Seeking home loan modification help is a very important decision that must be taken seriously. Often people take a casual approach and find themselves being rejected by lenders. This brief article will give you the tips and strategies that will ensure your success.Home Loan Modification Help – Why Most People are Turned DownIn very simple terms, any lender before they grant a loan must assess the applicant on their ability to repay. This point is crucial. It’s a no brainer, but you’d be surprised at how many people seek loans for say $30,000 when their existing total expenses way surpass that. Simple maths will tell you before you even fill in an application that such a variance will only spell disaster.The key, therefore, is to work out beforehand just what you can afford to borrow based on existing expenses and liabilities. Also when doing this sort of thing, it’s important to be honest on your application. Lenders have so much access to our personal data nowadays that it’s pointless to lie about your real financial situation.A loan modification is still at its core a ‘loan’. Too many people seek to improve on their homes without realizing that despite any potential value that might be added to the home, lenders really just see the amount as loan. To complicate matters, many borrowers seek the money to add things to the home that adds no value at all. From the perspective of the lender, it looks like a bad financial decision and these people not surprisingly are often turned down.Home Loan Modification Help – So What If You Been Unsuccessful?People are turned down all the time for home modifications loans. There are several ways round this, but by far the most effective is to seek the help of professional loan modification companies. These companies specialize in getting people who have had difficulties in the past, securing a loan to modify their homes.The industry, like many branches of lending, is heavily regulated by federal and state law. Nonetheless it is important to do your own due diligence to avoid getting ‘burned’. Also, aside from getting you loan modification help; these companies are usually very good at securing very favorable interest rates on these loans. So not only will you have a nice modification to your home, you’ll also have some money to spare. Now that’s what I call a real bargain.
Do you have less than perfect credit? Good news this company gives some leeway even if you have filed for bankruptcy. The minimum credit score you can have is 500. This was recently changed from a no minimum. There is a minimum down payment of 3.5% of the homes perches price. To help you pay This company will allow the use of state or local government assistant programs to help. This is by far the most flexible program.There are great benefits to this type of loan Modification company. One is that closing costs may be covered. Home sellers,builder and lenders pay some or all of the borrowers closing costs such as appraisal, credit report, and title. Lenders typical charge higher interest rates on loans they pay the closing costs on though. Other benefits include:lower monthly payments and interest rates, better terms(15 to 30 years) and equity building,streamlined paperwork that reduced documentation,low down payments,cash out options for other expenses and debt consolidation, this is called a 203(k) and is based on the value of the home once repairs are done, more access to other credit lines and little to no out-of-pocket expense needs.There are four conditions however, that borrowers need to satisfy. You have to have lived in you home for at least a year before cashing out refinances options previously listed. The refinance amount you qualify for is determined by the appraised value of your home. If you have an original mortgage and a 2nd mortgage you will have to show that so they can take them into consideration. Also if you have a FHA streamline loan the existing mortgage would be paid off with a new refinanced loan and no cash is granted. There are 2 mortgage insurance premiums required on all FHA loans:the upfront premium and the annual premium. The upfront should be paid then the borrower get the loan but, can also be financed as part of the loan. The annual premium will be paid in chunks. 1/12th of the amount will be paid each month with the mortgage payment. Compare this to a non-FHA loan and this will still be the best way to go.The FHA provides 4 types of home refinance loans. There is a cash out refinance loan that allows you to refinance 85% of the appraised value of your home. There is also a cash our refinance option that allows you to refinance 95% of the appraised value of your home. Both of these allow you to wipe away your high interest debt to get a clean start or pay for other expenses such as medical debt, home improvement, student loans or any other major expenses that you might have. There is a no cash out refinance loan alternative. This can eliminate upfront costs by rolling all related closing costs, financing costs and prepaid items into the new loan amount. Finlay there is a FHA stream line loan. This option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. This also cuts down on the amount of paperwork that will be completed by your lender saving you time and money.Remember when researching that FHA is not a lender but rather an insurance fund you need to get on your loan. To get this insurance on you loan you must get your loan threw FHA-approved lender rather then from the FHA its self. So you will need to look up and approved lender in your area. Make sure your trust this lender.
