Upside Down Mortgage

Archive for January, 2009

Loan Modification Handbook

Most lenders view the manufactured home loan as a “nuisance” loan. No matter what kind of manufactured home you have (even if it has tile roof and drywall interior), you’re going to be lumped into the “trailer” category in the mind of the loan officer. This is just a “loser loan” for him. A lot of work, and not enough commission! Plus there are so many compliance hoops to jump through and the compliance checklist is often daunting to the novice. And for the typical lending office, very rarely do the support staff know what they are doing. The processors don’t even understand the vocabulary much less the fine details, appraisers sometimes submit their data on the wrong form and even underwriters often fail to manage the file properly.
Borrowers complain that a new hiccup appears almost daily—-and the loan seems to take forever. Then there are the fine points of the flood zones, if the home is serviced by wells and septic, finding comparative comps, missing HUD plates, IBTS letters, metes and bounds, missing a data compliance plate, dealer to site verification and the list seems endless. Oh and let’s not forget about the real doozy— the foundation certification.
FHA loans on manufactured homes, whether new construction or existing, new loan or refinance, require an engineer’s stamped certification that the foundation meets the requirements of The Permanent Foundation Guide to Manufactured Housing dated September 1996 (PFGMH) aka THE HUD HANDBOOK /BIBLE.
This is a nightmare for borrowers and lenders because the HUD Handbook is even misunderstood by most engineers. When confronted with a non-compliant foundation, most homeowners say, “But my home met all the local requirements of the building department when I bought it in 1983!” Unfortunately compliance with the local building jurisdiction is not evidence that the home meets the national standard. Because requirements vary from city to county to state, the certification letter establishes some semblance of continuity. Engineers even have conflicting opinions because the handbook is vague, contradictory and very unclear on exactly what is required and what is not permitted. Essentially it is opinion-based and two different engineers can look at the same foundation with different results.
Are your eyes glazed over yet? We won’t even start on the appraisal and all the details associated with that because that would lead to a whole new laundry list of issue. First things, first, if you need a manufactured home loan, make sure your home qualifies:
The basic checklist starts with the following:Must have a floor area of not less than 400 square feet. So if you are living in a “park model”, it’s not going to work.Must be classified and subject to taxation as real estate.

The next thing you need to do is to team up with a
manufactured home loan specialist
. The big recognizable name houses are often the very ones that consider your home a “trailer” and don’t have the support staff to take the loan from A to Z with ease. Get straight answers and professional expertise right from the beginning by using a company that has resources in all aspects of manufactured housing.
About the Author:

Ray Henke elucidates about loans on manufactured homes. Visit themanufacturedhomelendingsource.com get assistance on manufactured house lending,mobile home purchase or refinances and FHA loans mobile homes.

Article Source: ArticlesBase.com - Manufactured Home Loans: Facts for the Borrower

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Loan Modification Explanation

The global financial crisis that is now holding a firm grip on all economies of the world has fueled the fires of foreclosure to almost intolerable levels. Many homeowners have and are about to lose their homes to foreclosure sales. Overwhelming inflation makes making on-time payments very rare. Thus borrowers are being buried deeper and deeper in the quicksand of compounding interests. Lost into confusion and not knowing what to do, homeowners could only watch as foreclosure takes their homes away in one fell swoop. In reality, however, the would have been able to save their homes provided they got the right help. A loan modification agreement is a homeowners best weapon in combating foreclosure. A loan modification agreement is a long-term solution for borrowers who in their current financial will never be able to pay their existing loan. Loan modification agreements are very reliable and have already helped thousands save their homes.

Given below are three helpful pointers to help you in obtaining and exploiting all the potential benefits of a loan modification agreement.

Pointer One

Gather all your financial documents and any other records that can aid in determining your credit score. Your credit score is vital in the sense that it represents your credit credibility in numerical terms. Prepare all the records such us your bank accounts records, tax records, payroll slips, credit records, and receipts of every major expense in a well presented manner and be ready to show them to your lender. The financial trails this documents will produce will greatly influence your lender on whether or not he will grant your application for a loan modification agreement. The adjustments may come in one or a combination but not limited to reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating rate is computed; reduction in principal; reduction in late fees or other penalties; lengthening of the loan term; and capping the monthly payment to a percentage of household income.

Be truthful with the records and present all the documents you possibly could, with explanations for irregularly large withdrawals or deposits. Cheating your lender will greatly damage your credit score and may cause you much difficulties on getting future loans.

