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How to Reduce Your IRS Tax Debt

Individuals struggling with finances have to deal with paying their taxes, among the other things they spend on. However, taxpayers simply cannot ignore their taxes as the IRS will always be there to remind them of their debts. If they plan to run away from the IRS, they cannot do that too as the IRS is good at tracking down debtors.

So, what are taxpayers with delinquent taxes to do in these financially hard-up times?

There are several ways to reduce one’s IRS tax debt.

First, employing the help of a CPA or a tax lawyer to help in analyzing the taxpayer’s situation and coming up with the best game plan to reduce the individual’s Internal Revenue Service (IRS) tax debt is a great starting point. These tax professionals can give sound advice on how to reduce your tax debt and they are more equipped with the knowledge on how to deal with the IRS. If a taxpayer indeed has severe back tax debts, then a tax professional can deal with the figures and come up with the best solution to get rid of the tax debt.

Second, still with the help of a tax professional, a harassed taxpayer can resort to an offer-in-compromise. This common solution to IRS tax debt allows the taxpayer to pay the back taxes for less than the actual amount he is expected to pay. However, this way of reducing tax debt is tricky and somewhat arduous as a taxpayer has to convince the IRS that he has no way of paying the tax debt or the tax debt isn’t exactly his, as observed in people who get divorced. However, individuals who do succeed in an offer-in-compromise are usually old, sick, or poor. So, delinquent taxpayers who are young and healthy and still have several long years of productivity surely won’t succeed with an offer in compromise. However, if the IRS does not accept the taxpayer’s offer-in-compromise for the said reasons, then he can look for another way to reduce his tax debt.

Third, an installment agreement is the way to go when the offer-in-compromise fails. This installment agreement involves the delinquent taxpayer (ideally represented by a tax professional) and the IRS. This route involves the taxpayer paying the total tax debt plus interest and penalties in small installments every month. This somehow lightens the tax debt as the taxpayer can pay his back debts through installments which can be made within three years, as opposed to paying the full amount right then and there. Money which would otherwise be spent entirely on paying off back tax debts can be used for other bare necessities.

Fourth, a taxpayer can try to convince the IRS to get rid of the interest and penalties that have accumulated as a result of the tax debt. This is still a way to reduce tax debt though this would require that the taxpayer be in really dire monetary circumstances and really cannot pay back the full amount. An individual who is bankrupt or who has a severe medical condition can take this course and can fall under the “currently not collectible” category. But just like the other ways, it is best to seek the assistance of a tax professional. Taxpayers enjoy the benefits of the taxes they pay. However, when they fail to pay the taxes that are due, then they may suffer consequences. To make sure that taxpayers do not fall into too much trouble with IRS tax debts, they have to manage their resources and make sure that they pay the exact amount when filing of taxes comes around. This ensures that they do not amass a huge amount of IRS tax debts that can lead them to more problems.

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How To Reduce Your Mortgage Payments, Stop Foreclosure And Get A Loan Modification #calculate #home


#mortgage modifications

#

Loan Modification is the most effective tool you can use if you are facing a financial hardship and are having a difficult time making your mortgage payments. When successfully negotiated, your loan is restructured so that is more affordable and will fit your budget. This is accomplished by either reducing the interest rate, reducing the principal balance or a combination of both. The terms of your loan can also be increased, from say 30 years to 40. In addition, if you have any late fees they can also usually be waived or added on to the loan balance – a home saver if you are a couple months behind and would not be able to come up with the money!

The bottom line – a good mortgage modification will allow you to afford your mortgage payments and help you avoid foreclosure.

Can you do this yourself?

Sometimes! BUT, do you want the best results possible? You have to realize that your lenders loss mitigation departments are trained to get the most money out of you that they can. You cannot just call them and expect to get the lowest interest rate possible! (Contrary to popular belief, this is 1%, not 2%).

Many homeowners have successfully negotiated their own terms, but you must understand that there is a ton of work involved. In addition to preparing the huge stack of paperwork you need to send into the bank, you must also diligently follow up with the bank on a weekly basis. You must also be prepared to continuously send in the same paperwork over and over again (I.E. your last 2 months bank statements, current tax returns, etc.) as your lender will likely lose it. Anyone who has worked on a loan mod can vouch for this.

Lenders are so backed up with files right now, even if you do make through the mess and get a mod approved on your own, chances are it won’t be as good as if you hired an experienced modification company/attorney to negotiate for you. But, if you are willing to do it yourself, just be prepared for all the work that is involved. It’s like having a part time job.

When To Consider Getting Help

On the other hand, there are many professionals who have worked extensively with various lenders and know what the process entails, how the system works and how to get you a payment that is going to help you. By this, I mean an agreement between you and the bank that actually lowers your monthly payments so you can comfortably afford them. Many mods end up with homeowners having to pay higher mortgage payments than before (as is the case when an interest only loan goes to a 5% interest loan) and that really isn’t going to help someone who is struggling to make the current payments, is it?

When you use a loan modification company to negotiate on your behalf, you will have to pay a fee. However, often times this fee will pay for itself in your mortgage payment savings over just a few months time. Negotiators also know how to put a complete packet together according to your lenders guidelines to speed up the process. Remember, time is of the essence! PLUS, these companies can perform these services before you pay any fees. so there is no risk to you. This is due to the recent law changes by the government to stop companies from charging upfront fees before a loan mod has been completed (accepted by the lender).

To learn if you are a candidate for a modification. what payment changes you can expect, how long it will take and more just call toll free 888-766-3693.