During the course of the past series of months, Chase has taken the opportunity presented by President Obama’s Making Homes Affordable Program to refinance countless mortgages. Although not every home owner is approved for refinancing or home loan modification when they apply for a lower rate on their mortgage, there are a number of different options available to struggling home owners.However, it is of vital importance to understand that loan modification is a two way street. Failure to make timely payments once a loan has been modified by Chase could result in a cancellation of the modification that will leave you with few other options than foreclosure. Here is what you need to know about the refinancing and home loan modification options that are available to responsible home owners who are struggling to stay in their current home.The first step to either refinancing your mortgage or requesting a modification of your loan is to speak directly with a representative from Chase that specializes with helping home owners who are having a hard time making ends meet. Chase has now opened dozens of Chase Homeownership Centers throughout the customers where home owners can come and sit down with a professional who will help them assess exactly what options are available that will keep them in their home. If there is not a Chase Homeownership Center in your area, representatives with the same level of experience and training are available to take all of the time that you need to work through these complex issues over the phone.Before you contact a Chase representative, however, it is a good idea to spend some time looking over the basic options that are made available to home owners and lenders through the Obama Administration’s Make Homes Affordable program. While the primary goal of the program is to help people restructure their home loan so that they will have a lower monthly payment, not all applicants will qualify for this type of assistance.Last but not least, Chase Mortgage has been offering alternative methods of loan modification to applicants who did not meet the criteria for assistance through the federal program to tens of thousands of home owners since early 2010. If home owners fail to make regular payments on these modified loans or simply do not qualify, they can still avoid foreclosure proceeding through a deed in lieu of foreclosure or a short sale.
RealtyTrac, which manages a database of home foreclosures, estimates that more than 1 million homes will go into foreclosure in 2010. In an attempt to help financially distressed homeowners, the federal government has enacted the FHA Home Affordable Modification Program (HAMP). Yet, many homeowners are unsure if this federally funded program will help them keep their homes.FHA-HAMP is only available to homeowners who already have an FHA-insured mortgage. Borrowers do not need to have equity in their home. Additionally, only mortgages that are at least 12 months old may qualify for the loan modification program and homeowners must have paid at least four mortgage payments. However, mortgages do have to be at least 30 days delinquent. It’s estimated that 14 percent of FHA-insured loans are 30 days or more past due.In addition to the age and type of mortgage, there are requirements regarding mortgage payment amounts and the family’s debt ratio. To be eligible for FHA-HAMP, mortgagees must have mortgage payments that are at 31 percent of their gross income. Mortgage payment includes taxes, insurance, and homeowners fees. Gross income is calculated before taxes and other deductions. Second mortgages are not included in this amount.There are limits as to how much other debt an eligible family may have. This debt, called, back-end debt, may not exceed 55 percent of the monthly gross income. Credit cards, second mortgages, and car loan and leases are included in the calculation of back-end debt, as well as other installment or revolving accounts.Homeowners apply for FHA-HAMP through their lenders. At this point, they will be asked to provide proof of income, as well as a hardship letter explaining pertinent circumstances of their financial situation. The lender will pull a credit report. However, this report is not obtain a credit rating for qualification purposes; it is used to verify revolving accounts. Borrowers will need to assemble a list of monthly expenses and supporting documentation.If applicants qualify for FHA-HAMP, the lender will permanently modify the mortgage. The goal of the loan modification is to bring the borrower’s monthly mortgage payment down to less than 31 percent of the gross monthly income. The lender will do this by creating a partial claim on the property, whereby a portion of the principal will be placed in an interest-free mortgage. This secondary mortgage will not be due until the home is sold or the FHA-HAMP matures. This interest-free mortgage will be payable as a balloon payment, which means that the owner will have to either sell the home or refinance the amount owed.The FHA – Home Affordable Loan Modification Program is designed to give assistance to those who are hardest hit by the recession: average homeowners. Those who qualify can use the FHA-HAMP to avoid being counted among the million homeowners who will face foreclosure in 2010.
The Home Affordable Refinancing is part of Obama’s Making Home Affordable Program which aims to provide help to refinance mortgage rates of some qualified American homeowners; it is a federal loan modification program for troubled borrowers who are current in their monthly loan payments but are unable to refinance a lower interest rate due to the decreasing home value of his or her property. Moreover, it is available for borrowers who have mortgages under Fannie Mae or Freddie Mac only. Once your loan has been modified, it may result in a decreased monthly principal or interest payments which places borrowers in a better position to afford their mortgages. It may also convert a risky loan structure into a more stable one to avoid foreclosure filings in the future especially since home prices continue to fall as the US economy remain in this condition.To apply for this federal loan modification program, the home with which you are seeking to refinance must be a one to four unit residential property, the mortgage must be owned by Fannie Mae or Freddie Mac, you must be current on your monthly mortgage payments which means that you are not behind more than 30 days on your loan payments within one year, and you must own only one residential property under one mortgage.When your loan has been modified or your mortgage payment has reduced, make sure that you pay off your outstanding balance to avoid receiving a notice permanently. Your lenders can file for foreclosure and proceed with a public auction once you begin to make default payments again, especially when you have been given the opportunity to refinance your current mortgage and pay off the outstanding debt balance.If you have questions about the Home Affordable Refinancing program or if you want to take part in one of the free seminars regarding the different federal loan modification programs of the Obama administration, contact the Housing and Urban Development Office immediately. You may also talk to your mortgage lender and service provider to know if you are qualified for this type of mortgage help. And to know the full detail on the HUD’s home affordable refinancing options in your respective state, browse through the selling guide announcements for mortgage lenders, investors, and servicers in your area.
