Home Loan Modification

June 17, 2009

Questions About Loan Modification Companies

Filed under: loan modification help — Tags: — Administrator @ 8:08 pm

Questions About Loan Modification Companies

Questions About Loan Modification Companies


As interest rates continue to be at lowest levels in history, many consumers are exploring alternatives to refinancing. Questions about loan modification companies are prompting many consumers to take a look at doing it themselves. Due to credit and lack of home equity, many homeowners have been unable to refinance and take advantage of the incredible rates today.

If you decide to use a professional organization for you modification, here are the questions that you should be asking.

1-How much is the charge?
Typically the fee will range between $1,500-$2,500. Sometimes it is also represented as 1% of your total mortgage payment (including Taxes and Insurance).
2-Are there any additional charges?
Do you charge extra if you have two mortgages, or the home is pending foreclosure?
3-Is there a Money Back Guarantee?
This was not even an option early on. However, with the loan modifications being so popular now many companies are offering some type of guarantee. Be careful here as this is never a 100% money back guarantee. They will always keep $500-$700 for processing.
4-How long will it take and what can I realistically expect/

If you have additional questions about loan modification companies, the most important thing you can do is check them out with the better business bureau. There you will see how long they have been in business and also see their consumer rating.

Considering the recent government changes, many homeowners have very successfully have done a mortgage modification on their own. Once you understand the basic qualifications that the bank is looking you really can do it yourself. For information on how to receive my do it yourself modification guide, visitwww.mortgageloanmodificationsecrets.com

June 14, 2009

How Does A Loan Modification Work

Filed under: loan modification help — Tags: , — Administrator @ 11:23 pm
Do It Yourself Loan Modification

Do It Yourself Loan Modification

As the mortgage industry begins to go through major changes, many curious homeowners want to know-How does a loan modification work ? Will it really lower my mortgage payments? Do I need to use a professional or should I purchase a Do It Yourself Loan Modification guide. If you have not explored the possibility of reducing your monthly payments this way, you are missing out on an amazing opportunity.

A modification works by taking your existing mortgage and improving it or making the payments lower. This is generally done one of two ways. When you approach your bank for a loan modification, they may elect to either lower your interest rate or reduce the balance on your loan. Depending on the situation, sometimes they might do both. With the current state of our economy, many people are trapped in mortgages that have very high interest rates (possibly even an adjustable too). In addition, many of these borrowers are unable to refinance because their credit has been damaged or they have no home equity. In an effort to avoid foreclosure the only real option is a loan modification.

This is an excellent alternative to refinancing because not only is it free(if you do it yourself), but many times the results are even better. It seems only two years ago the general public did not even know what a modification was. Today, there are thousands of professional services available willing to assist homeowners renegotiate their mortgage with their current lenders. The problem is that these services are expensive, their stepscosts are very high ($1,500-$2,500). In addition, they are really just the middlemen, as only your bank is responsible for making the ultimate decision on your file. It’s not necessary to hire a professional to do something that can be accomplished on your own if you have a little extra time to invest. The savings will be well worth the time spent.

With a basic understanding of the process and a little knowledge from a Do It Yourself Loan Modification guide you really can accomplish the task of reducing your mortgage payments for good. Considering that current rates are so low, the chances of ending up with a great payment is very possible. In fact, many consumers are seeing monthly mortgage payment reductions of 30% or more.

So does it really work? The answer is yes, if you know the ‘buzz words’ that the bank is looking for. If you can convince your lender that you are in a position where paying the mortgage will become difficult, they will be more receptive to your request to lower the payment. However, it is not automatic. The key to a successful modification is knowing how to negotiate. Once you understand what the bank is looking for and learn some of the basic qualifying questions, you can dramatically increase the chances of getting your application approved.

In the past six months the process has become streamlined making it very easy for homeowners to do it themselves. In addition, banks (including Chase) are encouraging borrowers to avoid using a professional service and work directly with them. Although it is a great idea, be careful. Make sure you are prepared and know how to answer the questions properly, as it will make the difference between getting approved or denied. It is not a complicated process at all once you understand it.

