Upside Down Mortgage

Archive for June, 2009

Canada Subprime

Question: How badly will the US $ Fall, will the US enter a recession ? Even Canada is ahead, Australias not far behind?

So the $US has fallen, or more to the point other countries have risen to a comparable level. Soon the $AUD will equal the $USD, currently about 90.5 US cents. Will the US be in a recession shortly ? Is Iraq and their subprime mortgage crises hurting them ?

Answer: People are freaking out about the declining dollar, but there is almost no chance that a weak dollar will lead to a recession. There is little to no correlation between the value of the dollar and a recession, especially since the weakening dollar is not due to inflation.

In fact, the opposite is the case: as the dollar weakens, it becomes cheaper for foreign countries to buy US goods. This stimulates export growth. Additionally, the Fed can take a couple of steps to stave off a recession if needed, starting with cutting of interest rates.

Currency exchanges are not a "race," so it is impossible to think of one currency as being ahead of or behind another. It is simply what the currencies are trading at on the open market. As the dollar becomes cheaper, you'll start seeing foreign banks buying up dollars because they know that the value will eventually rise. It then becomes a self-fulfilling prophecy because the increased demand makes the price rise.

The only time a weak dollar really hurts is if, like I just did, you take a trip to Europe and get hammered on the exchange rate. In a macroeconomic sense, however, the weak dollar is not threatening at all.

There is no subprime mortgage problem in Canada

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Sample Loan Modification Approval Letter

With shopping for everything from cars to soap online, it's become evident that web commerce is ever more prevalent. You can even get loans online and there is no shortage of online lenders ready to meet your needs even if you're getting a loan modification. There are many lender do offer the ease of online applications however, in this case it may be smarter to apply in person.

The fact of the matter is that a loan modification has different requirements than the traditional loans and you'll find that many lenders don't provide these requirements with the online application. Knowing what the loan's requirements are can save you a lot of time and energy and you'll only get them by calling the lender.

There are online lenders that offer quick approvals but beware of them. They can cause much more harm than help for homeowners seeking a loan modification.

In laymen's terms, loans that offer quick approval only take the underline into consideration and other variables tend to be overlooked and not considered. So, if you are not an exact match to the criteria of the quick approval loan you will be denied.

If you are like most homeowners, your circumstances are varied and in some cases extenuating. So it'll be best for you to apply in person at the branch or faxing your application in. if you do have a special situation surrounding your request you can submit a hardship letter and doing so can be the difference in approval or rejection and approval time.

This is not to say that online lenders do not have the capability to take hardship letters. You will typically have to mail or fax the letter with the application to the lender.

If you are considering applying online to avoid submitting a hardship letter you are going to be disappointed. The hardship letter should be taken as seriously as a cover letter for a resume as it is very imperative to the approval process. Taking the time to create one can be the cushion an unattractive application needs to get approved.

You don't have to research your loan online alone. You can seek out local lenders to see how their online loan modification applications. Large banking corporations like Wachovia have consumer reviews and blogs that allow you to read others experiences. Bank of America actually allows you to see sample hardship letters in an effort to show you the types of letters that had a positive effect.

The net offers an unmatched amount of information on almost everything. So, it's not a bad idea to begin researching your loan or lender online. Just keep in mind that applying for your loan online is not the only option you have in getting you loan approved.
About the Author:

For detailed facts and essential tips on applying for loan modifications, visit this simple, easy to understand loan modification guide and resource: http://HomeLoanModifications101.com

Source - Pros and Cons of Applying For a Loan Modification Online

Loan Modification: How long does it take?

Mortgage Modification Loan

Question: Has anyone qualified and BEEN APPROVED for Obama's mortgage loan modification?

Just curious, I should hear from my lender in 30 or so days... we certainly qualify for it.

Answer: My niece in Florida is doing a modification under this plan. The bank is going to modify her mortgage from the $235,000 purchase price to current appraisal which is about 119,000. All she has to do is pay $775 for the next three months, (her original payment was close to $1900), and they will modify it for her. She got scammed by her real estate agent, who was trying to short sale her house to a relative. She told my niece she had to move out of the property, which she did Jan 2008. She just got a call a couple weeks ago from the agent saying she couldn't sell the house and her contract was up.

My niece called her mortgage company, who was surprise my niece was not longer living in the house, and they were the ones who told her the agent was trying to short sale to a relative (of the agent) who couldn't get financing. They told her move back in, get the utilities back on in her name and make the three monthly payments of $775.

The realtor also attempted to get a low ball appraisal on the house by dumping cola on the carpets in two of the bedrooms, removing and hiding a kitchen cabinet door and the linen closet door and removing all the faucets in the house.

I told her she should report the agent to the Board of Realtors.

Newest Mortgage Loan Modification HUGE NEWS