John H. Drake asked:




As the editor of a popular home loan information site I am being asked a lot lately about how to get a home loan modified and for mortgage loan modification advice in general.

Well, it’s simply a fact of the times the mortgage industry has changed and stated income loans requirements simply don’t exist like they used to. In today’s mortgage market, you as the borrower will be required to present full documentation of your income and your assets and you will be forced to qualify based upon much stricter standards such as traditional debt to income ratio calculators.

It is these changes in the housing industry that have affected housing prices so dramatically in recent years, particularly in expensive areas such as Florida and California. It works like this; many people bought homes they couldn’t afford with adjustable rate mortgages and stated income loans. Many of those buyers have since gone in to foreclosure. This caused a collapse in the mortgage industry which then lead to stricter standards for getting home loans, and that in turn led to a lack of eligible buyers in markets where home prices have been artificially driven up because of the previously questionably approval process by mortgage lenders. This in turn is driving the price of home down.

If you are facing a foreclosure one thing you can do is to contact an attorney who specializes in foreclosures and loan modifications. But perhaps the best thing to do if you are facing foreclosure is to use a loan modification company. A loan modification company should have an attorney on staff and will know exactly what to do to help you avoid foreclosure – not to mention a ruined credit score. By getting a loan modification and reducing your interest rate to a level you are able to afford you may be able to stay in your home and in some instances even reduce your principle with a loan modification.

Sue

Lindsy B. Emery asked:




For years people have been getting loan modifications, but since the introduction of President Obama’s Making Home Affordable Act, it seems that everyone is talking about them. The process is much more efficient and quicker than it was in the past. If you think a home modification is something you will need, you should learn all about home loan modification hardship assistance and investigate all your options.

If you cannot pay your monthly mortgage payments or you are finding it very difficult, don’t assume this is how it has to be. Don’t wait until you are in desperate circumstances and facing foreclosure before you do something. Make an appointment with a financial adviser to discuss your situation while you still have options. Sometimes you can visit a free adviser or you can hire someone. HUD-approved charity groups will offer free financial counseling, but since there is so much demand for this right now, many groups have been formed.

It is your decision to pay or not pay. Both have pros and cons. Some companies have lawyers who work with them, some don’t. If you can find a company that offers legal consultation, choose it so you have the option of having a lawyer help you get your loan modified.

Use extreme caution when you are employing a company to help you. Again, since there is such a demand for this service today, many companies have been formed who offer financial solutions. Not all these companies are legitimate and some are simply frauds out to take advantage of desperate people. Use a company that has a good reputation and a solid history. Check with the Better Business Bureau to find out their rating.

The first thing to do is meet with your counselor. Take along all application documents and be ready to discuss your finances. The adviser will go over your financial statements and help you figure out what the best course of action is for you.

If it is decided that you need a loan modification, the counselor will work with you to write a loan modification hardship letter. This letter is written to your lender to outline the reasons why you should get a loan modification. Some convincing reasons are a layoff, a natural disaster, death, divorce or illness. Write concisely. Your counselor will help you compose this important document and submit it to your lender with all necessary financial documents. It is very important that whatever company you are working with advocate for you during this confusing and trying process.

If you have lost control of your finances and can no longer pay your mortgage, apply for loan modification hardship assistance. You can get free advice regarding selecting and working with a loan modification company here.

Bessie

Ashley Munson asked:




If you find yourself in a financial bind are looking for 2nd mortgage loan modification, then take heart because you are not alone. There are millions of people who got second mortgages during the ‘boom’ years and are now finding it difficult to maintaining their payments. In this article I’ll outline 3 tips that you can apply today in getting a modifying loan for a second mortgage.

Before I go into the strategy I should let you know that if your first mortgage is not in good shape, i.e. payments are not being made, then you might have difficulty getting a modification on the second. Ok, with that out the way lets talk about that second mortgage…

Best Modification Scheme

The Obama administration unveiled it’s flagship program for helping millions of Americans save their mortgages with the Home Affordable Modification Program or HAMP for short. The program involves modifying the existing mortgage arrangements and facilitating lower monthly payments, reduced interest rates, and extensions of the life of the mortgage.

