Monthly Archives: November 2008
Writing a Loan Modification Hardship Letter
Posted November 19, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceA financial hardship letter explains to your creditor why you are in financial trouble and requests a specific remedy to help you through the crisis. There are different reasons for writing a hardship letter, but the most common these days are:
- Requesting a loan modification or restructuring
- Requesting a short sale to avoid foreclosure
The hardship letter is a primary requirement in the loan application process. Your loan modification attorney will ask you to submit it along with your other financial documents, so that they can evaluate your situation and present a strong case to your lender.
When writing a hardship letter for a loan modification, keep in mind that the lenders really want to see why you have fallen behind with your mortgage payments. It should be clear, honest, and contain just the right amount of detail. The way you write it can literally spell the difference between keeping and losing your home. Here’s how you can write a hardship letter that puts your point across and gets you the best loan modification deal.
Keep it concise. A typical lender can only spend five minutes reading your letter. Try to keep it to a single page; any longer and they might not have time to really read it through. Lose all unnecessary details and keep only those that are relevant to your case.
Get straight to the point. Start by stating the purpose of your letter (whether it’s a loan modification or a short sale), so that the reader knows outright what to expect. Basically, it should say “I need you to buy my home/restructure my mortgage/give me a lower interest rate,” in a way that compels them to find out why. You can use the succeeding paragraphs to explain it in more detail.
Explain your hardship. First, make sure your problem actually qualifies as a financial hardship. Your goal is to convince your bank that you have no other means of mortgage assistance, and that you can get back on track if they do grant your request. Examples of valid hardships include:
- Loss or reduction of income (loss of employment, demotion, etc.)
- Natural disasters
- Illness and medical expenses
- Death of a family member or co-borrower
- Divorce, separation, or other legal expenses
- Military service
It doesn’t have to be one of these things, of course. Each lender has its own standards, and the letter’s purpose is to give them a more personal look into your situation. Once you’ve established your hardship, provide details that will help strengthen your case. Make sure to tell them how you got into the situation and why it’s out of your control.
Restate your request. End your letter by reiterating your purpose, in slightly different words. Ideally, your previous paragraphs should explain that it’s the only way to stop foreclosure. Make it clear that you intend to get back to your regular payments once the loan has been modified.
Be humble. One thing you should never do is imply that your situation is your lender’s fault. Instead of pinning the blame on anyone, simply tell things as they are and leave the judgment to your reader. Finally, thank them in advance and mention that you’re looking forward to continuing business with them.
For more information about Loan Modifications please visit our Loan Modification Attorney or call 800.738.1170
The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Our lead attorney is Christian M. Dillon, an experienced lawyer specializing in loan modifications and RESPA and TILA violation cases.<br>
For a Free consultation talk to our <a href="http://www.cdloanmod.com/">Loan Modification Lawyer</a> or go through the <a href="http://www.cdloanmod.com/loan-modification-questions">Loan Modification FAQs</a>
No Comments | Tags:Why Use An Attorney To Negotiate A Loan Modification?
Posted November 19, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceWouldn’t it be great if you could just walk up to your lender and say “Please lower my payments” or “Please restructure my mortgage”? That’s basically how loan modification worksexcept for the walking up part. Sure, technically you can get a loan modification without help, but it won’t be easy. The fact is that lenders are hard enough to deal with, and more so if you’re on your own.
Lenders are difficult for two main reasons: first, you get different answers from different service reps every time you contact your lender; and second, they are not set up to help you unless you already know exactly what they want. To get the best loan modification deal, you need legal assistance. Read on to find out how a loan modification attorney can help you get real results from your bank.
1. They know your needs. A loan modification attorney will look at your case from a legal point of view. They know the right way to approach your lender, and they’ll help you prepare your application for speedier processing. When you present your case, you’ll be armed with all the supporting documents and the right negotiation techniques.
2. They get better deals. Lenders will take you more seriously when you have a professional by your side. Essentially, your loan modification attorney will be vouching for you. Because they can use legal information as leverage, the modifications they can get are much better than you can get on your own.
3. They have long-term relationships. A good loan modification attorney has established contacts with most of the major lenders. Combined with a good track record, this network helps them get better rates and gives them more options. Your lawyer can get you more attractive offers, such as a lower interest rate, principle balance reductions, or even an extension of your loan term.
