Wednesday, August 19, 2009

Loan Modification Process

I’m not blogging about the loan modification process to educate people about the hows and whys and the wheres of the entire setup. I’m not blogging about the shrewdness of getting help with my loan modification to incite or inspire other people to try to get their applications for it approved in a manner similar to which my application was approved. I’m not blogging about how people think they can hope now loan modification is simpler, more efficient, or easier to procure than it was some five years ago, when people living in the United States were not as concerned or alarmed as they are now about such things as recession, sudden bankruptcy, and a growing unemployment rate. I’m not blogging about why a USA loan modification is probably better than any other similar third party or direct arrangements a person may have with their lender or any other institution that they may have dealings with. I’m not blogging about how important it is to collect data online and eventually compile an active file of loan modification leads for possible future use. I’m not blogging about how extremely important it is to get a loan modification guide and studying all the details and particulars surrounding the entire process, so as to allow a greater understanding of what to do and what not to do when applying for a loan modification.

My point in writing about all of this is the fact that I had never expected to fall into such hardship that would, in turn, drive me into deep debt. I practically had to borrow to pay for what I had earlier borrowed. I had always thought things would pan out better, since I do live in the most progressive and economically stable country in the world, but I guess that’s no longer the truth now, since the United States is still reeling from the sudden loss of financial footing. It burns me so much that just like almost everyone else, I am no actively seeking a loan modification in California, and I’m not even sure if I will get approval for this.


Sunday, August 2, 2009

How Do I Qualify for Loan Modification?

In many instances a homeowner is set up on a repayment plan (forbearance) plan prior to completing a loan modification which allows a servicer (mortgage company) to monitor the financial condition of a homeowner during the special forbearance period to be sure the homeowner will be able to make the payments to the lender. There are vital documents required that are reviewed by a mortgage company.

Hardship Letter:
To meet the requirements for a loan modification homeowners must have a compelling hardship. The hardship must be documented and given as many facts as possible to support your case. A is very subjective and pretty much a requirement in the course of getting a loan modification. There are a few adversities that are considered charitable and do not meet the criteria quitting a job or reducing the amount of hours worked are typically unacceptable. The adversities are documented and if there is an additional non-payment the homeowners can not use the same reason for non-payment otherwise their previous adversities was really not over and in many instances the homeowners are not allowed a loan modification.

Financial Statement:
This is used to verify the homeowners ability to pay. This is usually the first form reviewed by the lenders mediator. This form must clearly indicate monthly wages and expenses as well as current assets and liabilities. This is what makes and breaks the entire loan modification review. This form also shows whether or not the homeowner will be able to make payments if the loan is modified. There must be a surplus wages at the end of the loan modification or else the plan will be denied. The plan must be affordable. If a homeowner is severely over-leveraged with debt there is little chance that a loan modification will cure the delinquency. Monthly expenses are reviewed to determine what bills are necessary and what are unnecessary. Necessary expenses are food, utilities and gas and an example of unnecessary are entertainment expenses, expensive phone plans and unsecured debt. Household expenses loan payments, utilities, and taxes take up most of the monthly budget. Do not make operating costs look unreasonable will be a red flag to get further detail. The negotiators will always look for assets that can be liquidated.

Proof of Salary:
The proof of wages is usually a paycheck stub, a P&L Profit and Loss Statement if self employed, or checking account report showing paycheck deposits. The proof of wages is required to prove the homeowner has steady wages. The homeowner must also give frequency of wages. The proof of wages must correspond with the wages shown on the financial report. Resolve any discrepancies


Tuesday, March 24, 2009

Stop Foreclosure the Military Way

Wow, at long last. The military is getting the attention and care that they deserve --- there is a law that helps them avoid or stop foreclosure if they were on active duty within the last 90 days.

According to the Service Members Civil Relief Act of 2003 (SCRA), it says that all active duty personnel, as long as they were not on active duty when they bought their houses and signed their mortgage papers.

By the way, when I speak of active duty personnel, they include:

• Regular members of the Armed Forces (Army, Navy, Air Force, Marine Corps and Coast Guard)

• Reserve, National Guard and Air National Guard personnel who have been activated and are on Federal active duty (whether as volunteers or as a result of involuntary activation)

Inductees serving with the armed forces

• Public Health Service and National Oceanic and Atmospheric Administration Officers detailed for duty with the armed forces

• Persons who are training or studying under the supervision of the United States preliminary to induction

• National Guard and Air National Guard personnel on duty for training or other duty authorized by 32 U.S.C. §502(f) at the request of the President, for or in support of an operation during a war or national emergency declared by the President or Congress.

I’m glad to hear that military families can stop foreclosure before it starts. The reality is, our military has served the country selflessly and devotedly. I think it’s about time that we repay back all the effort and hardwork that they have given us for a long time now. Believe me --- it’s the least we could all do for them.


Sunday, March 1, 2009

Stop Foreclosure: Getting By with Loan Modification

People all over the world are feeling the backlash of the economy. The price of gasoline and other basic commodities are slowly killing minimum wage earners. Companies are laying off people in order to cut on costs and labor. Loan companies are foreclosing on properties, houses and cars of borrowers. In the midst of all the chaos, people are relying on the benefits of loan modification.

Loan modification is an agreement between the lender and the borrower to modify loan terms and condition. The setup equally benefits both parties as lenders get paid and borrower gets to preserve ownership of the property. However, getting your loans modified may not be easy if you’re going to do it on your own. Most of the time, the expertise of a loan modification specialist is needed for you to fast track your application. They have all the experience and the connections to get you a good deal with a lender.