With my 21 years of mortgage experience, I have created a do-it-yourself loan modification guide which will walk you through the process and show you real before and after results. If you are curious about how a loan modification works and how it can save you $1,000’s, this guide may be just what you are looking for. For more information visit www.mortgageloanmodificationsecrets.com

June 13, 2009

Loan Modification Stepscosts

Filed under: loan modification stepscost — Tags: , — Administrator @ 4:28 pm

There are several factors in determining loan modification stepscosts. The biggest factor is whether you decide to do it yourself, or hire a professional. Professional services will charge you as much as $1,500 to $2,000. They will handle everything for you but the results are usually not guaranteed, and many of the services require upfront payments. Another, and just as effective option is to do your own mortgage modification. When you do it yourself, your loan modification stepscosts are much less expensive. In fact, it is complete free to do it yourself. Recently, many lending institutions have been discouraging their customers from hiring 3rd party services. In merely complicates the process and slows thing down. Wouldn’t you rather communicate directly with your bank and have total control? A small investment in a do it yourself guide is all you need. Once you have a basic understanding of the process, you will be able to have a result just as effective as if you hired a professional, their loan modification stepscosts. For more information on how to do it yourself, visit www.mortgageloanmodificationsecrets.com

June 12, 2009

How To Do A Modification

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With interest rates at historically low levels, now is the time to do your own mortgage modification. The results are very similar to a refinance, but without any of the costs.

For the first time in history, banks are taking a serious look at their portfolios and deciding which customers should be modified into a rate reduction. It might sound strange, but a bank can actually benefit by reducing your rate, even if they don’t charge you money for it. Here is the logic. If you are deemed a risk for default, or possible default, a rate reduction will improve the quality of your loan to the lender. A lower payment is good for you and means less default risk for the lender. If a Bank has to choose, they would much rather modify your loan than have to deal with late payments and a foreclosure. A modification is cheaper for the bank, rather than the legal expenses of foreclosure. Once understanding that a mortgage modification is just as beneficial to you as it is to the bank, you will gain the confidence to know that this really can be done, and is being done every day.

So, how do you do a modification? Basically, the bank is going to look at two things:

1) Your hardship- Why are you requesting this modification
2) Your financials-Documenting why you are having trouble now.

Your hardship can be one of many reasons ,including loss of income, unforeseen expenses, medical, etc. An unacceptable hardship letter would be to say something like ‘we refinanced to buy an RV and now can’t afford our payments’. Although this is an extreme example, be careful when you are writing a hardship letter. If it is unacceptable, the rest of your modification application will be rejected too. You might think the letter is good, however, it only really matters what the bank thinks. You get only one shot to get it right with your bank.

The second item is to self prepare a financial budget and submit it for review. Since most lenders will not verify the information that you put down on this form, many homeowners will exaggerate their expenses. The worse off you look to the bank, the better your chances, right? This is the number one reason why loan modification applications are denied. More is not always better. If the bank thinks your expenses are too high relative to your income, they will conclude that you are just a hopeless case and simply let the home going into foreclosure.

It is important that your income vs. monthly expenses fall within the range that the banking industry is looking for. It is a pretty generous range. Once you understand this simply formula, you can prepare and do your own modification. Dealing directly with the bank is always the best option as you are in complete control and not relying on miscommunication from a third party.

The mystery of how to do a loan modification isn’t really a mystery at all. You need to prepare a solid hardship letter and complete a financial budget, that it.

With basic help from a how to do a modification guide, you can learn to apply the simple, standardized, qualifying formula to yourself. You will also learn how to write a strong hardship letter. Armed with this information, you can modify your loan and reduce your payments significantly. Visit my site www.mortgageloanmodificationsecrets.com to learn how reduce your mortgage payments now.

