Bank foreclosure is a process that happens quite often, when homeowners are not making their mortgage payments on time. The bank they got their mortgage through takes over the home to sell it, in order to receive the funds they are owed.
Obviously, then bank foreclosure is an awful thing that no homeowner ever wants to deal with. There are a few things that you are going to need to realize and a few important steps that you will need to take in order to avoid it.
Don't Ignore the Problem
If you do start getting bank foreclosure statements in the mail, it is important that you do not ignore them. If you do ignore the bank, it's going to think that you do not care and are probably going to move forward with the process as quickly as possible. This is actually the last thing that you want to happen.
On the other hand, if you want to stop the foreclosure before it happens, you will want to contact them and let them know what is going on. The sooner you do this the better, and you really want to keep them abreast of the situation. They will probably be more than willing to work with you and come to some sort of an agreement in terms of repayment.
Know Your Mortgage Rights
In order to make sure that you have the most success with the bank foreclosure issue, you must be aware of all your mortgage rights. Find your loan documents and read them so that you know what your options are. In particular know what your lender is able to do if you are not making your payments.
So never assume that just because a bank foreclosure for one of your friends went one way that it will go the same for you. This will vary from one situation to another.
Obviously, these are all helpful once you have started going into foreclosure and after you have not been making payments. The best thing of course is to make sure that you make all your mortgage payments in a timely manner so that the foreclosure issue is one you will never have to worry about to begin with.
Budgeting is one of the most crucial steps, something that all homeowners need to do if they want to ensure that they are bringing in enough money, not spending too much, and getting all of their bills paid on time.
Article Source: the-Articles.com
About the Author
Author: JacobDiamond
What is Bank Foreclosure? It's happening often to today's homeowners. Head it off before it happens to you.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Sunday, August 16, 2009
Saturday, August 15, 2009
Professional guidance on how to stop foreclosure St. Louis
It is the age of the specialist and when you look for professional guidance on how to stop foreclosure St. Louis, it is certainly not a departure from the rule. You glance through a list of materialistic possessions, and the one that is closest to your heart is probably your home. But when you work to acquire this prized possession, there are several obstacles to be overcome. You need to sort out your sources of finance, a lender or a financial institution, who/which would provide you with the money. At the same time you need to think over ways to avoid foreclosure. If you have a house in St. Louis, then you can rely on professional guidance on how to stop foreclosure St. Louis to save your home. It is necessary to seek professional guidance on how to stop foreclosure St. Louis and to ensure the fact that your home remains your own. All you need to do is to search for the right professional guidance on how to stop foreclosure St. Louis.
If you are pondering on How to stop foreclosure St Louis then without wasting much time immediately visit a professional for proper guidance. Their programs are designed to offer help to those people who are running the risk of foreclosure. The professionals are able to deliver you from this difficult situation.
At the time when your property is tilting towards foreclosure, you are constantly flooded with calls and mails from your lender. When you seek professional guidance on how to stop foreclosure St. Louis, they would negotiate with your lender and you would no longer be harassed by their constant reminders.
You must tell the professional about your current financial status and he will definitely chalk out a plan to postpone your due date. In this way you will be able to stop the seizure of your property. The professional would definitely find out a way to avoid foreclosure since you have relied on him regarding How to stop foreclosure St Louis.
Professional guidance on how to stop foreclosure St. Louis will also make you aware of the foreclosure laws. This way you would be careful in the future about not missing out on your repayments.
When you seek professional help on How to stop foreclosure St Louis you need to provide the details regarding the foreclosure. There is a form that you need to fill up providing the foreclosure details. Based on the details you have provided the professionals they will chalk out a plan to save you. You also need to provide information about the payments you have already made to the lender. Without this information you will not get the necessary help from the professionals.
If professional guidance on how to stop foreclosure St. Louis finds out that the designated amount due against your property is more than its resale value, then they will negotiate with your lender to accept a lesser amount than what is due.
So if you are struggling with your property and thinking about ways to avoid foreclosure then it is best to resort to professional guidance on how to stop foreclosure St. Louis to save your property from being confiscated. It is better to opt for professional guidance on how to stop foreclosure St. Louis in order to save your self and your family from being rendered homeless. Just follow the instructions of professional guidance on how to stop foreclosure St. Louis and secure your home.
