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What You Need to Know About Loan Modification

How would you like to cut your home loan repayments by 10%, 20% or even in half? Then you might wish to think about asking your own lender for a loan modification. Naturally, modifying and changing a current home loan isn’t for everybody. It can come with some serious consequences. However in case you are among the countless American families nowadays not able to make those monthly payments, it really is certainly a choice to think about. Perhaps you’ve noticed the phrase loan modification, however, you are not exactly certain what it actually involves. In its simplest form, home loan modification is really a permanent and long term change to your own loan contract designed to reduce your payments down because of some kind of long-term financial or economic crisis you have personally experienced. See our article "Do Not Confuse Loan Modification with Re-financing".

There are many ways a home loan could be modified within a loan modification: 
 
1. Through extending the life of the financial loan. 
Let’s say that you might be 5 years into a 25 year home loan and you also all of a sudden become disabled or handicapped. Perhaps you have sufficient income to keep the property so long as you may reduce your monthly payments. Your own lender might be agreeable to extending that twenty five year financial loan to something like 30, 35 or 40-year term to get all those payments low enough that you can afford to pay. 
 
2. Through lowering your rate of interest. 
Adjustable (ARM) subprime rate loans have gotten many people in to trouble in recent years. Because rates of interest skyrocketed, so did their own payments, leaving behind many not able to keep up and maintain making payments. Increasingly more loan companies are actually recognizing the advantage of providing} these property owners a reduced long term interest rate to keep all of them within their houses and up-to-date with their payments. 
 
3. Forgiving late or missed payments, fines and interest. 
In case you are among those property owners who fell behind on your home loan repayments as a result of work loss, just to find that the actual fines, interest and late fees had been adding up quicker than you could pay all of them once you got back on your financial feet, you might be eligible for forgiveness of these addition fees via a loan modification. 
 
4. A partial financial loan forgiveness. 
It is not so common, however sometimes the loan companies will forgive or reduce some of the borrower’s financial loan when they think the home owner will keep their own account current to prevent foreclosure. Naturally, the actual various kinds of financial loan modifications available is just the first step in the procedure.
 
Here are some other things you might think about when looking for this kind of home loan assist: 
 
  • Whether your own loan meets their criteria for modification. During the past, just loans made by the original mortgage company qualified for modification. This rule is actually slowly changing. Thus making this choice accessible to more borrowers than in the past. Nevertheless, you will find stringent qualifications with regard to loan modification therefore check with and seek advice from your own lender to see if a person can even be eligible. 
  • You will find absolutely no laws requiring a loan provider to provide a loan modification, assistance or support, regardless of the circumstances. Authorization is under the sole discretion of the loan provider. Nobody can make them get it done. 
  • Loan Modifications are much easier to obtain compared to refinancing or even a new financial loans. Based on the loan provider, the procedure could be easier, including much less paperwork and documentation and financial info. A few do not even need the  regular income/debt ratios to be met, so long as you can prove that you could manage the brand new payment. 
  • Financial loan modifications aren't brand new loans! They are a change for an current loan. 
  • However, there are a few small fees necessary for a loan modification, absolutely no standard closing costs related to the mortgage apply. Since you had better determine what financial loan modifications are regarding, you may be much better ready to negotiate one on your own. 
 
If you cannot get a loan modification, if not able to make those monthly payments and you have to resolve the problem quickly, I recommend a sell house fast option. BLu Horizon Real Estate Solutions, which operates in the Kansas City area, Overland Park, Kansas and Olathe, Kansas, has a quick sell system where they can purchase your house in 5 days. 
 
There are many reasons why a home owner would want to sell a house fast. Job change, relocation, debt problems, foreclosure, getting married, divorce and inheritance are just a few.  
 
Here are our advantages:
  • We will pay cash.
  • We will settle quickly. 
  • There will be no fees or commissions to be paid to a real estate agent. 
  • We will have no contingencies for any type of inspections.
  • We will buy your house in its as is condition. 
  • You will not need to do any repairs. 
  • We will make you an offer and we will handle the paperwork ready to go. 
 
Go here to get more information about selling your house fast, at Blu Horizon Real Estate Solutions,  http://blu-res.com/seller-welcome.htm


Do Not Confuse Loan Modification with Re-financing

Do not confuse a Loan Modification along with Re-financing! There are a great number of various mortgage terms being tossed around nowadays, with loan modification as well as loan re-financing becoming a pair of the most popular. If you are after a method to cut your home loan repayments, you might be thinking about one of these simple 2 choices. However wait! It is vital that you to know the actual differences and variations between them to avoid and prevent getting into another mortgage loab mess. 

Loan Modification versus Re-financing:

It may be simple to confuse a loan re-finance along with a loan modification, particularly since the two are made to reduce your present loan payment, however there are several essential differences to think about prior to trying to get either: 
 
  1. Re-financing a home loan needs you to definitely re-apply for a brand new loan. Were as a loan modification does not. Modifying your present home loan is merely a method to improve your present mortgage loan agreement by requesting either an extension of the financial loan terms and conditions; an interest rate decrease; or even principle forgiveness, to assist you achieve a payment amount you are able to live with. Because many people having to reduced their payments nowadays usually do not qualify for a brand new financial loan, re-financing might not be a choice.
  2. Because you currently hold a home loan, loan modification guidelines really are much more lax than re-financing a home loan, which makes it easier to make a deal with new terms and conditions. 
  3. There exists a great deal less paperwork and documents associated with a loan modification than the usual home loan re-financing. Keep in mind all that paperwork you had to complete when you applied for your original home loan? In case you re-finance you will need to fill out and resubmit every thing again! Based on the loan provider, loan modification might not request your work pay slip! 
  4. Re-financing a home loan nowadays is actually difficult! It might sound crazy to consider it is simpler to obtain a loan modified than to obtain a totally new home loan, but however it actually is. Re-financing your present home loan will need you to have equity in your home; a stable income; along with a excellent (if not great) credit score. 
In case you are among the countless property owners at this time researching ways to reduced their month-to-month loan payment amount because of monetary tension and stress, a loan modification could be the better choice.
 
If you can not obtain a loan modification or re-financing and you need to sell your house fast, I would like you to consider our quick sell method. Our company, Blu Horizon Real Estate Solutions has a quick sell method, where we can buy your home in a few days. We buy and sell houses in the Kansas City, Overland Park and Olathe areas. 
 
There are many reasons why a home owner would want to sell a house fast. Job change, relocation, debt problems, foreclosure, getting married, divorce and inheritance are just a few.  
 
Here are our advantages:
  • We will pay cash.
  • We will settle quickly. 
  • There will be no fees or commissions to be paid to a real estate agent. 
  • We will have no contingencies for any type of inspections.
  • We will buy your house in its as is condition. 
  • You will not need to do any repairs. 
  • We will make you an offer and we will handle the paperwork ready to go. 
Go here to get more information about selling your house fast, at Blu Horizon Real Estate Solutions,  http://blu-res.com/seller-welcome.htm.
 

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