4. They can buy you time. If you attempt a modification on your own, there’s a good chance you’ll be passed around from one department to another without really moving forward. And if you’re already facing foreclosure, you can’t afford to waste time. A lawyer can stop closure even while it’s under way, giving you more time to recover your finances while they work on saving your home.
A loan modification is much like going to court: you can save your money and get a court-appointed lawyer, or you can invest in professional representation and get the best mortgage assistance. Mortgage modification won’t happen overnight, but if with a capable lawyer, you can be sure you’re in good hands.
For more information about Loan Modifications consult our Loan Modification Attorney Call Now: 800.738.1170
The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Our lead attorney is Christian M. Dillon, an experienced lawyer specializing in loan modifications and RESPA and TILA violation cases.<br>
For a Free consultation talk to our <a href="http://www.cdloanmod.com/">Loan Modification Lawyer</a> or go through the <a href="http://www.cdloanmod.com/loan-modification-questions">Loan Modification FAQs</a>
No Comments | Tags:FHA 203K Loans for Dummies
Posted November 15, 2008 – 1:32 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThis article explores the FHA 203K “Rebab” loan.
No Comments | Tags:Typical Lender Required Repairs for FHA Loans
Posted November 15, 2008 – 12:41 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceWhen getting FHA financing to purchase a home, it is important to know that the FHA guidelines will often require repairs to be made to the home before the purchase will be approved. This article explores some of those common repairs.
No Comments | Tags:Will the “Credit Freeze” Keep Me From Getting a Loan?
Posted November 13, 2008 – 11:54 am in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceWith phrases like “Credit Freeze” and “Depression” flooding the airwaves, no wonder consumers don’t think they can get a new home loan. This article explains how that simply isn’t the case.
No Comments | Tags:How to Get A Mortgage Loan With Bad Credit
Posted November 9, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceAs much as we wish to avoid, there are many things in life that we cannot control. A sudden loss of job, a personal mishap, or even a divorce can lead to creation of bad credit. With a bad credit, does it necessarily mean you can never get a mortgage loan to finance your home?
Fortunately for many people out there, there are banks as well as mortgage companies out there that can provide all the necessary support and solutions. Yes, solutions are available even if you have a bad credit or are already declared a bankrupt. It is not the end of the road and you do not have to give up your home for such reasons. But before you get too happy about it, take note that at the same time, they can be in the form of various marketing disguise as well. Not to discredit these firms, but it does make business sense that banks as well as mortgage companies should seek to maximize all walk-in opportunities while at the same time, providing you a solution to your needs.
Many people still have the impression that once a person is declared a bankrupt, you’ll have to wait for nearly a decade, because that’s how long a bankruptcy will appear on a credit report. That is obviously a myth.
Although different lenders set different guidelines, conventional lenders will consider all loan applications just like any other forms of loans so long as a bankruptcy has been discharged for 2 to 4 years and that credit has been established over this period of time. For a less stringent loan application, your best bet would be through the FHA as they only require 2 years since discharge. Even the VA gives the veteran a better break than conventional loans do.
However do note a word of caution: there are firms that specialize in dealing only with folks with bad credit or damaged credit. While we try our best not to mention who these firms are, you should consider all your available options. Quite often, you maybe offered to take up a subprime. These are loans designed specifically for people with less than prime credit. Essentially, you’ll be using a subprime lender to get a mortgage loan when your credit has been hurt. As tempting as such offers maybe, always consider the option of trying conventional loans instead (which should be your safest bet). Tell your lenders up-front that you wish to discuss the possibility of a conventional or government offering first.
But what if you still do not qualify for the conventional loans? Sure, you can subsequently consider the option of subprime loans, as long as it’s from the same conventional lenders. But as always, be aware of the various terms and conditions attached, as well as do the necessary market research to attain competitive bids.
Don’t be bounded to just one bank or mortgage company.
(Note: readers must be aware that the views expressed above are those of the author and should not be considered as legal advice or grounds to pursue legal judgement. Visit our website to find out more on home loans and other related loans .)
Gary is currently pursuing his MBA and majors in business continuity and loans finance. He is also currently working in the homelands security industry. To find out more about home loans and related loans, do visit: http://www.bizenginesite.com/loans
No Comments | Tags:Government Mortgage Scheme
Posted November 6, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThe Government digs deep!
