Lindsy Emery asked:




Loan modifications have always been around, but with the passage of President Obama’s Making Home Affordable Act they have become a lot more common and the process for modifying home loans has been efficiently streamlined. That’s why we’re seeing so many more loan modifications these days. If you want to look into a modification for yourself, you need to learn about your options for home loan modification hardship assistance.

If you are having difficulty making your monthly mortgage payments, don’t sit and do nothing until you default on the loan and end up losing your house. Take action and visit a financial counselor to talk about your situation while you can still do something about it. Some counselors are free to use and some are not. HUD-approved non-profit groups can give free financial counseling services. But with the large demand of recent years for financial counselors, lots of new loan modification assistance companies have sprung up.

Whether you choose a free service or a for-profit service is up to you; they both have their benefits and drawbacks. Some have attorneys at their disposal and some do not, so if possible you want to choose one with an attorney to work with you to get your loan modified.

It’s important to remember that when you’re dealing with a for-profit company, however, use extra caution. There are a lot of people looking for financial solutions right now and unfortunately, a lot of greedy people are willing to scam them out of their money. Use only reputable companies with good credentials and a history of good customer service. They should also be in good standing with the Better Business Bureau.

The first step is meeting with your counselor. Bring all applicable financial documents and be prepared for a consultation. The counselor will review your financial situation and help you determine what’s best for you.

If it’s determined that a loan modification is your best option, then they’ll get to work helping you write a loan modification hardship letter. This is a letter to your lender that explains why you need your loan modified. Good reasons include layoff, natural disaster, death of a family member, divorce, or medical expenses. Be brief and to the point. Your counselor will help you write the letter and submit it to your lender with appropriate financial documents. It’s important to have a loan mod company working for you and being your advocate during the confusing and technical loan modification process.

Reginald

Darin Sewell asked:




If you are currently holding an adjustable rate mortgage and you have at least 5% equity in your home and good credit you probably have no worries at all when it comes to the current housing market problems.

But if you need a ARM mortgage refinance and your credit scores or home values have plummeted you may find yourself in a very rough situation.

When you are in a tight situation like this having the right information about your ARM home loan and how to confront the situation will be key to keeping your home out of foreclosure.

Why You Cannot Get a ARM Mortgage Refinance

The biggest factor that is disqualifying borrowers from refinancing their adjustable mortgages is the fact that home values across the nation have dropped.

This has left many borrowers owing more then the house is worth and banks will not lend on a property like this, no matter how good a credit score the borrower has.

Saving Your Home When You Cannot Refinance Your ARM

If you have tried to get an ARM mortgage refinance only to be turned down you are going to have to look for help in other places.

The easiest place to find help is with you current mortgage lender. If you call them as soon as you know you are going to have a increasing ARM home loan and not be able to refinance it they may offer to help you stabilize your payments.

What Will The Lender Do For Me

To help you your lender may offer you a loan modification. A loan modification involves changing the terms of your original mortgage to either a fixed rate loan or giving you an extended fixed rate period for your ARM home loan. This is by far the best option you will have available.

Chris

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

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

Nasim P asked:


hi,

I have mortgage with chase and I am trying to modify my loan for a lower interest rate. After talking to the loan modification department, adviced told to skip my payment for 3 months, and set the money aside. My question is
1) Will it hit my credit report and hurt my FICO score?
2) if so how long it will stay in my credit report.

Thanks in advance for the advice.

George

Carmen

John Paytten asked:




Many people wonder what they can do to qualify for a home loan modification, or whether they are even eligible in the first place. Recent legislation has loosened the rules governing a home loan modification, and as long as you are staying in contact with your lender, no matter what the situation, you should have a great chance at receiving a home loan modification.

Obviously the terms of the modification all depend on the situation surrounding your personal desire to refinance, but you do have certain rights and privileges guaranteed by federal and local statutes. By being aware of these statutes and following a few simple steps you increase the strength of your position.

Here are some tips to follow in order to be accepted into a home loan modification program.

1. If you are in good standing and wish to modify your loan for the sake of lowering your monthly payment or reducing your interest rate, be sure to remind your lender of your current status. Also be prepared to deal with fees associated with the refinancing; the bank is, after all, in it to make money.

2. If you are in a negative situation, or have missed payments in the past, have a detailed record of your payments available to remind the mortgage company of the payments that you have made. Also have detailed financial records available to demonstrate your current economic hardship. ” I lost my job” is not going to cut it. They will require a detailed list of your expenses and income in order to demonstrate that you are making a good faith effort to pay your bills, and you simply cannot afford it at your current payment schedule.

3. If you received your initial mortgage at a higher rate due to poor credit be prepared to demonstrate to the company that you have not only made your initial payments on time, but that you have worked to improve your credit score and pay off your negative debt.

4. Contact government counselors. The government has provided a plethora of resources to help you in your situation. Take advantage of them.

The process is relatively simple if you are a self-advocate and know your rights.

Duane

browndog513 asked:


mortgage? I have been interested in refinancing because of being caught in a interest only loan because I can’t afford a conventional loan. I heard about this loan from Chase Colby. I am afraid to get into something that I don’t know about. If anyone knows if this is a good thing to get into. Please give me some advise. Thank You

Erik

Hutch777 asked:


My loan didn’t orginally include the property tax which was not disclosed to me. I was late on the property tax and my bank (IndyMac) now includes this into my mortgage which is now 3,300 from 2,400: which I can’t afford. Do I forclose? Not pay until evicted? Or keep trying to pay (I’m not late…yet) Indymac isn’t apart of the Making homes affordable program yet and who knows when. OR become deliquent then will qualify for a loan modification (must be 60days past due).
I live in California pay $5,000 in property tax. My monthly mortgage payment is $3,300 and I make a monthly income of $4,500 support three people and am a single mother.
I have been in contact with Indymac bank. I don’t have equity in the house, don’t qualify for a loan modification since I’m current on my payments and they have yet to participate in the ‘making homes affordable program”.

Norma

JOEY L asked:


I am two months behind on a my mortgage and i have loan mod companys calling wanting to charge me $3000 and promising drastic drop in my interest rate without refinancing. I dont have the money to pay them. please advise

Elmer

blackeye1020 asked:


We were approved for a loan modification. we recieved a letter stating that all collection calls will stop and it is being processed. It took 3 months before they even acknowledged us. This is from the “HOPE TEAM”. Then 2 weeks letter we recieve another letter from the “HOPE TEAM” STATING that they found a descrpency and was changing our payment again. We signed that form, notarized it and sent it back. THen they said they could not process it at this time and for us to call them, accusing us of forgery even after we had it notarized. Meanwhile CountryWide has sent us a forclosure notice that they are
forclosing on our home at the end of April. We besideare selves, we can’t get a straight answer from anyone, we try making payments thru countrywide but they refuse to accept our payments, we try to pay thru the address provided by the “HOPE TEAM” designated as the payment address. IT was sent back. We just don’t know what to do. We are trying to save our home and refinance with another company. But what do we do to stop forclosure or at least delay it until we can refinance somewhere else. This is ridiculous, how does this happen? I need serious help and advise. Please very serious.

Linda