Many people consider a loan modification as their last hope of saving their homes from a foreclosure. As much as this is the best timing, it depends on what other options you have. There are several solutions to avoiding a foreclosure and each has its own best time, which applies for the loan modification as well. If you are not sure of when you would like to apply, loanmoddepot.com will be of great help. In addition to that, you need to be well aware of what you are required to do before you can apply for a loan modification. Once you have all the details at hand, you can go ahead with the application.
Planning for the Loan Modification Application
There are some things you need to keep in order before you can apply. As loan modification experts would advise, here are some things you should put into consideration. For one, you should not be over expectant. Many applications have been denied while others have been approved. A loan modification application may or may not help you stop a foreclosure. That is all dependent on approval of the application you made. You need to be well-aware of all the terms that come with a loan modification application. It can turn out to be a great idea or worst if you do not what you should be getting from the application.
The Best Time to Apply for a Loan Modification
In consideration of other home foreclosure solutions, the application to modify your loan is best after you have considered all other solutions. It is also ideal to apply for a loan modification if your defaulting of mortgage payments is temporary. For loan modification mitigation requirements, a company like loanmoddepot.com is ideal for consultation. They will provide you with all the necessary details you need to know and guide you throughout the process.
If you are in the real estate industry, as a home buyer or seller, you have surely come across the term Commercial Loan Modifications. But do you know what they actually are? Why are they important in this sector? Commercial loan modifications have become common since the introduction of commercial mortgages that are essential in buying homes.
So, What Is a Commercial Loan Modification?
This refers to any adjustments that can be made on a loan. At loanmoddepot.com, they will help you with all the legal requirements needed to get a loan modification from your lender. The team of loan modification lawyers will help you choose the best modification option that will suit your needs. There are costs associated with the process and you need to be prepared for them. Considering the benefits that will arise from a commercial loan modification, the fees will be manageable and worthwhile.
Benefits of Commercial Loan Modifications
The most imminent benefits of commercial loan modifications is that people who have defaulted on their payments can save their homes. The biggest fear of most homeowners is losing their homes, especially after they have been served with a public notice. The emerging loan modification services are handled by companies such as loanmoddepot.com professionally. They are also beneficial in that they help you, the homeowner (defaulter), to cope with the financial crisis better. Needless to say, the company will help you find a solution to your mortgage repayment problems.
Why Choose the Loan Modification Option Now?
The reason is that you can save your home by finding a solution on how to repay your mortgage. Due to the economic uncertainty in the market, choosing a loan modification would be a great idea considering that you are not willing to lose your home. On top of that, you can avoid a foreclosure by changing the terms on the loan to make it easier for you to repay it.
One of the effective ways you can meet your mortgage repayments is creating a new repayment plan. As much as other methods, such as a short sale may work, not everyone wants to adopt them as a new strategy. Moreover, nobody wants to give up on their property or face a foreclosure. Their main aim and focus is to become current on their mortgage. They just want to pay the loan off and avoid all the hassles that may be attributed to the missed payments.
The Role of a Repayment Plan
This is for those who do not want to modify their current mortgage plan but want to meet their payments. There are many alternative of loan modification, but they are not meant for everyone. But, that does not mean they cannot alleviate their problem with mortgage repayments and be current on their mortgage. So, what does repayment plan entail and why is it an ideal solution? A repayment plan allows you to keep on paying the repayment as scheduled but on a higher rate. You make more mortgage repayments to cover for any missed payments that have accumulated. This eliminates the need for a foreclosure and the save my home solutions that come with foreclosure.
Who Is the Repayment Plan For?
Some factors may influence why people consider a repayment plan as a loan modification service. With assistance from loanmoddepot.com, you can find the optimum payments to meet your repayment plan. They will ensure that you have all the facts at the table and know what you are getting yourself into. A repayment is for those who are not looking to make modifications to their current agreement. If you are old and are counting the years to retirement, a repayment plan will help you be current with your mortgage and reduce the chances of advanced mortgage repayments to retirement. It is also ideal for those who do not want a foreclose on their properties or make a short sale to save their properties.
A lot of homeowners struggling with their mortgage payments get in touch with loanmoddepot.com to get information about the loan modification options available for them. There are various ways in which mortgage loans can be modified, and each one of them has its advantages and shortcomings.
Any competent loan modification firm presents the available options to the delinquent borrowers and help them make the best decision. A loan modification is advantageous to both lenders and borrowers. For the lender, a loan modification means avoiding the foreclosure process, which is a loss if the borrower is only having short-term financial difficulties. For the borrower, a loan modification can give you sufficient time to bounce back from your challenging situation and resume normal payments.
Extended Time for Payment
A loan modification company will advocate for you to extend the term of loan payment if you’re struggling financially. This will lead to the reduction of your monthly payments without altering the principal amount or the interest rate.
