Loan Modification Mistakes
1. Trying to calculate your income and
expenses while on the phone with the bank.Unfortunately, too many homeowners
don’t take time to accurately calculate their income
and expense and get denied the opportunity to apply
for a modification on the very first phone call.
2. Not giving your lender adequate time to help.Lenders are willing to work with you, up to a point. A big
mistake that borrowers make is not calling the lender until it is
too late. Loan modifications take time. There are lots of
parties involved and levels of bureaucracy that your
application needs to go through. This all takes time. You
should give your lender at least 45 days to complete the
application. Don’t procrastinate – time is your friend.
3. Including overtime income in monthly
income calculations.Lenders will only accept fixed income in determining
your eligibility for a home loan.
4. Not keeping accurate records.Do you remember all the detail and documentation that you
needed to get your first home loan done? Well, loan
modifications are no different. You’re going to need paystubs,
bank accounts, credit card and utility statements; student loan
and car loan balances and monthly payments and more. If you’re not a detail-oriented person things
will fall through the cracks. Your modification will be delayed. A missing piece
of documentation can be the difference between qualifying for
a loan modification and being denied.
5. Being over-optimistic on your new monthly
mortgage payment.This works both ways. You can be too optimistic
about how low your monthly payment can be; but you
can also be too optimistic about how much you can
afford each month in your new payment.
6. Not preparing an accurate and effective hardship
letter. They want to help people who have had a life-changing
event that has made a previously good borrower fall behind on
their mortgage.
Monday, March 8, 2010
Thursday, February 18, 2010
What a Loan Modification
What a Loan Modification is NOT!
A loan modification is NOT a negotiated process. It is based off of a simple mathematical formula to calculate debt ratio. This formula, based off income and expenses, determines whether or not the modification is approved and if the interest rate will be reduced, lowering the payment. A modification company can not influence or negotiate the modification because they cannot change the mathematical formula.
Like anything else, you can do the modification process yourself if you have the knowledge and the right tools, we have those tools, knowledge and most of all the time and our time tested procedures have resulted in success for our clients, at a fraction of the cost of other modification companies.
Let our successful and experienced team of consultants, help you and/or your client prepare the necessary and sometime confusing paperwork necessary for mortgage loans concerns! This is the first step:
If you're not getting the professional service and answers you want we, welcome the opportunity to assist you with your mortgage needs.
Solutions4Resolution
Administrative Processing Consultants
We can help you live the life you deserve with house payment you can afford
Website: http://solutions4resolution.com
E-mail : info@solutions4resolutions.com
A loan modification is NOT a negotiated process. It is based off of a simple mathematical formula to calculate debt ratio. This formula, based off income and expenses, determines whether or not the modification is approved and if the interest rate will be reduced, lowering the payment. A modification company can not influence or negotiate the modification because they cannot change the mathematical formula.
Like anything else, you can do the modification process yourself if you have the knowledge and the right tools, we have those tools, knowledge and most of all the time and our time tested procedures have resulted in success for our clients, at a fraction of the cost of other modification companies.
Let our successful and experienced team of consultants, help you and/or your client prepare the necessary and sometime confusing paperwork necessary for mortgage loans concerns! This is the first step:
If you're not getting the professional service and answers you want we, welcome the opportunity to assist you with your mortgage needs.
Solutions4Resolution
Administrative Processing Consultants
We can help you live the life you deserve with house payment you can afford
Website: http://solutions4resolution.com
E-mail : info@solutions4resolutions.com
Friday, February 12, 2010
6 Reason for a Loan Modification
There are six top reasons that a loan modification will work for you. If any of these apply to your current situation than you are a definite candidate for a mortgage modification. The six top reasons are as follows;
Currently Facing Foreclosure
Inability to refinance due to loss of equity,
Owing more than your home is worth
Trustee Sale Date Scheduled
Inability to refinance
Suffered a Financial hardship (job loss, pay reduction, medical bills, divorce, etc)
If any of the above reasons apply to your current situation than you need to attempt a loan modification. You can try it on your own, but I must caution you, only 20% of homeowner submitted loan modifications are successful. This is mostly due to homeowners submitting incomplete loan modification packages.
Another reason for this lack of success is that the homeowner must spend several hours navigating through the phone tree, re-telling their story over and over again. This can be very discouraging and the homeowner must call during normal business hours, usually 9am-6pm, while they are trying to make the money to keep their home. Normally this is not accomplished with one call (in fact we have yet to see that happen).
There is constant follow up involved and we keep track of any information and make sure that the servicer get's what they want. We make sure you are a file on the desk not a fax on the floor.
Company's like Solutions4Resolution are able to navigate through systems of phone trees and customer service representative without emotion and get right to the decision maker with speed and efficiency. And when the clock is ticking, that is exactly what is needed.
Can us today and let us help you lower your house payments so you can live the life you deserve!
Currently Facing Foreclosure
Inability to refinance due to loss of equity,
Owing more than your home is worth
Trustee Sale Date Scheduled
Inability to refinance
Suffered a Financial hardship (job loss, pay reduction, medical bills, divorce, etc)
If any of the above reasons apply to your current situation than you need to attempt a loan modification. You can try it on your own, but I must caution you, only 20% of homeowner submitted loan modifications are successful. This is mostly due to homeowners submitting incomplete loan modification packages.
Another reason for this lack of success is that the homeowner must spend several hours navigating through the phone tree, re-telling their story over and over again. This can be very discouraging and the homeowner must call during normal business hours, usually 9am-6pm, while they are trying to make the money to keep their home. Normally this is not accomplished with one call (in fact we have yet to see that happen).
