Mortgage loan modification sanctioning is dependent on a quite a few elements but the key ingredient that could make a difference between a successful loan deployment and a refusal is a mortgage modification hardship letter. What is a Mortgage Modification Hardship Letter?In a nutshell, a mortgage modification hardship letter is a detailed document that clearly indicates a borrowers financial standing and causes which are compelling a borrower...more
Companies, that help renegotiate the original terms of a loan between a lender and the borrower, are known as loan modification companies. The primary function of a loan modification company is to provide advice, services and resources to the borrower which would enable him or her to acquire best terms possible for their loan modification. What Do Loan Modification Companies Do?A very valid question that arises here is why to consult a loan...more
Considering the way economies are unpredictable and keep fluctuating, a time comes when almost every individual requires seeking a loan. The definition of loan according to dictionary is a monetary deal between lender and borrower, where lender allocates specific amount of money for the borrower and expects full repayment. In some cases, when the borrower is unable to make the repayment as per the original terms and conditions, loan modification is brought into action which means application of specific terms and conditions outside the initial agreement. These terms and conditions are designed in such way that it benefits the borrower and makes it easy to make the repayment.There are various types of loan modification that are applicable depending upon the magnitude of difficulty the borrower is facing. These modifications are levied with mutual consent of the lender and the borrower. Given below are some of most common types of Loan modifications:Loan Modification By Reduction In Interest When a lender lends money to the borrower, it expects a full repayment of the original amount that was loaned, plus some extra payment which is called interest. The ratio of interest is either...more
What is the basic purpose of loans, in context to the prevailing circumstances? Well, loans provide financial relief, which then enables you to fulfil all your priorities and demands. Now, depending on your need and requirement, you can avail these loans. If suppose, you have lost your job and is now unemployed, it tends to get...more
When a borrower falls behind with his mortgage payments to the lender, he or she may opt to apply for mortgage modification. In a nutshell, mortgage modification is a name given to a collection of relaxations that lender bestows upon the borrower considering the circumstances which are keeping the borrower from making the payments. But, not all...more
Anyone who has even a modicum of understanding about the current financial affairs knows the condition of countrys economy. Almost all financial sectors have been hit badly by this economic crunch and mortgage industry is no exception. According to an independent analysis, there are estimated to be seven to eight million borrowers or home owners who are on the brink of foreclosure. To avert this impending situation, President Barak Obamas government in liaison with the treasury department has announced Home Affordable Modification Program or HAMP for short. The program has been introduced as a voluntary service meaning financial institutions which deal in home mortgage have the choice of signing up voluntarily and offer this program to their existing borrowers or customers. Until now, over 110 key lenders such as banks, service credit unions etc have already signed up. The program has certain predetermined criteria which need to be met by the borrower to qualify for benefiting from it; these eligibility rules also contain certain verification requirements that need to be fulfilled.First step for a borrower to undertake for benefiting from this program is to ascertain whether the...more
Similar in nature to a small business loan, a merchant loan is working capital a small business owner receives for different purposes that will need to be repaid within a six to 8 month duration depending on how much financing is received. Merchant...more
Running out of cash in the mid of the month is not a new situation for salaried people. They usually face this situation where they have to pay some urgent bills next day and do not have money. In these small situations, instant payday...more
Survival of people on benefit is very difficult in the present economical atmosphere. A large segment of people on benefit are old aged so there is high chance of getting into monetary problems due to their medial reasons. So they can...more
Generally, asset are of utmost important while availing a loan. The borrowers pledges these asset of theirs as security against the loaned amount. Hence, the risk involved is reduced or shifted to the borrower. Similarly, absence of the...more
There are many different types of mortgages. A balloon mortgage is different from a 30 year fixed mortgage. With a balloon mortgage the payments are calculated the same way as with a fixed mortgage, but the actual payoff date is much sooner than 30...more
Unsecured loans are money which is not secured against any collateral or security. Generally, lenders give the cash to borrowers on the basis of contract and trust. All banks, lenders, financial institutions, and building societies...more