Many times, the companies we have reviewed can help you even if you have been denied loss mitigation help in the past. Especially, if you were denied trying to do it yourself. More often than not, homeowners just call up their lenders and say they need lower payments. They are transferred to the loss mitigation department and are asked a series of questions… one wrong move here and you are denied. That’s why it’s very important to go over all your financial information and make sure it fits into the guidelines before you contact your lender for help.

Be careful! There are many scammers out their trying to prey on the misfortune of others. Don’t let this be you. Can you imagine paying a company to do your loan mod and then finding out months later that they did nothing and you are losing your home. This happened much more frequently in the past then currently (2012), but it can still happen.

We have compiled a short list of reputable mortgage loan modification companies that have completed many successful mods on the homeowners behalf and can show you examples of these as well. This is crucial when choosing the right company. Do you want a “specialist” who has attempted a couple loan mods out of their apartment or a reputable company who has hundreds or even thousands of homeowners? Call and ask them for examples from your specific lender! See what they have obtained for others in your situation so you can know roughly what to expect. Every situation is different, but this should give you an idea of what to expect. The calculator to your right can also tell you what to expect and if you are a good candidate for these programs .

A reputable company will pre-qualify you before they take you on as a client. They know what the lenders require and will only take on clients they can help.They can guide you in the right direction if these programs are not going to be a good fit for you.

All of the companies we have reviewed can provide you with information on their business, i.e. their credentials and referrals from previous clients. The companies who use attorneys can also give you information on them so you can do research and make an informed decision. Just ask them!

Special Note: Beware of TV and radio ads for mortgage modification. Many times, these are just generic ads run by lead generation companies. They route your calls to whoever pays them for leads, so who knows who you will talk to when you call! The sites we reviewed are maintained by the actual companies and only they will call you back. You WILL NOT get bombarded with 15 phone calls from 15 different companies if you fill out their contact forms like other websites out there!

Here are the latest loan modification companies we have reviewed:

As with any important decision, it is always best to speak to with different parties and get each ones individual opinion and advice. We recommend you contact these companies and ask them questions you have prepared about your specific situation.

To See If You Qualify For A Mortgage Loan Modification, Call 866-766-3693 to speak with an experienced modification counselor or fill out the form below to see if you are a candidate for a loan modification.


Mortgage Home Loan Modifications – Settlements – Reduce Your Payments #standard #mortgage


#mortgage modifications

#

Mortgage Loan Modifications and Settlements – Affording Your Home

Over the past several years, the recession has triggered an explosion of mortgage defaults, propelling an unimaginable number of houses into foreclosure. In fact, since 2007, more than 4 million U.S. homes have been foreclosed upon, and the number is expected to continue climbing.

Before a bank can foreclose on a home, its owner must be in default on his or her mortgage payments for a period of 60 days or more. At times, refinancing a home is the primary option. Another one for homeowners facing foreclosure is to attempt to have the terms of the mortgage modified.

Mortgage Loan Modification Makes Homes More Affordable

With mortgage modification, the goal is to convince the lender to renegotiate the agreement in order to make the mortgage payments affordable again. That way, the borrower can remain in his or her home.

The advantage to the lender is that the loan will generate some reimbursement and it will not have to spend the effort, time and money to foreclose. It is estimated that a bank loses an average of $60,000 every time it forecloses on a home.

A loan modification includes one or more of the following:
  • A reduction in the interest rate, a change in how it is computed, or a conversion from a variable to a fixed rate .
  • A reduction in the principal. This is sometimes referred to as mortgage settlement.
  • A reduction of late fees and penalties for nonpayment.
  • A reduction in the monthly payment.
  • Forbearance, which allows a homeowner to temporarily stop making payments, temporarily make smaller payments, or extend the time for making payments.

Many times, borrowers are able to work directly with their lenders to modify their mortgage. During the height of the real estate collapse, however, many lenders were unwilling to work with distressed homeowners wishing to modify their loan agreements. In addition, because so many mortgages had been sold, it was often difficult to determine who owned, or was empowered to modify the terms of, a particular mortgage.

Creation of HAMP

In 2009, the U.S. Treasury Department, in collaboration with banks, loan-service providers, credit unions and various federal departments, formed the Home Affordable Modification Program (HAMP). The program’s aim was to get struggling homeowners together with their lenders, in order to renegotiate their loans and prevent foreclosures.

Most conventional loans, including prime, sub-prime and adjustable-rate loans, are eligible for modification under HAMP. Servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate; other lenders have a choice. More than 100 major lenders have signed onto the program, which is set to expire in December 2013. By November 2011, 751,000 HAMP modifications had been made, and another 910,000 HAMP modifications had been started.

To apply for a modification under HAMP, a borrower must:
  • Be the owner-occupant of a one-to-four-unit home.
  • Be current, at risk of imminent default, behind in mortgage payments, or in foreclosure or bankruptcy.
  • Have a mortgage that was originated on or before Jan. 1, 2009.
  • Have a monthly housing payment (including mortgage, taxes, insurance and homeowners association dues) greater than 31 percent of monthly gross income.
  • Have financial hardship that can be documented.

Participating servicers under HAMP are required to modify all eligible loans to reduce monthly payments to no more than 31 percent of a homeowner’s gross monthly income. To do so, a servicer will reduce the loan’s interest rate to as low as 2 percent and may extend the term of the loan up to 40 years. Finally, a servicer can defer a portion of the principal amount owed, or forgive part of the principal.

Before a loan can be officially modified, the homeowner must make on-time payments over the course of a three-month trial period. Homeowners who qualify for a permanent modification under HAMP are not required to pay a modification fee or pay past-due late fees.

Government Settlement Helps Homeowners

A $25 billion legal settlement between the government, and 49 states and five of the nation’s largest banks is providing more help for struggling homeowners.

