lender. It is very important to be accurate and thorough in providing your lender with your financial information and to present a compelling case for why you are a good candidate for a loan modification. Here is a list of documents and items you will need to help you get started on your loan modification application.
Loan Modification Application
- Borrower Information Sheet. This is the part of your loan modification application that contains your basic personal information such as name, address and social security number.
- Hardship Letter. You need to write a brief, but compelling hardship letter stating the nature of your hardship and why you are not able to meet your monthly payments. Examples of acceptable hardships are loss or reduction of income, divorce or death in the family, medical bills, and job relocation.
- Financial Statement. This lists your income and assets and presents your case for why you cannot meet your current payments but at the same time shows how you will be able to meet revised payments under a loan modification agreement.
Supporting Documents
- A cover letter that explains why you are submitting these supporting documents. Also provide a list of the all documents.
- Copies of your federal income tax returns for the last two years
- Copies of your W-2 forms for the last two years
- Copies of your pay stubs for the last two months
- Copy of your latest mortgage statement
- Copy of your latest property tax statement, if your property taxes are not in escrow
- Supporting documents, such as hospital bills, death certificate or divorce papers.
- Your last two bank statements
- Copy of your homeowner's insurance policy
- Copies of any letters from credit counselors or financial advisors that demonstrates that you are attempting to correct your financial situation.
It is very important that you submit a compelling, accurate and thorough loan modification application. Use this checklist to gather your information and present a compelling case for your loan modification in your hardship letter and financial statement.
To apply for a loan modification you will need to fill out a loan modification application. There are quite a few documents and pieces of information you will need to supply your lender. It is very important to be accurate and thorough in providing your lender with your financial information and to present a compelling case for why you are a good candidate for a loan modification. Here is a list of documents and items you will need to help you get started on your loan modification application.
Loan Modification Application
- Borrower Information Sheet. This is the part of your loan modification application that contains your basic personal information such as name, address and social security number.
- Hardship Letter. You need to write a brief, but compelling hardship letter stating the nature of your hardship and why you are not able to meet your monthly payments. Examples of acceptable hardships are loss or reduction of income, divorce or death in the family, medical bills, and job relocation.
- Financial Statement. This lists your income and assets and presents your case for why you cannot meet your current payments but at the same time shows how you will be able to meet revised payments under a loan modification agreement.
Supporting Documents
- A cover letter that explains why you are submitting these supporting documents. Also provide a list of the all documents.
- Copies of your federal income tax returns for the last two years
- Copies of your W-2 forms for the last two years
- Copies of your pay stubs for the last two months
- Copy of your latest mortgage statement
- Copy of your latest property tax statement, if your property taxes are not in escrow
- Supporting documents, such as hospital bills, death certificate or divorce papers.
- Your last two bank statements
- Copy of your homeowner's insurance policy
- Copies of any letters from credit counselors or financial advisors that demonstrates that you are attempting to correct your financial situation.
It is very important that you submit a compelling, accurate and thorough loan modification application. Use this checklist to gather your information and present a compelling case for your loan modification in your hardship letter and financial statement.
Sunday, April 5, 2009
How does owning multiple properties impact loan modification success?
Loan modifications are uncharted territory and as a result there is no map or guidelines that can guarantee modification success. Because lender policies change daily this poses a number of obstacles for the borrower. However, one obstacle that continues to impede loan modification success is when the borrower owns multiple properties. There are a number of loan modification programs being introduced by the Obama administration, however, they only apply to those borrowers who have one property that they are occupying. According to the lenders borrowers with multiple properties have the resources to earn a rental income or sell the property. Unfortunately, many borrowers are stuck with a mortgage on a rental property that is larger than what they receive in rental income. Sadly to say loan modifications are a rarity for borrowers with multiple properties.
Loan Modification Scam News Site!
It's actually gotten that bad that the Loan Modification News site www.loan-deals.com has actually started a loan modification scam news section!! (I am not kidding)
For more information click here: Loan Modification News Scams
For more information click here: Loan Modification News Scams
Thursday, April 2, 2009
Hardship Loan Modifications
Millions of homeowners are struggling to pay their monthly mortgage payments and risk losing their homes in foreclosure. A bad economy, difficult mortgage loan terms, and decreasing home values have all contributed to this bad situation. The federal government and lenders have stepped in to try to provide solutions. Foreclosure is not only bad for borrowers but lenders as well. The foreclosure process is very costly for lenders and it is hard to recover the amount owed on the loan through a foreclosure auction or short sale. A hardship loan modification may be offered to borrowers who are facing a financial or personal hardship to avoid foreclosure for both the borrower and lender.
A hardship loan modification involves modifying the loan terms to make the payments lower. This is designed to help borrowers facing hardship the ability to still make their monthly mortgage obligations with reduced payments. This can be accomplished through extending the length of the loan, lowering the interest rate, changing the loan from an adjustable rate mortgage (ARM) to a fixed rate mortgage, or in some cases even some principal forgiveness.
A borrower who is seeking a loan modification must demonstrate that they are suffering from a hardship that makes it difficult for them to make their monthly mortgage payments. There are several hardship situations that a lender might find acceptable. Some of these include loss of a job, a reduction in income, divorce or death in the family, military service, a major illness or high medical costs, as well as job relocation. There could be other situations that qualify as well. Each individual borrower's situation is different, and each lender has different criteria that they use to determine hardship cases.
The way a borrower demonstrates their hardship is through writing a hardship letter that is part of the loan modification application. The borrower needs to write a brief but compelling letter that explains their hardship and their willingness to correct their situation. A borrower should be honest and to the point in the letter and provide back up documents if necessary such as divorce papers, copies of medical bills, or any other documents which will bolster their hardship case.
The federal government has responded to these tough economic times and is strongly encouraging lenders to offer loan modificationsto homeowners facing hardship situations. In fact the federal government has recently rolled out the $75 billion Homeowner Affordability and Stability program. Under this program the federal government will actually pay lenders $1000 per loan modification they offer. If you are a struggling homeowner facing a hardship, a loan modification may be just what you need to help get you back on track and save your home from foreclosure.
A hardship loan modification involves modifying the loan terms to make the payments lower. This is designed to help borrowers facing hardship the ability to still make their monthly mortgage obligations with reduced payments. This can be accomplished through extending the length of the loan, lowering the interest rate, changing the loan from an adjustable rate mortgage (ARM) to a fixed rate mortgage, or in some cases even some principal forgiveness.
A borrower who is seeking a loan modification must demonstrate that they are suffering from a hardship that makes it difficult for them to make their monthly mortgage payments. There are several hardship situations that a lender might find acceptable. Some of these include loss of a job, a reduction in income, divorce or death in the family, military service, a major illness or high medical costs, as well as job relocation. There could be other situations that qualify as well. Each individual borrower's situation is different, and each lender has different criteria that they use to determine hardship cases.
The way a borrower demonstrates their hardship is through writing a hardship letter that is part of the loan modification application. The borrower needs to write a brief but compelling letter that explains their hardship and their willingness to correct their situation. A borrower should be honest and to the point in the letter and provide back up documents if necessary such as divorce papers, copies of medical bills, or any other documents which will bolster their hardship case.