Also make sure you have some liquid cash on hand when making your application. Most lenders ask for a reduction of your deferred payments as proof of your sincerity towards wanting to pay up your loan. Such payment will show your dedication towards saving your home. Be patient as lenders are often not easy to convince. To be sure, you can ask for a loan modification specialist to help you in the negotiations.

Pointer Two

You can attempt to establish a dialogue with someone at your lending institution who can make or greatly influence the decision regarding your request for a loan modification agreement. This can be really hard and frustrating, as the possibility that they will just ignore your efforts is very high. Both the collection officers and the loss mitigation specialists of your lending institution has in top priority making you pay your bills and not changing the terms of your existing loan. Just the task of finding these people may be very difficult for ordinary homeowners.

As whether or not you will obtain a loan modification agreement or not hangs in the balance, obtaining the help of a loan modification specialist is most likely to be the key to tip the scales to your favor. Lenders always prefer negotiating a loan modification agreement with a third party than the borrower himself. The experience and expertise of loan modification specialists along with their usually many connections with lenders will greatly boost the possibility of your loan modification request being approved. They may even have easy access to the decision makers of your lending institution. Good loan modification specialists also have lawyers at their payroll which can give you advice on possible legal remedies you can take. With the assistance of the right professionals, getting your loan modification agreement is almost assured.

Pointer Three

Once you have secured your loan modification agreement with your lender, be wise in your budget. Always save sufficient cash for your house payments and constantly follow up until all mortgage payments are complete to make sure nothing is going wrong. Homeowners tend to be negligent and complacent once they get their loans modified and end up still losing their homes. Be wise, make most of that second chance of keeping your home. Always keep in mind that what you hold is an agreement, therefore, both you and the lender should comply with its terms. Keeping up your end of the bargain assures the success of the loan modification agreement.

You can get the help of the best loan modification specialists to negotiate a good loan modification agreement for you from 24VIPINC.

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Article Source: ArticlesBase.com - Loan Modification Agreement: the Solution to the Foreclosure Crisis

Options For Struggling Homeowners - Loan Modification and Short Sale Explanation

Loan Modification Leads Florida

Although a large amount of national attention has lately been focused on the issue of foreclosures and defaults, another huge problem that is much less well publicized is the issue of property taxes.

When the nation's housing crisis has risked the homes of millions of Americans, it also created a huge pile of unpaid bills- further risking homes to tax seizures, causing a multi-million dollar shortfalls for many local governments who were already struggling to make ends meet because they rely on property taxes to pay for lots of public programs.

Treasurers and tax collectors in hundreds of communities across the nation are reporting that they have observed a sharp increase in the amount of delinquent businesses and homeowners coinciding with the country's increasing unemployment rate. They are bracing themselves for a higher level of delinquenecies and defaults than in years past.

For example, in Lee County Florida, officials are reluctantly reporting that more than 44,000 taxpayers didn't fully pay their bills in the last fiscal year, up from just half of that two years ago. But the most important thing to remember when contemplating the fear of having to foreclose on your home or having your house repossessed is the face that tax and bank officials would prefer NOT to do these things. Neither banks nor cities (or towns, for that matter) want to end up in charge of a lot of real estate. It's more expensive and more of a hassle than dimply being paid off, and they will go to long extents to make sure that you can pay off your loans and make your tax payments, even if that means agreeing to a loan mod or extending deadlines, or adjusting rates.

Authorities will do their best to set up repayment plans in the year or two after you have fallen behind or stopped paying. Usually within the first month or two, lenders will step in to protect their investment by agreeing to a loan modification or ordering a temporary freeze on payments. But in the end, if they don't get paid, the lenders or tax collectors will seize homes.

Many homeowners, however, will be eligible for legitimate property-tax reductions, and almost ten times the usual number of people are applying for them. The process doesn't necessarily require professional handling, many homeowners can do it themselves, if they feel well-prepared enough to appear before an appeals board. Those who do not feel comfortable enough should hire a property-tax consultant or an attorney, and a loan modification expert or real estate appraiser. Many of these services are available online.

About the Author:

For more information on loan modifications, loss mitigation, and preventing foreclosure, visit http://www.accesslossmitigation.com

Article Source: ArticlesBase.com - Housing Crisis Leads to Loan Modification And Tax-Exemption Surge

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