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3 Things to Know Before You Go For Loan Modification

If you're falling behind on your mortgage and cannot qualify for a refinance or an alternative payment plan, it's time you negotiate for a loan modification (mortgage modification)। This is where you can work with the lender and get your loan terms and conditions modified so that you pay off the loan comfortably. The lender may either lower your mortgage rate thereby reducing your monthly payments or extend the loan term and make sure your dues are added to the loan balance.

The very first step in loan modification is to contact your lender or the current mortgage servicer to whom your lender has conveyed the servicing rights। But prior to contacting the lender/servicer, make yourself aware of the 3 things that decide whether you'll qualify for loan modification. These are:

1. Your affordability: Lenders want to make sure that borrowers aren't taking advantage of loan modification, that is, they are not applying for it even though they can still pay. This is why you need to prove that you simply can't keep up with the payments. So, you need to explain your exact financial situation and provide data on your property value and how much you can afford to pay on your home. Here's what you will need to have with you:

1. Monthly income and source
2. Paystubs
3. Monthly expenses in detail
4. Bank statements
5. Loan agreements

What you need to do here is, prove that you cannot afford the payments and it is certainly going to help your situation if you opt for a loan modification।

2. Your home equity: This is an important factor based on which the lender may or may not modify your loan. If you have enough equity in your home to pay off mortgage dues and foreclosure expenses, then the lender is likely to consider foreclosure as a low-cost solution.

However, there are some lenders who inflate your home appraised value when home prices are on a decline। But if you're aware of property values or recent home sale trends in your area, you can get an idea of your home equity and thus avoid inflated appraisals.

3. Modification costs: Lenders prefer to minimize the costs when it comes to modifying one's loan. However, mortgage modification is carried out by experts and lenders have no other option but to spend more when it comes to expanding their number. This is why some lenders do not respond quickly when they receive a loan modification request. So, here's where you need to be active and negotiate in the best possible way.

With loan modification, you can avoid a loan default as your payments become affordable. However, make sure you understand the modified terms and conditions in order to avoid further problems in your mortgage

Do it Yourself Loan Modification - 7 Deadly Sins to Avoid

Looking for information on how to convince your lender to approve your do it yourself loan modification? Not every borrower will qualify for these loan workout programs, so make sure you know the 7 deadly sins to avoid when you prepare your loan modification application. It can make the difference between approval and denial!

Deadly Sin #1: Contacting your lender before you understand how the process works and what your lender needs to see in order to approve your application.

Deadly Sin #2: Paying a loan modification company a large, upfront fee without first verifying that the company is properly licensed and has experience with loss mitigation. Unfortunately, many homeowners have paid thousands of dollars without ever seeing any results instead of beginning their own do it yourself loan modification application.

Deadly Sin #3: Wasting time trying to speak with your lender about a loan modification when they call your home. The employees calling you at home are from the collections department, they will not help you with a loan workout. They will tell you anything to get your last dime-these employees get paid based on how much money they get out of you. You need to know who to speak with at your lender to get the results you need.

Deadly Sin #4: Not writing a convincing and compelling description of your hardship situation so that your lender will empathize with your situation. It is important to know the 3 key elements of a winning hardship letter-if you do not convince your bank that you deserve a loan workout due to circumstances beyond your control your chances of approval are slim.

Deadly Sin #5: Omitting information on your application or completing the forms wrong can be a reason for a delay or even an immediate decline of your proposal. Do you know that your bank will verify all of the information you provide? This is a full disclosure process-you can avoid this deadly sin by making sure you disclose all of your income and debts completely. There is a sure fire way to make sure you do not leave anything out.

Deadly Sin #6: Submitting a loan workout proposal that does not meet your lenders requirements for approval. Each bank has certain criteria that must be met-if your proposal does not fit into this criteria, you will be declined. Make sure you know your banks guidelines and then complete your loan modification forms accordingly. Do you know how to determine your target mortgage payment so it is affordable and meets those approval guidelines?

Deadly Sin #7: Not providing your lender with a complete loan modification proposal package that includes all the forms and documentation they need to review. Your bank has thousands of borrowers just like you who need help-what do you think happens to your package when it is missing items and cannot be processed? It gets set aside and finds it's way to the bottom of the pile-there goes your chance for a loan workout solution!

A successful do it yourself loan modification means you have avoided the 7 Deadly Sins and have prepared a professional, acceptable and complete loan workout proposal. Do you know how you can make sure that you have given yourself the best chance for saving your family's home? Research, learn and prepare before you contact your bank about your loan workout-this is too important to take chances-help is available if you know how to get it!

4 Successful Tips For a Successful Chase Loan Modification Program

You must know of certain things before you apply. Here are 5 tips for you to be successful with a Chase Loan modification program.

1. Tip 1 - Call the Loss Mitigation Department: A lot of people end up calling the Collections Department. Bad place to call, because even before you know, they would be asking you for your money.

2. Tip 2 - Watch the debt ratio: If you have a debt ratio between 38% and 45%, you will in all chances qualify for the program. Call the Loss Mitigation Department, and ask them to send you a loan modification package.

3. Tip 3 - Write the loan modification hardship letter: It is important you convey to Chase, your reasons for not paying the mortgage payments on time. Write a convincing hardship letter, and support it with proofs when possible.

4. Tip 4 - Any type of modification can be considered a success, only if you honor your revised financial commitments. Set aside your budget carefully, and be sure you pay back the mortgage payments as per the new agreement.