The federal government has responded to these tough economic times and is strongly encouraging lenders to offer loan modificationsto homeowners facing hardship situations. In fact the federal government has recently rolled out the $75 billion Homeowner Affordability and Stability program. Under this program the federal government will actually pay lenders $1000 per loan modification they offer. If you are a struggling homeowner facing a hardship, a loan modification may be just what you need to help get you back on track and save your home from foreclosure.
Wednesday, March 25, 2009
ARM Mortgage Loan Modifications
Adjustable mortgage loans (ARMs) were very popular several years ago during the housing boom because they provided the borrower with low payments. Many of these mortgages were also sub prime mortgages, so they were easy to qualify for. The idea was that a borrower could always refinance later if interest rates rose by taking advantage of the equity they had built up in the home. However, the housing boom also saw an increase in construction and there became a glut of housing on the market. Property values started to drop and many borrowers with ARMs found themselves in the situation of owing more on their home loans than the value of the house.
The sub prime market began to fall apart and credit tightened. This left many borrowers unable to refinance their mortgages and with interest rates that were resetting at higher interest rates. Many borrowers could not afford the higher payments and foreclosures soared at an alarming rate.
Lenders and the federal government have responded to this crisis and loan modifications are now an option for many holding an adjustable rate mortgage. A loan modification changes the terms of the loan so that the monthly payments are more affordable. This can be accomplished through lowering the interest rate, lengthening the payment term on the loan, partial principal forgiveness or changing a loan from an ARM to a fixed rate mortgage.
The federal government is encouraging lenders to offer loan modifications, particularly ARM mortgage loan modifications. The new Homeowner Affordability and Stability program even gives lenders a $1000 per loan modification to provide incentives for lenders to help troubled borrowers to help stabilize the mortgage industry and financial markets.
If you are a homeowner with an ARM mortgage loan struggling to meet your monthly payments, you may qualify for a loan modification. You can check with your lender to see what the eligibility requirements are and what the application process is. You may be eligible to change your loan from an adjustable rate mortgage to a fixed rate. You may also be eligible for an interest rate reduction or even some principal forgiveness if you are upside down (owe more on your loan than the value of your house) on your loan. Before submitting a loan modification application, make sure you become familiar with the loan modification process and your lender's requirements. A loan modification can help save your home from foreclosure and save you thousands of dollars on your mortgage so it is definitely something to consider if you are struggling to meet your monthly mortgage payments.
The sub prime market began to fall apart and credit tightened. This left many borrowers unable to refinance their mortgages and with interest rates that were resetting at higher interest rates. Many borrowers could not afford the higher payments and foreclosures soared at an alarming rate.
Lenders and the federal government have responded to this crisis and loan modifications are now an option for many holding an adjustable rate mortgage. A loan modification changes the terms of the loan so that the monthly payments are more affordable. This can be accomplished through lowering the interest rate, lengthening the payment term on the loan, partial principal forgiveness or changing a loan from an ARM to a fixed rate mortgage.
The federal government is encouraging lenders to offer loan modifications, particularly ARM mortgage loan modifications. The new Homeowner Affordability and Stability program even gives lenders a $1000 per loan modification to provide incentives for lenders to help troubled borrowers to help stabilize the mortgage industry and financial markets.
If you are a homeowner with an ARM mortgage loan struggling to meet your monthly payments, you may qualify for a loan modification. You can check with your lender to see what the eligibility requirements are and what the application process is. You may be eligible to change your loan from an adjustable rate mortgage to a fixed rate. You may also be eligible for an interest rate reduction or even some principal forgiveness if you are upside down (owe more on your loan than the value of your house) on your loan. Before submitting a loan modification application, make sure you become familiar with the loan modification process and your lender's requirements. A loan modification can help save your home from foreclosure and save you thousands of dollars on your mortgage so it is definitely something to consider if you are struggling to meet your monthly mortgage payments.
Sunday, March 22, 2009
3 Benefits Of A Loan Modification
3 Benefits Of A Loan Modification
Millions of homeowners these days are struggling to meet their monthly mortgage payments. There are several factors contributing to this including unrealistic or questionable loans being made, a bad economy, people facing high medical costs, massive job layoffs, homes losing their value, and interest rates resetting on adjustable rate mortgages (ARM). Foreclosures have skyrocketed as a result and millions more homeowners are in danger of losing their homes.
To combat the massive wave of foreclosures one solution that has been offered is loan modifications. A loan modification changes the terms on a loan to make the monthly payments more affordable. This can be accomplished through lowering the interest rate on the loan, extending the payment schedule to the loan, forgiving part of the principal on the loan, or changing the type of loan from adjustable rate mortgage (ARM) to a fixed rate mortgage. The goal of a loan modification is to avoid foreclosure, which is beneficial to both the borrower and lender. Here are three major benefits of a loan modification.
Loan Modification Benefit #1: Stop Foreclosure
Foreclosure means the borrower loses their home and the lender must try to auction the home off to recoup their loss. Foreclosure is quite devastating to the homeowner, but the lender also loses in a foreclosure. There are high costs for the lender associated with a foreclosure and it is difficult for the lender to recoup the loan amount owed on the loan through auctioning the home off. Therefore, lenders are motivated to avoid foreclosure and may be wiling to offer a loan modification to borrowers who make certain criteria. The major goal of a loan modification is to avoid foreclosure and keep the homeowner in their house by making the monthly mortgage payment more affordable.
Loan Modification Benefit #2: Lower Monthly Payments
A loan modification will result in lower monthly payments for the borrower. This will not only help the borrower avoid foreclosure but should help the homeowner get back on track with their finances. If their housing payment is more affordable there is less chances of falling behind and incurring late fees and other penalties. Setting a realistic budget for monthly expenses should help the homeowner recover from their financial hardship.
Loan Modification Benefit #3: Improve Credit Score
A foreclosure on one's credit history can have a severe impact on one's credit score and ability to borrow. Credit scores can drop as much as 200 to 300 points with a foreclosure and it could take as many as 5 years before the borrower will be able to qualify to buy another home. A loan modification will help the homeowner avoid foreclosure and they will become current on their mortgage payments. This should help improve the homeowner's credit score. The lower monthly payments should also help the homeowner get back on track on other bills.
A loan modification offers several important benefits for the homeowner facing financial hardship. If you are struggling to meet your monthly mortgage payments, you should definitely consider applying for a loan modification with your lender.
Millions of homeowners these days are struggling to meet their monthly mortgage payments. There are several factors contributing to this including unrealistic or questionable loans being made, a bad economy, people facing high medical costs, massive job layoffs, homes losing their value, and interest rates resetting on adjustable rate mortgages (ARM). Foreclosures have skyrocketed as a result and millions more homeowners are in danger of losing their homes.
To combat the massive wave of foreclosures one solution that has been offered is loan modifications. A loan modification changes the terms on a loan to make the monthly payments more affordable. This can be accomplished through lowering the interest rate on the loan, extending the payment schedule to the loan, forgiving part of the principal on the loan, or changing the type of loan from adjustable rate mortgage (ARM) to a fixed rate mortgage. The goal of a loan modification is to avoid foreclosure, which is beneficial to both the borrower and lender. Here are three major benefits of a loan modification.
