Let's talk about qualifying. When we obtained the loan we fit the guidelines. We had minimum credit scores, we either had a down payment or not, we had the required FICO score and debt to income ratio (50-55%). So, what's the problem? Some smart people at the bank (those who gave us those crazy loan programs in the first place) or perhaps politicians decided that they'd try a 6 month forbearance agreement first (don't worry I'll get to why a forbearance agreement is crazier than crazy) and, to set the qualifying debt to income ratios at 31-38%. Now doesn't that make sense! When is the last time wage earners have been given a 20% raise? How about modifying our loan at a lower rate hence a lower payment for 3 -5 years until we can get back on our feet monetarily and mentally? It seems to me that Investors would rather have some money coming in rather than take it in the shorts. Unfortunately, my thoughts are probably too simple. I am not taking into account all the special incentives banks get, the write-offs, the responsibility they have to their Investors to show profitable balance sheets.
Loan modification or mortgage modification is restructuring payment terms set on a loan. Restructuring could mean paying lower interest rates and going through extended payment periods. At face value, many would wonder about its practicality given that you pay longer than expected. The true value, however, lies at a person's payment capability and underlying financial implications. While there are people who complete loan payments successfully, there are those who may need the restructuring to maintain status quo. Circumstances such as high interest rates that could have played a role in the original loan are possible factors for the need to change. For example, current loan interest rates offered two years ago ran up to 5%, while current ones run only at 2.5%; the discrepancy is a big one and this is why you may want to pay better interest rates as soon as the opportunity becomes available.
Having a competent attorney at your side will help ease the restructuring process. The attorney will be your official representative to the lending company or bank. It will be the loans modifications attorney's job to find a way to connect with the right person and have you paying more affordable rates sooner. Acquiring help means no more calling the bank or lending company on your own. No more getting the run around when it comes to meeting loan officials. What you get instead is a qualified mortgage modification attorney that has your best interest in mind. In case the bank or lending firm suddenly wants to change any deal in the arrangement, your attorney can scrutinize the change and inform you about its advantage or possible drawback.
Now I suppose I should be fair. Many people bought homes that they couldn't afford in the first place. They were kinda enabled. Many people have lost their job, and a loans modifications would not make sense. So, what to do and what not to do? Do not do nothing! If you are upside down then a short sale will stop the collection calls, your credit will not be hit as drastically (you can buy again in 2-3 years), employers doing back-ground checks will look more favorably, and more importantly while your home is in the short sale process you can save money to move and catch your breath.
Take the necessary time to be properly prepared before you begin the loan modification process. After all, this is your precious home that you are trying to save. You will discover that once you become familiar with the ins and outs of this process, you will be able to determine whether or not this program is suited to you.
Loan modification or mortgage modification is restructuring payment terms set on a loan. Restructuring could mean paying lower interest rates and going through extended payment periods. At face value, many would wonder about its practicality given that you pay longer than expected. The true value, however, lies at a person's payment capability and underlying financial implications. While there are people who complete loan payments successfully, there are those who may need the restructuring to maintain status quo. Circumstances such as high interest rates that could have played a role in the original loan are possible factors for the need to change. For example, current loan interest rates offered two years ago ran up to 5%, while current ones run only at 2.5%; the discrepancy is a big one and this is why you may want to pay better interest rates as soon as the opportunity becomes available.
Having a competent attorney at your side will help ease the restructuring process. The attorney will be your official representative to the lending company or bank. It will be the loans modifications attorney's job to find a way to connect with the right person and have you paying more affordable rates sooner. Acquiring help means no more calling the bank or lending company on your own. No more getting the run around when it comes to meeting loan officials. What you get instead is a qualified mortgage modification attorney that has your best interest in mind. In case the bank or lending firm suddenly wants to change any deal in the arrangement, your attorney can scrutinize the change and inform you about its advantage or possible drawback.
Now I suppose I should be fair. Many people bought homes that they couldn't afford in the first place. They were kinda enabled. Many people have lost their job, and a loans modifications would not make sense. So, what to do and what not to do? Do not do nothing! If you are upside down then a short sale will stop the collection calls, your credit will not be hit as drastically (you can buy again in 2-3 years), employers doing back-ground checks will look more favorably, and more importantly while your home is in the short sale process you can save money to move and catch your breath.
Take the necessary time to be properly prepared before you begin the loan modification process. After all, this is your precious home that you are trying to save. You will discover that once you become familiar with the ins and outs of this process, you will be able to determine whether or not this program is suited to you.
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