Debt Negotiation Zone » foreclosure http://debtnegotiationzone.com Debt Negotiation Fri, 19 Aug 2011 22:59:35 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 How To Negotiate With Your Bank For A Better Mortgage Rate http://debtnegotiationzone.com/how-to-negotiate-with-your-bank-for-a-better-mortgage-rate/ http://debtnegotiationzone.com/how-to-negotiate-with-your-bank-for-a-better-mortgage-rate/#comments Fri, 12 Dec 2008 05:21:03 +0000 admin http://debtnegotiationzone.com/?p=453 How To Negotiate With Your Bank For A Better Mortgage Rate.  If you are having a hard time making your mortgage payment, your bank may be willing to renegotiate new loan terms with you.  Through the loan modification process you can actually get a new interest rate, lower principal amount or even a forbearance agreement.  Most lenders including Bank of America, Chase, IndyMac, Wamu, Washington Mutual and Wells Fargo have dedicated departments set up just to help borrowers and homeowners work out new mortgage terms so they can stay in their home.  You can either go online or call your bank to ask for the loan modification or loss mitigation department to get started.

How Do I Get Started On A Loan Modification?

If you are in trouble with your mortgage don’t wait.  Call your bank as soon as you can to see if they will do a loan modification for you.  You must have an income.  You need to be able to demonstrate that you will be able to even afford the new payment.  If not they wont work with you and you will probably end up in foreclosure if you can’t get the property sold.

]]> http://debtnegotiationzone.com/how-to-negotiate-with-your-bank-for-a-better-mortgage-rate/feed/ 0 What Happens If I Walk Away From My Home If I Can’t Pay The Mortgage? http://debtnegotiationzone.com/what-happens-if-i-walk-away-from-my-home-if-i-cant-pay-the-mortgage/ http://debtnegotiationzone.com/what-happens-if-i-walk-away-from-my-home-if-i-cant-pay-the-mortgage/#comments Fri, 12 Dec 2008 02:58:03 +0000 admin http://debtnegotiationzone.com/?p=450 What Happens If I Walk Away From My Home If I Can’t Pay The Mortgage?  If you are unable to pay your mortgage and are facing foreclosure, you don’t have too many options.  You could try to do a short sale or a loan modification.

How Does A Short Sale Work?

A short sale is where the bank agrees to take less than what a property is mortgaged for.  A short sale will affect your credit in a negative way but it wont be hit as hard as it would with a foreclosure.  Find a Realtor that specializes in short sales.  A short sale is not the same as doing a normal real estate transaction.  You may have a taxable event on a short sale or foreclosure.  If you walk away from your primary residence and the only loan you had on the property was purchase money or the original loan, you will not get a 1099 for the loss that the bank is taking.  Under normal circumstances this would be considered a capital gain.  Under a special provision of the government, defaults on primary residence purchase money financing are not taxable.  However if you took out a second mortgage for buying consumables like cars and vacations, that loss would be taxable.  You would need to talk to your accountant, attorney or tax professional about this.

How Do You Do A Loan Modification?

If you have a job and are making money but still having a hard time paying your mortgage, you may be able to get a loan modification.  You do not need to pay someone a lot of money to do a loan modification for you.  Many of these loan modification companies are scams.  You can modify your own loan.  You only need to contact the loss mitigation department of your bank.  They will have a worksheet that will determine if you would be eligible for a loan modification.  Chase, Countrywide, Indymac, Washington Mutual and others all have loan modification programs.  Don’t wait until it is too late however.  If you think that you are having a problem call your lender immediately.  The longer you wait to modify your loan the harder it may be to do.

]]> http://debtnegotiationzone.com/what-happens-if-i-walk-away-from-my-home-if-i-cant-pay-the-mortgage/feed/ 0 I Can’t Pay All Of My Bills, What Should I Do? http://debtnegotiationzone.com/i-cant-pay-all-of-my-bills-what-should-i-do/ http://debtnegotiationzone.com/i-cant-pay-all-of-my-bills-what-should-i-do/#comments Sat, 22 Nov 2008 01:10:59 +0000 admin http://debtnegotiationzone.com/?p=401 What should I do if I cannot pay all of my bills.  According to Dave Ramsey you need to prioritize.  The necessities need to come first.  Food, Transportation and housing should be your top priorities.  If you can’t pay your credit cards you may just need to let them go for now.  You will find that your mortgage company will be alot easier to work with than your credit card company.  Mortgage companies are taking extraordinary measures to work with you.  In fact Fannie Mae has stopped eviction and foreclosure proceedings until January 9th, 2009.  They did this so people get get their mortgage modified.  Fannie Mae is committed to not having anymore foreclosures.  Credit card companies have not extended their hand as of yet.  Your credit card company will probably be unsympathetic to you.  The people that usually field these calls are usually bozos anyway.  Your credit card company is not your friend.  They are in business to make money.  They do not do charity work.

What Happens When You Default On Your Credit Card Companies?

You can always negotiate the debt later.  Your credit will get ruined in the meantime but you can only do what you can do.