The settlement came over charges of systemic and widespread mortgage fraud. The five banks — Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — handle payments on more than half of the nation’s almost 60 million home loans.

In addition to mandating comprehensive reform measures relating to mortgage servicing practices, terms of the agreement include the following payments from the banks:
  • $10 billion for reducing principal for borrowers who are delinquent or at imminent risk of default and are underwater (owe more than their homes are worth).
  • $3 billion for refinancing loans for homeowners current on their mortgages and underwater.
  • $7 billion for other kinds of assistance, including forbearance of principal for unemployed borrowers, anti-blight programs and short sales.
  • $1.5 billion for payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and who meet other conditions.
  • $3.5 billion to repay public funds lost as a result of servicers misconduct; and to fund housing counselors, legal aid and other public programs.

According to the settlement, servicers must fulfill their obligations within three years.

Also, the deal only applies to privately held mortgages and not to those owned or guaranteed by mortgage giants Fannie Mae and Freddie Mac, which own about half of the nation’s mortgages.

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Mortgage Home Loan Modifications – Settlements – Reduce Your Payments #freedmont #mortgage


#mortgage modifications

#

Mortgage Loan Modifications and Settlements – Affording Your Home

Over the past several years, the recession has triggered an explosion of mortgage defaults, propelling an unimaginable number of houses into foreclosure. In fact, since 2007, more than 4 million U.S. homes have been foreclosed upon, and the number is expected to continue climbing.

Before a bank can foreclose on a home, its owner must be in default on his or her mortgage payments for a period of 60 days or more. At times, refinancing a home is the primary option. Another one for homeowners facing foreclosure is to attempt to have the terms of the mortgage modified.

Mortgage Loan Modification Makes Homes More Affordable

With mortgage modification, the goal is to convince the lender to renegotiate the agreement in order to make the mortgage payments affordable again. That way, the borrower can remain in his or her home.

The advantage to the lender is that the loan will generate some reimbursement and it will not have to spend the effort, time and money to foreclose. It is estimated that a bank loses an average of $60,000 every time it forecloses on a home.

A loan modification includes one or more of the following:
  • A reduction in the interest rate, a change in how it is computed, or a conversion from a variable to a fixed rate .
  • A reduction in the principal. This is sometimes referred to as mortgage settlement.
  • A reduction of late fees and penalties for nonpayment.
  • A reduction in the monthly payment.
  • Forbearance, which allows a homeowner to temporarily stop making payments, temporarily make smaller payments, or extend the time for making payments.

Many times, borrowers are able to work directly with their lenders to modify their mortgage. During the height of the real estate collapse, however, many lenders were unwilling to work with distressed homeowners wishing to modify their loan agreements. In addition, because so many mortgages had been sold, it was often difficult to determine who owned, or was empowered to modify the terms of, a particular mortgage.

Creation of HAMP

In 2009, the U.S. Treasury Department, in collaboration with banks, loan-service providers, credit unions and various federal departments, formed the Home Affordable Modification Program (HAMP). The program’s aim was to get struggling homeowners together with their lenders, in order to renegotiate their loans and prevent foreclosures.

Most conventional loans, including prime, sub-prime and adjustable-rate loans, are eligible for modification under HAMP. Servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate; other lenders have a choice. More than 100 major lenders have signed onto the program, which is set to expire in December 2013. By November 2011, 751,000 HAMP modifications had been made, and another 910,000 HAMP modifications had been started.

To apply for a modification under HAMP, a borrower must:
  • Be the owner-occupant of a one-to-four-unit home.
  • Be current, at risk of imminent default, behind in mortgage payments, or in foreclosure or bankruptcy.
  • Have a mortgage that was originated on or before Jan. 1, 2009.
  • Have a monthly housing payment (including mortgage, taxes, insurance and homeowners association dues) greater than 31 percent of monthly gross income.
  • Have financial hardship that can be documented.

Participating servicers under HAMP are required to modify all eligible loans to reduce monthly payments to no more than 31 percent of a homeowner’s gross monthly income. To do so, a servicer will reduce the loan’s interest rate to as low as 2 percent and may extend the term of the loan up to 40 years. Finally, a servicer can defer a portion of the principal amount owed, or forgive part of the principal.

Before a loan can be officially modified, the homeowner must make on-time payments over the course of a three-month trial period. Homeowners who qualify for a permanent modification under HAMP are not required to pay a modification fee or pay past-due late fees.

Government Settlement Helps Homeowners

A $25 billion legal settlement between the government, and 49 states and five of the nation’s largest banks is providing more help for struggling homeowners.

The settlement came over charges of systemic and widespread mortgage fraud. The five banks — Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — handle payments on more than half of the nation’s almost 60 million home loans.

In addition to mandating comprehensive reform measures relating to mortgage servicing practices, terms of the agreement include the following payments from the banks:
  • $10 billion for reducing principal for borrowers who are delinquent or at imminent risk of default and are underwater (owe more than their homes are worth).
  • $3 billion for refinancing loans for homeowners current on their mortgages and underwater.
  • $7 billion for other kinds of assistance, including forbearance of principal for unemployed borrowers, anti-blight programs and short sales.
  • $1.5 billion for payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and who meet other conditions.
  • $3.5 billion to repay public funds lost as a result of servicers misconduct; and to fund housing counselors, legal aid and other public programs.

According to the settlement, servicers must fulfill their obligations within three years.

Also, the deal only applies to privately held mortgages and not to those owned or guaranteed by mortgage giants Fannie Mae and Freddie Mac, which own about half of the nation’s mortgages.