Article Source: the-Articles.com
About the Author
Author: T.MarkBradley
Discover how to: Avoid Foreclosure St Louis. We offer quick easy solutions If you are going toward foreclosure, or are already in foreclosure, you are required to do something now. Only then can you save your house, save your credit, or save your equity before its gone forever
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
If you are pondering on How to stop foreclosure St Louis then without wasting much time immediately visit a professional for proper guidance. Their programs are designed to offer help to those people who are running the risk of foreclosure. The professionals are able to deliver you from this difficult situation.
At the time when your property is tilting towards foreclosure, you are constantly flooded with calls and mails from your lender. When you seek professional guidance on how to stop foreclosure St. Louis, they would negotiate with your lender and you would no longer be harassed by their constant reminders.
You must tell the professional about your current financial status and he will definitely chalk out a plan to postpone your due date. In this way you will be able to stop the seizure of your property. The professional would definitely find out a way to avoid foreclosure since you have relied on him regarding How to stop foreclosure St Louis.
Professional guidance on how to stop foreclosure St. Louis will also make you aware of the foreclosure laws. This way you would be careful in the future about not missing out on your repayments.
When you seek professional help on How to stop foreclosure St Louis you need to provide the details regarding the foreclosure. There is a form that you need to fill up providing the foreclosure details. Based on the details you have provided the professionals they will chalk out a plan to save you. You also need to provide information about the payments you have already made to the lender. Without this information you will not get the necessary help from the professionals.
If professional guidance on how to stop foreclosure St. Louis finds out that the designated amount due against your property is more than its resale value, then they will negotiate with your lender to accept a lesser amount than what is due.
So if you are struggling with your property and thinking about ways to avoid foreclosure then it is best to resort to professional guidance on how to stop foreclosure St. Louis to save your property from being confiscated. It is better to opt for professional guidance on how to stop foreclosure St. Louis in order to save your self and your family from being rendered homeless. Just follow the instructions of professional guidance on how to stop foreclosure St. Louis and secure your home.
Article Source: the-Articles.com
About the Author
Author: T.MarkBradley
Discover how to: Avoid Foreclosure St Louis. We offer quick easy solutions If you are going toward foreclosure, or are already in foreclosure, you are required to do something now. Only then can you save your house, save your credit, or save your equity before its gone forever
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Friday, August 14, 2009
Stop Foreclosure & Save Your House
In 2008, over 3.1 million homeowners received a foreclosure notice. Most of these people simply did not take the actions necessary to stop a foreclosure and they lost their homes. It's projected that another 3 million late payment notices will go out this year in 2009.
Have you received a foreclosure notice due to a financial hardship? Do you owe more than your home is worth? Are you finding it next to impossible to afford your mortgage payments?
If so, the good thing to know is you may be able prevent a foreclosure and reduce your payments by filing a loan modification request.
What is a Loan Modification?
A mortgage loan modification is a restructured agreement between the borrower and bank with new terms and interest rates. Loan modifications are a long-term solution for borrowers who are considering a foreclosure or bankruptcy due to financial hardship.
Do You Qualify for a Mortgage Loan Modification?
Perhaps you lost a job, got slammed with an unexpected medical emergency, or your original adjustable rate loan skyrocketed so you can no longer afford the monthly bill. You've made every effort to pay the mortgage and save your home and stop foreclosure, but have tragically hit unfortunate economic times and now find yourself bordering on the brink of bankruptcy.
A mortgage loan modification may be the answer!
Every bank has their own mortgage loan modification standards. Here are the most common:
* The unit is your main residence
* You have experienced financial hardship or a change in circumstances
* You've missed two or three payments
* You have not filed bankruptcy
* You are missing payments only to qualify for a loan modification
* You are willing to be open, honest, and provide all necessary documentation
If you have not missed a monthly payment you may still qualify for a loan mortgage modification if you can prove you are on the edge of disaster. Meaning, due to the current circumstances, you will eventually default and miss payments if you don't get some type of immediate financial relief.
How to Save Your Home Now!
Article Source: the-Articles.com
About the Author
Author: EdWinstein
Yes, a Loan Modification can help you save your house. Find out if you qualify today.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Have you received a foreclosure notice due to a financial hardship? Do you owe more than your home is worth? Are you finding it next to impossible to afford your mortgage payments?
If so, the good thing to know is you may be able prevent a foreclosure and reduce your payments by filing a loan modification request.
What is a Loan Modification?
A mortgage loan modification is a restructured agreement between the borrower and bank with new terms and interest rates. Loan modifications are a long-term solution for borrowers who are considering a foreclosure or bankruptcy due to financial hardship.
Do You Qualify for a Mortgage Loan Modification?
Perhaps you lost a job, got slammed with an unexpected medical emergency, or your original adjustable rate loan skyrocketed so you can no longer afford the monthly bill. You've made every effort to pay the mortgage and save your home and stop foreclosure, but have tragically hit unfortunate economic times and now find yourself bordering on the brink of bankruptcy.
A mortgage loan modification may be the answer!
Every bank has their own mortgage loan modification standards. Here are the most common:
* The unit is your main residence
* You have experienced financial hardship or a change in circumstances
* You've missed two or three payments
* You have not filed bankruptcy
* You are missing payments only to qualify for a loan modification
* You are willing to be open, honest, and provide all necessary documentation
If you have not missed a monthly payment you may still qualify for a loan mortgage modification if you can prove you are on the edge of disaster. Meaning, due to the current circumstances, you will eventually default and miss payments if you don't get some type of immediate financial relief.
How to Save Your Home Now!
Article Source: the-Articles.com
About the Author
Author: EdWinstein
Yes, a Loan Modification can help you save your house. Find out if you qualify today.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Mortgage loan modification and the law
The passage of legislation that affects the mortgage industry has taken a major upswing. The bankruptcy loan modification bill, Obama's housing bill, and the creation and distribution of the economic stimulus package are but a few of the changes in existing laws and ordinances that have been put into practice.
Even before all these new documents and writs came into being, there was already an increased interest in mortgage loan modification. Because of this, as well as the new legislation, every day sees the addition of more and more information.
Take mortgage loan modification, for example. The term itself implies change. Mortgages that seemed like the best deals two, five, or ten years ago now are proving to be a source of stress and, indeed, a burden on many homeowners. And, it doesn't help that the current economic situation has caused changes in employment situations.
So, where does the average homeowner, who most likely does not have law degree, nor studied real estate, go to find the answers to questions about the different pieces of legislation, and for an explanation of such terms as mortgage loan modification? And, once the information is found, how can one tell if it is current and accurate?
www.homeloanmodificationinfo.us is an obvious choice. The information on the website is timely, accurate, and readily available. The choices and options that homeowners have and can take advantage are clearly listed, and the explanations are written for the layperson.
Mortgage loan modification is explained more fully at www.homeloanmodificationinfo.us Homeowners can learn what is involved in mortgage loan modification (also called loan restructuring or mortgage rate reduction). They can see what is required in order to ascertain if mortgage loan modification is a viable option for them, and, if so, how the process works.
Should, for some reason, mortgage loan modification is not an option; the website also offers explanations of other services which can assist homeowners who are feeling the effects of the economy on the mortgage industry. However, mortgage loan modification can, and most likely will, be considered first, before any other steps are taken.
With changes in legislation comes a change in procedures. Methods that were once effective may now themselves require changing (or modification, if you will).
The average citizen is not expected to understand all aspects of each real estate transaction. This is true whether it deals with home buying or selling, or more intensive services such as mortgage loan modifications. No, it is up to the professionals who are available through the National Debt Solution Center to navigate the maze of forms, documents, and other paperwork that are required.
National Debt Solution Center prides itself on making mortgage loan modification the main focus of the website. This does not mean, however, that they deal solely in that area. Other services are available, and it is for sure that the expertise that is evident in the handling of mortgage loan modifications will also be seen in other areas well. One click is most likely all that will be needed for homeowners to find the answers to their questions.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan
Visit us at http://www.homeloanmodificationinfo.us
Alex is a famous author who writes about Loan Modification. www.homeloanmodificationinfo.us is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.
Author: loanmodification
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Even before all these new documents and writs came into being, there was already an increased interest in mortgage loan modification. Because of this, as well as the new legislation, every day sees the addition of more and more information.
Take mortgage loan modification, for example. The term itself implies change. Mortgages that seemed like the best deals two, five, or ten years ago now are proving to be a source of stress and, indeed, a burden on many homeowners. And, it doesn't help that the current economic situation has caused changes in employment situations.