Loan Modification Benefit #1: Stop Foreclosure
Foreclosure means the borrower loses their home and the lender must try to auction the home off to recoup their loss. Foreclosure is quite devastating to the homeowner, but the lender also loses in a foreclosure. There are high costs for the lender associated with a foreclosure and it is difficult for the lender to recoup the loan amount owed on the loan through auctioning the home off. Therefore, lenders are motivated to avoid foreclosure and may be wiling to offer a loan modification to borrowers who make certain criteria. The major goal of a loan modification is to avoid foreclosure and keep the homeowner in their house by making the monthly mortgage payment more affordable.
Loan Modification Benefit #2: Lower Monthly Payments
A loan modification will result in lower monthly payments for the borrower. This will not only help the borrower avoid foreclosure but should help the homeowner get back on track with their finances. If their housing payment is more affordable there is less chances of falling behind and incurring late fees and other penalties. Setting a realistic budget for monthly expenses should help the homeowner recover from their financial hardship.
Loan Modification Benefit #3: Improve Credit Score
A foreclosure on one's credit history can have a severe impact on one's credit score and ability to borrow. Credit scores can drop as much as 200 to 300 points with a foreclosure and it could take as many as 5 years before the borrower will be able to qualify to buy another home. A loan modification will help the homeowner avoid foreclosure and they will become current on their mortgage payments. This should help improve the homeowner's credit score. The lower monthly payments should also help the homeowner get back on track on other bills.
A loan modification offers several important benefits for the homeowner facing financial hardship. If you are struggling to meet your monthly mortgage payments, you should definitely consider applying for a loan modification with your lender.
Tuesday, March 17, 2009
Understanding The Loan Modification Process
If you are suffering from a financial hardship and unable to make your current monthly mortgage payments, a loan modification may help you save your house from foreclosure and help you get your finances back on track. Before you apply for a loan modification with your lender you need to understand how the loan modification process works.
First of all, what is a loan modification exactly? A loan modification revises the terms of your loan and results in lower, more affordable monthly payments. This can be accomplished in various ways including lowering the interest rate charged on the loan, lengthening the payment schedule, or forgiveness of mortgage principal.
It is important to understand that foreclosure is not only bad for you the homeowner but your lender as well. Foreclosures are very costly for lenders. Therefore a loan modification can be a way not only for you to save your home but also benefit your lender as well. Keep that in mind when you are in negotiations with your lender.
One of the first things you need to do is find out what your lender's eligibility requirements are for a loan modification. Each lender has different requirements. You need to find out so that you can propose a realistic loan modification request that fits in with your lender's criteria.
There are two important things you will need to demonstrate in order to be approved for a loan modification. You will need to demonstrate that you are suffering from a financial hardship that makes meeting your current mortgage payments extremely difficult. Acceptable financial hardships can include loss of employment, reduced income, divorce, high medical expenses and other similar financial hardships. The second thing you need to demonstrate in order to be eligible for a loan modification is that you will be able to meet lower monthly payments under a loan modification agreement.
Once you have a general understanding of how the loan modification process works, you need to contact your lender's loss mitigation department and request a loan modification application. You then need to complete the application and submit it along with any support documents your lender requests such as pay stubs and income tax returns. Submitting an accurate, complete and compelling loan modification application is critical in getting your loan modification approved. Remember the two things that you need to demonstrate: your hardship and your ability to meet the new lower payments under the loan modification agreement.
Once you have submitted your loan modification agreement you need to follow up with your lender until they give you a decision.
The three basic steps of the loan modification process are doing your upfront research, the application process, and following up with your lender until your loan modification request is approved.
First of all, what is a loan modification exactly? A loan modification revises the terms of your loan and results in lower, more affordable monthly payments. This can be accomplished in various ways including lowering the interest rate charged on the loan, lengthening the payment schedule, or forgiveness of mortgage principal.
It is important to understand that foreclosure is not only bad for you the homeowner but your lender as well. Foreclosures are very costly for lenders. Therefore a loan modification can be a way not only for you to save your home but also benefit your lender as well. Keep that in mind when you are in negotiations with your lender.
One of the first things you need to do is find out what your lender's eligibility requirements are for a loan modification. Each lender has different requirements. You need to find out so that you can propose a realistic loan modification request that fits in with your lender's criteria.
There are two important things you will need to demonstrate in order to be approved for a loan modification. You will need to demonstrate that you are suffering from a financial hardship that makes meeting your current mortgage payments extremely difficult. Acceptable financial hardships can include loss of employment, reduced income, divorce, high medical expenses and other similar financial hardships. The second thing you need to demonstrate in order to be eligible for a loan modification is that you will be able to meet lower monthly payments under a loan modification agreement.
Once you have a general understanding of how the loan modification process works, you need to contact your lender's loss mitigation department and request a loan modification application. You then need to complete the application and submit it along with any support documents your lender requests such as pay stubs and income tax returns. Submitting an accurate, complete and compelling loan modification application is critical in getting your loan modification approved. Remember the two things that you need to demonstrate: your hardship and your ability to meet the new lower payments under the loan modification agreement.
Once you have submitted your loan modification agreement you need to follow up with your lender until they give you a decision.
The three basic steps of the loan modification process are doing your upfront research, the application process, and following up with your lender until your loan modification request is approved.
Monday, March 9, 2009
Loan Modification Help For Struggling Homeowners
Millions of homeowners are struggling to meet their monthly mortgage payments each month. As the economy has deteriorated and job layoffs have increased, the situation has gotten even worse. These struggling homeowners face the prospect of losing their homes to foreclosure and lenders lose out as well. A loan modification is often a viable alternative to foreclosure. Under a loan modification agreement, the terms of a loan are changed to make the monthly payments more affordable. This can be accomplished through lowering the interest rate charged on the loan, extending the payment term, or forgiving part of the principle on the loan. Loan modification help is desperately needed by millions of homeowners.
There are various loan modification programs available to the homeowner depending on who the lender is and what type of loan it is. There are government sponsored loan modification programs such as the Fannie Mae Streamlined Modification Program for loans serviced by Fannie Mae and there is the FHA Partial Claim for loans that are insured by the FHA. Various private lenders also offer loan modification programs. If you are considering a loan modification you need to check with your lender to see what type of loan modifications they have available and also find out what the eligibility requirements are.
Loan modification help can also come in the form of the various loan modification services that are available to help you with your loan modification process. There are loan modification companies and also loan modification attorneys who can work with your lender on your behalf to attempt to get your loan modification approved. However, these services can be expensive so you may want to consider contacting your lender directly and doing your own loan modification.
Loan modification help is desperately needed by millions of homeowners and also lenders and government entities. The federal government is strongly encouraging lenders to offer loan modification assistance in this troubled economy. Before signing up with any loan modification service or attorney, be sure to do upfront research to make sure the company is legitimate and experienced with loan modifications and loss mitigation services. If you decide to request a loan modification on your own, learn everything you can about the loan modification process before submitting your loan modification application. If you are struggling to meet your mortgage payment each month know that you are not alone and that there is help available.
There are various loan modification programs available to the homeowner depending on who the lender is and what type of loan it is. There are government sponsored loan modification programs such as the Fannie Mae Streamlined Modification Program for loans serviced by Fannie Mae and there is the FHA Partial Claim for loans that are insured by the FHA. Various private lenders also offer loan modification programs. If you are considering a loan modification you need to check with your lender to see what type of loan modifications they have available and also find out what the eligibility requirements are.
