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
Friday, January 30, 2009
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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