So, where does the average homeowner, who most likely does not have law degree, nor studied real estate, go to find the answers to questions about the different pieces of legislation, and for an explanation of such terms as mortgage loan modification? And, once the information is found, how can one tell if it is current and accurate?
www.homeloanmodificationinfo.us is an obvious choice. The information on the website is timely, accurate, and readily available. The choices and options that homeowners have and can take advantage are clearly listed, and the explanations are written for the layperson.
Mortgage loan modification is explained more fully at www.homeloanmodificationinfo.us Homeowners can learn what is involved in mortgage loan modification (also called loan restructuring or mortgage rate reduction). They can see what is required in order to ascertain if mortgage loan modification is a viable option for them, and, if so, how the process works.
Should, for some reason, mortgage loan modification is not an option; the website also offers explanations of other services which can assist homeowners who are feeling the effects of the economy on the mortgage industry. However, mortgage loan modification can, and most likely will, be considered first, before any other steps are taken.
With changes in legislation comes a change in procedures. Methods that were once effective may now themselves require changing (or modification, if you will).
The average citizen is not expected to understand all aspects of each real estate transaction. This is true whether it deals with home buying or selling, or more intensive services such as mortgage loan modifications. No, it is up to the professionals who are available through the National Debt Solution Center to navigate the maze of forms, documents, and other paperwork that are required.
National Debt Solution Center prides itself on making mortgage loan modification the main focus of the website. This does not mean, however, that they deal solely in that area. Other services are available, and it is for sure that the expertise that is evident in the handling of mortgage loan modifications will also be seen in other areas well. One click is most likely all that will be needed for homeowners to find the answers to their questions.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan
Visit us at http://www.homeloanmodificationinfo.us
Alex is a famous author who writes about Loan Modification. www.homeloanmodificationinfo.us is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.
Author: loanmodification
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Thursday, August 6, 2009
What is a Loan Modification?
Whether it's called a loan modification, mortgage modification, restructuring, or workout plan, it's when a borrower who is facing great financial hardship, having difficulty making their mortgage payments and is facing foreclosure, works with their lender to change the terms of their mortgage loan to make it affordable. The workout plan varies by lender, but changes could include temporary or permanent changes to the mortgage rate, term and monthly payment of the loan, the past due amount could be rolled into the loan, and the new balance re-amortized.
What is a loan modification under Obama's plan?
Under the Homeowner Affordability and Stability Plan President Barack Obama announced on Feb. 18, 2009, the goal of Obama's "Make Home Affordable" loan modification plan is to reduce the amount struggling homeowners owe per month to sustainable levels. According to plan details:
* The lender would first be responsible for bringing down interest rates so that the borrowers monthly mortgage payment is no more than 38 percent of his or her income.
* Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent.
* Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
* Borrowers will be put on a trial modification at the new interest rate and payment for three months. If they make all their payments on time, the modification will be implemented at the new rate and be fixed for five years.
Under Obama's plan, loan modifications will be standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and then they will be implemented throughout the entire mortgage industry.
Who is eligible for a loan modification?
To qualify, you must:
* Have originated your mortgage before Jan. 1, 2009.
* Be an owner-occupant.
* Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
* Have trouble paying your mortgage due to financial hardship. That could be because you have had an increase in your mortgage payments, or because your income was reduced or you suffered a hardship (like medical problems) that increased your bills, or, you can show that you soon will be unable to make your payments. You will be required to enter an affidavit of financial hardship.
* Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income.
According to the Department of Treasury: Anyone with high combined mortgage debt compared to income or who is underwater (i.e., has a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. New borrowers will be accepted until Dec. 31, 2012.
Who's not eligible for a loan modification?
Speculators or those who bought homes for investment purposes -- are not eligible. All homes must be owner/occupied. Also, if you cannot afford the home due to job loss or a complete inability to pay, you will not be eligible. Also, mortgages with amounts above the conforming loan limits would not be eligible.
How does someone get a loan modification?
First, gather this information:
* Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
* Your most recent income tax return.
* Information about your assets
* Information about any second mortgage on the house.
* Account balances and minimum monthly payments due on all of your credit cards.
* Account balances and monthly payments on all your other debts such as student loans and car loans.
* A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).
