Taylor-Brown Real Estate Talks

Posted By admin on December 29, 2009

Thank you for revisiting you can still subscribe to my RSS feed. As Always Thank You for visiting!

V-Webcast - Web Conferencing Services
 Powered by Max Banner Ads 

In the next couple of days, I will share with you tips that will increase your chances of getting a successful loan modification.

If you are facing foreclosure, there is hope.  Even if you received the foreclosure documents, there is hope.  Yes,a pending foreclosure can be scary, but don’t go it alone and by all means do not do nothing.

If your problem is temporary, you may be able to get a temporary forbearance, a reinstatement, or a repayment plan.

A forbearance is when the lender allows you to suspend or reduce your payment for a specific period of time.  Once that time has been completed, you will be contacted to determine when you will be able to bring the account current.  An important note is that a forbearance is often used in conjunction with a reinstatement because the homeowner knows that he or she will be able to bring the account current because he or she may be waiting on a lump sum.  The lump sum may be from an insurance settlement, tax refund, hiring bonus, or investment.

A repayment plan, on the other hand, is an agreement between the lender and the borrower for the borrower to resume making regular payment and portion of the past due amount.

If the borrower financial problem is long, a mortgage modification may be needed.  An example of long term may be a reduction in income due to reduction in work hours or temporary job loss. 

A loan modification can consist of:

• adding the missed payments to the back of the loan
• adjustment of the interest rate from adjustable to a lower fixed rate
• adjustment of the interest rate from a higher fixed rate to a lower fixed rate
• extending the number of years to repay the loan

Another little known loan modification applies to FHA/VA loans.  If you have this type of loan, you may be eligible to get an interest free loan from the mortgage guarantor to bring the loan current, and the repayment may not start for years to come. 

Tomorrow, we will discuss what is required by the lender to determine if you qualify for a loan modification and tips on how to present the information to increase your odds of getting your loan modification approved.

• Was the Real Estate Bubble Doom to Happen? With Enron, Tyco, and other companies involved in varies accounting scandals, you would think there would have been provisions in the law to prevent the same catastrophe from happening to other industries, like real estate and insurance. In real estate, the accounting scandals were created by providing easy credit in an......
• Mortgage APR Made Simple Image by mtsofan via Flickr This post is written by Steven Parker.  Steven Parker is a financial writer and contributor for the last five years.  He specializes in mortgage and real estate industry and has written many articles on mortgage, reverse mortgage, loan modification, foreclosure and many more. Contact ......
• Insider Information - On Getting a Successful Loan Modification (Part 2) With any of the yesterday's options you will need the following items so that the lender can determine your eligible: 2 year tax returns 2 recent pay stubs hardship letter 2 most recent bank statements proof of insurance expenses/income statement Very Important:  When fax or mailing the required documents put......
• Loan Modification - Latest News Image via WikipediaThe latest news on loan modification from around the blogosphere: New Fanniemae and Freddiemac limits will speed up purchase of ...Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps......
• Bad Credit Does Not Have to Stop You From Getting Your Next Home [caption id="" align="alignleft" width="144" caption="Image by Casey Serin via Flickr"][/caption] Have you imagine unlocking the door to your new home, but are afraid to try for that home due to bad credit? Stop imagine, and give your credit and you a chance.   Advantage Mortgage offers the loan that will meet......

• What Is In Your Credit Report? Although every one of the credit reporting agencies is going to format and then report their information in a different...
• Government Grants Loan Modification – Obama Has Got Some Good Predictions Let me show you how to get $12,000 Free Government Grant from the US Government as little as 7 days....
• Analyze a Loan Using Crystal Report and Data Export Since starting this blog I have reviewed several loans.  Since then I have developed a basic crystal report to analyze a loan (DTI,...
• The wisdom of Prosper crowds Crowds know a lot collectively.  The basis for efficient market theory is that everything known about the market, good and...
• Sarasota Realtor Reacts To Sarasota Homeowner's Frustration With Loan Modification! Sarasota Realtor sees loan modifications “destined to fail” because mods do NOT  confront the real problem driving foreclosures. [/caption] http://www.makinghomeaffordable.gov/modification_eligibility.html...

Categories: mortgages
Tags: facing foreclosure, forbearance, foreclosure, loan modification, repayment plan