Upside Down Mortgage

Archive for September, 2008

Loan Modification Policy

Question: Country wide and loan modification, are they willing to work with the struggling home owners?

Would anybody know how willing Country Wide is to participate in the President's loan modification program, we tried it at the beginning of the year and found a really arrogant and and indifferent company policy in regards to struggling home owners. Should we hire one of those companies that do it for you for around two to three thousand dollars?
Help please!

Answer: The President's new program HASP requires that you have been current on all payments for the last year. Countrywide will be participating but they are not ready yet. They just got the paperwork.
Previously Countrywide told homeowners they would not help unless you were 2 payments behind and you could prove that you lost your job. The best offer they made was lowering the interest rate to 4.5% fixed, extending the loan to 40 years, and forgiving 4 unpaid back payments.
Do not hire the companies that charge you $3,000. You will never see your money or them again. Avoid them. Deal directly with your lender..

Jason Cardiff on Silly Refund Policies from Loan Modification Brokers

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American Mortgage Modification Association

Do you have questions about Obama's loan modification program and who is eligible to participate in it? Are you wondering which financial institutions are providing loan modification options using the $75 billion allocated by the Treasury Department? Keep reading for some answers to these questions and more.

Lender participation in the federal program isn't required, but many financial institutions have already signed up and many more are eager as modifying a loan is a much preferred alternative to foreclosure. Also, under Obama's loan modification setup, lenders are being offered incentives to participate in this plan that is expected to protect four to five million American homeowners from losing their homes.

The federal loan modification program has the following requirements for eligibility:

- the loan being modified must be a first mortgage on your primary residence

- the loan being modified must represent a monthly payment > 31% of your monthly income

- the loan being modified must not be delinquent

- you must be able to provide proof of your income

In order to process your application for the federal modification program, you must provide the lender with a detailed hardship letter, a thoroughly completed application form, a detailed income statement, and proof of your debt. There is no fee associated with applying for modification under the Affordability and Stability Plan.

Not only are the lenders who agree to participate in the federal loan modification system being provided incentives, so too are homeowners. For example, if you pay your newly modified loan as required for five years, you may qualify to receive a $5,000 bonus.

Don't procrastinate applying for relief through the federal loan modification program. Avoid the rush and inevitable glut of paperwork that's going to start rolling in and get in front of your lender before the crowd.
About the Author:

For more information about Loan Modifications, visit the #1 loans modification resource on the net: http://HomeLoanModifications101.com

Article Source: ArticlesBase.com - Eligibility Requirements Under Obama's Loan Modification Program

CEO bailouts? How about the homeowners?

Free Loan Modification Templates

If you are applying for a home loan modification, one of the first things you need to do is write a hardship letter. This letter is written to your lender. It outlines your circumstances and how you came to be in them and what help you need to overcome them. In order to write this kind of letter, you can get help from a financial counseling company or use letter templates.

Hardship letter templates are a wonderful help when you are trying to write this letter, but don't simply pick the first one you find and use it. This letter is very important part of the modification application process and should be treated as such. A poorly written letter might be the deciding factor when the lending institution is deciding whether or not to modify your loan, so if you use a template, make sure it is a good one. This article will list some of the guidelines you need to consider when choosing a template.

The first consideration is length. The letter should be no more than two pages long, one page is even better. If the letter is too long, it won't be read entirely or given the consideration it deserves. Keep in mind that many people are requesting modifications and your lender will be expected to read many letters, show respect for their time by keeping your letter short. You are more likely to be successful if you keep your letter clean and concise.

The second consideration should be how professional the letter is. Spelling and grammar are important, of course, but you must also be careful about the tone. You do not want to sound whiny or self-pitying, keep the dramatic language to the minimum. You are just presenting facts about your situation and you want the bank to know about your situation, how serious it is and how committed you are to keeping your home. You want the bank to know that with a little help you could honor your loan.

There are many different places to find loan modification hardship letter templates. You can do a search on the internet and this will direct you to many information sites on writing hardship letters. Some sites charge a fee for downloading templates but there are many free sites. Where you get your template is not important, just as long as it provides a quality outline and keeps the above criteria in mind.

There are no requirements for using a template to write your hardship letter. You might read several letters and choose to use parts of many of these letters in order to create your own version. You might also wish to read a few examples and then write your own letter from scratch. If you run into trouble, you can consult with a financial counselor who is always available to offer advice.

Home loan modification hardship letters help relieve stress as they are a good first step towards obtaining lower mortgage payments. There are several free templates and tips for writing hardship letters available on the internet, so use these to help you write your own letter.
About the Author:

For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

Article Source: ArticlesBase.com - Pleading Your Case in a Loan Modification Hardship Letter

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