Second, call your mortgage servicer and ask to be considered for a "Home Affordable Modification." The number is on your monthly mortgage bill or coupon book. Honestly state your situation. They will assess your financial state through phone calls and paperwork to determine whether you qualify for a loan modification. Keep copious, detailed notes on who you speak with and details of the conversations so you have documentation down the road if you are faced with foreclosure.
Third, depending on the direness of your financial difficulties, its always good to hire legal counsel. Get a referral from your local state bar association.
Fourth, call a local HUD-Approved Housing Counseling Agency for guidance.
Lastly, you can find loan modification reps through Zillow Professional Directory, but you must do your due diligence to make sure these people are legit.
How do loan modifications benefit lenders and borrowers?
A loan modification is usually a win-win situation: the lenders get their money in a reworked fashion and borrowers get a new chance to support their mortgage payments at a reduced cost.
Also, under the Obama plan, there are incentives for both lender and borrower. According to the Treasury:
* Pay for Success Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive pay for success fees awarded monthly as long as the borrower stays current on the loan of up to $1,000 each year for three years.
* Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
* Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
* Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund to be created by the Treasury Department at a size of up to $10 billion will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.
Also, banks would rather have you stay in your home than risk foreclosure since they stand to lose more money through foreclosure. Think about it: a bank would need to make any repairs to the home, pay real estate agents to list it, and then perhaps list it at a discounted price. And, if the real estate market is slow, the price could be further reduced.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Could a blog help your business? (Statistics say yes)
Erase Debt Legally
Custom Swimming Pools for Southern California
What is a loan modification under Obama's plan?
Under the Homeowner Affordability and Stability Plan President Barack Obama announced on Feb. 18, 2009, the goal of Obama's "Make Home Affordable" loan modification plan is to reduce the amount struggling homeowners owe per month to sustainable levels. According to plan details:
* The lender would first be responsible for bringing down interest rates so that the borrowers monthly mortgage payment is no more than 38 percent of his or her income.
* Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent.
* Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
* Borrowers will be put on a trial modification at the new interest rate and payment for three months. If they make all their payments on time, the modification will be implemented at the new rate and be fixed for five years.
Under Obama's plan, loan modifications will be standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and then they will be implemented throughout the entire mortgage industry.
Who is eligible for a loan modification?
To qualify, you must:
* Have originated your mortgage before Jan. 1, 2009.
* Be an owner-occupant.
* Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
* Have trouble paying your mortgage due to financial hardship. That could be because you have had an increase in your mortgage payments, or because your income was reduced or you suffered a hardship (like medical problems) that increased your bills, or, you can show that you soon will be unable to make your payments. You will be required to enter an affidavit of financial hardship.
* Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income.
According to the Department of Treasury: Anyone with high combined mortgage debt compared to income or who is underwater (i.e., has a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. New borrowers will be accepted until Dec. 31, 2012.
Who's not eligible for a loan modification?
Speculators or those who bought homes for investment purposes -- are not eligible. All homes must be owner/occupied. Also, if you cannot afford the home due to job loss or a complete inability to pay, you will not be eligible. Also, mortgages with amounts above the conforming loan limits would not be eligible.
How does someone get a loan modification?
First, gather this information:
* Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
* Your most recent income tax return.
* Information about your assets
* Information about any second mortgage on the house.
* Account balances and minimum monthly payments due on all of your credit cards.
* Account balances and monthly payments on all your other debts such as student loans and car loans.
* A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).
Second, call your mortgage servicer and ask to be considered for a "Home Affordable Modification." The number is on your monthly mortgage bill or coupon book. Honestly state your situation. They will assess your financial state through phone calls and paperwork to determine whether you qualify for a loan modification. Keep copious, detailed notes on who you speak with and details of the conversations so you have documentation down the road if you are faced with foreclosure.
Third, depending on the direness of your financial difficulties, its always good to hire legal counsel. Get a referral from your local state bar association.
Fourth, call a local HUD-Approved Housing Counseling Agency for guidance.
Lastly, you can find loan modification reps through Zillow Professional Directory, but you must do your due diligence to make sure these people are legit.
How do loan modifications benefit lenders and borrowers?
A loan modification is usually a win-win situation: the lenders get their money in a reworked fashion and borrowers get a new chance to support their mortgage payments at a reduced cost.
Also, under the Obama plan, there are incentives for both lender and borrower. According to the Treasury:
* Pay for Success Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive pay for success fees awarded monthly as long as the borrower stays current on the loan of up to $1,000 each year for three years.
* Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
* Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
* Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund to be created by the Treasury Department at a size of up to $10 billion will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.
Also, banks would rather have you stay in your home than risk foreclosure since they stand to lose more money through foreclosure. Think about it: a bank would need to make any repairs to the home, pay real estate agents to list it, and then perhaps list it at a discounted price. And, if the real estate market is slow, the price could be further reduced.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Could a blog help your business? (Statistics say yes)
Erase Debt Legally
Custom Swimming Pools for Southern California
Monday, August 3, 2009
Loan Modification Advantages And Availing The Benefits
A loan modification program is a process or facility to negotiate your current mortgage, with an objective of reducing the existing mortgage's interest rate and monthly payments. In other words, the terms and conditions of your mortgage can be changed or restructured to your benefit, including the interest rate and the balance of principal.
A Loan Modification will change your existing mortgage refinance loan and give you a fresh new start in managing your home which is always better than home mortgage refinancing. Your account will be updated immediately, and you'll start availing the benefits of the facility. The most importantly point is loan modification activity is not reported to the credit agencies, and won't have any significant impact on your credit scores or history.
Loan Modification Companies employ experts who can help to work out a loan modification process and draft out new payment plans to avoid foreclosure. In these troubled times, many individuals are on the verge of losing their homes, due to foreclosures, while some have already lost their homes. Homeowner likely to face a certain foreclosure problem in the near future would be interested in lowering their mortgage payments. Even if it's possible to lower the monthly dues by $500 or more, it would be worthwhile. For this homeowners have two choices refinance home mortgage or loan modification. Many debtors have used the facility already, and the majority of them have provided a good feedback regarding the benefits that can be availed.
The success in negotiating for a mortgage loan modification depends upon many factors. One of the factors is the debtor's knowledge and expertise in mortgage matters and issues. The other factor can be your attitude towards loan modification and mortgage negotiation. The mortgage negotiation is best understood from a legal perspective. The secret of a successful modification depends on your willingness and your attitude towards availing a solution for your debt problems. If you're willing to work things out with your creditor, willing to pay your monthly dues regularly, and willing to undertake the required steps to ensure a successful modification, chances are you can successfully erase your debt problems & Bad Credit Refinance problems.
The most important factor in determining if your loan modification will be successful or not is to take immediate action. Many homeowners don't qualify for a loan modification because they might have waited just too long in deciding, and later become disqualified for the program you can also Get the Second Mortgage Loan from loansstore.
Author: mortgageloanmodification
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Loan Modification – How to get Instant Loan Modification?
Today the loan modification is receiving increased attention because of the national foreclosure crisis. Cited as an action lenders are taking to enable borrowers to stay in their homes, a loan modification is a viable option for homeowners facing foreclosure, including those who have fallen behind, or are likely to fall behind on their payments due to adjustable rate mortgage resets, or due to job loss, divorce, unexpected medical expenses, or the death of a household contributor.
If you want to get your loan modification approved in a week or less, good luck! It is almost impossible…or is it?
If you know anything about loan modification companies , you know that it generally takes 2 to 3 months to get the modification approved. It is a stress full process if you are the homeowner desperately waiting for an answer. Some lucky people can get this done in about a month, but this is very rare. Getting it done in a week or less is almost unheard of!
There are a few companies out there that have such close relationships with lenders that they will actually allow them to take some of the unbearable workload off their backs. There are only a few companies that do this because it is very hard to come up with the necessary ratios to get this accomplished.
As the foreclosure crisis continues to make headlines across the country, many homeowners are wondering how they can avoid foreclosure and save their homes and credit ratings. One option offered by mortgage lenders and servicers is a loan modification A mortgage loan modification is a permanent change in the mortgage contract, agreed upon by both the lender and the borrower. A modification is often requested when monthly payments become a hardship for the homeowner.
Many homeowners have accumulated huge bad credit refinance card debts to survive from a temporary job loss, or an increase in Second Mortgage payments. Mostly, problems arise when the interest rates increase, or when the income of a homeowner decreases. There are also problems other than joblessness or a decrease in income, such as divorce, medical emergencies etc. But loan assistance programs consider each factor of your unique financial situation and tackle every related issue. So, go ahead apply today for a loan modification and breathe easy.
Author: mortgageloanmodification
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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