There are a hefty number of loan companies and experts on the said field who can help you jumpstart modifying your loans. It is best to look for someone who can really do the job for you than second guess on the next course of action. Doing this is pretty easy because of the wonders of the internet.

There are a lot of loan modification services on the worldwide web for borrowers who are feeling the pinch of the economic crisis. However, the borrower himself should be the one to initiate the materialization of the mortgage process. None of the loan terms alteration will happen without the borrower’s initiative and determination to survive the looming foreclosure.


Wednesday, January 28, 2009

Beware of Loan Modification Scams

Obama’s epic presidential sweep doesn’t entirely erase racism in the US. Although many are saying that the modernity of the time has been slowly affecting people’s way of thinking about race and color, there are still some life aspects where minorities are undermined. One of which has something to do with the legalities of loans. For those Hispanic minorities who are drowning in loan debts, things could get even worst. Since some may not know other options aside to avoid foreclosure, they end up losing ownership of their homes. Unknown to them is the best solution to end the endless cycle of foreclosure woes---loan modification.

By negotiating with lenders, borrowers can enjoy the benefits of lower interest rates and monthly payments. Loan terms can also be extended depending on the deal given by the mortgagee. In the end, borrowers get to preserve home ownership, and at the same time, be saved from the worries that tomorrow might be the day they’ll go homeless.

If only proper information about this mortgage process is readily available to borrowers belonging to minority groups, a lot of foreclosure proceedings might have been avoided in the US. It is sad to note that there are a lot of loan modification companies taking advantage of these people by offering them false hopes. I’ve read somewhere that there was an American loan consultancy company that ran away from its clients without doing its end of the bargain to process their papers for said mortgage process. The worst thing about this is that all of this company’s clients are poor Hispanic minorities.

Loan modification might just be the key to save borrowers, minorities or not, from an alarming foreclosure. I hope that the government will be more vigilant in ascertaining that loan modification companies are not going to scheme their clients.


Difficulties in Getting a Loan Modification

Obtaining a loan modification is not as easy as it may seem. With thousands of applicants queuing in banks and loan companies for their loans to be modified, lenders are becoming adamant in granting this program to just about anyone. Newbies in the process can already expect to face a number of difficulties before their applications get approved. To lessen the shock, here are the dilemmas that starters in modifying loans might face.

1. Accepting the problem of foreclosure

Recognizing that you are a step closer to losing your prized home because of delinquency is probably one of the first stubble that you are going to face. This is what they call the borrower’s denial period. Once this has been overridden, borrowers can already face the problem head on.

2. Contacting the lender

It is still quite unfathomable how delinquent lenders develop the courage to run for cover, but can not find the heart to speak with lenders about their loan situation. Informing lenders about your difficulty is primary to the cause of stop foreclosure.

3. Writing a hardship letter

A hardship letter is much like a proposal given to your lender. Contained in this is an explanation of your hardship. Unemployment, death of the family’s breadwinner, disability, serious illness and such are accepted by lenders as valid hardships.

4. Convincing lenders to grant you the loan modification

Lenders know all the tricks up the sleeves of borrowers desperate to stop foreclosure. They can see pass the dramatic appeal that mortgagees are trying to exude. It is better to provide a valid hardship and turn in all the necessary documents to have your loans modified.

5. Processing the loan modification to be approve

This is particularly difficult because of the time that it entails to have the request approved. It usually takes around two weeks to process your papers for the loan modification.


Sunday, January 25, 2009

Loan Modifcation or Forbearance

Borrowers criminals have a cloak of social exclusion in the form of a loan modification agreements and patience. Instead of going to the homeless, they now have a new chance to redeem themselves and their beautiful homes by a recovery of the loan by the lender.

In conversation with your lender about the financial problems that could lead to disruptions and the threat of exclusion is a lengthy analysis of their situation. This will be a factor to say if you granted a loan modification or forbearance. As a borrower, you should know the difference between the two, because the road to the exclusion of the operation depends to a large extent determined by the lender.

What exactly is the difference between the two? To better understand these processes, mortgages, we will prepare the ground for everyone. In short, the modification of a loan agreement between you and the lender to create the conditions for a loan to reduce monthly payments and interest rates. This also leads to a long-term loans of up to 30 years depending on the offer by the lender. In addition, an agreement patience is simply an act of delaying foreclosure. In no way diminish or reduce interest rates on loans and monthly payments, but it does provide room for the borrower to pay as soon as the financial situation has stabilized.

Although this is after the same goal, that is the burden of the borrower, some of the differences, an enormous influence on the type of mortgage you are looking for. For example, the benefit is only for those whose financial problems appear to be temporary. Therefore, the exclusion was delayed a few months and do not in any way be canceled. Change loans, on the other hand, is for those whose financial situation and seem on the verge of a major situation that can only be resolved by restoring the conditions for a loan.

The borrower must be able to tell if your financial situation for the patient or the modification of a loan. This is an essential prerequisite for free from the clutches of exclusion.


Loan Modification Guide

This blog is dedicated for Loan Advocacy Group that help the economic crash from hard time of high credit interest. Aimed to Stop Foreclosure

- Why it is the most important decision of your life.

- Foreclosure is AVOIDABLE. Modify your loan now and keep the roof over your head.

- Foreclosure is a CHOICE, not an inevitability. Modify your loan now and avoid foreclosure.

- You DON’T have to settle for foreclosure. Avoid it with a loan modification now.

Loan Modification Guide

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