Benefits of Loan Modifications

Sphere: Related Content Loan modifications provide benefits for both the borrower and the lender/investor.

Borrower Benefits:

1) Payments are more affordable for the borrower
2) Terms are changed towards borrower(s)' benefits or ability to pay (example would be to change interest rate)
3) Saves borrower's credit
4) Saves borrower's home from foreclosure
5) Faster, easier, and simpler process
6) Can be more affordable and a lot less expensive than a refinance

Lender Benefits:

1) Will still have borrower making mortgage payments and therefore still profiting.
2) Cut back on costs involved when property is foreclosed.
3) Have less delinquencies or mortgage defaults in their portfolio.

Benefits of professional loan modification help vs. attempt to do it on your own:

1) You have one chance to do it right. Therefore, having a professional take care of it will save time and money.
2) The experts have the negotiating skills and know what will be asked by the lender and how to answer them.
3) The experts can expedite the loan modification based on their knowledge and expertise.
4) Frustration is taken from borrower when something as serious as possibly losing their home is handled by a professional.

Below are help information sites regarding loan modifications :

HUD FAQs
HUD Loan modification options
Helping borrowers negotiate their loan modifications
Loan modifications on your own
How to get a loan modification approved
Could a loan modification prevent your foreclosure?

Loan Modification - Title I Property Improvement Program

Sphere: Related Content About loan modifications as found on the HUD website:

The intent of a loan modification is to eliminate the arrearage and to reduce the monthly payment (by lowering the interest rate for the remaining term) which will allow the Title I loan to be brought current before or by the end of the loan term. Homeowners may be considered for a loan modification if they have recently experienced (1) an involuntary reduction in income or an unexpected increase in living expenses and (2) the lender determines the borrower has a reasonable ability to pay under the terms of the loan modification plan to eliminate the arrearage.

As loan modifications do not make sense in every situation, lenders should carefully review each borrower to determine if this option is viable. Loan modifications are most advantageous when implemented during periods of low interest rates and when the stability of the mortgage can be enhanced by modifying the debt over the remaining term. The original principal balance, interest rate and term may not be exceeded in any modification agreement.

Lenders may enter into these loan modifications without HUD’s permission and they do not have to be recorded.

How Can I Take Advantage of FHA's FHASecure Program?

Sphere: Related Content First of all, the website http://www.hud.gov is VERY informative. If you have the patience, and I'm sure most people have or can give themselves at least one hour of research time to go into this site and find all the available programs out there.

For example, FHASecure is available for people who are at least two or three months late on their mortgage. With this program, borrowers are offered a chance to reinstate their mortgage situation and prevent foreclosure from taking place. Of course there are certain requirements, but it may be best to call HUD's customer service or their mortgage counselor to help you find the right program.

It really is best to go into this site before giving up and thinking there is no hope left. Borrowers, homeowners, citizens, and most individuals have rights. You'd be surprised about the different programs available that your local mortgage company won't tell you.

The Housing Market Boom to Loan Modifications

Sphere: Related Content A typical story of a family who went from living the high life during the mortgage boom to having virtually nothing. For example, a family I know went from owning a home that was worth $795k until the beginning of 2007 to it being worth almost $550k in 2008. Property was foreclosed before they learned about loan modifications.

My concern is that loan modifications may contribute to something even worse than the housing bubble burst. As a society, we have all contributed to what is currently going on. I know I'm not innocent either, because I have been in the real estate and mortgage industry for quite a while now and I still continue to try to "help out" homeowners.

According to Henry Louis Mencken famous quote, "economic independence is the foundation of the only sort of freedom worth a damn." He was one of the rare figures in history who did not support the market deals that were going on around him. Therefore, he always had his wealth even through the Depression. Unfortunately, society felt no need for his services because of it.

What is going on with the housing market?

Sphere: Related Content The housing market offered many opportunities to homeowners and investors at the start of the 21st Century. As a result, competition among lenders and banking institutions grew. The surge of homeowners who supported the competitive nature of these institutions have either gone into foreclosure or are slowly getting there. Many homeowners feel their housing downfall is inevitable, while others do what they can to buy time.

What are the most popular choices? Loan modifications and short sales.

But how do you know you're getting the best deal? There are many experts out there, especially since 90% of those who are still in the industry are the wisest and have probably made the most money throughout the housing bubble. And of course, most have been in the industry for a very long time. Those are always the best pitch. I myself, tend to trust people who have been in a certain industry for a while. Unfortunately, I have realized through my years in the real estate and mortgage industries that it is not always the people who have been in the industry the longest that could get you the best deal. It is the people who have the highest ethical values. I feel that I have had the greatest success when I am certain that I had given my customer the best deal. I have worked in different areas of the industry and have tried to avoid sales due to the fact that I do not like to try to push anyone towards anything they would feel uncomfortable with. However, it was due to this reason that I have been able to build my clientele.

My partners and I have always believed that the best marketing tool we can have is good service and good ethical values. These two tools have brought us many good referrals and have introduced us to many wonderful people. Wonderful people that have allowed our connections and business to grow.

We help homeowneres and/or investors with credit repair, finding the right mortgage(s), loan modifications, short sales, real estate sales and investments, and even property management.

Please call us if you have any questions or inquiries or visit us at http://www.myloannegotiator.net. We are always glad to help.

(909) 753-5277.