Share this page:


Mortgage Home Loan Modifications – Settlements – Reduce Your Payments #ameriquest #mortgage


#mortgage modifications

#

Mortgage Loan Modifications and Settlements – Affording Your Home

Over the past several years, the recession has triggered an explosion of mortgage defaults, propelling an unimaginable number of houses into foreclosure. In fact, since 2007, more than 4 million U.S. homes have been foreclosed upon, and the number is expected to continue climbing.

Before a bank can foreclose on a home, its owner must be in default on his or her mortgage payments for a period of 60 days or more. At times, refinancing a home is the primary option. Another one for homeowners facing foreclosure is to attempt to have the terms of the mortgage modified.

Mortgage Loan Modification Makes Homes More Affordable

With mortgage modification, the goal is to convince the lender to renegotiate the agreement in order to make the mortgage payments affordable again. That way, the borrower can remain in his or her home.

The advantage to the lender is that the loan will generate some reimbursement and it will not have to spend the effort, time and money to foreclose. It is estimated that a bank loses an average of $60,000 every time it forecloses on a home.

A loan modification includes one or more of the following:
  • A reduction in the interest rate, a change in how it is computed, or a conversion from a variable to a fixed rate .
  • A reduction in the principal. This is sometimes referred to as mortgage settlement.
  • A reduction of late fees and penalties for nonpayment.
  • A reduction in the monthly payment.
  • Forbearance, which allows a homeowner to temporarily stop making payments, temporarily make smaller payments, or extend the time for making payments.

Many times, borrowers are able to work directly with their lenders to modify their mortgage. During the height of the real estate collapse, however, many lenders were unwilling to work with distressed homeowners wishing to modify their loan agreements. In addition, because so many mortgages had been sold, it was often difficult to determine who owned, or was empowered to modify the terms of, a particular mortgage.

Creation of HAMP

In 2009, the U.S. Treasury Department, in collaboration with banks, loan-service providers, credit unions and various federal departments, formed the Home Affordable Modification Program (HAMP). The program’s aim was to get struggling homeowners together with their lenders, in order to renegotiate their loans and prevent foreclosures.

Most conventional loans, including prime, sub-prime and adjustable-rate loans, are eligible for modification under HAMP. Servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate; other lenders have a choice. More than 100 major lenders have signed onto the program, which is set to expire in December 2013. By November 2011, 751,000 HAMP modifications had been made, and another 910,000 HAMP modifications had been started.

To apply for a modification under HAMP, a borrower must:
  • Be the owner-occupant of a one-to-four-unit home.
  • Be current, at risk of imminent default, behind in mortgage payments, or in foreclosure or bankruptcy.
  • Have a mortgage that was originated on or before Jan. 1, 2009.
  • Have a monthly housing payment (including mortgage, taxes, insurance and homeowners association dues) greater than 31 percent of monthly gross income.
  • Have financial hardship that can be documented.

Participating servicers under HAMP are required to modify all eligible loans to reduce monthly payments to no more than 31 percent of a homeowner’s gross monthly income. To do so, a servicer will reduce the loan’s interest rate to as low as 2 percent and may extend the term of the loan up to 40 years. Finally, a servicer can defer a portion of the principal amount owed, or forgive part of the principal.

Before a loan can be officially modified, the homeowner must make on-time payments over the course of a three-month trial period. Homeowners who qualify for a permanent modification under HAMP are not required to pay a modification fee or pay past-due late fees.

Government Settlement Helps Homeowners

A $25 billion legal settlement between the government, and 49 states and five of the nation’s largest banks is providing more help for struggling homeowners.

The settlement came over charges of systemic and widespread mortgage fraud. The five banks — Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — handle payments on more than half of the nation’s almost 60 million home loans.

In addition to mandating comprehensive reform measures relating to mortgage servicing practices, terms of the agreement include the following payments from the banks:
  • $10 billion for reducing principal for borrowers who are delinquent or at imminent risk of default and are underwater (owe more than their homes are worth).
  • $3 billion for refinancing loans for homeowners current on their mortgages and underwater.
  • $7 billion for other kinds of assistance, including forbearance of principal for unemployed borrowers, anti-blight programs and short sales.
  • $1.5 billion for payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and who meet other conditions.
  • $3.5 billion to repay public funds lost as a result of servicers misconduct; and to fund housing counselors, legal aid and other public programs.

According to the settlement, servicers must fulfill their obligations within three years.

Also, the deal only applies to privately held mortgages and not to those owned or guaranteed by mortgage giants Fannie Mae and Freddie Mac, which own about half of the nation’s mortgages.

Share this page:


Mortgage Home Loan Modifications – Settlements – Reduce Your Payments #loan #calculator #free


#mortgage modifications

#

Mortgage Loan Modifications and Settlements – Affording Your Home

Over the past several years, the recession has triggered an explosion of mortgage defaults, propelling an unimaginable number of houses into foreclosure. In fact, since 2007, more than 4 million U.S. homes have been foreclosed upon, and the number is expected to continue climbing.

Before a bank can foreclose on a home, its owner must be in default on his or her mortgage payments for a period of 60 days or more. At times, refinancing a home is the primary option. Another one for homeowners facing foreclosure is to attempt to have the terms of the mortgage modified.

Mortgage Loan Modification Makes Homes More Affordable

With mortgage modification, the goal is to convince the lender to renegotiate the agreement in order to make the mortgage payments affordable again. That way, the borrower can remain in his or her home.

The advantage to the lender is that the loan will generate some reimbursement and it will not have to spend the effort, time and money to foreclose. It is estimated that a bank loses an average of $60,000 every time it forecloses on a home.

