Qualifications For Loan Modification‏

If you are a homeowner facing foreclosure, you may want to consider getting your loan modified. Many, who dismiss the option, end up with more chaos than actually trying it out. Never the less people are not considering it because they figure that it's too late, gotten too far behind on their payments or believe their bank will gain by foreclosing on them.

The first step is to determine who exactly holds your loan. This is not a complicated step, nor is it an unusual one. Many borrowers pay their monthly mortgage fees to their lender without knowing whom actually holds the mortgage. To find out as a Chase borrower, simply call Chase and speak to a customer service representative, who should then be able to provide you with the requested information.

If your loan is insured by Freddie Mac or Fannie Mae, it is an extra bonus for you, since you would then be qualified for a government program that limits your payments to no more than roughly one-third of your monthly income.

First, you will be able to get a lower interest rate. Another advantage is that your overall monthly payments will get lowered to around 30% of your income. Even more, you won't have to pay any fees for implementing these modifications. However, your rate will be adjustable and it can get back up in a few years.

The good part is that by that time you will probably have a better financial situation and paying your mortgage won't be a problem anymore.

You will need to show the ability to afford a reasonable lower monthly payment. If the lender is unable or unwilling to reduce the monthly payment to an amount you can afford, you won't have a successful loan modification.

You will also need to include W-2's, current credit report, pay stubs, federal income tax returns, bank statements, etc. In order to determine whether you qualify for a loan modification, lenders take a close look at your debt to income ratio (Debt Ratio = Total Monthly Payments / Gross Monthly Income).

You must have not previously refinanced or modified a loan. The amount you must pay monthly will be up to 40 percent of your income. To ask for consideration from Chase, you must write a letter stating such and you must provide as much financial documentation as possible, such as paycheck stubs, tax returns and other related documents

Mortgage Refinance Stimulus Plan‏

With foreclosure bugging many of us out there, the government had previously come up with the Loan Modification Plan through the President's office to assist those facing this dilemma of how to salvage their homes. This plan however faced heavy criticism from almost all quarters for the lengthy application process attached to it, as well as the low approval rates for those applying for them, in addition to other complications.

The President and his office were quick to realize this issue, and rectified it by revising the Loan Modification Program to help struggling homeowner cope with foreclosure issues. The homeowners' bid to refinance home mortgage would in the future be approved more easily, and the program has also included newer features within it to help struggling homeowners further. Now even the unemployed are offered subsidies, and those who have borrowed more than the worth of their homes can also apply for subsidies to help them cope with refinancing.


Any balloon payments will have to be paid off in full should the homeowner want to sell or again the Refinance Relief Program . Incentive plans are in place, backed by the government, which will gradually reduce the homeowners principal over the course of 5 years, up to a maximum of $5,000, for making mortgage payments on time. The mortgage interest rates are adjustable after a 5 year period. The low 2% and 4.5% mortgage interest rates are temporary fixes to help homeowners get out of their financial problems. Only one mortgage modification can happen using this mortgage stimulus plan, their will be no renegotiating later down the road after this.

Late fees are the norm when individuals are trying to manage several payments to different lenders and the streamlined, single payment system that consumers can enjoy in consolidation plans can simplify life a great deal and save individuals from the added expenses of penalty charges.

Participants in refinance programs will only be responsible for sending in a single monthly payment on a pre-arranged date that works well for them.

Even lower interest payments may be offered by the bank over the course of 5 years. Homeowners can now refinance up to 105% of the value of their home. Refinancing a home mortgage will save millions of homeowners hundreds of dollars every month. This mortgage stimulus plan from Obama will stabilize the housing market and curb the foreclosures happening everywhere.

This will restore confidence in the market and home values will start to rise again. Refinancing the right way, especially using this Obama stimulus plan, will save homeowners hundreds per month, or more importantly, their home.

Suitable Debt Advice on Debt Consolidation Loans

When someone is burdened down with too much debt, it is quite usual for many to decide to forget about the debt, and although, they are worried about the amount of debt they choose to ignore it, wrongly believing that it will disappear into thin air, but this is something that will never ever happen. except in a wild dream..

At the start falling into debt is simple, as we are always being tempted by nice things advertised day and night in the press and television. The new convertible car on the T.V. advert looked so great and the payments did seemed affordable.. We forget to take into account , that after three years there was a big payment of thousands to be paid in one go.

