Posts Tagged ‘Modification’

« Older Entries

What is Home Equity Loan Modification?

August 23rd, 2010

Home equity loan modification is a change in which you have an option to modify your mortgage if you are behind and having difficulty in your payments. This is the loan type wherein the one who borrowed will use the equity in their homes as collateral. This will be sometimes a useful element to facilitate major repairs in the home, college education or medically related bills.

This type of loan generates a lien or a security interest against the house of the borrower and the actual home equity will be reduced. This is usually referred to as mortgages because the value of the property is secured against it; just the same as a traditional mortgage. Also, it can be possible to deduct one’s income tax from the home equity loan.

The government is giving you options to avoid possible foreclosure in your costs; this is the home equity loan modification. First is to have your payment at your mortgage that is 31% more than your gross income which greatly includes your taxes, your insurances or homeowner dues that you might be paying. This will just show that you are really struggling with your payments. Second is when you use loan modification, this will make your mortgage be in much better shape than you can ever imagine.

It will provide you with payments than you can afford and will make sure that you will never lead into foreclosure which in turn, will get back Your credit and keep your home. And the last thing you do is go online and begin consultations. You will just fill some forms for yourself and for your status. It includes information about your home equity loan modification and later they'll call and give details to help you save your home.

Comments Off »

Posted in Home Loans Articles

Tags:

Home Loan Modification For Countrywide – Tips to Approach & Successfully Modify a Countrywide Loan

July 17th, 2010

A loan modification simply means taking the existing agreement, and restructuring or modifying it with some negotiations. Countrywide loan modification is done in the interest of both the parties.

Countrywide has also come up with Home loan modification program for its customers. This program is designed for those who are not able to pay their installments.

The main features of Loan modification includes:

· Changing the terms

· Change in interest rates

· Change in loan amounts etc

· Waived late fees

· No foreclosure charges

· Alterations in tenure of the loan

Getting a home loan modification for countrywide is not that difficult if the following steps are followed:

· The first most important step before approaching any lender is to check the guidelines. You should read the guidelines and see if you actually fit in the Countrywide lending criteria. Different agencies have different guidelines. So sending your application before knowing the guidelines can be of waste.

· You should have well prepared file consisting the documents needed for the process. General documents are hardship letter, Income proofs (tax returns), bank statements, credit card history etc. Sending your file without complete documentation is often not recommended, as it will cause a delay to the modification process.

· Preparing the financial worksheet is the third step. This is also a very important step for Countrywide loan modification and should not be avoided. This worksheet will show the complete financial status of your current situation. You must also prepare one proposed financial statement along with a current one.

· You should always provide correct and true information about yourself. Nothing should be false. Remember the statements and the information provided by you is the key to a successful loan modification program. And otherwise also, your lender will get everything about you verified before lending.

· In the end, you should keep a track of the status of your file. Your application is not the only one for them. So, to avoid delays caused due to burden it is advised to keep a follow up by calling up the representative on a regular basis.

Comments Off »

Posted in Home Loans Articles

Tags:

WaMu Home Loan Modification – Who is Entitled to Apply?

July 11th, 2010

WaMu has been devoted to helping homeowners with home loan modification since November last year. There are a plethora of choices to choose from. It mostly assists the homeowners who are on the brink of foreclosure. The new federal laws which have been devised by Barack Obama have made it all the more user-friendly.

Only mortgage loan borrowers of WaMu can use the program of home loan modification provided by the company. Earlier this service was not available to clients of this company but in the recent past, WaMu has made serious changes which have made life better for most homeowners. Apart from the special features which WaMu provides for its clients, it basically requires the same features of confirmation of financial security from its clients as all other banks.

An advisable thing to do is to study the guidelines for home loan modification before applying for the same. This helps in preparing a good application which is essential for approval. In the absence of this, most applications get disqualified. Apart from approval, this will also help you to understand what the policies of the company are and what would be the requirements if and when the application gets approved.

There is an option for applying for home loan modification online on the website of WaMu. This is one of the fastest methods available for application. But be sure to read the entire thing carefully so that you do not miss out on any important detail. Even a small miss can result in disapproval of the application.

Most people who are going through a financial crisis are going to be approved because this scheme is aimed at helping them. Make sure that you provide all correct details in the application so that the authorities can verify them. This is one of the greatest benefits for homeowners who are going through a rough patch due to the recession and it can help in delaying the foreclosure.