Loan modification help can also come in the form of the various loan modification services that are available to help you with your loan modification process. There are loan modification companies and also loan modification attorneys who can work with your lender on your behalf to attempt to get your loan modification approved. However, these services can be expensive so you may want to consider contacting your lender directly and doing your own loan modification.
Loan modification help is desperately needed by millions of homeowners and also lenders and government entities. The federal government is strongly encouraging lenders to offer loan modification assistance in this troubled economy. Before signing up with any loan modification service or attorney, be sure to do upfront research to make sure the company is legitimate and experienced with loan modifications and loss mitigation services. If you decide to request a loan modification on your own, learn everything you can about the loan modification process before submitting your loan modification application. If you are struggling to meet your mortgage payment each month know that you are not alone and that there is help available.
Thursday, March 5, 2009
What banks offer loan modifications?
All banks offer loan modifications to their borrowers. Nevertheless, the types of loan modifications vary for each lender. Countrywide Home Loans for example was part of a class action civil law suit, specifically focused on pay option adjustable ARMS loans. As a result of this law suit Countrywide is required to modify 400,000 loans equaling 8.64 billion in foreclosure relief.
Borrower’s that have a pay option adjustable ARM are likely to be qualified for the Nationwide Home Retention program if the loan pertains to their primary and only residence. Countrywide loan modifications vary for each borrower, and there are several options ranging from reducing the principal balance to making the borrower current. The general goal is to reduce the monthly interest rate so the monthly payments are affordable. Other banks like National City are reducing monthly interests rates to as low as 1% for a fixed period of time ranging from 18 months to 5 years, after this point there will be a gradual increase. However, a 1% interest rate for any period of time will allow the borrower to alleviate any financial hardships they are currently experiencing. National City Bank have a particularly proficient loan modification department and are a pleasure to work with.
For more loan modification news be sure to visit www.loan-deals.com.
Borrower’s that have a pay option adjustable ARM are likely to be qualified for the Nationwide Home Retention program if the loan pertains to their primary and only residence. Countrywide loan modifications vary for each borrower, and there are several options ranging from reducing the principal balance to making the borrower current. The general goal is to reduce the monthly interest rate so the monthly payments are affordable. Other banks like National City are reducing monthly interests rates to as low as 1% for a fixed period of time ranging from 18 months to 5 years, after this point there will be a gradual increase. However, a 1% interest rate for any period of time will allow the borrower to alleviate any financial hardships they are currently experiencing. National City Bank have a particularly proficient loan modification department and are a pleasure to work with.
For more loan modification news be sure to visit www.loan-deals.com.
Monday, March 2, 2009
Can't pay your mortgage? Some modification offers hurt more than help
PALM BEACH GARDENS, Fla. (MarketWatch) -- Your lender refuses to grant relief from your costly mortgage, and you're desperate. Should you respond to any of the growing number of television ads, mailings or phone calls touting loan modifications?
The marketers producing the ads represent a broad mix of firms seeking business, including mortgage and real-estate brokers and lawyers.
One ad running on several television stations highlights the "crisis on Main Street" and offers a loan modification "helpline." That ad is produced by JCR Enterprises Inc., a Foothill Ranch, Calif., marketing company.
David Riemann, senior vice president, says that consumers who respond are typically referred to a participating attorney in their area. His company may collect a retainer for processing and handling the call. Plus, JCR gets paid commissions for media and production. He says he has about 50 loan modification clients, mostly attorneys. To handle a loan modification, those attorneys charge consumers fees ranging anywhere from $995 to $5,000.
Click here to read the rest of the article
The marketers producing the ads represent a broad mix of firms seeking business, including mortgage and real-estate brokers and lawyers.
One ad running on several television stations highlights the "crisis on Main Street" and offers a loan modification "helpline." That ad is produced by JCR Enterprises Inc., a Foothill Ranch, Calif., marketing company.
David Riemann, senior vice president, says that consumers who respond are typically referred to a participating attorney in their area. His company may collect a retainer for processing and handling the call. Plus, JCR gets paid commissions for media and production. He says he has about 50 loan modification clients, mostly attorneys. To handle a loan modification, those attorneys charge consumers fees ranging anywhere from $995 to $5,000.
Click here to read the rest of the article
Sunday, March 1, 2009
Do It Yourself Loan Modification Tips
If you are struggling to meet your monthly mortgage payments each month, a loan modification may be just what you need to help you through your financial hardship. A loan modification involves revising the terms of your loan to make your monthly payments more affordable for you. This can include lowering the interest rate you pay, lengthening the payment schedule, or forgiveness of part of the principal. There are many loan modification companies that offer their services to help you with your loan modification. However, these services can be expensive, and when you are struggling financially the last thing you need is another expense. Do it yourself loan modification is possible if you have the right knowledge. Here are a few loan modification tips to help you through the process.
Tip #1 Do It Yourself Loan Modification is possible
Many homeowners have successfully negotiated with their lenders to get a loan modification approved. The key to your success is doing research upfront to understand the loan modification process in general and your lenders' requirements for a loan modification in particular. You can do it yourself if you have the proper knowledge and follow through on what you need to do to get qualified for a loan modification.
Tip #2 Your loan modification application is key in getting your modification approved.
It is very important to fill out your loan modification application accurately and present your case for why you are a good candidate for a loan modification in a convincing and compelling manner. You will need to write a solid hardship letter, prepare a financial statement, and request a loan modification that not only fits within your budget but also within your lender's requirements. Before filling out and submitting your application you need to understand what your lender is looking for and what makes you a good candidate for a loan modification.
Tip #3 Becoming familiar with the loan modification process can be learned in just a few hours.
The most important things you need to learn are finding out what your lender's requirements are and learning how to prepare and submit a solid loan modification application. The two things you need to demonstrate is that (1) you are suffering from a financial hardship that makes meeting your current monthly mortgage payments difficult and (2) that you would be able to make lower monthly payments under the terms of a loan modification agreement. You will demonstrate these two things in your loan modification application.
Take the time to become familiar with the loan modification process and learn how to fill out the application properly. Be persistent in your communication with your lender and you have an excellent chance of being approved for a loan modification.
Dont forget to visit Loan Modification News
Tip #1 Do It Yourself Loan Modification is possible
Many homeowners have successfully negotiated with their lenders to get a loan modification approved. The key to your success is doing research upfront to understand the loan modification process in general and your lenders' requirements for a loan modification in particular. You can do it yourself if you have the proper knowledge and follow through on what you need to do to get qualified for a loan modification.
Tip #2 Your loan modification application is key in getting your modification approved.
It is very important to fill out your loan modification application accurately and present your case for why you are a good candidate for a loan modification in a convincing and compelling manner. You will need to write a solid hardship letter, prepare a financial statement, and request a loan modification that not only fits within your budget but also within your lender's requirements. Before filling out and submitting your application you need to understand what your lender is looking for and what makes you a good candidate for a loan modification.
Tip #3 Becoming familiar with the loan modification process can be learned in just a few hours.
The most important things you need to learn are finding out what your lender's requirements are and learning how to prepare and submit a solid loan modification application. The two things you need to demonstrate is that (1) you are suffering from a financial hardship that makes meeting your current monthly mortgage payments difficult and (2) that you would be able to make lower monthly payments under the terms of a loan modification agreement. You will demonstrate these two things in your loan modification application.
