Mortgage rates are currently near record lows. Combine that with new mortgage refinancing options available from Obamas stimulus plan and millions of people can benefit from refinancing a mortgage. Here is some advice for homeowners looking to refinance a home loan with Obamas stimulus program.

President Obamas stimulus plan is backed by over $75 billion in funding. This money makes getting help refinancing a mortgage in all types of financial problems easier than ever before. This money is going to be given to selected mortgage lenders and banks who follow Obamas guidelines and approve homeowners for a mortgage refinancing. The money enables mortgage lenders and banks to take more risk and approve more homeowners than ever before.

Never before has such a massive program been enabled that can help so many people. The goal of this stimulus program is to get homeowners an affordable monthly mortgage payment. The stimulus plan calls for a homeowner to not have to pay more than 31% of their gross monthly income to their mortgage payment. The thought behind this stimulus plan is that if a homeowner can actually make their payments, they will, and avoid foreclosure and defaulting on their mortgage.

(more…)

It’s tough out there for homeowners. These days with job losses everywhere and wages on the decline it can be tough just to keep up with your largest household expense… Your Mortgage!

But there is hope. You have a few options if you find your mortgage payments are overwhelming you.

If you qualify you can try the Making Homes Affordable program, the government sponsored loan modification program. Or, you might try to re-finance your loan. There are currently several different programs to help homeowners re-finance and take advantage of today’s low rates.

However, if you don’t qualify for either of these options, don’t worry there’s another way and one that I’ve had a lot of success with – Direct Loan Modifications.

Many banks have their own internal loan modification programs. Here is what you need to know to qualify and take advantage of these programs to lower your monthly mortgage rates when other methods haven’t worked.

(more…)

If you are looking for a loan modification specialist, you should be careful enough to choose the one which is trustworthy. For this reason, it is recommended that you go to a dependable firm or even to get the recommendation of people close to you. You might even have some friends who needed to use the service of this specialist before and because of this; you can get their honest referral. But there are also other ways where you can find the right specialist for you.

You can also consider getting the expertise of real estate brokers which are based in your area. This is because they are the ones who are expected to be aware of the attorneys who already have an experience dealing with the mortgage lenders. As such, they can give you information which you will need pertaining to economic failures and foreclosure.

In addition, you can also get in touch with your state’s Bar Association and ask for their assistance in finding you an attorney who has an experience in handling a similar situation such as you. If you are uncomfortable with letting your lender know about your financial dilemma, you can relay this with an attorney so he can do the job in your behalf.

(more…)

Loan modification forms are a requirement when it comes to applying for the program. The reason why these forms are important is because they will give your lender a more factual depiction of what your current financial condition is. And the decision of your lender to either approve or deny your application lies on how these forms have met their criteria.

Since several banks are now offering the stimulus plan by President Obama, called the Home Affordable Modification Program, having a basic knowledge of the bank’s requirements is important. When you are aware of what these guidelines are, you can already have a better chance of getting the application approved.

Upon applying, your lender will ask you to accomplish some standard forms. The bank will then review these and will make the decision whether or not your loan modification will be approved. These forms should be properly accomplished and submitted to the lender in the best promising view. And you can achieve this by taking some time to get to know what your lender’s requirements are.

(more…)

Have you missed a mortgage payment? Are you more than 60 days late in making your monthly mortgage payment? If the answer to any on of these questions is a ‘yes’, a foreclosure is a real possibility and the only option to save your home is home loan modification. Not only is a mortgage modification simpler and cheaper than refinancing but also you can opt for it without worrying about your poor credit rating.

When you ask your bank for a home loan modification you are essentially telling them that you cannot meet your monthly mortgage payments. This may be due to a range of reasons that have caused a decrease in your income like divorce, death of an earning member, work related injury, chronic illness, unemployment etc. However, you are letting the bank know that you are confident that you will be able to make the payments if the amount is brought down to a more affordable figure.

You can also tell the bank about the option that is most suitable for you; there are two ways to reduce the monthly mortgage payment:

• To reduce the interest rate

• To increase the loan term.

There are two ways to initiate the home loan modification process you could either approach your bank on your own or you could avail the services of an attorney or a company that can negotiate the terms of the mortgage modification on your behalf.

(more…)

If you have missed a mortgage payment or if you are more than 60 days past due, you may be heading for troublesome waters and even a possible foreclosure. The delay in making the payment will reflect badly on your credit score rendering you ineligible for refinancing. In such a situation home loan modification may be the only way to save your house.