This attitude begins from an early age, when we feel compelled to wear the same trainers as our friends, or even more expensive ones than they have.

When our best friends parents choose to educate them in a private school, we want to go to the very same school, not thinking for minute that our family is not as rich as the family of our friend

Once we reach maturity, and are employed , we mix socially after work and at weekends with those who work at the same firm. They have better positions in the firm than we do, and they have higher incomes but we do all the same things that they do. . When they go to an expensive holiday for the weekend and go to the same restaurant you go along with them.

The vacations , the expensive mid day meals and the expensive clothes you like wearing were paid for by credit cards, and now you are having great difficulty making the repayments when they are due..

Before debt gets out of control, you should get debt advice as this is way to solve your debt worries.

Debt consolidation, whether by remortgages or secured loans, can often be the best move to make for homeowners with enough equity in their property.These debt consolidation loans will clear all the credit cards, etc. and leave a much lower repayment in their place each month

Leveraging In Commercial Real Estate‏

The old saying, "Cash is King" has never been more crucial than in the present financial conditions we are encountering. "OPM" (Other People's Money) is a different well-known phrase that every real estate investor should think about utilizing to create every dollar count when entering a deal.

The moral from both expressions should be to utilize the power of leverage. The article to follow illustrates how leverage can stretch the dollar to generate greater wealth when buying Real Estate.

The superior the pool of money the better the investment one can build. Lenders, equity investors (private and institutional) or persons could be the vehicle to supply this pool of funds. One word of caution is the cost of capital relative to the capitalization rate on the project. In the case below, I am going to cite "The Power of Leverage" by using similar cost of capital, just to keep things easy:

An All Cash Buyer - Let's presume an investor has $1 million to invest and invest a property that yields a ten% earnings and the investor pays cash for the investment. The Net Operating takings would equal $100,000 per year.

Dipping in to OPM - Now instead of paying $1 million in cash the investor obtains leverage around 75% of the investment amount. In this instance that can be a loan of $750,000 and the investor would supply $250,000 in cash.

The price tag on capital on the $750,000 for this case is 6%, and when amortized more than a 20-year amortization era, the annual debt service on the loan will be $64,478 per year. The total cash flow to the investor would be $35,522 per year, realizing a 14.2% return on your investment. This is the 4% growth using leverage. Now

Arrives the Fun Part - If you are looking to get much more inspiring you are able to put in back in the principal sum you give on the loan ($20,000-$25,000 each of the first 5 years of the loan) and now the adjusted annualized return equals generally 22%! This is in excess of twice over the particular profit from paying cash for a property.

The preliminary criterion was to make investments the $1 million dollars into real estate. Next, I showed you the advantage of OPM. Now, take into account the purchase of many properties. If you buy an average of 4 assets and make use of leverage, a total investment of $4 million dollars will be realized versus $1 million having to pay all cash.

This leads me to my final thought on leverage and the increase in worth of assets. Granted, nowadays this is non-existing, on the contrary over the future there's a growth factor realized. Let's anticipate a 3% growth factor for the above investments: that's a $120,000 in value per year on a $4 million dollar investment compared to $30,000 per year in value with the all cash example.

OPM and Cash is King, two crucial expressions with regards to real estate investing. In remembering the meanings behind the two statements and utilizing the power of leverage, you'll be able to turn your good real estate transactions into an ideal one.

Is Bankruptcy The Answer

When people have dug themselves deep into a financial hole, many times they cannot see any way they will ever get out of it, and start thinking about bankruptcy. But is bankruptcy really your best option, or simply the first one that comes to mind? 

For most people, it is simply the first answer that comes to mind. Most people do not work in the financial field and therefore have almost no idea what options or alternatives they may have. They may have had friends who filed for bankruptcy, where they were told them you go see a bankruptcy lawyer, explain your situation, fill out some forms, pay the fees, and then it's a done deal.

While the aspect of having your overwhelming and staggering pile of debt turn into a "done deal" is extremely attractive, the reality is that it is rarely as simple as that, especially in light of the recently changed bankruptcy laws. For example, did you know that in bankruptcy:

* You may not even be able to file. No longer is this done on a whim. The courts will examine your financial situation and your income, and needs to approve your bankruptcy before you can file. There is no guarantee that you will be granted this approval.