A loan modification includes one or more of the following:
  • A reduction in the interest rate, a change in how it is computed, or a conversion from a variable to a fixed rate .
  • A reduction in the principal. This is sometimes referred to as mortgage settlement.
  • A reduction of late fees and penalties for nonpayment.
  • A reduction in the monthly payment.
  • Forbearance, which allows a homeowner to temporarily stop making payments, temporarily make smaller payments, or extend the time for making payments.

Many times, borrowers are able to work directly with their lenders to modify their mortgage. During the height of the real estate collapse, however, many lenders were unwilling to work with distressed homeowners wishing to modify their loan agreements. In addition, because so many mortgages had been sold, it was often difficult to determine who owned, or was empowered to modify the terms of, a particular mortgage.

Creation of HAMP

In 2009, the U.S. Treasury Department, in collaboration with banks, loan-service providers, credit unions and various federal departments, formed the Home Affordable Modification Program (HAMP). The program’s aim was to get struggling homeowners together with their lenders, in order to renegotiate their loans and prevent foreclosures.

Most conventional loans, including prime, sub-prime and adjustable-rate loans, are eligible for modification under HAMP. Servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate; other lenders have a choice. More than 100 major lenders have signed onto the program, which is set to expire in December 2013. By November 2011, 751,000 HAMP modifications had been made, and another 910,000 HAMP modifications had been started.

To apply for a modification under HAMP, a borrower must:
  • Be the owner-occupant of a one-to-four-unit home.
  • Be current, at risk of imminent default, behind in mortgage payments, or in foreclosure or bankruptcy.
  • Have a mortgage that was originated on or before Jan. 1, 2009.
  • Have a monthly housing payment (including mortgage, taxes, insurance and homeowners association dues) greater than 31 percent of monthly gross income.
  • Have financial hardship that can be documented.

Participating servicers under HAMP are required to modify all eligible loans to reduce monthly payments to no more than 31 percent of a homeowner’s gross monthly income. To do so, a servicer will reduce the loan’s interest rate to as low as 2 percent and may extend the term of the loan up to 40 years. Finally, a servicer can defer a portion of the principal amount owed, or forgive part of the principal.

Before a loan can be officially modified, the homeowner must make on-time payments over the course of a three-month trial period. Homeowners who qualify for a permanent modification under HAMP are not required to pay a modification fee or pay past-due late fees.

Government Settlement Helps Homeowners

A $25 billion legal settlement between the government, and 49 states and five of the nation’s largest banks is providing more help for struggling homeowners.

The settlement came over charges of systemic and widespread mortgage fraud. The five banks — Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — handle payments on more than half of the nation’s almost 60 million home loans.

In addition to mandating comprehensive reform measures relating to mortgage servicing practices, terms of the agreement include the following payments from the banks:
  • $10 billion for reducing principal for borrowers who are delinquent or at imminent risk of default and are underwater (owe more than their homes are worth).
  • $3 billion for refinancing loans for homeowners current on their mortgages and underwater.
  • $7 billion for other kinds of assistance, including forbearance of principal for unemployed borrowers, anti-blight programs and short sales.
  • $1.5 billion for payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and who meet other conditions.
  • $3.5 billion to repay public funds lost as a result of servicers misconduct; and to fund housing counselors, legal aid and other public programs.

According to the settlement, servicers must fulfill their obligations within three years.

Also, the deal only applies to privately held mortgages and not to those owned or guaranteed by mortgage giants Fannie Mae and Freddie Mac, which own about half of the nation’s mortgages.

Share this page:


How To Reduce Your Mortgage Payments, Stop Foreclosure And Get A Loan Modification #mortgage #calculatro


#mortgage modifications

#

Loan Modification is the most effective tool you can use if you are facing a financial hardship and are having a difficult time making your mortgage payments. When successfully negotiated, your loan is restructured so that is more affordable and will fit your budget. This is accomplished by either reducing the interest rate, reducing the principal balance or a combination of both. The terms of your loan can also be increased, from say 30 years to 40. In addition, if you have any late fees they can also usually be waived or added on to the loan balance – a home saver if you are a couple months behind and would not be able to come up with the money!

The bottom line – a good mortgage modification will allow you to afford your mortgage payments and help you avoid foreclosure.

Can you do this yourself?

Sometimes! BUT, do you want the best results possible? You have to realize that your lenders loss mitigation departments are trained to get the most money out of you that they can. You cannot just call them and expect to get the lowest interest rate possible! (Contrary to popular belief, this is 1%, not 2%).

Many homeowners have successfully negotiated their own terms, but you must understand that there is a ton of work involved. In addition to preparing the huge stack of paperwork you need to send into the bank, you must also diligently follow up with the bank on a weekly basis. You must also be prepared to continuously send in the same paperwork over and over again (I.E. your last 2 months bank statements, current tax returns, etc.) as your lender will likely lose it. Anyone who has worked on a loan mod can vouch for this.

Lenders are so backed up with files right now, even if you do make through the mess and get a mod approved on your own, chances are it won’t be as good as if you hired an experienced modification company/attorney to negotiate for you. But, if you are willing to do it yourself, just be prepared for all the work that is involved. It’s like having a part time job.

When To Consider Getting Help

On the other hand, there are many professionals who have worked extensively with various lenders and know what the process entails, how the system works and how to get you a payment that is going to help you. By this, I mean an agreement between you and the bank that actually lowers your monthly payments so you can comfortably afford them. Many mods end up with homeowners having to pay higher mortgage payments than before (as is the case when an interest only loan goes to a 5% interest loan) and that really isn’t going to help someone who is struggling to make the current payments, is it?

