Personal Finance guide

Loan modifications have been in news for quite a long time but still there are some myths related to this topic among the lenders, service providers and the borrowers too. This confusion and inaccurate information on loan modification process is due to the bloggers and journalist who don’t have complete idea about the exact process and the involvements in it. The fact is that loan modification programs are being worked out in huge numbers these days but reality is that only the learned homeowners are able to take the advantage of this so far.

The first thing that is in the borrowers’ mind is that those who are late in the payment of their monthly installments are only eligible for this program. This is not true because if you foresee or if you are facing difficulty and somehow manage to pay back your home mortgage loan installments, then you can talk to your lender and apply to one of these loan modification programs. Even if you are facing legal violations on your home mortgage loan and you contact your lender, he will workout a loan modification program for you and if he refuses to do so you can consult with an attorney regarding this. Continue reading ‘Myths and Facts Related to Loan Modifications’ »

A well-written hardship letter can make or break your ability to be approved for a loan modification. The hardship letter needs to lay out the reasons why you are facing financial difficulties and why you would be able to meet your mortgage obligations under revised terms.

Preparation is always the key to success, so preparing a checklist to guide you toward covering all aspects that need to be included in your hardship letter will increase your odds of approval. Below are the three key points that you need to include in your letter. Continue reading ‘Preparing a Loan Modification Hardship Letter – Three Basic Points to Include’ »

Do you have questions about Obama’s loan modification program and who is eligible to participate in it? Are you wondering which financial institutions are providing loan modification options using the $75 billion allocated by the Treasury Department? Keep reading for some answers to these questions and more.

Lender participation in the federal program isn’t required, but many financial institutions have already signed up and many more are eager as modifying a loan is a much preferred alternative to foreclosure. Also, under Obama’s loan modification setup, lenders are being offered incentives to participate in this plan that is expected to protect four to five million American homeowners from losing their homes. Continue reading ‘Eligibility Requirements Under Obama's Loan Modification Program’ »

As the housing crisis continues to build momentum across the country, successful home loan modifications are the only course of action standing between homeowners’ ability to stay in their homes and being forced to move due to a foreclosure. If events leading to a foreclosure are unfolding quickly, a modification becomes a one shot chance that must be done correctly and as efficiently as possible. The following are the five big mistakes homeowners commonly make which can slow the process to a crawl or result in non-approval. They are:

1. Being unrealistic – If you are falling behind on your mortgage payments without a foreseeable change such as a raise or a higher paying new job, the problem is not going to go away on its own. Start pulling your paperwork together, learn as much as you can about loan modifications, and begin interviewing to get the best representation possible for your situation. Continue reading ‘Five Big Home Loan Modification Mistakes’ »

Loan modification services are a great option for the majority of homeowners who are trying to modify their mortgage loan. For many, receiving a modification on their own is a difficult task. Lenders are firm on their requirements without additional pressure from an outside party, such as loan modification services.

When a lender looks over an application for modification, they have their eyes open for certain factors, mostly those pertaining to financial hardship. However; there are some things that the unsuspecting homeowner may not be aware of. For example, many don’t know that in most situations, a recent or current bankruptcy can be means for disqualification. Continue reading ‘Where to Get Loan Modification Services’ »

Loan modification services are a great option for the majority of homeowners who are trying to modify their mortgage loan. For many, receiving a modification on their own is a difficult task. Lenders are firm on their requirements without additional pressure from an outside party, such as loan modification services.

When a lender looks over an application for modification, they have their eyes open for certain factors, mostly those pertaining to financial hardship. However; there are some things that the unsuspecting homeowner may not be aware of. For example, many don’t know that in most situations, a recent or current bankruptcy can be means for disqualification. Continue reading ‘Where to Get Loan Modification Services’ »

Loan modifications are on top of every homeowner’s to do list these days. And why not? Having your mortgage modified can lower your interest rates, promote late payment forgiveness, extend your mortgage over a longer and more manageable period, and possibly even lower the principle.

Naturally, something that can be this beneficial isn’t east to get. Many lenders and financial institutions are holding onto their loan modifications with an iron grip. The only way to get one is to convince the lending company your mortgage is with that your current financial situation can’t handle your current interest rate, but a lower one will be affordable. Continue reading ‘Loan Modifications – Budget is Key’ »

“What is loan modification?” is certainly the question buzzing among homeowners across the country. As loan modification seems to be the option that is most supported by Obama’s Home Affordable Program for those worried about losing their homes, people are wondering just what is loan modification and how does it work.

Before delving into what it is and how it works, it’s important to know what it is not: A catch-all home saver. There are people seeking modifications that think getting one wipes clean all of their responsibilities, and that is simply not true. Continue reading ‘What is a Loan Modification in Layman's Terms?’ »

Countrywide Bank was created as a mortgage lender in July 2008 by Bank of America. If you are currently a Countrywide mortgage customer who is having trouble making your monthly loan payments, you should consider its loan modification program to help you out of your financial crisis.

Countrywide Bank has prepared plans to assist homeowners experiencing difficulties paying their home loans. In response to a 2008 Attorney General finding that Countrywide had failed to provide full disclosure of loan terms to their customers, the lender decided to lower the monthly payment terms of its mortgage holders in a good faith effort to remedy their alleged wrongdoing. Continue reading ‘A New Approach to Home Loan Modifications by Countrywide Bank’ »

Don’t feel like you’re at the end of dead-end street if you’re struggling to make your monthly mortgage payments. Depending on the life circumstances that have led up to your financial difficulties, your lender may qualify you for a loan modification. Banks know that helping your modify your mortgage is better than foreclosure, so they will attempt to assist you. One of the requirements for consideration of a loan modification is for you to write a hardship letter.

By using the three steps below, you will be certain to include the most important elements in your letter.

1) Indicate the cause(s) of your financial difficulties. Were you downsized of laid off from work? Were you involved in an accident? Has a divorce caused your financial difficulty? Has there been an illness that racked up extensive medical bills? Your hardship letter should detail your circumstances to show them that prior to extenuating circumstances you were meeting your debt obligations. Continue reading ‘The 3 Most Important Steps When Writing a Loan Modification Hardship Letter’ »