June 10, 2009

Loan Modification Help

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A loan modification is one of the most efficient ways to quickly reduce your mortgage rate and payment without the cost associated with refinancing. It is an option that you need to explore now as rates have catapulted upward in only the last 2 weeks. If you have not paid attention to the market recently, it was very possible to get an interest rate of 4.5% only 2 weeks ago. Not anymore.
Now is the time to consider a do it yourself modification option before things get worse. As rates remain low, banks are more willing to adjust or modify your mortgage down to market levels. However, as rates increase, Banks are not going to be so willing to help as the cost to them become greater. The recent upward swing in rates over the past two weeks was significant because the movement was huge over a short period of time. A movement like that generally indicates a reversal or change in the trend of rates. The opportunity for a great modification result might be nearing an end soon.
If you are sitting on the fence hoping and waiting for a government program to become available, you may be doing more harm than good at this point. A loan modification is not difficult to do, and the only risk is a denial. If you are denied, you end up with the same thing you have already. If you loan modification is approved, the reward can be great. With just a little bit of knowledge from a do it yourself guide you can take control and fix your mortgage for good. Don’t wait any longer as rates could continue to rise. For more information on how to negotiate with your bank visit www.mortgageloanmodificationsecrets.com

do it yourself loan modification-get help

Filed under: Uncategorized — Tags: , , — Administrator @ 12:47 am

This past week has been terrible for interest rates and the recent boom in refinances. During the past 12 days or so the interest rates have moved up almost one full point. This is definitely is bad for the refinance industry, but it can also have long-term consequences for the loan modification industry as well. A reason for this is simple. When interest rates are low, the decision whether bank to reduce the consumers rate and modify their mortgage is easy. Recently, interest rates have been as low as 4.5% since many people at interest rates higher than the level banks were handing out modifications like candy. Recently, rates have climbed to 5.5%. Although they are still low it appears that the trend is changing. If interest rates continue to rise thanks will find it difficult to offer modifications to their customers because it would require them to reduce their interest rates to levels that are below market. At that point the modification does not become attractive to the bank and the denial is more likely. It is impossible to predict the long-term trend for interest rates, however based on the recent activity it appears we have seen the bottom. Act now before it’s too late. My Do-It -Yourself Guide is all you need to be on your way to a lower mortgage payment quickly. Visit www.mortgageloanmodificationsecrets.com for more information on the guide

May 29, 2009

Loan Modification- With Rates So Low, Now Is The Time To Consider This Option

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Loan modification- The timing is right now
During the past 21 years in the mortgage and finance industry, I have never seen interest rates as low as they are today. There has been a surge in refinance applications within the past 4 months as a result. I used to think that 6.25% was an excellent rate, until recently. Many of the consumers who are applying for mortgages are actually refinancing loans that they had only taken out 2-3 years ago. With rates as low as they are now, borrowers who are currently at 6.25% are seeing a tremendous monthly savings. Unfortunately, refinancing is not an option (or even possible) for most people.
Many consumers who are trying to take advantage of these low rates are being turned down. In fact, the percentage declined loan applications are very high. The three main reasons why many borrowers are unable to refinance their homes are:
1-No equity. Property values have corrected significantly in the past 2 years to the point that many homeowners have no equity or are ‘upside down’, meaning they owe more than their home is worth.
2-Loss of income or wages. Many individuals have taken a reduction in pay. Others who have lost their jobs are seeking employment with less pay due to the weak economy.
3-Credit problems. Is it estimated that 50% of Americans have suffered credit problems during the past two years as a result of the economic downturn and hard times.
Any of the above would make it impossible to refinance. I am seeing countless people being turned down every day for mortgage financing, seemingly unable to take advantage of these unprecedented rates. However, there is a solution for individuals looking to capitalize on today’s low interest rates. This solution is a loan modification.
Although loan modifications have been popular now for the past 2 years or so, now more the ever is the best time to explore this option. One of the most important considerations your lender will look at in evaluating your chances for getting a modification is the payment reduction and benefit to you, based on current market interest rates. With current rates at 4.75%, and many borrowers at 6.25% or higher now, the payment reduction benefit is gigantic! All other qualifications being equal, you stand a better chance of getting approved today for a modification than you would have 6 months ago. For example, if current interest rates were 6.5% (like they were last year), banks would be less likely to grant you a modification. The reason for this is simple. For a modification to make sense, the bank would have had to give you a rate below 6%, which they were not too excited about doing last year. Now fast forward one year. Since rates have fallen so much, and many consumers are at 6% and above right now, lenders are becoming more relaxed and are offering additional options that they hadn’t previously. It’s just not as painful for them to modify loans as it was before, when rates were higher.
Rates will never be this low again. They will soon rise and banks will no longer be as flexible as they are today. Don’t under estimate the power and the results that can be achieved by modifying your loan. I have personally seen mortgage payments cut in half, principle reductions of $30,000, adjustable rate loans turned into 4.5% fixed, and delinquent payments (8 months past due!) brought current. The best part about all of this is that there are no closing costs, nothing. When you deal directly with your bank it’s free.
This is not to say that you should simply call the bank and they will automatically lower your rate. It is still necessary to understand how the modification process works and how the lender will qualify you for it. You only get one chance to present your case to the lender. You can’t go back and change the numbers if the bank says no. However, once you learn the basics of the process, the qualifying parameters and the right questions to ask, you will be able to present your case in such a way as to maximize your results, lower your payments, reduce your rate and possible cut your principle balance too. I can tell you this for a fact because I see the results every day. A do it yourself guide is all you need before speaking to your lender. Take advantage of the opportunity now before it is too late. For more information visit www.mortgageloanmodificationsecrets.com

May 28, 2009

Do It Yourself Mortgage Kit

Filed under: Uncategorized — Tags: , — Administrator @ 6:49 pm

A do it yourself mortgage kit is finally available to homeowners who do not want to pay $1,000s to a professional service. This Do It Yourself Loan Modification Kit guides you through a step by step process allowing you to reduce your interest rate and possibly even cut the principle balance your loan. A loan modification is not difficult once you have the basic understanding of the process and know what the banks are looking for in order to approve you. The results are often dramatic. Professional services are charging $1,000s for a task that any homeowner can do on their own. Before you consider using a professional, invest in a Do It Yourself Guide and you will quickly learn that this is a task you can very quickly do on your own.

May 21, 2009

Do It Your Self Loan Modification

Filed under: Uncategorized — Tags: — Administrator @ 11:16 pm

With assistance from a Guide
The laws and guidelines are changing to make loan modifications easier for homeowners. Not more than a year ago the word ‘modification’ sounded scary and complicated. Homeowners had only heard of these words from attorneys or loss mitigation companies. Although sometimes they can be helpful if your situation is complicated (or you don’t have a little time to invest), many times it’s simply not necessary to spend thousands hiring a professional. A little knowledge from a good Do It Yourself Guide is all you need.

As banks begin to change and adapt to the situation that homeowners are now facing, they are learning to embrace the concept (and willingness) of offering loan modifications to their customers. In fact, many Banks prefer you don’t use modification companies at all. Chase, one of the largest banks, is an example of this. When you call their main mortgage customer help number, they have an outgoing message ‘warning of the use of 3rd parties modification services’. The message goes on the say that they do not charge money to complete a modification and it is not necessary to use a third party service to help with one’. Remember, professional services do not actually perform Loan Modifications, they only put your information together and present it to the bank. Ultimately, the decision is made by your current lending institution. However, I would not suggest speaking with your bank until you have done some research on your own as the approval process does require some qualification.
With just a little bit of knowledge, some understand of what banks are looking for, and a few hours of time you can Do It Yourself . For the most part, there are three main considerations when preparing your own modification:
1) Writing a detailed hardship letter explaining to the bank the circumstances behind why you are requesting a modification.
2) Preparing a monthly financial budget outlining your incoming, expenses and how your money is appropriated each month.
3) Understanding the debt to income formula that the Banks use so that you can maximize your potential for qualifying for the lowest possible mortgage payment.
With a little help from a Do-It-Yourself Kit, you will be able to prepare a hardship letter, construct a qualified monthly budget, and most importantly understand the purpose of the Bank’s Debt-To-Income (DTI) Ratio. Once you understand the process and the requirements, you will be able to prepare a proposal for your lender that will not only increase your chances of getting an approval, but maximize your payment reduction at the same time.
It is not necessary to pay $1,000s to a company for something that can easily be completed on your own. With help from a step by step Do It Yourself Loan Modification Guide, it is VERY possible to reduce your mortgage payment by 30% or more—for Free! This is a once-in-a-lifetime opportunity as banks have never been as flexible as they are now. Don’t wait, take advantage of this incredible opportunity.