Comments Off »

Posted in Home Loans Articles

Tags:

Home Loan Modification For Wamu – Tips to Approach & Successfully Modify Wamu Home Loan

May 22nd, 2010

There is good news for all the existing customers of Wamu who are facing problems in paying their home loan EMI due to high interest rates, market scenario and financial conditions. Wamu is now offering loan modification to all its genuine customers to help them avoid foreclosures.

If you are also one of them then this is surely for you. You can now get your Wamu’s loan modified and revised with new terms and conditions. This loan modification will help you to repay your loan installments easily. But you need to qualify for getting the same done as not everybody would be eligible for this program.

Here are some tips and guidelines to approach and get your home loan modified successfully:

1. You should know the guidelines of Wamu loan modification process different banks have different policies and its quite possible that you may not fit into one. So, processing your application without knowing your guidelines might be waste of time.

2. Fill up your loan application online. You can always ask Wamu to mail you their loan modification application forms. Applications filled online are checked as soon as they enter the bank database and so are time saving. Fill each and every entry in the application form as it is very crucial.

3. Submit all the documents required by Wamu required for your loan in one go. Prepare a file consisting your tax returns, bank statements, credit card statements, employment records, etc and present it to your banker for the purpose of loan.

4. Answer every call that you get from your lender’s official and provide all the additional information required. If somehow you fail to receive the call make sure that you get back to the caller as soon as possible.

5. Do not provide any fake and false information to Wamu. Bank will verify every single information provided by your side and your loan may get rejected.

Comments Off »

Posted in Home Loans Articles

Tags:

Loan Modification Programs – 3 Important Qualifications For Approval

May 5th, 2010

Trying to apply for a loan modification but worried about whether you will qualify? It’s true that not everyone will qualify for a loan modification to lower their payment-so how can you be sure to get your application to the front of the line and have the best chance for approval? Here are 3 Important Qualifications for approval you should know before you apply.

Loan Modification Qualification #1: You must be able to demonstrate to your lender that you have suffered a financial hardship that has made your current mortgage payment unaffordable. There are certain circumstances that lenders will consider as an acceptable hardship situation. Divorce/separation, military service, death of a family member, job loss, reduction in income, medical expenses, illness, incarceration and job transfer are all considered to be eligible for consideration. Loss of equity alone does not. There are three critical elements in an effective hardship letter-do you know what they are? Here is one tip-use the phrase “imminent risk of Default” and you will get your lenders attention.

Loan Modification Qualification #2: Can you prove to your lender that if given the new lower modified mortgage payment you will be able to afford to maintain it now and in the future? Lenders want to know that you will not be at risk of defaulting again. How can you prove this to them? Make it simple by providing the required financial statement that will demonstrate your ability to pay the new payment and help convince your lender to grant an approval for your proposed new lower payment. Your current mortgage payment, including your property taxes, homeowners insurance and any Homeowners dues, must equal more than 31% of your gross monthly income. Learn how to calculate your new target payment based on the Obama HAMP guidelines. If you are confused about how to do this, use the software program designed specifically for homeowners that automatically does all the calculations for you.

Loan Modification Qualification #3: Be able to submit an accurate, acceptable and complete application to your bank for review and consideration. Your lender will make a decision based in large part on the information you provide to them. Submitting an incomplete and poorly prepared application can result in a denial of the help you need. Be sure you prepare the paperwork properly and then submit everything your lender will need all together in a professional and acceptable loan modification package.

TIP: Make sure that you prepare your financial statement before you call your lender. Do not disclose any of your income or debts until you have taken the time to work on your budget-make any necessary adjustments and know that you fit into the approval guidelines. This is easy to do if you follow the directions in a handbook and software program that does all the calculations for you automatically. Simply input your own monthly income and monthly expenses and you will see immediately if you need to make some adjustments to your budget in order to meet the approval guidelines. You can avoid costly mistakes and save hours of frustration.

These are extraordinary times and more homeowners are faced with losing their homes than at any other time in our nations history. Borrowers who need help cannot wait to be rescued-help is available but you must know how to get it and be prepared to fight for your home. Start now by learning and preparing to submit your application to your lender to get the help you need and deserve. Billions of dollars in your tax dollars have been allocated for loan modification programs to help stop foreclosures. Don’t miss out on your chance to save your family’s home.

Comments Off »

Posted in Home Loans Articles

Tags: