Are you struggling to make your monthly mortgage payments? So are thousands of homeowners who come to us for help at loanmoddepot.com. The country’s economy is on a downward spiral, but you don’t have to lose your home because of economic instability that is being faced by a majority of the population.
What is a loan modification hardship letter?
If you’re having a financial challenge that is preventing you from repaying your loan according to the initial agreement with your lender, you can apply for a loan modification.
The first requirement for a loan modification consideration is a hardship letter. The letter should detail the cause of your current financial instability, your future plans for improving your status and your interest in retaining the ownership of your premise.
The cause of your financial instability
The main job of a lender is to minimize loss by collecting back their money. There are lots of loan modification options that a lender can offer you, but for all of them, the reason for your financial struggle should be clearly stated. Have you gone through a divorce? Are there new medical bills? Have you or the main provider in the hoe lost their job?
Tell the lender when your financial woes began so that they are able to understand your deteriorating payment history. This will also help the bank see that your credit history was actually good before, which can work in your favor.
Any loan modification consultant will tell you that the lender is not as interested in your current financial struggles as much as they are about your plans for mitigation. For your loan modification application to be approved, you must be able to demonstrate to your lender your seriousness in keeping the agreement for the new payment structure. Are you looking for a new job? Are you willing to set a budget? A hardship letter that can clearly communicate this will increase your chance of getting a loan modification.
Losing a home is never easy and it is important for you to assess all your options before it is too late. Read on to see how to save your home today.
Depending on how advanced the foreclosure process is and how severe your financial situation is, there are some ways in which you can save your home and prevent your family from sleeping in the cold.
If your financial situation is too dire, then the lender will have no option but to propose the following liquidation strategies for you.
This is the process of selling the house through the lender at a price that is lower than the actual value of the home in a fast way. All payments received from this process will be considered by the lender as final settlement for the defaulted home loan.
In this option, the home owner voluntarily transfers ownership of the house to the lender to prevent further processing of foreclosure. There is no actual sale process but a simple transfer of property between the two parties.
Borrowers are allowed to transfer the ownership of the home and mortgage facility to another willing buyer. There is no exchange of money between the two but only a form of handing over of the property from one party to the other.
A home owner with a limited source of funding or reduced income and facing a foreclosure should consider the following options.
The home owner and lender enter into a special agreement that allows the foreclosure process to be held back while the borrower finds a solution for their financial situation.
This option gives the borrower a little more time to come up with the home loan balance and pay it off in lump sum.
A loan modification service involves the borrower and lender restructuring the home loan so as to get new terms on payment, interest and duration. To get help in this matter borrower should take the help of a loan modification company.
Did you know that you can work directly with your lender to have your home loan modified? The notion that you must work with a loan modification company to have your mortgage loan restructured is a hypothesis that has even led to some homeowners losing their homes.
Although working with a loan modification company to restructure your mortgage loan can lead to faster and more flawless result, you can actually go it alone and for free. Sometimes learning how to do a loan modification can save you a lot of money that you would have paid for the service, and you can do it in just three hours or less.
Know the Basics
You can only understand and make sense of anything once you have learned the basics. In fact, what makes a loan modification expert better than a delinquent homeowner is the fact that they know a bit more than the basics of home loan modification, and also have a lot of experience.
The rolled out Obama plan has made it easy for any homeowner to apply for a loan modification successfully since the Federal government is offering cash to banks. There is also the HAMP loan workout program which offers standard guidelines that anyone who can read can use to complete loan modification forms. Even if you decide to go it alone you will be subjected to the same terms given to a person working with a company like loanmoddepot.com.
Steps for Learning Loan Modification
1. Write a formal letter to your lender assuring him that you want to retain the ownership of your home and detailing the cause of your current financial hardship.
2. Complete the financial statements and disclose your income, assets, and debts in a way that the employer will see that you will be more comfortable if payments are revised. If you don’t know how to get help from a software program that produces almost similar results as when federal guidelines are used. With the software, you will just input the required information and everything else will be done for you.
3. Give your lender all the document copies require; bank statements, award letters, W2’s, and paycheck stubs.
4. Put your application together using a submission checklist and submit it for final review.
The eventuality of a foreclosure is a looming possibility for many homes today, thanks to the dwindling economy. In a desperate need to avoid losing their home, a lot of these people are considering loan modification options.
A loan modification is the restructure of a home mortgage debt by revising the terms of the loan to make it more manageable. Loan modification can either be in terms of the loan being converted to a fixed interest rate or simply reducing interest. Unlike other solution for paying off your loan, a loan modification will not get you trapped in the cycle of debts or create more problems for you.
Why loan modification?
Visit loanmoddepot.com or The US Department of housing development at hud.gov for more information if you’re not sure if a loan modification is right for you. You will find out from both sources that loan modification is the most feasible for a person who is struggling with a home loan.
Most people are worried about the cost of loan modification and because of that opt for other options like loaning money from online lenders. You can still work directly with the bank if you can’t afford to pay a loan modification attorney. Banks will prefer to work with you on this option since they also stand losing money in the event of a foreclosure.
Although loan modification options don’t offer an immediate and permanent solution for your home mortgage, the simple changes that will be made in terms of monthly payments and interest will make it more manageable for you.
Why Work With A Loan Modification Company?
A loan modification company has experts that can handle your application to ensure that it’s successful. Loan modification experts can also help you win reduced interest rates which can otherwise be impossible when applying for loan modification alone.
Losing a home can be very devastating especially when you realise you might have been able to stop it. Just like a life boat coming to the rescue, home loan modification service can provide timely rescue for homeowners who can no longer afford to make their monthly payments.
The advantages of home loan modification are enjoyed the homeowner as well as the mortgage holder. Homeowners can avoid a foreclosure and get to pay an affordable amount monthly. On the other hand, the lender avoids going through a lengthy and sometimes expensive process of foreclosure.
Modification of certain terms of the loan agreement with the loan provider can allow you choose ba more flexible and comfortable payment option, you could even get a relief from making payments for a particular lengthy of time if your financial hardship is temporary. With loan modification, you can reduce the interest rate for your loan or even extend length of time for the loan to reduce the payment amount.
Do not wait until you miss a few payments before you begin to seek a loan modification. Once you realise you are in a difficult financial situation, start to seek help. It’s a lot easier to save your home if you start loan modification process early.
Seeking loan modification early prevents your lender from suing for payment default and helps you reach a legal agreement on new terms. Reaching out early before your debts accumulate and your credit score gets so bad will also demonstrate your capability to continue to payments.
Loan modification plans have helped a lot of families prevent the loss of their their homes. Experts at Loan Modification Depot can help you in times like these, you don’t have to go through the difficulty situation alone. They provide affordable loan modification help and services to homeowners who need assistance and help them choose the best available option. Visit loamoddepot.com to get help now.
If you are facing any financial troubles, foreclosure and eviction are probably on your mind as the worst case nightmare. However, it does not necessarily have to come to that since there are many ways to deal with the situation. In order to do so, it helps if you understand how the real estate foreclosure process really works.
The process begins if you miss 3-6 instalment payments, the exact will be mentioned in the terms of your loan. In order to begin the process of foreclosure, the lender will send you a Notice of Default (NOD) and also file the same with the local records authority. A Lis Pendens may also be filed, which is a notification that the estate is pending litigation. The notice will list all the dues and fees along with the deadlines to be paid in order to prevent foreclosure.
If the deadlines are not met, then you will get a Notice of Sale, which will also be posted in the local records authority and published in local newspapers. The notice states a date for auctioning the house. The bank repossesses the estate and tries to sell it in a public auction. The starting price of the auction is set to cover all the remaining debts and any extra fees and expenses associated with the foreclosing process itself. This is an attempt to quickly sell the asset and recover the money that is owed to the bank. If the bank is not able to auction off the property, it remains in possession of the bank and is deemed Real Estate Owned (REO).
You will get several opportunities to stop foreclosure. You can pay all the dues mentioned in the Notice of Default and bring the loan current during the pre-foreclosure period. This period usually lasts for about three months, though the actual duration will be mentioned in the Notice of Default itself.
Another option is to negotiate for a loan modification. In this regard, seeking assistance from loan modification company like www.loanmoddepot.com will be enormously helpful. A loan modification specialist will help you renegotiate the terms of the original loan so that you can pay it back affordably.
Last option you may have is to declare bankruptcy. It will put a temporary halt to the foreclosure process and buy you some time to gather funds or negotiate mutually agreeable options with the lender.
Foreclosure is the legal process of taking possession of a mortgaged property when an home owner is unable to fulfill his payment for the property. The owner thus loses all rights to the property.
Types of Foreclosure
There are 3 general types of foreclosure.
In many countries including the U.S., the most common types of foreclosures are foreclosure by judicial sale and foreclosure by power of sale or non-judicial foreclosure. Another not so popular type of foreclosure is strict foreclosure.
Judicial foreclosure involves the sale of the mortgaged property under the supervision of a court. A law suit is first filed against the mortgager when they fail to keep up with their loan payments. Loan modification depot is one agency that specialises in helping people deal with foreclosure problems
This is also known as power of sale forfeiture. It is applied when a power of sale clause is included in the loan agreement. A notice of default is raised against the mortgager when there is a default in making payments. The sale of the property in this case is not supervised by a court and is not as expensive as the judicial foreclosure process.
This is regarded as a minor type of foreclosure and is only available in few states of the U.S. including Vermont, Connecticut and New Hampshire. It is a method adopted from old British foreclosure practice. If the debtor is not able to continue his payment after a stipulated time granted by a court, the property is seized and claimed by the lender until payment is made. There is no foreclosure sale in this system it is applied where the property value worth more than the debt.
It is always a wise decision to seek professional counsel from loan modification lawyers before entering into any mortgage agreement. You can find more about affordable loan modification service by visiting loan modification depot.
The housing market has been unstable at times and you may be aware of many cases of owners facing eviction. It is quite natural that you may feel nervous about facing the same. We shall discuss a few ways in which you can avoid property foreclosure and prevent the nightmare of eviction.
You don’t need to have financial disaster staring right at you before you act. Recognise the possibilities of financial troubles and plan ahead. If you are living paycheque to paycheque, you are doing it wrong. Any unexpected bills such as medical bills or car repair will exhaust your finds and leave you with insufficient money to pay instalment. Hence, cut back on expenditure if you have to, but maintain a substantial saving, preferably about two to three times your monthly income.
Explore loan modification options
Sometimes the value of your house which you have purchased by debt decreases significantly. Also, the interest rated in the market may significantly decrease. In such conditions, it can be said that you purchased the house at just the wrong time. However, you can hire a loan modification company such as www.loanmoddepot.com to help you negotiate with the lender and cut down your losses. A loan modification consultant can help you re-negotiate the terms of the original loan to get better terms.
Time is of the essence
As earlier said, you need to be proactive. But the earlier you act, the better you will fare. If you are building your savings, starting earlier will let you build up slowly. Similarly, even if you face financial trouble, you need to act quickly. For example, if you meet an accident or lose your job, you should contact your lender as soon as possible rather than wait till you exhaust your savings. With more time, you will be able to negotiate or work out some better solutions.
Instability in the housing market has caused disturbances for many people, even if they are not in financial trouble right now. Many people are worried that they may face potentially face foreclosure in the future. Here are 12 tips to avoid and save your home in time:
1. Act early. The more time you have, the more options you have available, and the easier it will be for you.
2. Maintain substantial savings. Do not live paycheque to paycheque. In such a lifestyle you will be highly likely to miss out occasional mortgage instalments due to unexpected expenses. Even if it does not lead to foreclosure, it will lead to fees and penalties.
3. Cut down your expenses. If you cannot build up savings or pay instalments on your normal finances, you need to cut down your regular expenses by changing your lifestyle. Cut lose any frivolous subscriptions and memberships. Plan your groceries smartly.
4. Explore alternative options to raise money. Consider selling redundant items such as cars if you have easy public transport. You can also explore options such as unemployment or disability insurance if it applies to your situation.
5. Contact your lender early. Contacting your lender before any of your financial troubles begin is often a good option. For example, if you just lost your job, you can contact the lender your lender right now instead of after running out of your savings.
6. Seek loan modification. This may be an option if the interest rates in the market or the value of your house have significantly reduced. You can hire a loan modification firm or loan modification attorney from services such as www.loanmoddepot.com to assist you with the negotiations.
7. In case of natural disasters, seek proper relief. In such cases, many lenders may voluntarily suspend late fees or offer to modify term. Some government relief measures may also be useful.
8. Private mortgage insurance. While this will cost you initially, you will have some financial assistance if you fall behind on your instalments. This assistance is usually in the form of low interest or very low-interest loan to bring your payments current.
9. Reamorize. If you miss out on your instalments, this option will add the missed instalments to the balance debt and will effectively bring your payments current. But it may increase your instalments or increase term.
10. Forbearance. This is an option which you may negotiate which allows you to skip or pay a small instalment for a set amount of time, after which normal payments resume. The missed out payments may be adjusted by increased instalments or term.
11. VA take over. If your debt is guaranteed by the Department of Veterans Affairs (VA), then you have the option to have the debt bought over by the VA. You can then work out a repayment arrangement with VA.
12. Bankruptcy. If your lender has begun the process of foreclosure, declaring bankruptcy will allow you to buy some time by bringing about a stay on any foreclosure proceedings. You can use the time to work out some funding source or negotiate with the lender to facilitate repayment.
If you are behind on your instalment payments or if you are currently going through some financial troubles and expect to have trouble paying instalments, you may face the risk of foreclosure. While the possibility eviction is not something take likely, there is no need to panic. There are various solutions available to deal with the situation. One of the great options is a loan modification. So, let us take a look at how is it possible to use loan modification to stop foreclosure.
What is loan modification?
Loan modification is, put simply, modification of the initial terms under which the loan was granted. It differs from loan refinancing. In case of loan refinancing, a new loan is issued and a part of it wipes out all the previous loans. But in loan modification, the existing loan’s terms are adjusted to favour more feasible and affordable repayment. Loan modification is a matter of reaching a common ground between the borrower and the lender. Hence, it relies on your negotiation skills and how effectively are you are able to convey your financial hardship to the lender. In this regard, getting help from a loan modification firm like www.loanmoddepot.com will be of great help for you.
When is it feasible and what to expect?
This is a suitable option for you if you can demonstrate your financial hardship and are ineligible for refinancing. It is more feasible if the value of the asset mortgaged has reduced significantly or the average interest rates in the market have decreased significantly. A loan modification specialist will be able to help you get a grip on the situation.
You can expect modifications such as lowering instalment amount in exchange for a longer term, lowering of interest or lowering of the principal amount in accordance with your needs or changed market conditions.