Homeowners that find themselves facing difficult economic times are apt to make rash decisions, but it’s important for consumers to understand that they need to take their time when dealing with something as drastic as a foreclosure proceeding.

Many struggling individuals must choose between filing bankruptcy and pursuing some type of home loan modification program and it is important to compare and contrast the two options. An excellent way to compare these is to understand the different impacts they will pose on a credit rating and other long term effects.

Aurora Lillo Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“aIt is critical that consumers realize that a bankruptcy is not going to stop legal filings, rather it will simply delay the inevitable and allow an individual to procrastinate. There simply is no way that going bankrupt is going to provide freedom from a mortgage. The majority of individuals who opt for this method of dealing with the problem mistakenly believe that they might get to keep their home, and the unfortunate truth is that the entire process will only allow them to stay a little bit longer. A mortgage loan mod, on the other hand, is a more permanent solution and will help a person make arrangements to keep their residence by designing a monthly payment that is easier to afford given the current financial circumstancesa”

Another major difference between bankruptcy and a home loan modification is the impact to a credit score and financial history. The negative effects of seeking total relief from all outstanding obligations is going to exist for seven to ten years and will make it very difficult to obtain new loans or apply for credit in the future. Modifying a mortgage will not cause the same harm to a person’s credit rating and can actually help build a foundation for the consumer to rebuild their solid financial picture upon. Future lenders are not going to treat individuals that have pursued some sort of loan modifying program in the same way as individuals that have taken the easy way out.

“aFew people want to lose their home and have to move, so it only makes sense that consumers should contact a professional to seek advice. When dealing with something as important as living arrangements and credit standings, it should not be a guessing game. Bankruptcy is a drastic measure that will have severe repercussions, but a home loan modification could be the answer to a struggling homeowner’s prayersa” added A. Lillo.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

Are you finding it harder and harder each month to make your mortgage payments? Are you worried about losing your house through foreclosure? There is an answer, your loan insurance company in conjunction with you lender determine when and if you can begin to seek a loan modification. A Chase Bank Home Loan Modification may be just what you need.

Before starting any process, you must find out who insures your loan. Lots of homeowners don’t know who this is, since they have never needed to know this. You can simply call Chase Bank to find out. If your insurer is Fannie Mae or Freddie Mac, you probably qualify for a government initiative, the President’s $75 Million Homeowner Stability Initiative. This program, which works with borrowers and lenders, will reduce your mortgage payment to just 31% of your monthly before tax income.

There are, of course, some conditions:

* You must be an owner-occupant

* Your debt must be no higher than $729,750

* Your mortgage must be initiated prior to 2009

* You have to be paying more than 31% of your gross income

* Your loan cannot have been modified before

If you need some help getting back on your feet financially and you think you might be eligible, consult with a financial counsellor. This President’s plan was initiated to help both borrowers and lenders get financial relief. These loan modifications will give borrowers a better rate than the one they are getting through their bank.

If you loan is not insured through Fannie Mae or Freddie Mac, you still have alternatives. Chase Bank offers its own loan modifications. Before accepting foreclosure, investigate this option. Again there are conditions similar to the government program. The only difference is there is no cap on the debt left on your mortgage and your payments may be has high as 40% of your gross income. The monthly payments will be higher since there is no government financing. If you qualify, Chase will request you send a complete application package that includes your tax returns, pay stubs, bank statement and a financial statement along with a hardship letter.

Either way, through the government program or through Chase bank, a loan modification is a much better alternative than a foreclosure since you will be able to keep your house and not damage your credit rating.

Should you be struggling to pay your mortgage, see if you are eligible for the government or Chase Bank home loan modification program.

The number one thought on many of my clients mind is: “What is aHardship Letter” and what am I supposed to write in it”? I am a 35 year veteran of the Real Estate and Mortgage Industries. My work as a consultant has changed dramatically in the last 3 years. The normal information people were looking for before 2007 was related to buying or building homes, getting mortgages, and finding good interest rates.

But, today everything is different. We have moved a mile to the other end of the spectrum. First we watched the “mortgage meltdown”, watched in horror as millions of families lost their jobs to the economy and then their homes to foreclosure. These circumstances placed the Lenders into fragile positions as they took on too many foreclosed homes. Today, as Lenders and politicians see that the economy is endangered by the mass of foreclosures, we see a concerted effort to “save” homes from foreclosures.

If you are facing foreclosure, then you have probably received letters from your Lender demanding you catch up all of your back payments or lose your home. This payment of all past due money is actually a process called reinstatement. If you pay up all of your past due payments, your are current.

But, what if you don’t have the cash to catch up? It is really silly to try to try to force someone who is several months behind in their payments, to come up with the money to get current immediately. If there are employment or income issues, illness, or bad mortgages that caused you to get behind, then how can you come up with a lot of cash? Your credit has probably been damaged and you can’t possibly get a refinance on your home.

There is a way. It is called aHome Loan Modification and there are hundreds of thousands of them being done all over the country. The Modification process is a way of changing the terms of your loan to lower your interest rate; lower your payment; put your back payments back into your loan, so that you can pay them back over time. You can also fix your interest rate, so that your payment can never be raised again. If you have one of the “bad” Adjustable Rate Mortgages (ARM) your interest rate will be lowered and will remain the same through the term of your loan. This is called a Fixed Interest Rate.

To get aHome Loan Modification, you must apply for it. To put together anapplication for a Modificationyou start with aHardship Letter. TheHardship Letter is a letter that explains the circumstances that caused you to get behind in your payments, and why your current circumstances would allow you to make payments if you could be given a more affordable payment to make. This is the first item needed for aLoan Modification,it is the introduction to the application, so to speak. But, it is just the first step.

TheHardship Letter must be carefully thought out. You can be turned down if it paints to bright of a picture of your financial condition. You can also be turned down if the letter shows your situation to be too bad. It can be best to have a mortgage expert in modifications help you with it.

It is also best to remember that although theHardship Letter is a very important part of aHome Loan Modification, it is still only one part of a complicated application. AHardship Letter willNOT get you aHome Loan Modification. There is a great deal more.

First you mustStop Your Foreclosure and make sure it is absolutely postponed or suspended long enough to give your time to get your Modification Application submitted and accepted by the correct department at your Lender. Customer Service at your Lender can’t do this and won’t do it.

Next you will need to supply the necessary documents to support everything that you have said in yourHardship Letter. If you leave something out, or supply conflicting information you can beDENIED.

It is true that you can put together an application yourself. But, if you make a mistake and are denied, it is much more difficult to get your Lender to look at the situation the 2nd time.

During your modification period, it is very likely that you will not make any monthly payments. This period could last from 60 days to a year, depending on which Lender you owe. You could be saving this money for when your payments begin again if you are smart.

Most Lawyers and Modification Professional Companies charge $2500 to $4500 to help you with your modification. In the author box below, you will see that it can cost less than to get the right help than you think.

Danny Hammond is a Real Estate Broker; Home Builder; and Mortgage Broker. He works as a consultant helping families keep their homes out of foreclosure and getting affordable payments. He is now referring clients to TOTAL FINANCIAL SOLUTIONS, which is a company that specializes in helping you throughout your foreclosure process. While they do charge a fee, it could be as low as $499 which is probably far less than your current monthly payment on your house. They can save you more than they cost! If your situation requires it, you can divide this cost into payments.

Let TOTAL FINANCIAL SOLUTIONS help you with your application the first time. But, if you have been denied, theyare the very best at putting together the best 2nd application.

Contact TOTAL FINANCIAL SOLUTIONS at:http://www.mortgagepaymentmodifications.com

Email:mortgagesolutionstoday@gmail.com

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If you have reviewed the “Obama Plan” and find that you can’t qualify for their loan modfication plan, your next phone call should be to me. The loan modifications we get are not limited to the guidelines of the “Obama plan.” Not to mention, the government is not giving you a Forensic Loan Audit as part of their Mortgage Modification but at
www.2ModMyLoan.com we do.

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Part 5 (Excerpt)

The Loss Mitigation Department at the Bank is not on your side

Welcome back once again my guest Brett Fallon, Brett is a regular guest on the show, he is a registered financial consultant with RG Capitol and AIG Financial Advisors Brett W Fallon welcome back to the show.

It is nice to have the financial advisors perspective on some of these things so many people dont have a financial advisor so for thousands and thousands of people listening right now you are their only option for that, financial advisory services are typically not for the masses but again you are here to help and your services are available to quite a number of people you actually work with fortune 500 companies is that correct?

Yes, I do a number of workshops for fortune 500 companies that are headquartered here around the valley, the idea is to help people create efficiency with all assets, understanding that their home and home mortgage is typically the largest asset that most Americans have and if you are not treating that with efficiency, the retirement accounts and investments accounts, and all the other stuff has to work in concert, so Im happy to weigh in with information and give you my viewpoints and my perspective.

We were talking just a few moments ago about utilizing an expert negotiator when trying to do a loan modification, people are getting mail from bogus service sources, we have already covered that, but from their servicers saying if you need help with your mortgage, help is here, give us a call. Im certainly not going to tell everyone in the world that they cant do their own loan modification because some people are qualified to negotiate on their own behalf, though in my opinion they will still be emotionally attached to it and if they hear something that sounds good, it may be enough for them to essentially bite at the offer which is exactly what the loss mitigation department wants you to do.

It goes back to the disinterested third party, that expert negotiator, negotiator being the key word in that phrase. One of the things we were talking about and I want to make sure that we address this especially in this segment, we are talking about loan modification of mortgages of people that have some financial constraints, some pressure whatever the source of pain is, for them knowing that this option exists to take an existing mortgage loan and modify it to their best or better interest, from what it currently is, so who should and who should not do a loan modification, lets start with that.

Ill tell you and lets start with people who shouldnt do a loan modification. Someone who thinks their interest rate is too high and owes more than the house is worth, feels that they are entitled to a loan modification, is not really a good enough reason or a hard enough hardship for those types of people unfortunately. This is essentially a handout that is being offered because of some of the malpractices, if you will, that were happening within the mortgage industry over the last several years.

With these big huge banks offering these products that were teaser loans, toxic mortgages, as we call them now. We certainly didnt call them that then when the consumer calls me up and says I want that 1% loan thats going to be my ticket. Unfortunately people took theses loans but what they didnt realize is that someday this loan with the ridiculously low interest was going to reset and their payment was going to quadruple and who on earth could have known that the economic times would be as bad as they are and they would have no option to get out of these loans.

So someone who simply finds themselves upside down on their home, owing more on the house than the actual value of the house, does not necessarily need to consider a loan modification. No they may not qualify on those merits alone in most cases.

I just want to make a point, I was reading an article in the wall Street Journal about this stuff and basically the gist of the article was that the average foreclosure on any property in the United States costs the lender $50, 000 from start to finish…

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