]]> http://debtnegotiationzone.com/i-cant-pay-all-of-my-bills-what-should-i-do/feed/ 0 What is Loan Modification? http://debtnegotiationzone.com/what-is-loan-modification/ http://debtnegotiationzone.com/what-is-loan-modification/#comments Wed, 05 Nov 2008 16:53:42 +0000 admin http://debtnegotiationzone.com/?p=381 Loan modification is the process of renegotiating mortgage terms to an affordable level.  Millions of Americans are facing foreclosure.  The good news is that the banks are willing to renegotiate the terms of these mortgage notes rather than take on additional REO inventory.  The cost to carry foreclosure property for banks runs into the hundreds of millions.  The banks still have to pay the property taxes, hoa fees, landscaping and maintenance fees.  It is cheaper for them to modify your loan and keep you in the property rather than foreclose and take the property back.

What Is The First Step To Modifying A Mortgage

Your first call should be to the loss mitigation department of the bank that holds your mortgage.  Explain the circumstances to the bank representative.  They may ask for your most recent tax returns, pay stubs and asset account statements.  You need to demonstrate an ability to be able to make the new payment should they grant you a loan modification.  If you are lucky you will get a reduced interest rate as well as a write down on the mortgage balance.  You may also get a no interest option for a while.  Often you can get a forbearance agreement which will lower your payment and tack on the difference to the mortgage balance.

If You Are In Trouble With Your Mortgage, Do Not Wait Til Its Too Late

If you are in trouble and put your head in the sand, you may just be doing yourself in.  If you know you are in trouble don’t wait.  Get help now.

]]> http://debtnegotiationzone.com/what-is-loan-modification/feed/ 0 What Do I Do If I Can’t Pay My Mortgage? – Loan Modification http://debtnegotiationzone.com/what-do-i-do-if-i-cant-pay-my-mortgage/ http://debtnegotiationzone.com/what-do-i-do-if-i-cant-pay-my-mortgage/#comments Tue, 07 Oct 2008 16:46:01 +0000 admin http://debtnegotiationzone.com/?p=337 Many Americans are facing foreclosure due to the credit crisis.  What should be your first step if you cannot make your mortgage payment?  Your first call should be to the bank.  You want to speak with someone in loss mitigation.  See if you can work out a forbearance agreement or perhaps even work out new loan terms.  Sometimes a bank will even lower your principal balance as well as interest rates.  At the least you can hope for a forbearance agreement.  This will allow you to pay back a smaller mortgage payment for awhile.  The portion of the payment not paid will be tacked on to the end of the mortgage.  At the least it will give you some relief in the present.

What Is Loan Modification?

In the banking world there is no such thing as loan modification.  This is a term that is advertised to the public as a service to buy.  The reality is that you do not need to pay someone to help you get new terms for your loan.  You can do it yourself.  Again if you ask the bank for a loan modification they may not know what you are talking about.  The correct term is loss mitagation.  Tell the bank your circumstances.  Banks do not want to take any more property back right now.  Most will want to work with you to help you out.

]]> http://debtnegotiationzone.com/what-do-i-do-if-i-cant-pay-my-mortgage/feed/ 0 What is the best consumer credit counseling program? – How can I get out of debt on my own? http://debtnegotiationzone.com/what-is-the-best-consumer-credit-counseling-program-%e2%80%93-how-can-i-get-out-of-debt-on-my-own/ http://debtnegotiationzone.com/what-is-the-best-consumer-credit-counseling-program-%e2%80%93-how-can-i-get-out-of-debt-on-my-own/#comments Wed, 30 Jul 2008 20:26:53 +0000 admin http://debtnegotiationzone.com/?p=90

What is the best debt consolidation company? I think it might be better to ask what can I do to get out of debt other than signing up for credit counseling or a debt consolidation loan? If own a home and have equity in it, you have the ability to do a refinance and pull money out to pay off your bills.

How can I get out of debt fast?

If you have a home that has equity, you can do a cash out refinance with a new mortgage and pay off your credit cards and other debts. Putting your credit card debt into your home loan will give you a much lower payment. Credit cards are designed to work off of simple interest and a mortgage loan is amortized. A credit card balance of $30,000 may give you a payment of over $1100. If you moved the balance into a new mortgage, your new payment would be just under $205 when it is calculated on an amortized basis. Keep in mind that doing a new mortgage will have closings costs that could cost you a few thousand dollars. Keep in mind that when you put your credit card debt into a new mortgage you are now putting your home at risk in the event you still have a problem paying the debt back. If you do not pay your credit cards, there is nothing to take from you. If you stop paying your mortgage, the bank will foreclose and take the property back.

Is getting a heloc a good way to get out of debt?

Instead of doing a traditional refinance you may want to consider getting a home equity loan or a second mortgage instead. Most of the time a home equity loan or heloc will have no closing costs. Credit card payments are not tax deductible however if you use your mortgage to pay off your credit cards, you can write off the interest payments on your taxes.

Ask your credit card company for lower interest rates

It can’t hurt to pick up the phone and see if you can get better rates from your credit card company. You may need to threaten that you will move to a company that is offering you a lower interest rate. They don’t want to loose you as a customer

This information is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser or attorney.

For a no hassle debt review call toll free 1-888-368-6668 or go to DebtNegotiationZone.com

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