At loanmoddepot.com, they ensure that your mortgage repayment term is extended in a way that you get comfortable in making regular monthly payments. For example, if your mortgage amount is $150,000 with a 6 percent interest payable in 30 years, the terms of payment can be extended to 40 years. So instead of paying $899.33 per month for the 30-year term, you will be paying $825.32 and thereby making profits of about $74.01 monthly.
In the long run, the monthly savings that will accumulate to $900 a year are a substantial amount and the advantage of this outweighs the “disadvantage” of paying your mortgage for 10 years longer.
Reduction in Interest Rate
Although lenders will sometimes offer you to reduce your interest rate on mortgage either on a short-term or a long-term basis, loan modification companies generally don’t advocate for this. A long-term interest rate reduction is given by refinancing the loan whereas a short-term interest rate reduction is given when a borrower is going through a temporary financial crisis. Unfortunately, in both cases, the interest payable will not be written off but added to the back-end of the mortgage.
A mortgage forbearance plan may look attractive if offered to you at the time when you’re struggling to pay your mortgage loans. But sometimes, the offer might be a trap and not a solution to your existing problem. There are a lot of options at the disposal of homeowners struggling with mortgage payments. Unfortunately, a lot of people take the option of mortgage forbearance as their loan modification help because they feel like they don’t have any other option. Thus, it’s necessary to learn about all the different choices available so that you know the ones you qualify for, how they work and the most suitable option for your situation.
About Mortgage Forbearance Plans
Most banks and lenders offer the forbearance plan but not other loan modification options available for the delinquent borrowers because it’s advantageous to them. In fact, the offer is usually made tempting by the fact that you are not allowed to make payments for a certain amount of time. The leniency time frame is highly dependent on the type of loan you have. For example, a FHA loan will be given about 6 to 12 months. The reasoning behind this it that it should give you enough time to bounce back and resume to regular payments. Sadly, the missed mortgage payments during the leniency period are not forgiven and will be added to your debt.
Why Is a Forbearance Plan Not a Good Option?
A forbearance plan is only a good option for a borrower who expects to be able to return to regular payments after a while. A temporary financial mishap, like illness can make you a good candidate for this plan. However, loanmoddepot.com suggests permanent loan modification options for a long-term solution. The HAMP program that’s offered by the government is a great loan modification option for a struggling borrower. You will have to be assessed to qualify for this program, so it’s best to do ask for help early to avoid missing out.
A foreclosure is the closure of your home when you are not able to pay your mortgage loans. It also refers to the legal procedure where the owner of the property (you) lose the rights of owning your home. Mortgage payments are not the easiest to make, especially if you are facing a financial crisis. Despite how beneficial a mortgage is when purchasing the property, it can be your downfall if you don’t pay the loan off. So, there is a need to have the right partners with you, including a loan modification firm to help you manage the situation.
Understanding the Foreclosure
As mentioned above, a foreclosure is the confiscation of your home due to your failure in making mortgage repayments. As the borrower of the loan, it is a must for you to pay the mortgage loan off as per the agreement with the lender (the bank in this case). Foreclosures are not so common but there are a few people who may be caught up in between. You need to understand that your property is the collateral to the loan you have received and in case of defaulting, you will be prone to facing a foreclosure. So what does a foreclosure entail? It commences when you don’t make payments on the mortgage. Then comes a public notice (notice of default) if the missed payments have been recorded for 3-6 months. The public notice is forwarded to you and a period of pre-foreclosure (2-4 months) is attained. This is where you may save your home from a foreclosure. After that, there is an auction and finally the post-foreclosure period.
Saving Your Home from a Foreclosure
If you do not want to lose your home during the pre-foreclosure period, you can contact loanmoddepot.com for advice and solutions. They have a team of loan modification lawyers that is well-equipped for the job and you will be assured that you will be able to finally save your home. They will be mediators between you and the bank. The possible solutions to saving your home include finding a potential buyer, filing a bankruptcy petition, signing back the deed to the bank, among other options.
Yes, you can sell your home in a foreclosure. In the stages of a foreclosure, before the auction is held on your home, you can sell your home to a potential buyer. So, how does it work? When you receive a notice of default, also referred to as public notice, you can sell your home for the time being. There are many ways you can save your home from a foreclosure with one of them being a short sale. A short sale is selling your home in a foreclosure to help you get some money to cater to the mortgage payments. When all seems lost, there is always light at the end of the tunnel. With loan modification companies like loanmoddepot.com, you can find various means to keep your home from a foreclosure.
Short Sale During a Property Foreclosure
First things first, you need to come to an agreement with the lender of the mortgage and provide the plan. There is no way the lender can disagree provided you meet your payment and can manage to clear off the balance. Next, find a good real estate agent to help you sell the home. At this point, you should keep in mind that the home will be sold at a little less price than its real value. However, that shouldn’t worry you as long as it can cover your debt. Take back the bid on your home to the lender of the mortgage and let them approve it.