It may seem that applying for a loan modification is like putting money in a slot machine. Some people get lucky and end up with a newly modified loan, while others, for no apparent reason, aren’t so lucky. There are, however, things you can do to prepare yourself when seeking a loan modification, and these steps, when followed, can greatly increase the likelihood that you will be selected to receive a loan modification.1. Familiarize yourself with any laws or policies that may be applicable in your local region. Has any new regulation been passed that might affect the loan mod process? Make sure you know about it. Individual lenders may have unique policies as well. These laws can change often, so be sure to get the latest information before applying.2. Prepare your application thoroughly before you submit any parts of it to a lender. If you forget a part of the application package, you are much less likely to be approved, and even if you are, it will take much longer for your application to be processed. Get everything together before you send any of it.3. Obtain the aid of a loan mod expert, someone who knows exactly how to structure an application and exactly what you’ll need to include in order to make your application stand out. If a lender denies your first application because it is incomplete or unprofessional, that lender is much more likely to deny your next application as well. It’s very important that you get it right the first time, so get all the help you can.4. Gather all the documentation that may be required as part of the approval process and have it on hand for your loan modification professional to review. This may include bills, tax forms, proof of income, and so on. Talk your application over with your loan modification professional and check for completeness before submitting anything.A loan modification is a complex process, and if you have no previous experience in this field, you need to seriously consider getting assistance from someone with the qualifications and experience you lack. Preparation, whether done on your own or with an expert there to help you, is crucial for getting approved.
The idea of getting your loan modified is a tempting one. Imagine getting lower interest rates and not having to pay so much every month. That’s why many homeowners are applying for the program.The problem is that not all qualify for the program. It is more right to say that hardly anyone qualifies for the program. There are so many who re-apply again even on the third time and are still denied.Why they deny your ApplicationNormally, a loan works like this: A lender will check your credit history and your financial status. The amount that they are going to lend you plus interest depends on your monthly salary. If you are able to earn big time, your chances of getting a loan are high.If you have bad credit, then you cannot qualify for a loan. This is business so what would be their guarantee that they can trust you when they give you a loan? If you have bad credit history, then how would you be able to pay them?Before you loan money, think about your other financial payments. There are a lot of bills to pay and if you have children going to school, then that’s also an added expense. Keep in mind that what you loaned has interest.When you apply for a loan, don’t lie especially about your salary. Lenders can find out everything about you. They do a background check before they loan you money so that they know whether you are telling the truth or not.Sometimes lenders see it differently. Homeowners think that they can add value to their home by improving and adding a few things to it. If you are going to borrow money for this purpose, lenders won’t agree to it because they do not see the point in it.Not being able to qualify for a loan modificationWith so many homeowners being denied, it’s no wonder that your application will also get denied. Second time, third time or fourth time, who knows when your application will get approved?Your best bet is to hire the services of a reputable and professional lawyer. They know how to handle these kinds of cases in a legal way. Just be sure to provide them with accurate information.They not only get your application approved but they also get the interest rate to go lower. You will save a lot from this. However, hiring the services of lawyers do not come in cheap. Although this is the case, you will benefit from this for a long time.
The record number of foreclosures that have impact the United States has sent shock waves through the nation. Sadly, the development of such a high, record number of foreclosures is the result of a rapidly deteriorating economy coupled with record unemployment. With limited funds, people are not able to make their monthly mortgage payments. Ultimately, this leads to foreclosure. Thankfully, for those that may find themselves in such a serious situation, President Obama’s home loan modification program may prove to be the solution to one’s mortgage ills.The home loan modification program is a federally backed program that allows troubled borrowers to renegotiate the terms of the mortgage. This way, the potential to get back on the path to timely payments is made more likely. Such an outcome can be achieved by lowering monthly payment amounts, reducing interest rates, among other solutions.However, you simply cannot request a home loan modification and receive approval. Certain criteria need to be met and they include:The homeowner needs to be facing a legitimate and serious financial hardship. This program is intended for those that legitimately cannot pay their mortgage.The applicant must be currently employed. This is to ascertain a steady income that will be put towards the newly modified mortgage payments.The home must be a primary residence. You cannot seek a modification on a home that is an investment property or a vacation dwelling.The balance on the mortgage must be more than 80% of the value of the home. In short, the home loan modification program is not intended to cover homes terribly “underwater” in terms of value. Also, the balance must be less than $729,751 in order to qualify.There needs to be a reasonable expectation that you will eventually become current on your mortgage. There also needs to be an expectation that you will not fail behind again in the future. The home loan modification program is not intended to buy time for those that will never be able to avoid foreclosure. Rather, it is intended as a safe program for those that need a slight change to their current terms in order to get out of a proverbial hole.The criteria for the home loan modification program are rather basic. The program is intended for those legitimately unable to pay. The hope here is that the new program will enhance the potential to avoid foreclosure and return to solid financial footing in the future.