* There are multiple ways or chapters you can use, depending on your financial situation and a variety of other factors. With certain chapters, the term "bankruptcy" is actually incorrect since your debts are not wiped out, but simply restructured.

* There are certain kinds of debt that bankruptcy will not eliminate or wipe out. If a good portion of your indebtedness consists of these kinds of debts, bankruptcy is not going to help you very much at all.
Truth be told, the consumer considering bankruptcy needs to be very familiar with the bankruptcy laws, and particularly how those laws have recently changed, compared to the "common knowledge" that your neighbor or co-worker tells you is fact.

A surprising percentage of consumers who file have not thoroughly investigated their options and alternatives. No, a personal loan is probably not a good idea since that only serves to prolong what might be inevitable anyway and may even be digging your hole a bit deeper, but have you considered Debt Consolidation?

One very strong point to be said for debt consolidation services is that your credit report does not have this huge red flag on it for the next 7 to 10 years alerting potential lenders that you have filed bankruptcy, and they also rarely have restrictions on the type of debt that can be rolled into such a program.

In summary, you need to familiarize yourself very thoroughly with the law and how it applies to your particular situation.

Consider discussing it with a bankruptcy lawyer, who can advise you as to your options and what to expect, since every situation is different, and they are familiar with what the probably outcome would be. People have reported that they saved more money than they spent with a qualified attorney based on things they didn't know about the law.

Why People Find Secured Loans‏

People who need to borrow money may find that it is easier to do when there is collateral to use. Home equity can provide the type of secured loans that are required by most lending companies. When someone needs to borrow money, they could find that owning a property can make it fast and simple to get approved.

When a person buys a home, the value of their listing could go up. When the value of a property goes up, the amount of equity that is in the home is also increased. Extra equity in a house can be a great way to provide security for a lend of money.

The value of a new condo or house will rise as soon as someone takes the keys to it. The increase in value and price can help someone get into a line of credit or a new lend of money. Banks may see the equity in an investment property as security toward a new loan.

Over time, people will pay off the mortgage they have on their property. As the mortgage is paid down, the amount of equity in the property is increased. People who have money in their residence, will be able to qualify for many different types of borrowed money.

Debt consolidation can happen when someone uses the money in their property. People can pay off debt, combine debt to pay it off together and make purchases with the extra money.

Banks will issue a secured loan to people who have the equity in their homes to back it up. Someone can apply for a new car or property with the equity they have in their property. These types of deals may be easier to acquire and may be issued faster. People may find that it does not take long to get approved, when they have funds to back up the application.

About the Author:

Surely, you've wondered why people use secured loans and this article should have helped you out with that information. We also want to tell you more about debt consolidation loans as soon as possible.

Know The Basics When You Buy or Refinance

If you are currently looking for a new home, chances are that in all the excitement you wont really give any thought to the type of home loan mortgage you take out, instead going with the first one offered to you. This could be a serious mistake costing you thousands, if not tens of thousands. Make sure you know all about the different types of home mortgage loans before you starting looking for that new dream home!

Here are some of the basic types of mortgage loans: 

Fixed-rate home loan mortgage -

As the name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then pay the same monthly installments for the life of the home loan. The benefit of a fixed-rate home loan is that you can easily budget for the repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else no one knows what interest rates will be in 15-20 years time!

Adjustable-rate home loan mortgage -

Mirroring the fixed-rate mortgage is the adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this case the interest rate is not fixed, but is adjustable (or floating as you may also hear it called). The upside to adjustable-rate home loans is that the interest rate at the start

of the loan period can be lower than the fixed rate would be. The downside is that it is difficult to budget for, as the amount can change, and you are at the mercy of something outside of your control interest rate fluctuations, which can change quickly.

Hybrid home loan mortgages -

Trying to fill the void left with the downside of the fixed and adjustable/variable-rate home loans, the hybrid home loan lets you fix the interest rate over the first part of the home loan, and then switch to an adjustable/variable rate later. The upside of hybrid home loans is that they allow you to budget for your repayments during the expensive time when you first buy the home. The downside is that if floating rates are much higher than your fixed rate when the switch happens, you could find you are paying a much higher repayment each month.