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Reviewing Documents Before Submitting Your Loan Modification Application

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Reviewing Documents Before Submitting Your Loan Modification Application

By John Caroll HAMP Guide
Whether you utilize the services of a loan modification company or decide to apply for a loan modification on your own, you will have to get your documents reviewed thoroughly before actually submitting your application to your mortgage lender. This is the reason why many homeowners who cannot afford the huge upfront fees of a loan modification company feel they have no choice but to go with these consultants or attorneys as they are too scared of making a mistake in their documentation. (continued below)

Reviewing Documents Before Submitting Your Loan Modification Application

(cont.)
Ideally, all homeowners would prefer to modify their mortgages on their own and avoid paying anything ranging from $3000 to $7000 to an attorney who cannot even guarantee approval of the loan modification by the banks or mortgage lenders. Unfortunately though, just because these companies or attorneys make sure that all documents are in place and go through each file carefully to check for missing items or mistakes made by homeowners, they get to charge ridiculous sums of money from families who are desperately trying to save every penny.

Experts believe that anyone looking to modify their loan should first actually try to apply for a loan modification on their own. Even if you do not know how to go about the whole process, there are many guides available which can help you learn the system. Of course, not all of these guides can help you in reviewing your documents as well as those will have to be prepared only by you.

The best case scenario would be to get a guide which not only gives you step by step details on how to modify your loan but is backed by a team of consultants and attorneys who will review your documents for you at no extra cost. Many homeowners would think it would be impossible to find such a guide but if you search hard enough, you will surely come across loan modification programs that not just sell you a guide but also provide complete support in terms of reviewing your documents and also helping you out via phone if you need any help with the guide in hand.

While it is similar to modifying your loan on your own, you also have access to consultants throughout the loan modification process without having to pay anything additional for them. It is strongly recommended that all families considering approaching their banks or mortgage lenders to modify their loans search for a loan modification guide that will provide free phone support and review your documents for you so that you are completely at ease and have a much better chance of having your application approved by your bank. This is one of the main keys to getting your modification approved.

If such a guide is available, it just does not make any sense to employ the services of a loan modification company and pay thousands of dollars to them. Just simply pick up your guide and get free phone support and documentation reviewed by the team of attorneys and consultants. You need to make sure you follow the guide and utilize the free insight from consultants to put you in position for approval of your loan modification by your bank.

About the Author:
John Caroll is the creator of The HAMP Guide Program which is the only loan modification guide which gives you complete knowledge on how to modify your loan using President Obama’s Home Affordable Modification Program with unlimited free phone support. For more information please visit www.HAMPguide.org.

Article Source: http://www.articlesnatch.com

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Home Loans

Why Modifying Loan On Your Own Might Be Best Option

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Home Loans information.

Why Modifying Loan On Your Own Might Be Best Option

By John Caroll
Since the Home Affordable Modification Program (HAMP) was introduced by the federal government in March of this year, struggling homeowners have been trying to get relief on their mortgage payment from their mortgage lender. HAMP was established in an effort to modify loans for homeowners who are behind on their mortgage or struggling to stay current on their payments. (continued below)

Why Modifying Loan On Your Own Might Be Best Option

(cont.)
Everyone is aware of loan modification companies that charge upfront fees to homeowners only to never work on their clients loans or even worse, the company disappears altogether. The warnings to stay away from these modification companies come from everyone ranging from President Obama to the media ranting about it on a daily basis.

However, no matter how many times people are told not to pay a company thousands of dollars in upfront fees to handle their modification, people do it anyway. Homeowners are desperate for help and these companies prey upon individuals with promises that sound too good to be true. The only thing that is true is the deception taking place when these modification companies make these guarantees and false promises. What homeowners need to understand is that if they are talking to a modification company that charges upfront fees, they are talking to a salesperson who is trying to convince them to use their services. The only guarantee that can be made with reasonable certainty is this salesperson has never personally modified a loan in their life. Their job is to sell and judging by the millions of people who have been scammed, these salespeople are selling a lot of people on false guarantees.