How to Succeed with Selling Your Home in a Foreclosure?
Well, the chances of this working are slim and it is always advisable to have a strong team by your side. At loanmoddepot.com, a loan modification company that has dedicated itself to helping you get rid of a foreclosure, you can get all the advice you need. Their team will help you with the negotiations with the lender and increase your chances of keeping your home. In case the payment from the short sale doesn’t cut it, they will guide you through the next step or show you the other alternatives to help you save your home.
It’s normal to be panic-stricken upon receiving a foreclosure notice due to your missed mortgage payments. However, it is possible to stop or delay a foreclosure by applying the right strategy.
You can work with a loan modification company or follow the right loan modification tips to get your mortgage loan modified. You can also contact the bank directly or hire an attorney to get help with the process. There are different methods for a loan modification, including interest rate reduction, readjustment of the terms of the loan payment, and refinancing among others. A loan modification company can help you prove to the bank that you are capable of handling the new terms of payment.
Refinancing or Taking a Second Mortgage
This option can be considered by a homeowner who has some equity in the house. You can ask the bank for a second mortgage loan and consequently get a lower payment and use the cash received to pay for the months missed. Before taking a HELOC, you should be sure of your capability to make payments because failure to this can result in a foreclosure.
File for Bankruptcy
There are different chapters of bankruptcy that you can file for in court. You can qualify for chapter 13 of bankruptcy which is “reorganization;” i.e., you can continue to make your payments after a period. Chapter 13 of bankruptcy, which is forgiveness, is mostly unachievable if you have an asset like a house. Filing for bankruptcy is only a short-term solution and it will also affect your credit score. So you should put these into consideration before choosing this option.
Other options for avoiding a foreclosure include selling your house, signing a deed-in-Lieu of foreclosure, increasing sources of income and having a pre-forbearance sale among others. The thought of losing your home can be overwhelming, so visit loanmoddepot.com to get help in avoiding the foreclosure process.
Understanding A Foreclosure
A foreclosure is when a lending entity takes ownership of a property with the intention of selling it at an auction to recover the owed loan amount. This happens when the homeowner or property owner fails to meet their monthly mortgage obligations over an extended period of time. A foreclosure is a lengthy and expensive process that should be avoided at all costs. Homeowners in a financial crisis should consider seeking loan modification services to avoid it.
What Happens In A Foreclosure
Your home is not eligible for a foreclosure if you have defaulted on only one month’s of loan amount. The law stipulates that a homeowner has to default for more than 30 days before the foreclosure proceedings can be commenced. Additionally, the lender will attempt using various means to get you back on track with your payments before commencing a foreclosure process.
If the default is not remedied and the payment is not resumed, the lender will issue a breach letter to inform you of the impending consequences. This letter will also urge you to discuss with the lender to avoid the situation, formally known as a foreclosure workout.
If no solution is gotten within 45 days then a petition to a foreclose on the mortgage might be filed. The court will issue a notice of default (NOD) indicating that a foreclosure process has been initiated. A 30-to 60-day grace period will be issued for you to remedy the situation.
The homeowner may seek an audience with the relevant professionals to see what options they have. There are a variety of options a homeowner can pursue to delay or stop the foreclosure process, including loan modification, forbearance negotiations, filing for bankruptcy or initiating a short sale. If no action is taken by the homeowner within the grace period , the home might be sold at auction.
The home foreclosure process is a popular tune in this current economy. It is in fact emotionally wrecking, and why should it not be? After all, a homeowner can potentially lose their home in this process.
Different Phases of a Foreclosure
There are two prominent phases with every foreclosure process; i.e., pre-foreclosure and formal foreclosure. The pre-foreclosure phase is marked by different late notices, phone calls and eventual notice of default following several missed mortgage payments. If no steps are taken towards loan modification consulting and no arrangements made towards payment, the lender takes the process to the next phase of formal foreclosure.
Understanding the Formal Foreclosure Process
The foreclosure process varies from state to state with the major difference being in the legal documents used during the transfer of the property. There are states that use mortgages in this process while in other states, it’s the deeds of trust used. Based on this, different processes can be categorized as a judicial foreclosure (for states that use mortgage) and non-judicial foreclosure process for those that use deeds.
In the judicial foreclosure process, the lender or bank will have to go to the court for authorization. You can hire a loan modification lawyer to consult the bank so as to rearrange the terms of loan payment even before your lender takes the issue to court.
If a foreclosure order is given by the court, your lender or bank has the right to sell the house. A legal notice is then published in the local papers and the house is either sold to the highest bidder or reposed by the lender. Even after the notice of eviction is given, the bank or lender may still follow the original homeowner for the debts still owed on the house.