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Credit Issues and Loan Modification

May 24th, 2018 Comments off

For people, who owe higher mortgage payments, a loan modification program comes as a blessing. In fact, individuals, who are on the brink of home foreclosures, can also relieve themselves from further misery by applying for a home loan modification program.

There may be credit ramifications during the foreclosure process.

The banks do not grant much mercy to those who do not pay their loans back. Especially when you are paying all of your other bills and leaving the mortgage out.

Those with higher credit ratings can expect a fall in their ranking, if they repay late say by 30 days or maybe even further to get a modification on their loans. This can lower their credit ratings by hundreds of points.

A reduction in your credit may jeopardize your chances of getting favorable credit rates in the future.

The good news is a loan modification may help you lower your monthly household bill.

With a reduction in housing payment, and lowered household payments a loan modification can help you get your finances back on track and lower your outstanding balance without defaulting.

A late payment does not have the long term credit implications like a short sale or credit counseling.

Save your home and prevent your credit from being destroyed. Avoid foreclosure and consult with your loan modification representative to help you get qualified for loan modification and discuss the pros and cons. Make sure that you properly research the loan modification company that you plan on working with. Some important documents to gather include, your last two years tax returns, w-2s for the last two years, recent bank statements, last two pay stubs, a hardship letter and a financial statement that lists all of your monthly expenses minus your monthly income.

Modified Mortgage Solutions are experts in loan modification processing, and an authority in loan modification processing questions.Please contact us with any questions www.modifiedmortgagesolutions.com

Things To Think About When Applying For Loan Modification

October 16th, 2012 Comments off

With the recent economic downturn, the United States has been hit harder than anyone, in particular the housing market and mortgage industries. Companies that are cutting costs by laying off workers render it impossible for these people to repay loans and mortgages that they have.

Many people, good people, are facing home foreclosure. That’s why the loan modification program presented by President Obama could be the panacea many homeowners seek.

For a homeowner facing foreclosure, the loan modification program possesses a lot of things they can work with.

Aspects of the Program:

Home loan modifications are being provided to homeowners, who are unable to pay their loans on time. Here, the lender lowers and adjusts the homeowner’s interest rates to a particular fixed rate for a definite time interval.

A homeowner must meet certain criteria to qualify for the loan modification program. Foremost, the mortgage must be less than $729,500 and signed before Jan. 1, 2009. Homeowners also must produce authentic mortgage paperwork.

The second condition is that you are required to furnish a financial hardship letter, written and signed by yourself. In this letter, you are required to explain the reasons for being unable to pay off the loan on time.

Next, you must supply proof that you can pay what the new terms will become once you sign up. Income versus expenses budget sheets are the required form of proof in this instance. There is one more crucial thing.

You have to address the bank’s loss mitigation department, which will review your loan and stack it against the new program’s terms to determine if you qualify for it. You’ll be able to communicate with your lender, figuring out the best way to modify your home loan.

If a mutually acceptable solution cannot be reached with the lender, the homeowner has the right to seek advice from a home loan modification attorney. A legal counselor can help by explaining the program and advising on appropriate options.

As a homeowner, you have to avail yourself of these new loan modification programs in order to take full advantage of them.

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