Homeowners who need help want real solutions because everyone is telling them what to do with no degree of certainty. If you cant trust these companies, most homeowners think they have no option which is simply not true. For whatever reason, homeowners do not want to do the modification on their own. The thinking is that the lenders will take advantage because homeowners dont know what they are doing.

However, there are guides available to homeowners that specialize in how to get your modification approved under the HAMP. That being said, you have to make sure the guide you access also comes with phone support from modification consultants. This is the key ingredient when you are looking to modify on your own. It is true that homeowners might follow a guide and get lost but if they can utilize phone support and review their modification with an experienced modification consultant, then the process should be easy.

It is senseless to pay a company thousands of dollars when you can do it on your own. For people who have tried it on their own with no success, there are guides available that will show you how to avoid the same errors that led to the rejection of your modification application by your lender. Once again, you want to make sure the company offers phone support to make sure you are clear on what you need to do. Its very similar to taking a test in school. If you knew the material then you were confident when you were taking the exam. A loan modification is no different. If you follow the steps and there is phone support to clarify exactly what you need to do then you put yourself in a good position for an approval.

Keep in mind that no matter who does the modification for you, whether it is a modification company or you do it on your own, you still have to get all of your income and asset documentation together. If you get this documentation together anyway then there is no reason you should not at least attempt to do the modification on your own. If youve already tried and failed with your lender, utilize a companys phone support to see if it even makes sense for you to try again because maybe your just not a good candidate. More than likely, if you are having trouble with your payment, you probably made some correctable errors on your application that should result in an approval the second time around.

About the Author:
John Caroll is the creator of The HAMP Guide Program which is the only loan modification guide which gives you complete knowledge on how to modify your loan using President Obama’s Home Affordable Modification Program with unlimited free phone support. For more information please visit www.HAMPguide.org.

Article Source: http://www.articlesnatch.com

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Debt Beat Down 2009!! Home Loans

What Is A Hamp Loan Modification?

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What Is A Hamp Loan Modification?

The Credit ResourceBy John Caroll
If you are one out of the millions of homeowners trying to get your loan modified, chances are you might have heard the term HAMP loan modification in the news recently. Now a lot of us already know what it means to get your home loan modified but what exactly is this new term that people are talking about and more importantly, how does it help you? (continued below)

What Is A Hamp Loan Modification?

(cont.)
To begin with, HAMP stands for Home Affordable Modification Program. It is part of President Obamas ambitious mortgage stimulus package for American homeowners who are currently struggling to pay their mortgage payment.

Although HAMP was formally announced in March of this year, it is only now that this program has started to gain momentum especially as more and more homeowners are inquiring as to how this program could help them save their homes. Even mortgage lenders and banks seem to be warming up to President Obamas plans and are much more willing to cooperate with their borrowers to see if they qualify under this package.

The HAMP loan modification program is actually quite significant and is something that homeowners cannot afford to ignore anymore. You can now check if you qualify for a loan modification under the HAMP program and file an application with your mortgage lender to check if they can give you a better interest rate. In some cases, homeowners have been able to get modified interest rates as low as 2% after applying under the HAMP program.

Of course, homeowners should keep in mind that although President Obama announced his mortgage stimulus plan in March 2009, there have been 1.6 million foreclosures since that time. Therefore, if you simply just ask your mortgage lender whether you qualify and try to modify your loan, chances are your application might be denied. It is absolutely essential that homeowners do their homework and research on the HAMP program before submitting their application to their lender.

Banks are very quick to reject any application where they feel the homeowners do not know what they are doing or do not submit the required documents to them which is necessary for the review of the loan modification application. Getting your loan modified under the HAMP program could be quite straightforward but it could also get complicated and overwhelming especially for a homeowner who does not have the right information and guidance on the program. That being said, you dont need to spend thousands of dollars to someone to handle your loan modification. With the right guidance on what to do and how to submit your application, especially your financial worksheet, you can put yourself in a good position for approval.