There is constant follow up involved and we keep track of any information and make sure that the servicer get's what they want. We make sure you are a file on the desk not a fax on the floor.
Company's like Solutions4Resolution are able to navigate through systems of phone trees and customer service representative without emotion and get right to the decision maker with speed and efficiency. And when the clock is ticking, that is exactly what is needed.
Can us today and let us help you lower your house payments so you can live the life you deserve!
Monday, January 25, 2010
Live your life with lower house payments
Myths and Facts
There are a lot of myths surrounding lenders and servicers as to what they will and will not do during the loan modification process.
The confusion and inaccurate data that is on the internet and news is based on uninformed people who really have no idea what is going on in the loss mitigation arena. How can these same people be relied on by the media as “experts” and solve the issue when "they" created the problem?
It takes a person with thick skin and an iron will to do this. It’s not unusual for it to take 3-6 months of calls, faxes, emails, letters etc. to get help before you get relief.
We have found that the person that is willing to be the greasy wheel and never give up is usually the first person that gets the attention they deserve, that what we do for you.
There are a lot of myths surrounding lenders and servicers as to what they will and will not do during the loan modification process.
The confusion and inaccurate data that is on the internet and news is based on uninformed people who really have no idea what is going on in the loss mitigation arena. How can these same people be relied on by the media as “experts” and solve the issue when "they" created the problem?
It takes a person with thick skin and an iron will to do this. It’s not unusual for it to take 3-6 months of calls, faxes, emails, letters etc. to get help before you get relief.
We have found that the person that is willing to be the greasy wheel and never give up is usually the first person that gets the attention they deserve, that what we do for you.
Tuesday, January 12, 2010
"Helping Homeowners Help Themselves" ~ What is a Streamline Modification?
The Federal Housing Finance Agency (FHFA) has released a simplified and streamlined loan modification program to help struggling homeowners afford and keep their homes, thus reducing the number of foreclosures. First you need to know a few simple things about modifications:
Q: What is a loan modification?
A: By definition, a loan modification is a change, revision or adjustment to your loan. The most commonly modified terms of a mortgage are:
Conversion of an Adjustable-Rate-Mortgage (ARM) to a fixed-rate mortgage.
A change of interest rate.
Amortization term
Loan's Maturity date
Unpaid principal balance
The mortgage modifications are designed to enable borrowers to manage their monthly payment obligations.
Q: What is a Streamlined Loan Modification Plan?
A: A streamlined loan modification is a kind of loan reorganization or restructuring that requires less paperwork, and a simple and easy procedure. It aims to help struggling homeowners afford their mortgage payments by setting a benchmark ratio, calculated by their monthly gross income.
Q: What is the mortgage payment benchmark ratio?
A: Due to its essentiality, an industry standard has been agreed upon to help homeowners keep their homes. The benchmark ratio for the calculation of an affordable payment is 38% of the homeowner's monthly gross income. The servicer will move to the next steps once this is determined, such as: extending the loan's term, reducing the interest rate and forbearing interest - until an affordable payment is reached. Otherwise, the situation will be taken into a case-by-case basis using the borrower's cash flow budget.
These are just a few questions of the many that homeowers have. Let us help you, help yourself to get all the answers you need to "Lower your house payment"!
Article Source: http://EzineArticles.com/?expert=Bobby_Tucker
Q: What is a loan modification?
A: By definition, a loan modification is a change, revision or adjustment to your loan. The most commonly modified terms of a mortgage are:
Conversion of an Adjustable-Rate-Mortgage (ARM) to a fixed-rate mortgage.
A change of interest rate.
Amortization term
Loan's Maturity date
Unpaid principal balance
The mortgage modifications are designed to enable borrowers to manage their monthly payment obligations.
Q: What is a Streamlined Loan Modification Plan?
A: A streamlined loan modification is a kind of loan reorganization or restructuring that requires less paperwork, and a simple and easy procedure. It aims to help struggling homeowners afford their mortgage payments by setting a benchmark ratio, calculated by their monthly gross income.
Q: What is the mortgage payment benchmark ratio?
A: Due to its essentiality, an industry standard has been agreed upon to help homeowners keep their homes. The benchmark ratio for the calculation of an affordable payment is 38% of the homeowner's monthly gross income. The servicer will move to the next steps once this is determined, such as: extending the loan's term, reducing the interest rate and forbearing interest - until an affordable payment is reached. Otherwise, the situation will be taken into a case-by-case basis using the borrower's cash flow budget.
These are just a few questions of the many that homeowers have. Let us help you, help yourself to get all the answers you need to "Lower your house payment"!
Article Source: http://EzineArticles.com/?expert=Bobby_Tucker
Friday, January 8, 2010
Key to help you lower you house payments!
Did you know....
If you have your a hardship recently, such as ..
Lost your job, reduce business, life style changes, health issues, devalued property values...
There are guidelines that regulate how your lender is requried to respond to you when you request help, it's true!
There is a way to make sure that you are not just faxes on the floor, but a file in a drawer that legally must be attended to.
Take the first step and let us help your lower your house payment.
If you have your a hardship recently, such as ..
Lost your job, reduce business, life style changes, health issues, devalued property values...
There are guidelines that regulate how your lender is requried to respond to you when you request help, it's true!
There is a way to make sure that you are not just faxes on the floor, but a file in a drawer that legally must be attended to.
Take the first step and let us help your lower your house payment.
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