Upside Down Mortgage

Archive for August, 2009

Chase Loan Modification Phone Number

Short sale foreclosure involves property that has been returned to the bank as the mortgagor wasn't able to maintain their loan payments. The lender takes possession of the property and is responsible for its care till it is sold.

Currently, banks are holding a large number of non-performing loans. The amount of money received from the Fed. Treasury is predicated on lenders' performance.

By law, banks are only permitted to hold a certain number of foreclosed properties. With the consistent in-flow of mortgage defaults, many lenders are fast approaching their quota. Short sales give banks the chance to liquidate property inventory.

Short selling a property could be a saving grace for borrowers unable to refinance or get a loan modification. The method sometimes takes between four and six months to complete, but permits debtors to walk away without owing additional funds.

An exception is when lenders issue deficiency judgments. When 2 or more mortgages are concerned, this amount can be staggering.

Multiple fiscal results happen when deficiency judgments are issues. Borrowers may have to engage in months of phone calls and problem if the court does not report the judgment paid.

Deficiency judgments can prevent borrowers from getting credit of any sort for several years. Debtors have tiny chance of qualifying for another mortgage while the judgment is attached. It affects all levels of credit worthiness and can take a whole life to recover from the financial fallout.

Borrowers should negotiate for Payment in Full without Pursuit of Deficiency Judgment. This legally-binding agreement states the bank accepts the sale price as payment in full and won't chase the borrower for the difference.

However, they aren't not as damaging as foreclosure or bankruptcy. If borrowers can get back on track financially, they can sign up for another mortgage loan within two years.

However, borrowers can expect to provide mountains of financial documentation to prove they are financially insolvent.

Most mortgage lenders need borrowers to have a professional buyer lined up before debating about the idea of short selling. Others OK the householder time to list their real estate through a realtor. This window of opportunity is typically two to 3 months. Otherwise, the bank will initiate foreclosure proceedings.

A tip for locating a buyer for short sale foreclosure property is to seek out personal speculators or investment groups.
Both borrowers and banks save time and cash selling to financiers. Banks can expedite the transaction because there is no need to find a buyer. Borrowers do not need to spend countless hours worrying how they are going to find a buyer. Financiers benefit because they purchase the property at a reduced price. When correctly built short sales offer a win-win to all parties involved.
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About the Author:

When I found myself in trouble, I knew I needed to do something quick! I'd like to show you what I learned, and how I saved my credit at Homes Short Sale

Article Source: ArticlesBase.com - Pros and Cons of Selling Short Sale Foreclosure Real Estate

The Survival Game

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Mortgage Modification Eligibility

The recession has caused huge number of home owners struggle to pay their monthly payments and also face the foreclosure. This problem can be overcome by making use of the loan modification process. Most of the people think that this process is a bit tedious one and time consuming. But it is not so as it can be done in an easier way under guidance.

Now, let us see the criteria’s that are required to avail the home loan modification.

The first and the most important criteria is that the house where you are living should be the one on which you should take the mortgage loan.  The loan will be rejected if the loan is taken for a house which is given for rental or lease. The second criterion is that the loan modification will get applied only to loans where the monthly payment is higher than the 31% of monthly income.

The third is the unpaid principle of the loan should be less than $ 7, 29,750 and the date of the loan origination should be before Jan 1, 2009. The fourth criterion is that the today’s value of the mortgaged property is less than the mortgaged amount.

In addition to the above criteria, the mortgage lender require some more information such as the principal balance on the mortgage loan, the ratio of principal, interest, taxes and insurance.  If the values you have mentioned matches with the criteria specified by the lender, you might get considered for the same.

Mortgage modification loan is not a loan by itself but it is just a modification to your existing mortgage loan.  The modified terms will help you in reduced and affordable monthly payments.

Once you become eligible for the loan modification, you will have to enter the required information (financial data) in the application form and submit it for further process. Tax returns, pay slips and the bank statements are the mostly requested financial data. You should also write a hardship letter explaining the events that caused you to become unable to pay the mortgage loan and make sure to mention the hardship situation such as lay off, injury, death of a spouse, divorce/separation and illness.

This Mortgage modification loan program is applicable only for an American citizen who is able to prove his/her financial difficulty.  By taking part in this program you will only have to pay 38% of your gross monthly income out of which 7% will be paid by the government.  In addition, the interest rate will be reduced by 2% and $1000 from your principal will be paid by the government every year.

About the Author:

Mortgage modification loan is not a loan by itself but it is just a modification to your existing mortgage loan. Visit out website Mortgage-modification-loan.org to know more about mortgage and criteria required to obtain it.

Article Source: ArticlesBase.com - Criteria required for mortgage modification loan

Who Qualifies For a Loan (Mortgage Modification)

Gmac Mortgage Modification Success

Just recently the U.S. Treasury Department has approved six new lenders to its Home Affordable loan modification program. Under the terms of this agreement's loan modification rules, these six banks and lending institutions may now process applications for loan modifications. They may now participate in the subsidy program offered by the federal government and get the incentive payments that both lenders and homeowners are eligible for. Having been approved, these organizations will now be looking for qualified homeowners for whom they can modify a loan. Check to see if your lender is on the approved list of institutions that can offer modifications under this plan.

The Obama administration is trying to add any lending banks that wish to participate in its new program. The government, which is offering almost $9 billion in incentive payments to both banks and homeowners who successfully negotiate a loan modification, is hoping that most lenders will participate in its program. Every qualified loan modification means the lending institution receives an upfront payment. Homeowners who are able to keep their modified payments up to date will receive $1,000 a year for up to five years as a bonus. This Home Affordable plan will give successful applicants an interest rate as low as 2% for up to 40 years. The first six lenders have been approved and they are:

1. Saxon Mortgage

2. Wells Fargo Services -- Wells Fargo and Wachovia

3. Citimortgage -- Citibank mortgages

4. Chase -- J.P. Morgan Chase, EMC., and Washington Mutual

5. Select Portfolio Mortgage

6. GMAC

There are many large banks that offer mortgages that have not yet been approved to offer this plan. Bank of America, which owns Countrywide Bank and controls 20% of American home mortgage loans, has not yet been approved but is currently undergoing the approval process. It is thought that they will be able to start offering loan modifications through the Home Affordable Plan any time now. Mortgage holders who are thinking of applying for a modification should start gathering information, getting their paperwork in order, and begin filling in their applications so they will be ready to move forward when Bank of America is approved.

Anther company that will soon be ready to get final approval is Ocwen Financial Corp. which has already started taking applications from homeowners seeking loan modifications under the Home Affordable Plan. Again, borrowers interested in applying should start getting ready now so things will move faster when they are approved.

If you bank has not yet been approved to offer Home Affordable Plan home loan modifications, keep checking with them and in the meantime, get your paperwork ready so once they do get approved, you will not experience any delay. This is the relief homeowners need and have been seeking. Now is the right time to take the steps needed to complete your loan modification application so you will have the best possible chances for getting approved.
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 - 6 Lenders Recently Approved For Obama's Federal Home Affordable and Loan Modification Plan