Take the time to become familiar with the loan modification process and learn how to fill out the application properly. Be persistent in your communication with your lender and you have an excellent chance of being approved for a loan modification.
Dont forget to visit Loan Modification News
Tuesday, February 24, 2009
Avoid Foreclosure With A Loan Modification
Millions of homeowners face foreclosure every year. With a sluggish economy and ever increasing work layoffs, the situation doesn't seem to be getting any better. Alternatives to foreclosure and bankruptcy have been created to meet these challenging economic times. A loan modification is one alternative to foreclosure that can not only keep financially struggling homeowners in their homes, but reduce the losses of lenders as well. Lenders face high costs during the foreclosure process, and even if the property sells will usually suffer a large loss on the loan. With a loan modification the terms can be changed to make the monthly payment more affordable for the borrower. This is far less expensive for the lender and the borrower stays in their home and makes reduced monthly payments.
In order to avoid foreclosure and stay in your home, you must contact your lender's loss mitigation department and ask for a loan modification application. You need to do this before your financial situation becomes so dire that you are unable to meet even lower monthly payments. Before contacting your lender you should come to a general understanding of how the loan modification process works and learn as much as you can about your lender's loan modification eligibility requirements.
Once you have received your loan modification application you need to fill out all the required forms and attach any supporting proof of income or other documents that your lender requests. Make sure to request a loan modification that fits within the guidelines of your lender's criteria. Also keep in mind that avoiding foreclosure is not only beneficial to you but your lender as well.
When you fill out your loan modification application forms, you need to build a convincing case that you are a good candidate for a loan modification. You will need to demonstrate that you are facing financial hardship with a well written, concise hardship letter, and also provide evidence in the form of a financial statement that you have the means to meet lower monthly mortgage payments under a loan modification agreement.
Taking the time to become familiar with the loan modification process and submitting a thorough and compelling loan application is well worth it. Your efforts can help you avoid foreclosure and allow you to stay in your home while at the same time rebuilding your finances. Learn all you can about the loan modification process to see if it is right for your situation. Foreclosure is not your only option.
In order to avoid foreclosure and stay in your home, you must contact your lender's loss mitigation department and ask for a loan modification application. You need to do this before your financial situation becomes so dire that you are unable to meet even lower monthly payments. Before contacting your lender you should come to a general understanding of how the loan modification process works and learn as much as you can about your lender's loan modification eligibility requirements.
Once you have received your loan modification application you need to fill out all the required forms and attach any supporting proof of income or other documents that your lender requests. Make sure to request a loan modification that fits within the guidelines of your lender's criteria. Also keep in mind that avoiding foreclosure is not only beneficial to you but your lender as well.
When you fill out your loan modification application forms, you need to build a convincing case that you are a good candidate for a loan modification. You will need to demonstrate that you are facing financial hardship with a well written, concise hardship letter, and also provide evidence in the form of a financial statement that you have the means to meet lower monthly mortgage payments under a loan modification agreement.
Taking the time to become familiar with the loan modification process and submitting a thorough and compelling loan application is well worth it. Your efforts can help you avoid foreclosure and allow you to stay in your home while at the same time rebuilding your finances. Learn all you can about the loan modification process to see if it is right for your situation. Foreclosure is not your only option.
Sunday, February 22, 2009
Will a Loan Modification Affect My Credit Score?
A loan modification is not like refinancing. Refinancing requires to you obtain an another loan with new terms, where as a loan modification re-writes the terms of the original loan. Your credit score is not used to determine whether or not you qualify for a loan modification. In addition, a loan modification may work to improves ones credit score if it prevents them from foreclosing on their home. A loan modification is the most logical option if you do not qualify for refinancing, which is a rarity these days, and do not want to lose your home in foreclosure. A loan modification works to reduce monthly mortgage payments so that they are more affordable; this way, home owners can make all their monthly payments on time which is likely to increase their credit score.
Loan Modification Kit From Selfloanmods.com
Loan Modification News By loan-deals.com
Loan Modification Guide by myloanmodguide.com
Loan Modification Kit From Selfloanmods.com
Loan Modification News By loan-deals.com
Loan Modification Guide by myloanmodguide.com
Thursday, February 19, 2009
.How can a loan modification help you? What can be included in a loan modification?
A loan modification is the re-writing of the original loan terms to reduce the monthly mortgage payment and make it more affordable. Nevertheless there are a few stipulations in the loan modification process some of which benefit the borrower and some benefit the lender. According to Mortgagee Letter 2008-21 for loan modifications where the borrower’s principal balance is reduced to the value of the property legal fees and other costs related to the foreclosure process applicable to the current default episode may be added into the modified principal balance.
In other words, your principal balance is reduced to the value of the home, but any costs accrued by the lender during the modification process will be added to the balance. Although this may seem like a downfall for the borrower, it is likely that the costs of the loan modification are much less than the previous balance prior to the modification. A loan modification is not the best option for all homeowners struggling to make their monthly payments, but for those who are committed to staying in their home this is the way to go.
Borrower’s often wonder what will happen to their late charges if the decide to go with the loan modification option. According to Mortgagee Letter 2008-21 lenders are supposed to waive the late charges during the modification process. So, if homeowners are eligible for a loan modification and, are committed to staying in their home than the modification is the way to go.
In other words, your principal balance is reduced to the value of the home, but any costs accrued by the lender during the modification process will be added to the balance. Although this may seem like a downfall for the borrower, it is likely that the costs of the loan modification are much less than the previous balance prior to the modification. A loan modification is not the best option for all homeowners struggling to make their monthly payments, but for those who are committed to staying in their home this is the way to go.
Borrower’s often wonder what will happen to their late charges if the decide to go with the loan modification option. According to Mortgagee Letter 2008-21 lenders are supposed to waive the late charges during the modification process. So, if homeowners are eligible for a loan modification and, are committed to staying in their home than the modification is the way to go.
Monday, February 16, 2009
What is Loan Modification?
A loan modification is not refinancing nor is it debt consolidation. A loan modification is an adjustment of the terms, for which the original loan was set upon, to make monthly payments more affordable for the borrower. For many borrowers the original terms of their loans were appropriate for their monthly budget; they still had disposable income at the end of the month and were not scrapping to get by. The reality is many borrowers have experienced economic hardship in the last year and are in need of some financial relief.
A loan modification changes the terms of the original loan making it more affordable for homeowners to pay on their home and avoid foreclosure. There are a number of ways to modify a loan, for example, changing the interest rate from an adjustable to a lower fixed interest rate. A second way a loan can be modified is extending the period of time the borrower has to pay back the loan, (the amelioration period) extending it from twenty years to thirty or forty years. A third way is to reduce the principal balance of the loan to the value of the homeowner’s property however, this option is rare.
A loan modification is best for all parties involved. To find out how you can do your own loan modification refer to the Basic Guide to Do-it-Yourself Loan Modification. This will provide you with step by step instructions, and will also prepare you for what to expend from lenders.
Also be sure to check out the Loan Modification News site
A loan modification changes the terms of the original loan making it more affordable for homeowners to pay on their home and avoid foreclosure. There are a number of ways to modify a loan, for example, changing the interest rate from an adjustable to a lower fixed interest rate. A second way a loan can be modified is extending the period of time the borrower has to pay back the loan, (the amelioration period) extending it from twenty years to thirty or forty years. A third way is to reduce the principal balance of the loan to the value of the homeowner’s property however, this option is rare.