Today most lending institutions are not keen on foreclosure simply because they have to spend on the foreclosure proceedings and there are no buyers in the market. So essentially even after foreclosing the house they cannot recover their dues. On the other hand a mortgage modification is a ‘win-win’ solution for both the lender and the borrower. The lending institution can be reasonably sure that they will be able to recover most of their principle amount after granting the home loan modification and the borrower can be sure that the monthly mortgage payment will be more affordable.

When you request your bank to grant you a mortgage modification you are essentially stating that you are in financial trouble and so you will not be able to meet the monthly mortgage payments unless the amount is brought down to a more affordable level.

You will have to submit a home loan modification hardship letter along with other documents that will help the bank to confirm the veracity of your claims. If the bank feels that yours is a genuine case they may grant you a mortgage modification. There are two ways in which you could reduce the monthly payment either by bringing down the interest rate or by increasing the tenure of the loan. In certain cases the bank may also agree to write off a certain amount from the principle.

(more…)

A good home loan modification letter should include three crucial elements. These three crucial points will help you to arrange your mortgage modification hardship letter in such a way that it will include all the necessary information and get you the desired results. So when you are drafting a home loan modification hardship letter include the following:

Financial adversity: The first thing that you need to mention in your mortgage modification hardship letter is the financial hardship that you are experiencing and the status of your current financial situation, this should include information about your earning and expenses. Also include the reason for the reduction in income. It is important to make your home loan modification hardship letter as pertinent as possible. You can include factors like work related injury leading to medical expenditure, job loss and interest rate reset among others.

The Time: It is also important to tell the bank about the time when the financial hardship began in your mortgage modification hardship letter. It would be good to verify facts with relevant documents. Your home loan modification hardship letter should include a brief, clear and chronological list of the difficulties and ensuing problems. Include information about late payments or defaults here.

Talk about what you want: The next step is to itemize the plans that you feel will help you to be more regular with your payments. In order to grant a mortgage modification, the bank needs to know that you are a responsible person who will definitely make the payment once the home loan modification has been granted. Tell the bank how reducing the interest rate will help you to meet your monthly payments. If possible also include your new budget plans that you intend to incorporate once the mortgage modification has been approved.

(more…)

If you are seeking loan modification as a means to assist you with your current financial difficulties in meeting your monthly mortgage obligations, you’re going to be writing a hardship letter as part of that process. Many Americans are struggling with debt due to the downturn in our economy and it’s important to let your lender know about your situation before it gets too far out of control. One of the best tools associated with the loan modification application process is the hardship letter which explains your situation to your lender.

Below are some points to follow when composing your loan modification letter. It’s good to use these guidelines as a map so that your letter stays organized and you cover the most salient points that your lender is interested in reviewing in consideration of your request to modify your home loan. (more…)

The Obama federal loan modification program is expected to benefit four to five million homeowners in America. Because foreclosure benefits neither the mortgage lender nor the homeowner, most lenders are eager to participate in this program, but they are not required to do so. Mortgage lenders agreeing to participate in Obama’s federal loan modification program must agree to Treasure Department guidelines and are given incentives to work with financially strapped homeowners to handle modifying loan requests.

MHA, or Making Homes Affordable, offers this list of current lenders taking part in the Obama federal loan modification program (in alphabetical order):

1. Bank of America.

2. Carrington Mortgage Services.

3. Chase.

4. CitiMortgage.

5. Countrywide.

6. GMAC.

7. Green Tree Servicing.

8. Home Loan Services, Inc.

9. Ocwen Financial Corp.

10. Saxon Mortgage Services.

11. Select Portfolio Servicing.

12. Wells Fargo Bank.

13. Wilshire Credit Corp. (more…)

Help is available through the Home Affordable Plan to homeowners struggling to make their monthly mortgage payments. Loan modifications can lower your monthly mortgage payment to help keep you in your home if refinancing is not a viable option for you. Below are some points concerning loan modification.

* Homeowners can extend their payment terms up to 40 years and reduce their interest rates by up to 2% using the Home Affordable Modification Plan. This plan allows homeowners who are suffering with financial difficulties to modify their loans based on hardship. This is an especially a good option for those who lost their jobs and don’t qualify for refinancing. It’s also a better option for those whose property values have declined or where the real estate market is still soft, preventing them from being able to sell their homes. (more…)