Homeowners need to make sure they learn about all the options available under President Obamas HAMP program and ask the right questions. They need to make sure they understand every aspect of the program. Meanwhile, negotiating is another aspect which many homeowners find themselves in the dark. It is very important to convince a mortgage lender to not only approve a loan modification application but also to offer the best possible interest rate. Hence homeowners need to sit down and properly plan their approach if they are thinking of applying for a HAMP loan modification. Planning and proper execution would definitely be the key difference between rejection and having an application approved with the lowest possible interest rate.

About the Author:
John Caroll is the creator of The HAMP Guide Program which is the only loan modification guide which gives you complete knowledge on how to modify your loan using President Obama’s Home Affordable Modification Program with unlimited free phone support. For more information please visit www.HAMPguide.org.

Article Source: http://www.articlesnatch.com

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Home Loans

Why Do So Many Loan Modification Applications Get Rejected?

Home Loans
Home Loans information.

Why Do So Many Loan Modification Applications Get Rejected?

By John Carol
Many homeowners who are currently trying to apply for a loan modification often wonder why banks or mortgage lenders take so much time to approve or reject an application. The biggest question of course is why any bank would completely reject a loan modification for a homeowner. Many people seem to think that since loan modifications are one of the best ways to stop a house from going into foreclosure, it would be a win-win situation for both the bank and the homeowner if the loans are modified. (continued below)

Why Do So Many Loan Modification Applications Get Rejected?

(cont.)
The truth is that in most cases a bank will see either what is more profitable for them or what will cut their losses as much as possible. The number one reason why most loan modification applications would be rejected is the ability to pay the new mortgage. All banks review whether the homeowner would be in a position to pay if a modification agreement is offered. In the event the mortgage lenders feel that even after a loan modification, the homeowner will still be unable to pay a reduced amount, a foreclosure would make more sense for the lender and they will proceed to cut their losses immediately.

Although the Obama administration is desperately trying to get mortgage lenders to be more helpful to families and homeowners across the country, most lenders would still like to take it slow and make sure they are not losing additional money by modifying loans. If you are applying for a loan modification or approaching a lender via a loan modification consultant, you need to make sure you have done everything possible to show the lender that you will be able to make a reduced mortgage payment without any issues.

The second reason why loan modification applications get rejected is because you need to have a genuine difficulty in paying your mortgage. According to most lenders, they wonder why they should modify your loan if you do not have any hardship in paying your mortgage. Many homeowners make the mistake of assuming the lenders will modify their loan because the home has drastically depreciated so the lender does not want to foreclose for this reason. This is simply not true. Lenders primary concern is to make sure you have the ability to make your payment and if they dont think you are a strong candidate, they will cut their losses sooner rather than later. You need to make sure your application covers all your difficulties and hardships you are currently experiencing. In addition, you must explain to the lender what is different with your current situation from when you originally took out the loan that now makes your mortgage unaffordable for you.

The current hardship and ability to pay the modified mortgage are two of the main areas that banks will review when considering your loan modification application. Apart from this, there are a few other reasons as well which could harm your chances of getting a loan modified. Another problem presents itself when homeowners fail to provide all of the required documents required to apply for a loan modification. Lenders need to review the requested documents before making a decision on your file. If you are not sure which documents are required, you need to either talk to your lender or talk to a loan modification consultant about this. Make sure your application meets the required format set by your lender and you answer all questions correctly and accurately. If you take care of such things, then the chances of your loan modification application getting approved are much higher. While the loan modification process can be stressful, it is important not to panic. Once you get started, you will realize the whole process is generally completed in a systematic and timely manner.

About the Author:
John Caroll is the creator of The HAMP Guide Program which is the only loan modification guide which gives you complete knowledge on how to modify your loan using President Obama’s Home Affordable Modification Program with unlimited free phone support. For more information please visit www.HAMPguide.org.

Article Source: http://www.articlesnatch.com