There are many options to face financial crisis especially for homeowners. Yes, you cannot take a cash advance for the full amount of your available credit, but you can borrow payday loans on an approved amount. Then you have loan modification to deal with mortgage debts too.
Foreclosure is a choice……so is a loan modification. You don’t have to lose your home. Avoid foreclosure with a loan modification and keep the house you worked so hard to acquire. Our goal is to help families affected by the current crisis, stabilize, recover and prosper once again as soon as possible.
Why a loan modification?
President Obama made a commitment to help the over 9 million homeowners facing financial difficulties in this crisis afford their home. A loan modification offers numerous benefits and prevents foreclosure. You can
- lower your interest rate ( as low as 2% )
- fix your adjustable rate for 30 years
- waive your negatively accrued interest
- re-amortize your loan to include past due payments
- reduce your monthly payments and/or loan balance
- and most importantly KEEP YOUR HOME
What is a loan modification?
A loan modification is the process of modifying the terms of your existing loan in order to establish a payment agreement commensurate with your current financial abilities. A modification is very helpful to those in financial hardship.
Do you qualify?
If you are experiencing financial difficulties and would like to remain in your home as a primary residence, you may qualify. If you
- are behind on your mortgage payments
- have an adjustable rate mortgage
- have lost a spouse’s income
- have been laid off or earn less than you did when you purchase your home
- have a notice of default or foreclosure filed against your property
So, if you (1) want to keep your home as a primary residence, (2) have suffered a hardship, and (3) have a household income to make the payments on a modified loan, you may be eligible for a loan modification.
Given the current state of the US economy, the Obama administration has established a program that will help homeowners in financial hardship, restructure their loans and obtain a payment that they can afford. Lenders now have an incentive to modify the loans that have a great risk of default due to the borrower’s financial situation. A copy of the guidelines under which the lenders will grant a modification has been enclosed in this package. Please take the time to review these guidelines.
The fact is that your lender in under no obligation to grant you a loan modification. After all, you have a binding contract with your lender and an obligation to repay the debt you acquired to purchase your home under the terms of your current note. Under the circumstances, adopting a litigious posture or threatening your lender with a suit will only make getting your modification take long or require legal counsel and even more expenses.
In negotiating your modification, we strongly suggest that you follow these general rules whenever you are dealing with your lender.
- Patience .When contacting you lender via phone, you may be on hold for quite a while and may end up dealing with a representative who might not seem willing to assist you. Please be patient and remain calm throughout the process;
- Politeness. Your lender is most likely dealing with a multitude of modification requests and the representative you will speak with will probably have a dozen cases on his/her pipeline. Certainly, some borrowers have, under these circumstances, not been very kind to these representatives. We advise that you be courteous and respectful to the representative. They have a very stressful work environment and being rude may cause some delay or even hurt your chances;
- Honesty. Be honest at all times. The program is design to help borrows who need assistance. Falsifying or misrepresenting the information that you provide your lender may negate your eligibility for a modification and even lead to criminal prosecution.
- Follow up. A loan modification can take up to 90 days. Remember to follow up on a regular basis to make sure no additional information is needed from you. Inquire about the turn around time on your modification. Do not harass the representatives but follow up at least 2-4 times a month. Additionally, make sure to submit a complete package, since most lenders will not review incomplete requests. We also encourage you to submit a physical request via certified mail – if acceptable by your lender, and fax the entire package to the loss mitigation department;
- Be Persistent. Obtaining a loan modification can take longer than you anticipated and the process can be tiresome. Do not succumb to the frustration and give up- Your home is at stake and is worth the work.