Ryan Andrews asked:


Most people have no idea what loan modification is or what a mortgage loan modification agreement can do to help save your home from foreclosure.  If you are getting calls and letters from your bank about mortgage payments you may want to consider help.  Dealing with banks when you are going through a financial hardship can be a very scary and stressful ordeal, especially with forclosure and the possible loss of your home looming.

Going through a mortgage loan modification process and developing a workable modification agreement can be a time consuming and stressful process, that you should not have to deal with alone.  Most people do not have an attorney they can turn to, but it is critical that you want an advocate working for you that speaks the banks’ language, but represents your best interests.

If you are late on your mortgage payments, enduring a financial hardship or just lost your job, a mortgage loan modification may be an option that you.  CLICK HERE to check out mortgage loan modification services in your area.

Consider All of Your Loan Modification Services – You Have Options

Many loan modification specialists offer a variety of modification services as well as other credit related options.  A loan modification specialist can also help you with a forensic loan audit, refinance or short sale if it’s determined that a mortgage loan modification agreement is not the way to go for you. A loan modification company can offer you options beyond loan modification services that may be what you need to overcome your financial hardship.

Loan modification allows homeowners and lenders to change the terms of a loan in order to help the borrower stay in the home and avoid foreclosure. It is important to note that a loan modification is not a new mortgage. A loan modification is the renegotiation of an existing loan.

With a loan modification, it’s possible that a homeowner’s:

* interest rate may be decreased

* interest rate may be changed from an adjustable to a fixed rate

* time the borrower has to pay the loan back can be lengthened

* loan principal may be decreased

* late fees may be waived

* second mortgage could be waived or wiped off of the books

The First Step to Protecting Your Home

The first step to see if a Mortgage Loan Modification Agreement is the right course of action for you is to have your financial situation evaluated by a loan modification specialist.  This is going to require sharing your financial situation and information with them so they can evaluate if a modification agreement is the best course of action.

To see if mortgage loan modification is a viable option for you then just CLICK HERE to get more information about your options and talk talk to a loan modification specialist to evaluate your situation, before it is to late.



Darlene

Paul Ritchie asked:


In the last two years, the popularity of reverse mortgages has grown enormously.I was looking at some Australian statistics yesterday and in Australia, almost $900 million worth of loans written in 2008.

The trend in Australia follows huge success that lenders have had with the concept in both the UK and USA..The trend is set to continue as more retirees become cash poor.

The way a reverse mortgage works is quite simple

The loan once established requires no payments to be made by the retiree until one of the following events happens.

 1. The borrower sells the property

 2. The borrower(s) decide to move into an aged care facility

 3. The borrowers pass away.

 Why is there a need for Reverse Mortgages?

The reverse mortgage concept came about because of the amount of cash poor retirees having to sell the homes to live. Most of these people owned or had very significant equity in their principal residence but were quite cash poor.

The best part about a reverse mortgage is that the borrowers have no restrictions on what they use the money for. Whether they want to use the money to travel or give their grandchildren money for university they have choice.

The truth is that if someone needs a reverse mortgage it is mainly because of insufficient funds to live without regular income. Some would say they have not allocated their money well enough.

In truth their can be so many reasons that a retiree needs to consider a reverse mortgage including health reasons that called for an early retirement.

 

How does the concept Work?

Although a reverse mortgage usually requires no payments to be made the debt becomes payable by beneficiaries of the mortgage holders. Often the children of the retirees that have taken out the reverse mortgage will take one of two options when the property is sold or due to be paid out.

1. Sell the property and pay the loan back in full.

2. Keep the property and the debt and elect to make interest only payments. This is effectively turning their willed asset into an investment property.

During the loan fees, charges, and interest are payable by having a deduction from their monthly income stream, or adding them to the loan.

The reverse mortgage concept has become so popular that most major lenders in the UK, USA and Australia have calculators specifically to calculate these types of loans.

 

Are there any restrictions with Reverse Mortgages?

