The loan modification plans have been around for a while and are a sustainable answer to financial challenges. However, they are becoming more prominently known at the moment thanks to the Making Home Affordable Act, an initiative by President Obama. In addition, new guidelines and regulations have made the process simpler and more favourable and have enabled more borrowers to qualify. It's well worth taking a close look at your options in regard to Home Loan Modification Hardship Assistance.

Putting off doing something about your current financial troubles will achieve nothing. The best thing you can do is to make an appointment to see a specialist financial counsellor, who will assess your personal circumstances. Doing so before the problems spiral out of control assures you the most options. There are a number of loan advisors now who are not charging for an initial consultation (although of course, some do still charge a fee for this). HUD-Approved non profit organisations are another option, from where you can attain financial advice without paying a single dollar. By means of supply and demand, there are now more loan modification companies than ever.

There are positive and negatives to both free services and the premium paid ones too. You may find that you require legal services at some point and so it is worth considering this when you select your service. If there is an option to select a service with an attorney, this could be hugely helpful in attaining your loan modification.

Any premium service for which you pay comes with risks. Opportunist scammers are active in this arena, having seen just how many people are seeking out this type of service. Research various services, check their standing with the Better Business Bureau as well as their company history and reputation.

Start at the beginning! By this I mean arrange to see the advisor and ensure that you take all relevant financial documentation with you. The professional will be able to advise you this way according to your own circumstances, on the best steps to take.

If he or she advises that you may be best suited to the loan modification plan, the next step will be to write a Loan Modification Hardship Letter. Again, your advisor will be able to give you more information and guidance on this, but in essence this letter should explain to your lender why you are facing the problems you are facing, whether it be sudden unemployment, a family bereavement, medical bills etc. Be straightforward in your wording with the letter. Do not withhold any necessary information and ensure that you supply documents to verify what your letter states. A loan modification company should guide you gradually through the process of writing the letter and will forward it to your lender, as well as assisting where any problems or questions arise.

To learn more about getting assistance from Home Loan Modification program for your home payment, visit http://www.mortgage-modification-loan.org/loan-modification-top-10-questions where you'll find this and much more, including how to apply for a home loan modification with success.

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The recession has had a severely detrimental effect on the property market, with house prices crashing dramatically. Because of job loss and an ever growing unemployment rate, millions of people are finding themselves in financial hardship and unable to meet their monthly mortgage payments. These are circumstances that individuals have, unfortunately, very little control over. And for that reason, Obama's Loan Modification Plan was introduced to help.

Obama's Loan Modification plan has the major selling point of being as attractive for lenders as it is to borrowers. By offering cash incentives to lenders allowing their customers to modify their existing loans, more and more lending institutions were prepared to partake. In order to qualify for said incentives, lenders must complete a successful loan modification and the homeowner will also qualify for an incentive by making the payments on time each month. Because such modifications lead to a depletion in the overall profits of the lenders, the incentives are offered to ensure they do not lose out.

As soon as someone applies for loan modification under Obama's mortgage modification plan, they will be eligible to extend the period of time over which they will repay their loan to up to 40 years. In addition, the lender might offer to reduce interest rates, cut the principal and organise for the monthly payment to be shrunk to a size that is manageable and affordable for the borrower. The mortgage rate offered is fixed (as opposed to the adjustable and unpredictable rate often offered with traditional refinancing). This leads to the homeowner being able to make a monthly payment, avoid arrears and ultimately to avoid foreclosure. Eliminating foreclosure is beneficial to both borrower and lender alike.

Obama's mortgage modification plan is a lifeline to the millions of homeowners left in dire straits as a result of the global recession and subsequent job losses. Instead of losing profits to a crashing housing market, lenders have found that with incentives from this program, it is much more favourable for them to negotiate loans with borrowers. As such, this program looks like it might be a real potential solution to the problem of increasing foreclosures.

To learn more about getting assistance from Obama's Mortgage Modification Plan for your home payment, visit http://www.mortgage-modification-loan.org/loan-modification-top-10-questions where you'll find this and much more, including how to apply for a home loan modification with success.

Article Source: http://EzineArticles.com/?expert=Jennifer_Hayes

There is a significant difference between a pre-approval and a pre-qualification. If you're in the market to purchase a home - and now is a perfect time with industry low mortgage rates and an $8,000 federal tax credit for first-time home buyers - you should contact a licensed mortgage broker as soon as possible to get pre-approved.

A pre-qualification is simply a letter issued to a borrower who is interested in purchasing a home. This pre-qualification letter indicates the size of a mortgage loan that you can manage to pay on a monthly basis, which is a determination based on monthly income and any outstanding recurring debt. Even if a pre-qualification letter is issued, it must not be mistaken for a commitment to lend. The pre-qualification letter simply indicates to a seller that you are financially qualified to make an offer on a home.

A pre-approval is a level above a pre-qualification letter. A pre-approval includes the verification of employment, credit history, down payment, etc. Once this information is validated, the mortgage application is submitted to a credit officer (underwriter) to make a final decision. Once approved by an underwriter, a pre-approval certificate (commitment to lend) is issued. This commitment to lend allows for borrowers to close very quickly once a home is found. When a borrower has a commitment from a lender, it can drastically improve the negotiation of a sales price with a seller since it is as close as a borrower can get to actually having the cash in hand to pay for a home.

Robert Hyder, Total Mortgage Services, LLC
326 West Main Street, Milford, CT 06460
Phone: 203.876.2200 Fax: 203.783.5632
http://www.totalmortgage.com
Twitter: http://twitter.com/totalmortgage

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Due to the abrupt economic crisis faced by the world, the mortgage industry has also suffered much which led to many finding it a daunting task to find a good mortgage. To buy a house is one of the biggest dreams of anyone in their lives and along with this, to select the right mortgage is highly crucial. Here are some essential tips to aid you in achieving to possess your dream home and an ideal mortgage even in the middle of these tough financial times.

• It is very important to do your research thoroughly. You may be surprised to know that there are lots of good mortgage brokers out there who can come up with a fitted mortgage plan for your needs. You can always check out what the Internet has to offer to help you in exploring your options and have a comprehensive understanding of what all this is all about.

• You have to take a closer look at the mortgage fees so that you would understand everything about it right down to the last detail. You must know how to compute on your own the percentages of the interest fees along with the rest of the other costs.

• Make your lender feel secure by giving bigger deposits, ideally around twenty five percent of the mortgage total. The bigger the deposit, the more you can gain the trust of your lender.

• Maintain a clean rating record. This is very important especially during these difficult times of financial crisis. The worse your credit rating report is, the less likely you can end up with an ideal mortgage deal and plan. Hence, even before you start looking for a mortgage deal, check first the standing of your credit rating. It is never too late to patch them up and try to clean them again.

• There are various kinds of mortgage types available, especially categorized according to the payment scheme. Thus, choose the type of mortgage that you would be comfortable with.

• Settle for the kind of financing that will make you feel at ease and won't add up to your stress. The fixed rate mortgage option is especially preferred by those in search of better security and payment guarantees for the given set of time.

• Take advantage of over payments especially during times when interests are low. This method can even help in adding up interest to your money so it would help if you would take the time to understand its policy well.

• When it comes to applying for mortgage, it is still true that honesty is the best policy. Once you lie about your credit background, your chances of acquiring the mortgage you want will certainly be lessened.

• Take all the time to read what's stated on the application form before you commit to the mortgage you are trying to look at.

For more information about real estate deals, you can check out Gilbert Affordable Homes or visit Equestrian Property in Gilbert for some latest news and trends on the mortgage industry.

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