When you use a loan modification company to negotiate on your behalf, you will have to pay a fee. However, often times this fee will pay for itself in your mortgage payment savings over just a few months time. Negotiators also know how to put a complete packet together according to your lenders guidelines to speed up the process. Remember, time is of the essence! PLUS, these companies can perform these services before you pay any fees. so there is no risk to you. This is due to the recent law changes by the government to stop companies from charging upfront fees before a loan mod has been completed (accepted by the lender).

To learn if you are a candidate for a modification. what payment changes you can expect, how long it will take and more just call toll free 888-766-3693.

Many times, the companies we have reviewed can help you even if you have been denied loss mitigation help in the past. Especially, if you were denied trying to do it yourself. More often than not, homeowners just call up their lenders and say they need lower payments. They are transferred to the loss mitigation department and are asked a series of questions… one wrong move here and you are denied. That’s why it’s very important to go over all your financial information and make sure it fits into the guidelines before you contact your lender for help.

Be careful! There are many scammers out their trying to prey on the misfortune of others. Don’t let this be you. Can you imagine paying a company to do your loan mod and then finding out months later that they did nothing and you are losing your home. This happened much more frequently in the past then currently (2012), but it can still happen.

We have compiled a short list of reputable mortgage loan modification companies that have completed many successful mods on the homeowners behalf and can show you examples of these as well. This is crucial when choosing the right company. Do you want a “specialist” who has attempted a couple loan mods out of their apartment or a reputable company who has hundreds or even thousands of homeowners? Call and ask them for examples from your specific lender! See what they have obtained for others in your situation so you can know roughly what to expect. Every situation is different, but this should give you an idea of what to expect. The calculator to your right can also tell you what to expect and if you are a good candidate for these programs .

A reputable company will pre-qualify you before they take you on as a client. They know what the lenders require and will only take on clients they can help.They can guide you in the right direction if these programs are not going to be a good fit for you.

All of the companies we have reviewed can provide you with information on their business, i.e. their credentials and referrals from previous clients. The companies who use attorneys can also give you information on them so you can do research and make an informed decision. Just ask them!

Special Note: Beware of TV and radio ads for mortgage modification. Many times, these are just generic ads run by lead generation companies. They route your calls to whoever pays them for leads, so who knows who you will talk to when you call! The sites we reviewed are maintained by the actual companies and only they will call you back. You WILL NOT get bombarded with 15 phone calls from 15 different companies if you fill out their contact forms like other websites out there!

Here are the latest loan modification companies we have reviewed:

As with any important decision, it is always best to speak to with different parties and get each ones individual opinion and advice. We recommend you contact these companies and ask them questions you have prepared about your specific situation.

To See If You Qualify For A Mortgage Loan Modification, Call 866-766-3693 to speak with an experienced modification counselor or fill out the form below to see if you are a candidate for a loan modification.


Mortgage Home Loan Modifications – Settlements – Reduce Your Payments #mortgage #cal


#mortgage modifications

#

Mortgage Loan Modifications and Settlements – Affording Your Home

Over the past several years, the recession has triggered an explosion of mortgage defaults, propelling an unimaginable number of houses into foreclosure. In fact, since 2007, more than 4 million U.S. homes have been foreclosed upon, and the number is expected to continue climbing.

Before a bank can foreclose on a home, its owner must be in default on his or her mortgage payments for a period of 60 days or more. At times, refinancing a home is the primary option. Another one for homeowners facing foreclosure is to attempt to have the terms of the mortgage modified.

Mortgage Loan Modification Makes Homes More Affordable

With mortgage modification, the goal is to convince the lender to renegotiate the agreement in order to make the mortgage payments affordable again. That way, the borrower can remain in his or her home.

The advantage to the lender is that the loan will generate some reimbursement and it will not have to spend the effort, time and money to foreclose. It is estimated that a bank loses an average of $60,000 every time it forecloses on a home.

A loan modification includes one or more of the following:
  • A reduction in the interest rate, a change in how it is computed, or a conversion from a variable to a fixed rate .
  • A reduction in the principal. This is sometimes referred to as mortgage settlement.
  • A reduction of late fees and penalties for nonpayment.
  • A reduction in the monthly payment.
  • Forbearance, which allows a homeowner to temporarily stop making payments, temporarily make smaller payments, or extend the time for making payments.

Many times, borrowers are able to work directly with their lenders to modify their mortgage. During the height of the real estate collapse, however, many lenders were unwilling to work with distressed homeowners wishing to modify their loan agreements. In addition, because so many mortgages had been sold, it was often difficult to determine who owned, or was empowered to modify the terms of, a particular mortgage.

Creation of HAMP

In 2009, the U.S. Treasury Department, in collaboration with banks, loan-service providers, credit unions and various federal departments, formed the Home Affordable Modification Program (HAMP). The program’s aim was to get struggling homeowners together with their lenders, in order to renegotiate their loans and prevent foreclosures.

Most conventional loans, including prime, sub-prime and adjustable-rate loans, are eligible for modification under HAMP. Servicers of loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate; other lenders have a choice. More than 100 major lenders have signed onto the program, which is set to expire in December 2013. By November 2011, 751,000 HAMP modifications had been made, and another 910,000 HAMP modifications had been started.

To apply for a modification under HAMP, a borrower must:
  • Be the owner-occupant of a one-to-four-unit home.
  • Be current, at risk of imminent default, behind in mortgage payments, or in foreclosure or bankruptcy.
  • Have a mortgage that was originated on or before Jan. 1, 2009.
  • Have a monthly housing payment (including mortgage, taxes, insurance and homeowners association dues) greater than 31 percent of monthly gross income.
  • Have financial hardship that can be documented.

Participating servicers under HAMP are required to modify all eligible loans to reduce monthly payments to no more than 31 percent of a homeowner’s gross monthly income. To do so, a servicer will reduce the loan’s interest rate to as low as 2 percent and may extend the term of the loan up to 40 years. Finally, a servicer can defer a portion of the principal amount owed, or forgive part of the principal.