One of the calculations that lenders use takes into consideration the borrowers age and the ratio between the loan value and the properties value.

When working out what the maximum lend on a reverse mortgage can be the age of the youngest borrower is one of the key considerations.

The Inheritance Factor

The best thing for anyone to do if they are considering a reverse mortgage is to have talks with a registered accountant and a lawyer. The main point of discussion will often be the inheritance issue.

As the retirees will be borrowing, against their homes value the amount of equity they have in the home can decrease quite dramatically.

There is absolutely no question reverse mortgages are increasing in popularity and that lenders should offer this loan product. The most crucial thing is that the lenders never take advantage of a client’s age or situation



Adam

Colin Kidd asked:


A lot of us have heard the words Debt Consolidation but are confused about what they mean exactly and how a Debt Consoludation Loan might help. In today’s world, with many of us struggling with paying high interest rates on our debts, such as mortgages, credit card, store cards, car leases and various other kinds of loans, it just takes one unexpected event in life like an illness or an accident for debts to start spiraling out of control and put extreme financial pressure on an individual and their family. Hence it is essential for you to know what your options are and how a Debt Consolidation Loan might be able to help, especially if your situation is so bad that it has had a negative affect on your credit rating.

So what is a Debt Consolidation Loan? To put it simply, it’s a special type of loan that allows you to convert or consolidate all your loans into one single loan. It involves combining all your debts and loans, whether you are up-to-date with payments or not, into one loan with a lower overall monthly (or fortnightly) repayment. A common circumstance is if a person falls sick and cannot work leaving their not so important loans like credit cards go into default. Just defaulting for one or two months is bad enough but if you let these defaults run up to 3 or 4 months or above, it is nearly impossible to catch up. Once you are in this situation, your credit rating will be affected and most traditional lenders would most likely refuse to loan you money. Repayment history being the single most important factor in deciding lending or refinancing potential.

Let us take a real life example which could happen to anyone:

David was a fully employed office worker in his mid-thirties on a salary package which comfortably supported his day to day expenses and that of his family including his month mortage payments on the family’s home, car loans and minimum payments on his credit cards. Unexpectedly he developed a gall bladder problem which caused him to lose control of his bowels. Because of the nature of his condition, he was forced to take six months off work for treatment until he was fully recovered.

During this six month period with no income coming in, the family was forced to pay for their daily living expenses with credit cards. David was not in a position to pay his loans and defaulted on his mortgage and car loans.

His loans looked like the following:-

Mortgage: $202,000 at $1550pcm

Credit Card: $22,000 at $660pcm – Also in default with debt agreement to pay $10,000 to close account.

Car Loan 1: $13,000 at $390pcm (3 months behind)

Car Loan 2: $29,000 at $900pcm (3 months behind)

The critical things to consider in this situation were:

- Bank was ready to foreclose on his home and both car loans

- Credit card company was willing to take 10k to close the account.

- Home Value: $330,000

- Total Loans: $ 254,000

- Current repayments: $3500

Upon his recovery, David assessed his situation and realised that it was impossible for him to try and pay off all his defaulted loan repayments, credit cards as well as interest and penalities etc associated with each of his loans. After being refused loans from a number of possible lenders and being faced with the possibilty of losing his family home, David was advised by a close friend to approach a debt consolidation specialist.

Having looked at David’s loan particulars and record, the debt consolidation expert worked out the following deal for him:

Refinance all Davids loans into one facility.

Loan: $254,000

Repayment: $2438

David reduced his outgoings by nearly $1000 per month, but best of all now has all the lenders off his back. He is now able to put the past in the past and move forward.

Debt Consolidation Loans are saving various families like David’s from losing everything they have worked hard for. It is hence imperative that if you are in a similar situation to know how a Debt Consolidation Loan could help you. Consult a Debt Consolidation specialist to get expert guidance on consolidating all your debts into one single debt for your future financial well being.



Elmer