Loan modification programs offer you a second chance for you to revive your mortgage payments. This is your chance to get them back on track, and Chase allows you to do this with the help of their special Programs.


How You Can Refinance Your Mortgage Even With Bad Credit

Are you a homeowner with bad credit? Is your existing mortgage payment more than you can handle? Or do you want to refinance your current mortgage in order to cash out some of the built up equity in your home? Whatever reason you might have for refinancing your mortgage, your bad credit does not have to be a hindrance.

Lower Your Interest, Cash Out Equity

Many homeowners want or need to refinance their mortgages at some point in life. Refinancing is typically done to obtain a lower rate of interest that can save the homeowner money and also lower their monthly mortgage payments. Oftentimes, a homeowner may be stuck in an adjustable rate mortgage of which the monthly payment has ballooned out of control. Still others just need a great way to cash out equity in their homes that has been built up over the years - possibly to make home improvements, do remodeling, buy a car, take a vacation, pay for education, or even to pay down other debts and obligations.

Although you can generally stick with your current mortgage servicer to refinance your mortgage, you also have the option of choosing a different lender. Your choice should not be based on loyalty to a certain lender, but rather on savings over the life of your mortgage refinance.

Considerations You Must Make

When refinancing your mortgage, you should always consider a fixed rate loan product first. A fixed rate will allow you to make predictable monthly payments at a rate of interest that is fixed and cannot be increased due to market conditions. You should also look for a lender who will help absorb some of the costs of refinancing your mortgage - such as appraisal fees, attorney fees, and other fees that are tacked on that can inflate the amount of money that refinancing will cost you.

You should consider how long you want to pay on your new mortgage. Most lenders will give you an option of ten, fifteen, twenty, and even thirty year fixed mortgages. Keep in mind that the longer you take to pay off your mortgage, the less your monthly payment will be, but taking longer to pay will cost you more interest. Never agree to a payment amount that you cannot reasonably afford to make as your budget and income dictate.

Another often overlooked option when you refinance your mortgage is to consider allowing the lender to include the cost of homeowner insurance in the loan. This can make your homeowner insurance more affordable, and also makes for one less bill that you will be paying out each month. You can always opt, however, to keep your current insurance policy on your home and continue paying it out of your pocket each month.

Reverse Mortgage Loans

Everse mortgage loans can be a great way to get the income you need to enjoy retirement. Yet before you start the process for one you need to know about all those elderly people out there that have been scammed. You don't want to be one that is taken advantage of by such lenders. You may say that could never happen to you but many of these people are well educated. They just didn't take the time to look into the background of the lender. They took everything they said at face value but it turned out to be a lie.
In other instances there are huge fees added to the reverse mortgage loan. The person doesn't realize it because they didn't read through all of the documents before they signed them. That isn't a valid argument in a court of law and so you they are bound by them. As a result a person can end up with less money than they thought they would get with their reverse mortgage loan. In the worst cases these poor people have to pay the lender instead of getting money.
The best way to protect yourself is to know the facts about reverse mortgage loans. There are some guidelines that have to be followed. This type of loan is only offered to those individuals at least 62 years of age. The home must be paid off in full or almost completely paid off to qualify. There aren't any rules about how you can use the money you get from a reverse mortgage loan. You can decide to get a lump sum payment, monthly payments, or a line of credit.
It is very important to read over every single detail of the documents. They may be very boring but doing so will protect you from signing things you didn't want to commit to. If you don't understand something then have the lender explain it to you. If they tell you not to worry about it then you should walk away from the deal. If they are rushing you to sign the documents without ample time to read over them that should be a huge red flag that something just isn't right with the entire process.
There are plenty of terrific reverse mortgage lenders out there though so don't shy away from the prospect. As long as you take the time to discover who you are working with and what you are signing you will be fine. Any time you start working with someone and things don't seem to go right you can get out of it. Trust your instincts so that you will benefit from your reverse mortgage loan.

Stop Foreclosure

Foreclosures are at an all time high and the feds who helped create the problem still have no solution. Private enterprise has a solution in the form of Loan Modifications. I work with a company who has been successful in convincing lenders to drop interest rates, decrease principals, and change terms for home owners.
Are your mortgage payments too high?
Any of these sound like your situation?
• Has your mortgage payment adjusted with no end in sight?
• Has the value of your house dropped?
• Are you depleting your 401k or your retirement account in order to make ends meet?
• Are you living off of credit?
• Have you experienced a job-loss?
• Are you in a negative amortization mortgage with your balance increasing to no end?
• Have you experienced a change in job or income?
• Are you worried about losing your home?
LoMo Means Financial Control LoMo is short for Loan Modification. It's is a process whereby a homeowner's mortgage is modified and both lender and homeowner are bound by new, negotiated terms. The most common loan modifications are:
• Lowered Interest Rate
• Reduced Principal Balance
• 'Fixing' Adjustable Interest Rates
• Increased Length of Loan Term
• Forgiveness of Payment Defaults & Fees OR any combination of these!
A loan modification is NOT a refinance. With a loan modification you do not need go through the costly steps that are required for a refinance. You do NOT need an appraisal, title or a credit check.
LoMo qualifications
If you are a homeowner who has experienced financial difficulties, you can qualify for a home loan modification.
• Decrease in home value
• Divorce/Separation
• Loss/Reduction of Income
• Illness
• Job Relocation
• Failed Business
• Military Service
• Other hardships
The bottom line: You will save money!
We may be able to help you reduce your house payments, just by negotiating your loan terms with your lender. Keep your house and reduce your payments!


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