The Government digs deep with a new programme to help First Time Buyers get on the property ladder.
It emerged last week that 500 million had been earmarked by the government for the Home Choice programme.
The scheme is to be implemented as a result of the lack of funds being currently offered by banks to First Time Buyers.
We have outlined the product details below, so if you have any questions or are inetersted in the Home Choice Loan Scheme please contact one of our mortgage specialists on 1890 252546.
Home Choice Loan is a mortgage provided through a number of local authorities for First Time Buyers who cannot get sufficent finance from a bank or building society.
The loan will provide up to 92% of the market value of a property purchased, with a maximum loan amount will be 285,000. The loan is a normal Capital and interest bearing mortgage which is to be repaid on a monthly basis and the term will be for a maximum of 30 years. The loan will only be available for newly built homes.
Who can apply?
To qualify for a Home Choice Loan applicants must:
be a first time buyer (some exceptions may apply)
earn more than 40,000
be in permanent employment for two years; If self-employed be able to submit two years certified accounts
have proof of being unsuccessful in securing a sufficient mortgage from a bank or building society to buy a home.
Brian Rooney is a Mortgage and Pensions specialist with an Independent Finance Broker in Ireland called White Star Finance.
No Comments | Tags:Stop Home Foreclosure
Posted November 4, 2008 – 10:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceBy reading this article, we can assume that your house is in the process of being foreclosed or you are soon to be in that process. If you are facing foreclosure, we know that there is a good chance you will want to stop foreclosure. A lot of the time, people who are facing something like this will do nothing and just hope that it all works out. Others just give up completely and decide that there is nothing they can do.
The actions that you should take all depend on many situational variables and what kind of outcome you desire. Some of the factors include what stage of the foreclosure you are in, how much equity you have in your house, what other kinds of assets you have, if you are employed, how your credit score is doing, etc.
One of the major variables is which state you are located in. There are several state-level governing laws and rules about individual mortgages and loans. You might want to first research some of those regulations that apply in your state before you do anything.
The first thing you are going to want to do is do some research and find out what your rights are in this process. A lot of people do whatever the bank says without actually knowing if that’s the law or not. Find out what information and time you have the right to according to the laws in the applicable state.
If you contact your lender, you may be able to get a Deed in Lieu of Foreclosure. This would help you avoid your foreclosure being publicly listed. That’s right; any mortgages that go into foreclosure are publicly listed, so you might get some cash-hungry property investors making low-ball offers on your property to “help you”. There are a number of other advantages of a Deed in Lieu of Foreclosure that can help you in your situation. If you are in good financial standing (your house is worth more than your outstanding loan balance), your lender may be reluctant to issue you a Deed in Lieu of Foreclosure.
We are here to help you. Never let anyone tell you that you are out of options. While your home is in a pending foreclosure process, you may get a number of letters or solicitations from various real estate investors claiming to try to help you. The majority of these investors are simply looking to get a good deal on your house when you are in an unfavorable situation. There are times that selling your house may be the only option, but be sure to talk to a real estate agent first, and not to sell your house to the first investor to make an offer.
Refinancing can save your credit and your home. If you are struggling to make your mortgage payments, switching to an adjustable rate mortgage could be just the answer you are looking for. Getting a lower rate for a few years could help get you back to a financial situation that is favorable to owning a home.
Don’t let life’s problems get in the way of keeping your home. We can help you stay out of debt; away from bankruptcy and in the home you deserve. Visit our site and Stop Home Foreclosure today.
Author, Tom Noonan is a licensed California Real Estate Broker, and knows a good amount about the foreclosure process. He started a resource to help <a href=http://stop-home-foreclosure.net/>Stop Home Foreclosure</a>: <a href=http://stop-home-foreclosure.net/> http://stop-home-foreclosure.net</a>.
No Comments | Tags:What To Do If You Have Been Mis-Sold An Endowment Policy
Posted November 2, 2008 – 10:08 am in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceComplaining about your mortgage or endowment can be a drawn out affair of phone calls, letter writing and waiting. But if there is a problem with your policy which can be linked to unsuitable advice given by the provider, the matter should be addressed.
No Comments | Tags:First Home Buyers Make A Comeback
Posted November 2, 2008 – 9:37 am in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThe residential property market has been buoyed by the return of first-home buyers, new figures have shown.
No Comments | Tags: