Loan Mortgage Modifications Advice
If you are behind on your mortgage payments or are struggling to stay current on your loan payments, you may have considered refinancing your loan. However, if you have been turned down for a refinancing, and your home is worth less then you owe on it, you may be able to modify your loan. Below are several tips to successfully modify your existing loan, even if you do not have good credit.
Prepare a detailed document listing all of your income, assets and debts both secured and unsecured. More specifically, you should list out any income from wages, investments, social security, etc. You should also list any assets you have, such as investments, stocks, bonds, money in any checking or savings account, 401K, and fair market value of any additional real estate. You should list out all secured debts, such as 1st and 2nd mortgages, car loans, and any credit cards that use property as collateral, such as jewelry. Finally, you should list your home expenses, such as utilities, credit card bills, educational expenses and any other monthly expense that you incur. Draft a short hardship letter. Every loan modification has a story behind it. You need to tell the most compelling story as to why you can not stay current with your mortgage, or why you need to modify the loan to enable you to conduct some other life necessity. Prepare all of your financial documents such as: two years of tax returns, six months of bank statements, three months of pay stubs, Proof of home insurance. Form your negotiation strategy You want the bank to believe it is in their interest to modify the loan. As such, you want to remind the bank that you do want to remain in the home, but should no modification be entered into, you may have to file bankruptcy and force the lender to foreclose on your home, thereby incurring all of the legal fees and financial losses of selling your home in a depressed market. Always ask for more then you expect or want (It never hurts to ask) You want to leave room to negotiate to your eventual goal Typically start at 70% of your goal. When forming your offer, make sure you have thrown in a few items, you do not need, but can use a bargaining chips by taking them off the table. When the bank makes their first offer, you want to counter without emotion. For example you can say “let me see if that number will work for me, I need to run my numbers and get back to you with in 48 hours. I will need to speak to my attorney or broker first.” As discussed earlier, when negotiating with a bank, you may want to imply that should the loan modification or short sale not work out at the walk away price, the bank will end up taking the property and incur all the foreclosure sale fees involved. This is especially important in a depressed market, where it is unlikely the bank will recoup their return on investment. Banks do not want to owe properties in this market.
If after talking with your lender you have not received the results that you need, please feel free to contact our law office.
By: Michael A. Goldstein
About the Author:
This article was drafted by the Law Office of Goldstein and Clegg, LLC, a debt relief agency and Massachusetts bankruptcy law firm.
Desktop Property Finders – The Pros and Cons of Buying One Today
If you are looking for a new home, a place to rent (even a storage shed), if you are looking for tenants for your rentals, or if you are a realtor looking to help or increase your client base, a desktop property finder can be of great assistance to you. As you can gather from the name, it is an application that you install on your computer. Its main purpose is to help you find properties that are listed for sale or for rent online. But what about that desktop format? What are the pros and cons of these types of applications?
The Pros
Fewer Searches: You need to perform a search with a desktop application that lets you search for properties. However, these applications enable you to search across the internet; one search has you searching thousands of MLS sites, realtor sites, rental sites, foreclosure sites, classified sites, and more. With a desktop application, one search does it all. If you weren’t to use a property finder installed on your computer, you would need to visit each site one at a time and perform the same search over and over and over again!
Great Features: Before we focus on features, it is important to note that you will find a number of applications that qualify as property finders. What this means is that you might find a variance on the features offered. With that said, it is common to find extra search filters to deliver targeted results, editable and sortable search results lists, in-program or email alerts of new properties, easy email replies, customizable notes, and more. If you are someone looking for a place to live or a location to rent, these extra features can save you time and money. If you are looking for clients for your rental business or real estate business, these extra features can save you time and increase your earnings.
The Costs: Wait a minute! The cost is a plus side? Yes, it is in most cases. Despite the fact that most desktop program do cost money, you’ll find the cost to be very affordable. Moreover, it is important to focus on the time saved and the results produced. You get the same results you would if you search all the hundreds of property sites individually; you just get those results in minutes instead of hours or days! So lets say you are interested in buying your dream home, the ability to quickly search and setup email alerts, might mean you get an offer in before someone else! This makes the cost, well worth it.
The Cons
Which One: Honestly, the main downside to opting for desktop property finders is that you have a number of programs to choose from. You might sit there for a few minutes wondering “which one is best?” This will be the hardest decision you need to make, the rest is easy from here on out. Luckily, all good desktop property finders come with a free trial. This enables you to try before you buy.
By: Adnan Masood
About the Author:
As you can see, there are both pros and cons to using a desktop property finder. Would you like to see for yourself? If so, click here to start your free Property Finder trial today.