Before a loan can be officially modified, the homeowner must make on-time payments over the course of a three-month trial period. Homeowners who qualify for a permanent modification under HAMP are not required to pay a modification fee or pay past-due late fees.

Government Settlement Helps Homeowners

A $25 billion legal settlement between the government, and 49 states and five of the nation’s largest banks is providing more help for struggling homeowners.

The settlement came over charges of systemic and widespread mortgage fraud. The five banks — Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — handle payments on more than half of the nation’s almost 60 million home loans.

In addition to mandating comprehensive reform measures relating to mortgage servicing practices, terms of the agreement include the following payments from the banks:
  • $10 billion for reducing principal for borrowers who are delinquent or at imminent risk of default and are underwater (owe more than their homes are worth).
  • $3 billion for refinancing loans for homeowners current on their mortgages and underwater.
  • $7 billion for other kinds of assistance, including forbearance of principal for unemployed borrowers, anti-blight programs and short sales.
  • $1.5 billion for payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and who meet other conditions.
  • $3.5 billion to repay public funds lost as a result of servicers misconduct; and to fund housing counselors, legal aid and other public programs.

According to the settlement, servicers must fulfill their obligations within three years.

Also, the deal only applies to privately held mortgages and not to those owned or guaranteed by mortgage giants Fannie Mae and Freddie Mac, which own about half of the nation’s mortgages.

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How To Reduce Your Mortgage Payments, Stop Foreclosure And Get A Loan Modification #calculate #home


#mortgage modifications

#

Loan Modification is the most effective tool you can use if you are facing a financial hardship and are having a difficult time making your mortgage payments. When successfully negotiated, your loan is restructured so that is more affordable and will fit your budget. This is accomplished by either reducing the interest rate, reducing the principal balance or a combination of both. The terms of your loan can also be increased, from say 30 years to 40. In addition, if you have any late fees they can also usually be waived or added on to the loan balance – a home saver if you are a couple months behind and would not be able to come up with the money!

The bottom line – a good mortgage modification will allow you to afford your mortgage payments and help you avoid foreclosure.

Can you do this yourself?

Sometimes! BUT, do you want the best results possible? You have to realize that your lenders loss mitigation departments are trained to get the most money out of you that they can. You cannot just call them and expect to get the lowest interest rate possible! (Contrary to popular belief, this is 1%, not 2%).

Many homeowners have successfully negotiated their own terms, but you must understand that there is a ton of work involved. In addition to preparing the huge stack of paperwork you need to send into the bank, you must also diligently follow up with the bank on a weekly basis. You must also be prepared to continuously send in the same paperwork over and over again (I.E. your last 2 months bank statements, current tax returns, etc.) as your lender will likely lose it. Anyone who has worked on a loan mod can vouch for this.

Lenders are so backed up with files right now, even if you do make through the mess and get a mod approved on your own, chances are it won’t be as good as if you hired an experienced modification company/attorney to negotiate for you. But, if you are willing to do it yourself, just be prepared for all the work that is involved. It’s like having a part time job.

When To Consider Getting Help

On the other hand, there are many professionals who have worked extensively with various lenders and know what the process entails, how the system works and how to get you a payment that is going to help you. By this, I mean an agreement between you and the bank that actually lowers your monthly payments so you can comfortably afford them. Many mods end up with homeowners having to pay higher mortgage payments than before (as is the case when an interest only loan goes to a 5% interest loan) and that really isn’t going to help someone who is struggling to make the current payments, is it?

When you use a loan modification company to negotiate on your behalf, you will have to pay a fee. However, often times this fee will pay for itself in your mortgage payment savings over just a few months time. Negotiators also know how to put a complete packet together according to your lenders guidelines to speed up the process. Remember, time is of the essence! PLUS, these companies can perform these services before you pay any fees. so there is no risk to you. This is due to the recent law changes by the government to stop companies from charging upfront fees before a loan mod has been completed (accepted by the lender).

To learn if you are a candidate for a modification. what payment changes you can expect, how long it will take and more just call toll free 888-766-3693.

Many times, the companies we have reviewed can help you even if you have been denied loss mitigation help in the past. Especially, if you were denied trying to do it yourself. More often than not, homeowners just call up their lenders and say they need lower payments. They are transferred to the loss mitigation department and are asked a series of questions… one wrong move here and you are denied. That’s why it’s very important to go over all your financial information and make sure it fits into the guidelines before you contact your lender for help.

Be careful! There are many scammers out their trying to prey on the misfortune of others. Don’t let this be you. Can you imagine paying a company to do your loan mod and then finding out months later that they did nothing and you are losing your home. This happened much more frequently in the past then currently (2012), but it can still happen.

We have compiled a short list of reputable mortgage loan modification companies that have completed many successful mods on the homeowners behalf and can show you examples of these as well. This is crucial when choosing the right company. Do you want a “specialist” who has attempted a couple loan mods out of their apartment or a reputable company who has hundreds or even thousands of homeowners? Call and ask them for examples from your specific lender! See what they have obtained for others in your situation so you can know roughly what to expect. Every situation is different, but this should give you an idea of what to expect. The calculator to your right can also tell you what to expect and if you are a good candidate for these programs .

A reputable company will pre-qualify you before they take you on as a client. They know what the lenders require and will only take on clients they can help.They can guide you in the right direction if these programs are not going to be a good fit for you.

All of the companies we have reviewed can provide you with information on their business, i.e. their credentials and referrals from previous clients. The companies who use attorneys can also give you information on them so you can do research and make an informed decision. Just ask them!

