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Archive for September, 2008

Mortgage Modification Sample Letter

Everyone who has ever tried to do a loan modification by themselves knows how hard it can be. The process is very threatening. You might want to refer to a sample loan modification in the US. The process of course has a lot of twists and turns. First off, there is the application form that you need to form completely. This is more straightforward than the other tasks. But still, there are some tricky things you have to go through. Then there are the negotiations with your creditor. This can be handled well if you research the conversion of rates others are offering. Then there is the letter expressing the hardship of your situation. This part is perhaps one of the trickiest because you really need to balance your tone. So here for your reference is an example letter. Read this sample loan modification in the US if you need a guide.

To Whomever It May Concern:

This letter is a formal follow up to my loan modification application which I have sent this past August 12, 2009. The details of what we are looking to have are in the application, but of course it does not delve into the conditions that put us into a precarious financial situation.

Due to the recession, there were many jobs losses and cutbacks in our company a couple of months ago. Because of this, I was transferred into a lower paying job position. I consider myself one of the lucky ones because at least I still have a job, but my new salary is less than half of what I used to receive. Our financial situation got so bad that we had to break our savings so that we could pay our monthly mortgages while keeping up with our other expenses. Then, a couple of months ago, things got worse as our interest rate shot up from 8 percent to 11 percent since we were not able to pay the mortgage monthly.

In light of this, my request is that our rate be brought down around eight to nine percent. This seems like a fair amount for all parties. We were never late in our monthly payments until I was demoted. Also, my wife is about to start on a higher paying job two months from now. We are very willing to negotiate a compromise that will make both parties happy.

Sincerely,
John Doe

This sample hardship letter, as you can see, is very direct. You can even be more direct than this letter. The statement here is that you will not be able to pay the high interest due to a loss of income. Just mention why you had lost your income in the first place. Make sure you elaborate that there is no other way that your family can manage the bill right now.

Also, it is quite important as shown in sample loan modification in the US that you state the new rate that you want to have. Save them the time and effort. Think about how many applications they have to sift through. They will not have time to look for the definite adjustments.

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Legal/Ethical Home Loan Modification

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Loan Modification Under Obama

Question: Loan Modifications vs Refinancing?

I was laid-off last October and have been living off unemployment. I have been unable to find a job and unemployment runs out in a month. I called my bank to see about a loan modification (new rule under Obama) to get lower payments and hopefully be able to live of my savings until I get a job. I was denied because I had no long-term income. The customer service rep suggest that I get a job, well duh! If I had a job, I wouldn't need to modify my loan.

Anyway, I digress. I called again to talk about refinancing instead and again, because I had no source of income, they wouldn't refinance either. He suggests that I go into default then look into modifying my loan. Does anyone know anything about this?

It sounds ridiculous to me that Obama's administration would only help those that are employed.

Answer: WELL, think about it from the lender's viewpoint.
You went to lender and begged for a loan to buy a house. They loaned you money and you promised to repay them. Now, they have a legal, binding agreement with you to repay them, and through no fault of theirs, you lost your job and your unemployment is running out. You want them to spend more time, effort and money to modify your loan or do a refi, when they have NO guarantee that you can keep your promises, and every indication that you will be unable to do so.

Lending to those unqualified to buy their homes was one cause of the current housing and mortgage crisis. No one is going to Give you a home, and lenders are prohibited from many of the past practices. They're going to help those who have a good chance of success IF the loan is modified.

Keep calling the lender, keep talking to different people and see if you can get them to modify loan. Have you used up the unemployment AND the extension? Getting a job, any job may be necessary, but keep calling.

Mortgage Refinancing | Obama Loan Modification explained

Loan Modification Fha Loans

Question: I was wondering if this is a scam?

I was looking around online and seen this place called Loan Mod. Where they can modify your loan. For a fee, they can go into your mortgage loan and change your interest rate and cut your payments in half or more. I talked to them and it seems like the real thing, but it does sound a little iffy. I was wondering if it is true or should I just stay away.

http://www.modification-loan.com/fha-loan-modification-changes.html

How would I go about doing it myself?

Answer: If you want to do anything with your loan, you should contact the bank where you got it and talk with them directly. Most, if not all, of these loan mods just take a fee from you and do nothing.

Save your money and do it yourself.

FHA Streamline Refinance with No Appraisal - Quicken Loans