Myths About Home Loan Modification

The home loan modification process, like most processes in dealing with finances to buy or sell a house, can be far too complicated and confusing for the average American. While there are a series of available loan modification companies that can help you through the ordeal, we’ve provided you with a few commonly believed myths in loan modification.

1) You do not have to be late on your mortgage payments in order to receive loan modification help. However, you will more than likely receive greater attention and assistance from your loan modification company if you are already struggling.

Some borrowers believe if they aren’t late on pay, they won’t be able to get a modification. And while it no doubt is much more difficult, it is in no way, shape, or form impossible.

2) Some companies claim they can acquire principle reductions for borrowers who are already in the red and own more than the actual cost of the home. In fact, some companies claim they do this on a regular basis. This occurs EXTREMELY rarely, if ever, and any loan modification companies who claim to do this on the reg are trying to sell you on promises they cannot deliver on.

3) Do NOT believe that lenders are doing everything they possibly can to assist our nation’s financially-pressured homeowners. There simply isn’t enough man power available to help the tens of thousands of homeowners who have been laid off by their employers as a result of the struggling economy.

That is why it’s so important to have a private, third party assist you during your home loan modification process. Banks and lenders aren’t looking out for your best interests, and due to the intense economic conditions this country is currently in, they don’t have the resources to give you the kind of attention you require or deserve.

Self-Employed May Have Harder Time Getting Mortgages

Home loan modification for the self-employed is becoming increasingly difficult. Before and during the recession, stated-income loans were easy to obtain, and the percentage of people liberally declaring their income, especially in light of tax returns, was high. Today, for the self-employed, interest rates are about a quarter percent higher than for the non self-employed.

The way for most self-employed folks to get home loan modification is to provide two years of tax returns. For many, the deductions they submitted on their tax returns lower their official income levels, and make qualifying for a loan trickier.

The best way to get loan modification help is to have a credit score over 700, and have two or more years of reliable income. Easier said than done, especially in the tail end of a recession. Small business owners should do the math before determining what is tax deductible and whether it will benefit them to declare it if they want loan modification help.

Getting home loan modification comes down to work. Providing paperwork and determining whether a few thousand dollar deduction one year will save you more cash than on your loan in the long run, can wind up saving you a lot of money over the course of a few years.

How Your Equity Affects New Loan Chances

Loan modification companies can help you pay less each month for your mortgage. But to pay the lowest amount each month, you have to make sure that the equity that you have in your home doesn’t drop below 20%. If that’s the case, you may even have to buy private mortgage insurance, which can make a new loan even more expensive than an old one.

Even if you want a second mortgage or home equity credit lines, and the equity you have in your home hovers around 20%, this may not bode well. The term for this is Loan to Value ratio, or L.T.V.

If you still want home loan modification, but don’t want to take the risk talking to loan modification companies, gauge the value of your home with Zillow.com, or you can invite a real estate broker to give you an appraisal. If the appraisal is well below what you thought your home would be worth, it’s probably a better idea to wait until the real estate market brightens; but if it hovers near where you thought it would, then you can definitely apply for loan modification help. Visit www.WeFixMortgages.com to qualify for a home mortgages refinance.

Trouble Abroad is Good For Us

The European market is still particularly fragile in today’s economy. Last week, worries about the Greek bailout spurred the Dow Jones to fall to its lowest levels in over a month. While this could eventually be good news for Americans, who, with a stronger dollar will have more potential investments in capital, it can also deter other countries from buying exports in the long run, since they will be more expensive.

Europe has struggled with debt over the past decade, as the goal of an emergent united economy has been let down by countries like Greece, Portugal, Spain, and even Ireland. Today, the world fears a Greek default on bonds, which is why the rest of Europe, backed by the largest economy, Germany, is lending Greece the more than 54 billion euros it needs to stay afloat.

What does all this mean for the American home owner? It’s still a great time for a home loan modification. Loan modification help is easy, especially with interest rates still near record lows. Although signs of life are showing in our economy, there’s still a long way to go, and that means that interest rates will be kept low, and a home loan modification is welcome.

Mortgage Rates Rising Doesn't Mean You Can't Refinance!

Mortgage rates have just reached a 5 month high as the recovery starts to rebound from the recession. It is likely that rates will continue to rise as new data about job growth and increased consumer spending will prop the rates increasingly higher. While high unemployment rates continue to keep the U.S. in a recession, this is the third straight quarter that has shown economic growth. In general, this is a good sign. In order for a full return of the economy, however, employment needs to shy away from 10%. It has hovered there for more than 18 months now. The signs that it will do so are not all aligned.

Even though mortgage rates are at a five month high, don’t let that scare you into not fixing your home loan. In fact, the end of the recession should convince you that now is the perfect time for loan modification help. And if mortgage rates grow, it will be slowly, in line with the GDP of the economy. So, the sooner the better for home mortgages refinance. Home loan modification can help you move from your current payment to a significantly less amount of money each month.

Home Mortgages Refinance: How to Qualify

If you're having trouble making the monthly payments on your home, chances are you've already started looking for loan modification help. This is a great first step, but the reality is that not every homeowner can qualify for a home loan modification.

To see if you qualify to receive loan modification help, consider the questions below.

How long have you lived in your house?
Home loan modifications can only be made 12 months after the start of a loan.

Who lives in your house? Do you have more than one mortgage?
It's OK to have a boarder, but it's not OK to apply for a home loan modification for a house you don't live in. Loan modification help is designed to help people stay in their homes, not to cushion investors. Similarly, modification help is not available for vacation houses or other supplementary homes.

Have you experienced hardship?
Hardship might seem like a difficult thing to measure, but you will need to provide an explanation of how you got behind on your payments. This could be losing your job, having to take care of a sick family member, or a variety of other circumstances.

Will you be able to afford your new payments?
Although home mortgages refinance to lower your monthly payments, your lender will still require proof of income to ensure that you will be able to afford your new payments.

Let Us Handle Your Home Loan Modification

There’s a certain appeal in trying to do something on your own, be it changing a tire or installing new kitchen cabinets. But when you attempt such tasks without adequate experience, it can mean hours of wasted time without any tangible results. Negotiating a home loan modification works the same way – if you try to handle a loan modification without professional help, it’s easy to wind up over your head.

At www.WeFixMortgages.com, our experts have the skills and training necessary to help you avoid foreclosure and save hundreds of dollars a month on scheduled payments – just look at our success stories. We’ll examine your debt, present the available options, and help you chose the most favorable course of action.

Best of all, there is no risk in seeking professional loan modification help. We use an escrow service to protect our clients and will fully refund your deposit if we are unable to secure a loan modification. Plus, We Fix Mortgages offers free consultations, so that you can explore your options without any commitment or risk.