Qualification under the scheme is means tested but at minimum you have to meet what is called the income/debt ratio guideline. The guideline stipulates that your monthly mortgage repayment must exceed 31% of your gross monthly income in order to qualify for loan modification assistance. You also must be in a position to meet the new restructured repayments.

Best Approach to Getting Approved

You are able to make an application on your own, but the success rate on self-made applications is a dismal 20 – 30%. Naturally, if you are facing foreclosure or simply can’t keep up with your monthly payments, it’s in your best interest to get the best help and advice you can muster. By far the most effective way to go about submitting an application is through a loan modification company. These companies specialize in 2nd mortgage loan modification and are always willing to give the soundest advice possible. On top of that, they also help with drafting the dreaded hardship letter, which is key component of your application.

So, there you have it. All the information you really need on 2nd mortgage loan modification and more importantly, sound advice on what the best approach should be for you moving forward. Use the advice given well, get a online loan modification company to help you and enjoy the peace of mind attached to saving your home from foreclosure. Be bold and take action.

Frederick

Lindsay Kizzia asked:




Are you one of the many stressed homeowners facing foreclosure? Are you having trouble meeting your credit obligations? Are you under constant financial stress? If any of these situations should like your current life then you may feel like there is no way out and no solution. Rather than waiting until it is too late to overcome your financial situation and lose your home take a moment to consider how loan modifications can help you.

People have heard about Obama and the loan restructuring program that is supposed to help prevent foreclosures, but many aren’t aware what it is exactly. The program is a modification that can alter the original terms of your mortgage in order to make repayment easier for you. This includes helping lower your monthly payments, interest rates, deferment of payments or other modifications that can help you avoid foreclosure of your home.

Many aren’t aware that the loan modification program can also help lenders. Foreclosure proceedings cost lenders many resources including time and money. Since the foreclosure process is so expensive, many lenders want to prevent this from happening. Although in the past, this wasn’t possible for lenders due to a lack of liquidity as well as no federal policy.

Now that you know what a loan modification is, you likely want to know whether you can qualify for a modification. Even if you have a reduction in income or have lost your job, you can still take advantage of the program. If some circumstance in your life has dramatically affected your financial situation such as medical bills, disability, military service or death then a loan modification program is good for you. If you are faced with high debt payments from credit cards, home equity loans or other high debts then a loan modification program can help reduce one of your high bills. Loan modifications can also help if your expenses have recently increased such has higher mortgage payment, utility bills or higher taxes. Lastly, a such a program can help you if your cash reserves aren’t enough to cover all your expenses as well as your monthly mortgage payment.

Many changes can occur in your life. No one plans to have trouble meeting their bills, but it can happen even if you have the best of intentions. If you face even a slight financial or personal hardship then you can have a severe disability to meet your monthly bills. The lowering of the current housing market also makes it harder to build up equity in your home. This coupled with higher interest rates also make it difficult to meet your monthly mortgage payments.

If this is the case for you or if you are already receiving default notices from your lender then you definitely want to look into a loan modification program. The process isn’t that difficult and can make your life a lot easier.

Laurie

MillK J asked:


However, as things have changed the current market forces 1 to seek alternative ways of income. I happened to come across a group of investors who negotiate short sales N buy these properties in distress. They offer a 2% finder’s fee of the settlement price reached through negotiations with the bank on deals up to $500,000 N the percentage changes if the deals are larger. I would like any advice available on a scenario that follows as such:
I am cold calling my mortgage leads, N I come across a client in NY who’s 4 months behind on her mortgage N facing foreclosure. So I get all the client’s information gather his/her documents N take the client to these investors who have the liquid cash N whom would negotiate with the bank for the short sale. Upon reaching a settlement price of lets say $500,000 I receive a check for $10,000.
Now remember I am not a licensed real estate agent. Is this legal in any way?Is there anything I can do to make it an acceptable practice?

Thomas