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Archive by category 'Loan Modification' (Page 5)
Written by: Timothy McFarlin | Publish date: July 20th, 2010
A hardship letter is a letter prepared by a borrower who has requested a loan modification from their lender. The letter is part of a loan modification application and allows borrowers the chance to explain to their lender, in their own words and outside of any standard forms, the circumstances of their financial hardship, the reason a loan modification will help, and how the borrower expects to stay out of debt if issued the loan modification. There is no real standard format that must be used when writing a hardship letter, but it is generally agreed that the letter should be [...]
Written by: Timothy McFarlin | Publish date: July 14th, 2010
A government loan modification allows borrowers to apply for a loan modification with the assistance of the federal government. The words “government loan modification” have become synonymous with President Obama’s Home Affordable Modification Program, or HAMP. For the residential loan borrower facing foreclosure, a government loan modification holds many benefits. Before continuing, it is important to remember that government loan modification assistance is only available for residential loans. There is currently no program sponsored by the federal government that is meant to offer loan modification assistance to individuals who hold commercial business loans. The assistance provided by the federal government [...]
Written by: Timothy McFarlin | Publish date: July 14th, 2010
Offering an all inclusive guide to the loan modification laws in each state would take too long to write and would be too difficult to keep updated. Since the housing crisis is still relatively young and since there has never been so much scrutiny on the lending industry, new laws are constantly being put into effect in state after state designed to regulate one practice of lenders or another. Some states, like California, have laws that can best be described as “consumer friendly”, meaning that large corporations like lending institutions have to meet certain requirements before taking drastic actions against [...]
Written by: Timothy McFarlin | Publish date: July 13th, 2010
A loan modification is an agreement between two parties to a contract. If both parties agree to modify a loan, equity or no equity, the loan may be modified. Equity is the amount of money that remains when the amount of money remaining on a loan is subtracted from the value of the property. If the resulting number is a positive number, then the home has equity equal to the result. If the resulting number is negative, then the home is said to have no equity. In most cases, a lender will not use the presence of equity to determine [...]
Written by: Timothy McFarlin | Publish date: July 13th, 2010
A loan modification allows a borrower to make lower monthly mortgage payments by agreeing to a modification of original loan terms. The idea of a loan modification is to allow homeowners struggling to make their payments every month an opportunity to catch up on their loan and recover from their hardship. Since a loan modification is typically used to help homeowners who don’t make enough money to cover their mortgage payments every month, many wonder why can you get turned down for a loan modification if you don’t make enough money. The answer to the question is simple: because the [...]
Written by: Timothy McFarlin | Publish date: July 13th, 2010
A loan modification is nothing more than an agreement between two parties to modify the terms of an original contract. In the case of a mortgage loan modification, the contract in question is a mortgage contract. Since the agreement is between two private entities, the borrower and the lender, the terms of the contract may be modified as many times as both parties are willing to agree to. Since the answer to the question “can you get more than one modification on a mortgage loan” is yes, many borrowers have some hope if they are trying to save their home [...]
Written by: Timothy McFarlin | Publish date: July 8th, 2010
This commercial loan modification guide is only meant to serve as a general overview of the commercial loan modification process. The interested borrower should consult an experienced foreclosure attorney for more information specific to their circumstances. The commercial loan modification is one of the few options that borrowers have to avoid foreclosure on their commercial loans. Other options include a short sale or deed in lieu, but these options require the owner to give up ownership of their property, which causes many people to avoid this option. A loan modification is an agreement between borrower and lender to modify the [...]
Written by: Timothy McFarlin | Publish date: July 8th, 2010
Commercial loan lenders are in the business to make money. Unlike residential mortgages, commercial loans do not currently qualify for any type of government assistance programs, which means that commercial loan lenders do not receive any incentives to modify commercial loans. Even though modification has historically been shown to be more profitable than foreclosure, lenders continue to choose foreclosure over modification in order to cut their losses. When a commercial loan borrower faces foreclosure, they may find that representatives of their lender do not have as much knowledge about the modification process as they should. Whether intentional or not, the [...]
Written by: Timothy McFarlin | Publish date: July 8th, 2010
Commercial building loans are loans issued to borrowers for the purchase of a property that will mainly be used to conduct business. Many people invest in commercial property because established businesses have a much easier time of paying their rent than residential tenants of other property buildings. Sometimes, when tenant businesses fail to pay their rent on time, the building owner is left with a diminished capacity to pay their monthly loan bills. Lenders don’t typically concern themselves with the financial problems of tenant businesses; all they care about is how the borrower intends to pay them, leaving the borrower [...]
Written by: Timothy McFarlin | Publish date: July 7th, 2010
A rent roll is a commercial property owner’s rental record that indicates who is current with their rent and who is not. Maintaining good rent rolls for commercial building loans is very important for the borrower because this information will be used by lenders to determine the borrower’s eligibility for loan assistance programs like loan modification, short sale, or deed in lieu. When a commercial property owner begins to have trouble making their minimum monthly payments to their lender they can face foreclosure of the loan and the loss of the property that was used as collateral against the loan. [...]