Special Note: Beware of TV and radio ads for mortgage modification. Many times, these are just generic ads run by lead generation companies. They route your calls to whoever pays them for leads, so who knows who you will talk to when you call! The sites we reviewed are maintained by the actual companies and only they will call you back. You WILL NOT get bombarded with 15 phone calls from 15 different companies if you fill out their contact forms like other websites out there!

Here are the latest loan modification companies we have reviewed:

As with any important decision, it is always best to speak to with different parties and get each ones individual opinion and advice. We recommend you contact these companies and ask them questions you have prepared about your specific situation.

To See If You Qualify For A Mortgage Loan Modification, Call 866-766-3693 to speak with an experienced modification counselor or fill out the form below to see if you are a candidate for a loan modification.


How To Reduce Your Mortgage Payments, Stop Foreclosure And Get A Loan Modification #commercial #mortgage


#mortgage modifications

#

Loan Modification is the most effective tool you can use if you are facing a financial hardship and are having a difficult time making your mortgage payments. When successfully negotiated, your loan is restructured so that is more affordable and will fit your budget. This is accomplished by either reducing the interest rate, reducing the principal balance or a combination of both. The terms of your loan can also be increased, from say 30 years to 40. In addition, if you have any late fees they can also usually be waived or added on to the loan balance – a home saver if you are a couple months behind and would not be able to come up with the money!

The bottom line – a good mortgage modification will allow you to afford your mortgage payments and help you avoid foreclosure.

Can you do this yourself?

Sometimes! BUT, do you want the best results possible? You have to realize that your lenders loss mitigation departments are trained to get the most money out of you that they can. You cannot just call them and expect to get the lowest interest rate possible! (Contrary to popular belief, this is 1%, not 2%).

Many homeowners have successfully negotiated their own terms, but you must understand that there is a ton of work involved. In addition to preparing the huge stack of paperwork you need to send into the bank, you must also diligently follow up with the bank on a weekly basis. You must also be prepared to continuously send in the same paperwork over and over again (I.E. your last 2 months bank statements, current tax returns, etc.) as your lender will likely lose it. Anyone who has worked on a loan mod can vouch for this.

Lenders are so backed up with files right now, even if you do make through the mess and get a mod approved on your own, chances are it won’t be as good as if you hired an experienced modification company/attorney to negotiate for you. But, if you are willing to do it yourself, just be prepared for all the work that is involved. It’s like having a part time job.

When To Consider Getting Help

On the other hand, there are many professionals who have worked extensively with various lenders and know what the process entails, how the system works and how to get you a payment that is going to help you. By this, I mean an agreement between you and the bank that actually lowers your monthly payments so you can comfortably afford them. Many mods end up with homeowners having to pay higher mortgage payments than before (as is the case when an interest only loan goes to a 5% interest loan) and that really isn’t going to help someone who is struggling to make the current payments, is it?

When you use a loan modification company to negotiate on your behalf, you will have to pay a fee. However, often times this fee will pay for itself in your mortgage payment savings over just a few months time. Negotiators also know how to put a complete packet together according to your lenders guidelines to speed up the process. Remember, time is of the essence! PLUS, these companies can perform these services before you pay any fees. so there is no risk to you. This is due to the recent law changes by the government to stop companies from charging upfront fees before a loan mod has been completed (accepted by the lender).

To learn if you are a candidate for a modification. what payment changes you can expect, how long it will take and more just call toll free 888-766-3693.

Many times, the companies we have reviewed can help you even if you have been denied loss mitigation help in the past. Especially, if you were denied trying to do it yourself. More often than not, homeowners just call up their lenders and say they need lower payments. They are transferred to the loss mitigation department and are asked a series of questions… one wrong move here and you are denied. That’s why it’s very important to go over all your financial information and make sure it fits into the guidelines before you contact your lender for help.

Be careful! There are many scammers out their trying to prey on the misfortune of others. Don’t let this be you. Can you imagine paying a company to do your loan mod and then finding out months later that they did nothing and you are losing your home. This happened much more frequently in the past then currently (2012), but it can still happen.

We have compiled a short list of reputable mortgage loan modification companies that have completed many successful mods on the homeowners behalf and can show you examples of these as well. This is crucial when choosing the right company. Do you want a “specialist” who has attempted a couple loan mods out of their apartment or a reputable company who has hundreds or even thousands of homeowners? Call and ask them for examples from your specific lender! See what they have obtained for others in your situation so you can know roughly what to expect. Every situation is different, but this should give you an idea of what to expect. The calculator to your right can also tell you what to expect and if you are a good candidate for these programs .

A reputable company will pre-qualify you before they take you on as a client. They know what the lenders require and will only take on clients they can help.They can guide you in the right direction if these programs are not going to be a good fit for you.

All of the companies we have reviewed can provide you with information on their business, i.e. their credentials and referrals from previous clients. The companies who use attorneys can also give you information on them so you can do research and make an informed decision. Just ask them!

Special Note: Beware of TV and radio ads for mortgage modification. Many times, these are just generic ads run by lead generation companies. They route your calls to whoever pays them for leads, so who knows who you will talk to when you call! The sites we reviewed are maintained by the actual companies and only they will call you back. You WILL NOT get bombarded with 15 phone calls from 15 different companies if you fill out their contact forms like other websites out there!

Here are the latest loan modification companies we have reviewed:

As with any important decision, it is always best to speak to with different parties and get each ones individual opinion and advice. We recommend you contact these companies and ask them questions you have prepared about your specific situation.

To See If You Qualify For A Mortgage Loan Modification, Call 866-766-3693 to speak with an experienced modification counselor or fill out the form below to see if you are a candidate for a loan modification.