Debt Negotiation Zone » what is loan modification

Applications in the Mortgage Industry

admin — Thu, 19 Nov 2009 04:57:01 +0000

According to a recent article in the Los Angeles Times, mortgage interest rates are at their lowest levels in five weeks, and not surprisingly more people are seeking home loans. This is can be seen as a positive sign that the value in homes are increasing slightly instead of homeowners being upside down on their mortgages.

This is both a positive and a negative for some homeowners. On the positive side, this means they are able to refinance their homes at a lower rate and take advantage of equity in their homes. But on the negative side, this assumes that the borrowers who are purchasing new homes still have good credit, can make at least a 20% down payment on residences with value of no more than $417,000.

Two important keys to this type of program:

Loan amount available up to the maximum JUMBO FHA limit in your area
FHA financing is for Everyone and not limited to first time homebuyers

FHA loans are guaranteed by the government and offer more flexible guidelines than traditional mortgages. Some of these features are:

· Down payment of 3.5%

· Allows for lower credit scores

· Cash out refinance transactions up to 85% of loan to value

· No minimum or maximum income limits

When considering to refinance or purchase, a new property, the consumer must be prepared to present a complete financial package to their lender. By having all the financial information available, this will allow your loan expert to find the correct loan program to fit your financial requirements.

Who Do I Call If I Need A Loan Modification?

admin — Sat, 20 Dec 2008 18:42:11 +0000

Who do you call if you are behind on your mortgage and need to modify your existing mortgage? If you are behind on your mortgage and are facing foreclosure you should call your existing mortgage company at once. Look for the number on your most recent statement. Here is a list of the larger banks and the phone numbers of their loan modification departments.

GMAC Mortgage 800-799-9750

Wells Fargo 800-678-7986

Citigroup, Citibank and Wachovia 866-272-4749

JP Morgan Chase, Chase, Wamu, Washington Mutual 866-550-5705

Countrywide 800-669-0102

M&I 877-473-4333 or 877-849-6160

If you are behind or know that you are going to get behind on your mortgage, don’t wait until it is too late. The sooner you start the more likely you will end up with a favorable result. Save your home from foreclosure and make the call today. You home is worth saving and loan modifications do work. You do not need to pay someone to do a loan modification, you can do it yourself. Use this information to save your home.

What Do I Do If I Can’t Pay My Mortgage? – Loan Modification

admin — Tue, 07 Oct 2008 16:46:01 +0000

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.