A loan modification is best for all parties involved. To find out how you can do your own loan modification refer to the Basic Guide to Do-it-Yourself Loan Modification. This will provide you with step by step instructions, and will also prepare you for what to expend from lenders.
Also be sure to check out the Loan Modification News site
Sunday, February 8, 2009
Loan Modification in 2009
Lenders policies are changing daily therefore, it is difficult to determine what qualifies a borrower for a loan modification, and the type of loan modification they will be offered. There are a number of different options a lender can offer such as reducing the monthly interest rate, extending the amortization period, or principal balance reduction.
However the later is rare. Being able to prove an economic hardship continues to be an important component in the loan modification qualification process. Divorce, the death of a spouse, job loss, and a decrease in working hours are all considered valid hardships. Being able to provide documentation of these loan modification hardships is necessary. In addition, banks want to see that borrowers are cutting bank on other soft expenses.
What are soft expenses? They are expenses that are adjustable such as food, utilities, cable, phone and miscellaneous items. Lenders are less inclined to do a loan modification for borrowers that are still spending excessively. Banks want to see that you will be able to afford monthly payments if they qualify you for a loan modification. Good faith money, also called earnest monies, is the money that you should have available to pay toward your loan once a modification has been approved. It can be quite tricky to demonstrate economic hardship and yet, still have good faith money. This is where the debt to income ratio comes into play. Ones income should suffice to pay the monthly mortgage payments, hard expenses and reduced soft expenses, while still having some disposable income. Your Basic Guide to Do-it-Yourself Loan Modification kit can assist you in gathering all the necessary documents, and putting together a loan modification package to present to your bank. It is difficult to go through this process alone and now you do not have to. Rely on this manual to guide you through the process and you will be successful.
Be sure to check out the Loan Modification News site!
However the later is rare. Being able to prove an economic hardship continues to be an important component in the loan modification qualification process. Divorce, the death of a spouse, job loss, and a decrease in working hours are all considered valid hardships. Being able to provide documentation of these loan modification hardships is necessary. In addition, banks want to see that borrowers are cutting bank on other soft expenses.
What are soft expenses? They are expenses that are adjustable such as food, utilities, cable, phone and miscellaneous items. Lenders are less inclined to do a loan modification for borrowers that are still spending excessively. Banks want to see that you will be able to afford monthly payments if they qualify you for a loan modification. Good faith money, also called earnest monies, is the money that you should have available to pay toward your loan once a modification has been approved. It can be quite tricky to demonstrate economic hardship and yet, still have good faith money. This is where the debt to income ratio comes into play. Ones income should suffice to pay the monthly mortgage payments, hard expenses and reduced soft expenses, while still having some disposable income. Your Basic Guide to Do-it-Yourself Loan Modification kit can assist you in gathering all the necessary documents, and putting together a loan modification package to present to your bank. It is difficult to go through this process alone and now you do not have to. Rely on this manual to guide you through the process and you will be successful.
Be sure to check out the Loan Modification News site!
Friday, January 30, 2009
Loan Modifications , Yes, Today...
Your lender can help you keep your home.Loan Modification and repayment plans are being established in a number of financial institutions. For example, Bank of America who recently acquired Countrywide Financial, indicated that they will perform loan modifications on an estimated 400 000 home loans a part of an 8.4 billion legal settlement that occurred in early October.
Chase financial expanded its loan modification program to an estimated $70 billion in loans. Perhaps, the biggest relief came with the introduction of the Housing and Economic Recovery Act of 2008. What does this act mean for borrowers who are at threat of losing their homes? How will the Housing Recovery and Economic Recovery Act help struggling homeowners keep their homes? An estimated 400,000 borrowers in danger of losing their homes will be able to refinance into more affordable government insured mortgages.
What is the incentive for lenders to participate in this program? The government will provide insurance to lenders who voluntarily reduce mortgages to 90% of the current property value for people who are struggling to keep their home and are at risk of losing it. Lenders must be prepared to have big losses if they want to participate. Reducing a mortgage to 90% of the property value, which is likely much less than the principal balance of the loan means an automatic loss to lender.
In addition, lenders must be prepared to forgive any penalties or fees, and assist in the payment of the starting and closing cost of the new loan. In general, lenders must be prepared to lose a minimum of 10% on the original loan, and chances are that the losses will generally be more. One would ask why lenders would want to participate in such a program. However, the truth is that lenders are also experiencing financial difficulty and the truth is they lose more money to foreclosure than they do to loan modifications.
This post brought to you buy the Loan Modification News
Chase financial expanded its loan modification program to an estimated $70 billion in loans. Perhaps, the biggest relief came with the introduction of the Housing and Economic Recovery Act of 2008. What does this act mean for borrowers who are at threat of losing their homes? How will the Housing Recovery and Economic Recovery Act help struggling homeowners keep their homes? An estimated 400,000 borrowers in danger of losing their homes will be able to refinance into more affordable government insured mortgages.
What is the incentive for lenders to participate in this program? The government will provide insurance to lenders who voluntarily reduce mortgages to 90% of the current property value for people who are struggling to keep their home and are at risk of losing it. Lenders must be prepared to have big losses if they want to participate. Reducing a mortgage to 90% of the property value, which is likely much less than the principal balance of the loan means an automatic loss to lender.
In addition, lenders must be prepared to forgive any penalties or fees, and assist in the payment of the starting and closing cost of the new loan. In general, lenders must be prepared to lose a minimum of 10% on the original loan, and chances are that the losses will generally be more. One would ask why lenders would want to participate in such a program. However, the truth is that lenders are also experiencing financial difficulty and the truth is they lose more money to foreclosure than they do to loan modifications.
This post brought to you buy the Loan Modification News
Saturday, January 24, 2009
How To Get Your Loan Modification Approved
Loan Modification Tips- How To Get Your Loan Modification Approved
A loan modification can really provide you with much needed financial relief if you are having a difficult time making your mortgage payments. Here are some loan modification tips to help you get your loan application approved.
Loan Modification Tip #1 Thoroughly familiarize with the loan modification process.
You need to approach a loan modification in a systematic manner. Understand that it is not only in your best interest to avoid foreclosure, but in your lender's interest as well. Foreclosure is very expensive for lenders and having bad mortgages on their books hurts their bottom line. At the same time your lender is in the business to be profitable, so you must be willing to cooperate by providing the lender will all the information they need to make a decision and be willing to negotiate.
Loan Modification Tip #2 Gather all the necessary documents you need to present your case.
You will need to present a persuasive argument that although you are unable to meet your monthly mortgage payments now, that you are a good candidate to receive a loan modification. You need to have proof of your income from pay stubs, W-2s, tax returns and anything else that documents your income. You will also need a list all of your expenses, so you need to pull out your bills and other documents which show your monthly costs.
Loan Modification Tip #3 Demonstrate your financial hardship with a persuasive loan modification hardship letter.
As part of the loan modification process, you will need to include a hardship letter that explains your financial difficulties and shows why you are not able to currently meet your monthly mortgage payments. You also need to demonstrate that you are responsible and explain why you are a good candidate for a loan modification.
Loan Modification Tip #5 Provide an accurate financial statement and budget that demonstrates that you will be able to meet all your monthly expenses, including your mortgage payment, if your loan modification is approved.
You need to take all the information that you gathered earlier on your income and expenses and present the information in a financial statement and budget. These documents should show that although you cannot meet your mortgage payment now, that with a loan modification you will have the financial means to meet all your monthly obligations, including your mortgage payment.
Loan Modification Tip #6 Prepare and submit a complete loan modification application
Before submitting your loan modification application to your lender be sure that all of your information is complete and accurate.
If you follow all of these tips you have an excellent chance of having your loan modification agreement approved.
A loan modification can really provide you with much needed financial relief if you are having a difficult time making your mortgage payments. Here are some loan modification tips to help you get your loan application approved.
Loan Modification Tip #1 Thoroughly familiarize with the loan modification process.
You need to approach a loan modification in a systematic manner. Understand that it is not only in your best interest to avoid foreclosure, but in your lender's interest as well. Foreclosure is very expensive for lenders and having bad mortgages on their books hurts their bottom line. At the same time your lender is in the business to be profitable, so you must be willing to cooperate by providing the lender will all the information they need to make a decision and be willing to negotiate.
Loan Modification Tip #2 Gather all the necessary documents you need to present your case.
You will need to present a persuasive argument that although you are unable to meet your monthly mortgage payments now, that you are a good candidate to receive a loan modification. You need to have proof of your income from pay stubs, W-2s, tax returns and anything else that documents your income. You will also need a list all of your expenses, so you need to pull out your bills and other documents which show your monthly costs.
Loan Modification Tip #3 Demonstrate your financial hardship with a persuasive loan modification hardship letter.
As part of the loan modification process, you will need to include a hardship letter that explains your financial difficulties and shows why you are not able to currently meet your monthly mortgage payments. You also need to demonstrate that you are responsible and explain why you are a good candidate for a loan modification.
Loan Modification Tip #5 Provide an accurate financial statement and budget that demonstrates that you will be able to meet all your monthly expenses, including your mortgage payment, if your loan modification is approved.
You need to take all the information that you gathered earlier on your income and expenses and present the information in a financial statement and budget. These documents should show that although you cannot meet your mortgage payment now, that with a loan modification you will have the financial means to meet all your monthly obligations, including your mortgage payment.
Loan Modification Tip #6 Prepare and submit a complete loan modification application
Before submitting your loan modification application to your lender be sure that all of your information is complete and accurate.
If you follow all of these tips you have an excellent chance of having your loan modification agreement approved.
Thursday, January 22, 2009
Is There Such A Thing As Free Loan Modification?
Is There Such A Thing As Free Loan Modification?
If you are struggling to make your monthly mortgage payments a free loan modification may mean the difference between being able to stay in your home and losing it to foreclosure. A loan modification can significantly reduce your monthly mortgage payments and make it more affordable for you. Your lender may agree to lowering your interest rate, extending the length of the loan or may even forgive part of the principal. This may sound like great news but you may be wondering how you can possibly get the help you need to successfully obtain a loan modification.
There are loan modification companies that offer their services to help you prepare the necessary documentation and negotiate on your behalf with your lender. However these specialists can be quite expensive and usually require an upfront fee. If you cannot make your monthly mortgage payments and are struggling with your other bills you may be wondering how you can afford a specialist to help you with your loan modification. The good news is there is such a thing as a free loan modification.
A free loan modification is when you deal with the lender directly and negotiate your own loan modification agreement. You will need to become thoroughly familiar with the loan modification process, but it is possible to successfully negotiate a loan modification on your own.
The first thing you need to do to secure a free loan modification is to contact your lender's Loss and Mitigation department. These departments have been specifically set up to help homeowners like yourself who are having a hard time meeting your monthly payments and need to have your loan modified. The Loss and Mitigation department should be able to provide with what the qualifications are for their loan modifications, loan modification application forms, and explain to you what documentation they require.
The next step in your free loan modification process is to prepare your case and your financial documents. You will need to write a persuasive loan modification hardship letter to show why you are having difficulty meeting your monthly payments. Keep you letter short and be honest and direct. You will also need to gather documents that show proof of your income, an accounting of your monthly expenses, and a budget showing how you will be able to pay your monthly mortgage and meet your other monthly expenses if you receive a loan modification.
A free loan modification requires you to roll up your sleeves and get to work. Just remember all your hard work can really pay off and prevent you from losing your home to foreclosure.
This posting was brought to you buy Loan Modification News
If you are struggling to make your monthly mortgage payments a free loan modification may mean the difference between being able to stay in your home and losing it to foreclosure. A loan modification can significantly reduce your monthly mortgage payments and make it more affordable for you. Your lender may agree to lowering your interest rate, extending the length of the loan or may even forgive part of the principal. This may sound like great news but you may be wondering how you can possibly get the help you need to successfully obtain a loan modification.
There are loan modification companies that offer their services to help you prepare the necessary documentation and negotiate on your behalf with your lender. However these specialists can be quite expensive and usually require an upfront fee. If you cannot make your monthly mortgage payments and are struggling with your other bills you may be wondering how you can afford a specialist to help you with your loan modification. The good news is there is such a thing as a free loan modification.
A free loan modification is when you deal with the lender directly and negotiate your own loan modification agreement. You will need to become thoroughly familiar with the loan modification process, but it is possible to successfully negotiate a loan modification on your own.
The first thing you need to do to secure a free loan modification is to contact your lender's Loss and Mitigation department. These departments have been specifically set up to help homeowners like yourself who are having a hard time meeting your monthly payments and need to have your loan modified. The Loss and Mitigation department should be able to provide with what the qualifications are for their loan modifications, loan modification application forms, and explain to you what documentation they require.
The next step in your free loan modification process is to prepare your case and your financial documents. You will need to write a persuasive loan modification hardship letter to show why you are having difficulty meeting your monthly payments. Keep you letter short and be honest and direct. You will also need to gather documents that show proof of your income, an accounting of your monthly expenses, and a budget showing how you will be able to pay your monthly mortgage and meet your other monthly expenses if you receive a loan modification.
A free loan modification requires you to roll up your sleeves and get to work. Just remember all your hard work can really pay off and prevent you from losing your home to foreclosure.
This posting was brought to you buy Loan Modification News
Saturday, January 17, 2009
Ease Your Financial Strain with Loan Modification
With permission copied from the Loan Modification News
Many people today have loans for various reasons from a mortgage to buy a home, to personal or business loans. Such loans are normally paid back at a set amount each month for a fixed term and when this term ends the loan ends as the loan amount plus any interest has been paid back in full. There are times however when a lender may find it hard or even impossible to make the agreed regular repayments on their loan and this is where loan modification can help.
Loan modification is a way of changing the terms and conditions of the original loan you took out so that the borrower can continue to pay but normally at a reduced rate which is more affordable. This type of loan modification will mean that the loan term is extended but this works in the favour of the lender as they are not financially stretched each month and the repayments are still being met.
In other types of loan modification the lender may agree to change the loan rate, which means that the lender will pay a lower rate of interest on his or her repayments. This money can then be added to the back of the loan which results in lower repayments but for a slightly longer term. When loan modification is done in this way it helps the borrower to avoid their credit rating falling and the borrower is secure in the knowledge that the loan will continue to be repaid.
Some people look towards loan modification if they suddenly find themselves out of work and are unable to make their loan repayments. When this happens it makes more sense for the lender to agree to a ‘payment holiday’ for the borrower on the condition that the loan repayments begin again on a set date. Once again the cost of the missed payments are tagged onto the back of the loan term and it extends it slightly.
Loan modification is definitely the right option if you have previously been making your loan repayments on time each month as this will work in your favour. If you think that getting a loan modification would help you there are different ways that you can go about it. You could seek out the services of a financial expert who will be able to tell you if you qualify for a loan modification and will then help you to arrange one. However if you are in financial hardship the last thing you want is to have to spend even more money in fees to arrange your modification, which you can’t afford. Instead you could look towards a DIY loan modification kit which will help you to arrange your own modification without your costs running into hundreds if not thousands of dollars.
So if you are finding it hard to meet your monthly loan commitments and want to either take a break from your repayments or reduce them a loan modification could be just what you need.
Many people today have loans for various reasons from a mortgage to buy a home, to personal or business loans. Such loans are normally paid back at a set amount each month for a fixed term and when this term ends the loan ends as the loan amount plus any interest has been paid back in full. There are times however when a lender may find it hard or even impossible to make the agreed regular repayments on their loan and this is where loan modification can help.
Loan modification is a way of changing the terms and conditions of the original loan you took out so that the borrower can continue to pay but normally at a reduced rate which is more affordable. This type of loan modification will mean that the loan term is extended but this works in the favour of the lender as they are not financially stretched each month and the repayments are still being met.
In other types of loan modification the lender may agree to change the loan rate, which means that the lender will pay a lower rate of interest on his or her repayments. This money can then be added to the back of the loan which results in lower repayments but for a slightly longer term. When loan modification is done in this way it helps the borrower to avoid their credit rating falling and the borrower is secure in the knowledge that the loan will continue to be repaid.
Some people look towards loan modification if they suddenly find themselves out of work and are unable to make their loan repayments. When this happens it makes more sense for the lender to agree to a ‘payment holiday’ for the borrower on the condition that the loan repayments begin again on a set date. Once again the cost of the missed payments are tagged onto the back of the loan term and it extends it slightly.
Loan modification is definitely the right option if you have previously been making your loan repayments on time each month as this will work in your favour. If you think that getting a loan modification would help you there are different ways that you can go about it. You could seek out the services of a financial expert who will be able to tell you if you qualify for a loan modification and will then help you to arrange one. However if you are in financial hardship the last thing you want is to have to spend even more money in fees to arrange your modification, which you can’t afford. Instead you could look towards a DIY loan modification kit which will help you to arrange your own modification without your costs running into hundreds if not thousands of dollars.
So if you are finding it hard to meet your monthly loan commitments and want to either take a break from your repayments or reduce them a loan modification could be just what you need.
Friday, January 16, 2009
Using Loan Modification Kits
When stuck in a financial chaos, many people wonder how successful a do-it-yourself loan modification procedure would be. Though, such anxieties are quite baseless since the National Association of Mortgage Bankers report that loan modification requests submitted by homeowners have an sanction rate of over 20 percent. This means that any determined, committed and knowledgeable homeowner can work with their lender to productively modify a house loan. With sufficient study, you can easily arrange the requisite paperwork for a professional and accurate do-it-yourself loan modification that meets the guiding principle of your lenders.
What Is A Loan Modification Kit?
Getting started on the procedure of loan modification is the toughest part as most homeowners are clueless regarding whom to get in touch with, how to go on and what paperwork to complete. This is where the importance of a loan modification kit comes in. Such a kit has been especially designed to aid struggling homeowners to successfully finish a loan modification procedure on their own.
A perfect loan modification kit would contain get in touch with numbers and addresses of national mortgage lenders, step-by-step instructions on implementing the official procedure, samples of loan modification hardship letter, checklists and much more.
The Paperwork
To increase your probability of sanction, it is important that you understand how to complete and submit all the required forms for loan modification. Here are some of forms you will have to submit to the bank:
Borrower information statement: This form holds basic information like your name, residential address, employment details, information of spouse or other dependents, etc.
Financial Statement: This form comprises details of your salary, fixed cost and loans. This form basically illustrates your present monetary situation and why you cannot afford to make the specified payments. Though, you must also take care to prove that if a loan modification is approved, you will be able to afford the newly specified payment.
Loan modification hardship letter: This form serves up as the main proof of your monetary hardship. It denotes how your present circumstances make it unable for you to make the current payments. So, the loan modification hardship letter must persuasively explain your situation and promise the bank that you have taken appropriate steps to resolve the condition.
Submission checklist: The checklist proffers easy to pursue strategy concerning the stacking order of the loan modification forms. The checklist ensures that all the forms are professionally and correctly packaged to your lender.
After getting these forms, the lender reviews them and determines if you succeed for a loan modification. So, it is very vital that you learn how to get these forms and how to correctly complete them to make it suitable to the lender.
Thousands of owners in monetary crisis have productively applied for loan modification and have been approved too. After all, no one is as willing to work as hard as the owner to save his home from mortgage. Though a do-it-yourself loan modification requires information, tolerance and perseverance, a owner who makes an attempt to investigate and arrange the paperwork will certainly have a enhanced possibility of getting approved.
For loan modification related news please visit www.loan-deals.com
What Is A Loan Modification Kit?
Getting started on the procedure of loan modification is the toughest part as most homeowners are clueless regarding whom to get in touch with, how to go on and what paperwork to complete. This is where the importance of a loan modification kit comes in. Such a kit has been especially designed to aid struggling homeowners to successfully finish a loan modification procedure on their own.
A perfect loan modification kit would contain get in touch with numbers and addresses of national mortgage lenders, step-by-step instructions on implementing the official procedure, samples of loan modification hardship letter, checklists and much more.
The Paperwork
To increase your probability of sanction, it is important that you understand how to complete and submit all the required forms for loan modification. Here are some of forms you will have to submit to the bank:
Borrower information statement: This form holds basic information like your name, residential address, employment details, information of spouse or other dependents, etc.
Financial Statement: This form comprises details of your salary, fixed cost and loans. This form basically illustrates your present monetary situation and why you cannot afford to make the specified payments. Though, you must also take care to prove that if a loan modification is approved, you will be able to afford the newly specified payment.
Loan modification hardship letter: This form serves up as the main proof of your monetary hardship. It denotes how your present circumstances make it unable for you to make the current payments. So, the loan modification hardship letter must persuasively explain your situation and promise the bank that you have taken appropriate steps to resolve the condition.
Submission checklist: The checklist proffers easy to pursue strategy concerning the stacking order of the loan modification forms. The checklist ensures that all the forms are professionally and correctly packaged to your lender.
After getting these forms, the lender reviews them and determines if you succeed for a loan modification. So, it is very vital that you learn how to get these forms and how to correctly complete them to make it suitable to the lender.
Thousands of owners in monetary crisis have productively applied for loan modification and have been approved too. After all, no one is as willing to work as hard as the owner to save his home from mortgage. Though a do-it-yourself loan modification requires information, tolerance and perseverance, a owner who makes an attempt to investigate and arrange the paperwork will certainly have a enhanced possibility of getting approved.
For loan modification related news please visit www.loan-deals.com
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