Personal Finance guide

Dealing with your Bank’s Loss Mitigation Deparment could put your Patience and Persistence to the ultimate test. Many Lenders and Mortgage Servicers have been absolutely overwhelmed with the massive influx of homeowners who are falling behind on their mortgage payment. Many banks are understaffed, have outdated computer systems, and do not have the phone infrastructure to handle such a large volume of desperate inbound callers.

Unfortunately, this can result in extended holdtimes, aimless phone transferring, being hung up on, and just being completely lost in their maze of various departments. Common occurances include homeowner faxes that get lost, hardship packages that take months before they are even looked at, and dealing with Loss Mitigation Reps who are uncooperative and not very friendly. Continue reading ‘Overcome Loss Mitigation Obstacles’ »

There are some basic general guidelines you can explore when determining if you qualify for a Loan Modification. Please note that this is simply a basic overview just to give you an idea if it should be worth pursuing with your lender. You must contact your lender directly for specific qualification requirements. But generally speaking, the following will give you a good idea if it would be worth pursuing.

To begin, first take a look at your current financial situation. Are you struggling to pay your monthly mortgage payment? Have you been forced to miss other bills, tap into your savings/and or retirement accounts in order to keep your mortgage current? If so, you are probably experiencing a financial hardship. What is the cause of this hardship? You must be able to pinpoint a specific cause to your current financial crisis. This could be the result of a loss of employment, reduced hours at work, medical expenses, divorce, etc, etc. This is the first crucial aspect of the process that you must identify. Continue reading ‘Do I Qualify For A Loan Modification?’ »

What is negative equity?

Negative equity is the term commonly used to describe the situation of having a home that is worth less than your mortgage. The Quarterly Bulletin from the Bank of England has revealed that around 7%-11% of UK homeowners with a mortgage were in negative equity in the first three months of this year, owing more to their lender than their home was worth.

This works out to between 700,000 and 1.1 million householders in negative equity

Solutions

Help from your lender

ï,§ Contact your lender and ask if there are any new mortgage products to help with negative equity on your current home but which can be incorporated into a new mortgage product in the home you wish to move to. Some lenders may have packages for their existing borrowers but usually only if you have a good payment record. This is not necessarily a cheap option as the interest rate may be higher with the new product and there is likely to be an Arrangement Fee. Sustainability of maintaining mortgage payments on your new home needs careful consideration – payments will be higher than normal due to the extra mortgage from initial property being included.

Continue reading ‘Negative Equity – Solutions For Homeowners’ »

Do you owe more than your home is worth? Did you know you can reduce your principal balance to current market value with a Principal Reduction Program? Even is you have bad or no credit, behind in payments, or in foreclosure without needing to go through the hassle of a Loan Modification?

When first hearing about Atlantic Mutual’s Principal Reduction Program, most homeowners simply ask, “What is Principal Reduction all about?” Our Principal Reduction Program (Often referred to as “PRP” or “Principal Reduction Loan”) In the simplest terms, It’s when a bank reduces the balance on your mortgage either through a loan modification process whereby the loan stays with your existing lender, or by your lender agreeing to a “Short Refinance” in which a new lender buys your note at a discount, usually at market value. Our Principal Reduction Program is designed to help people who owe more than their house is worth. It’s a “Property Relief” program for people that are “upside down” in their mortgage (negative equity), meaning the property is worth less than their current mortgage.

Through the Principal Reduction Program, we at Atlantic Mutual work with several lenders and hedge funds to purchase your current mortgage at a discounted rate in order to replace it with a new, better mortgage. The Principal Reduction Program offers you the following benefits:

• A new mortgage with a principal balance set at the current market value of your home
• A fixed interest rate of prime + 3% for the 30 year term of your loan (currently at 6.25%) Any loan amount qualifies
• Primary and secondary residences can enter the program
• Will accept first and second mortgages, along with HELOCs
• Credit reporting of your current mortgage as “payment in full”
• No closing costs associated with your new loan.
• NO CREDIT REQUIRMENTS

Continue reading ‘Principal Reduction Program’ »