May 7, 2009

How does a loan modification work

Filed under: loan modification help — Tags: , , — Administrator @ 4:01 am

Do It Yourself Loan Modification

Do It Yourself Loan Modification

How does a loan modification work?
As a mortgage and loan modification professional, I am constantly asked” how does a loan modification work”? Although the term has only become popular within the past 12 to 18 months, loan modifications have been around as long as the lending business has. Until recently, the term was basically unknown because the results were not very successful. Things are very different today. Now is the time to take advantage of an amazing opportunity because of the economy.
A loan modification is simply a change, adjustment or an amendment to the original mortgage that a homeowner secured when purchasing their home. For example, let’s assume that you took out a fixed rate mortgage for $100,000 at 7%. At the closing on your property, you are required to sign a myriad of documents. One of those documents is called a Note. The note outlines the parameters in which your loan will be paid back. It includes the interest rate, the terms, the payments and conclusion date of the loan. Any alteration or change made on that Note is a modification. Loan modifications are achieved through negotiations with your lender. Your lender is the only one authorized to change or modify your note. Many consumers mistakenly believe that when they hire a professional service to modify their loan, that the company representing them actually performs the modification. That is the furthest thing from the truth. Loan modification companies merely act as your representative by preparing the necessary documents and communication needed to revise your loan. For this service they will generally charge approximately $2000. If you have a little free time and a desire to save money, you can easily accomplish this on your own with the same or better results. Remember, banks don’t charge for the loan modifications, modification companies are the ones that charge. If you do it yourself, it’s free. Plain and simple.
A loan modification works by putting the consumer in a better financial position than they were before. It works because it benefits both the borrower and the bank as well. The benefits to the borrower are obvious, a lower mortgage payment. The advantage to the lending institution can also be significant as well. Many people do not understand why a bank would be willing to reduce their interest rate without requiring a refinance or upfront money. As a result, most consumers are reluctant to explore the possibility of a modification because it doesn’t appear to make sense. “Why would the Bank just reduce the rate for no reason?”. Today, lending institutions are evaluating their entire portfolios and trying to improve stability. For example, if a loan is currently at 6 1/2 %, reducing the rate to 4 1/2 % would increase the strength of that loan by lowering the payment for the consumer. Another words if the bank reduces the payment on the loan, the possibility of a default by the borrower diminishes. Similar to the insurance companies, lending institutions utilize actuaries to calculate the risk on their portfolios, and what can be done to reduce it. Since bank portfolios are at the highest risk levels in history now, there is an explosion of loan modifications.
In addition, interest rates are at the lowest levels in recorded history. These new levels are now prompting banks to look at all of their customers to see if they are eligible for a modification. The consumer benefit is huge. It is not just the individual who is behind with his mortgage, or has bad credit or no equity. They are evaluating everybody to see how they can improve their portfolio. However, they are not proactive in contacting you. You need to initiate the action. If you know what the bank is looking for, you answer the qualifying questions correctly, put together a solid budget then you will easily qualify for a loan modification for free. Before you contact your bank is important that you do some preliminary research so that you’re prepared. Once you have the necessary tools you can achieve the same results as the professionals do, for free. A Do-It-Yourself loan modification guide is all you need to help you through this simple process. There is absolutely no risk to at least explore the possibility of a modification with your lender.

Do It Yourself Loan Modification

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