Loan Modification Banks – Helping You Keep Your Home

Loan modification banks are bank loans where in it assist mostly homeowners in gaining favorable mortgage terms with their existing bank. This is done in order to save money and to avoid foreclosure. By using your extensive relationships with your major banking institution where their legal staff will be able to reduce the interest rates without refinancing.

Loan modifications are permanent changes to any terms and conditions on your mortgage loan and you can request for loan modification from your bank where they may agree to reduce your monthly repayment to prevent from foreclosure and usually banks will be happy to assist or negotiate the terms on your mortgage if you still have chance of catching up any past due payments.

In applying for loan modification, you have to send a request letter to the bank stating your reasons why you apply for loan modifications, your detailed plan. Some will decline of your request and some is satisfied to give you a chance.

Remember that banks are in business to and businesses need to have a good profit. In assisting you with loan modification, they are just trying to make sure you don’t go into foreclosure or bankruptcy. They will be giving you a chance to get back to your financial situation on track.

If you feel having a financial struggling, call your bank and talk to them of your plan and if ever you had an overdue with your repayment, explain to them your financial situation and tell them that your situation is just temporarily unstable and ask them if you still have a chance to have a modification loan.

Remember that no matter how bad your current financial situation maybe, there is always a good solution on it. Think positive that you can still have a chance on how to deal with it. In every problem, there is always a solution if you work for it patiently.

Knowing that lots of people, millions of them that did not any of this loan modification banks and banks want to keep it that way since they will have big profit of it. The less you know your right to have this loan modification.

Some banks helps by giving you proposal regarding loan modification especially homeowners were unable to meet the terms of their loan due to financial problems or hardship. Loan modification is a good solution between both, the homeowner or owner and the lender.

Sometimes in every life, there comes a time that people have financial turbulence and you cannot control that. Not all the time people are in good financial situations. Sometimes, it’s due to economic crisis struggling to pay your loans because you worry about foreclosure but that always have a solution where you will be given a chance to track back your financial situations.

Here are some essential requirements behind qualifying for a modification loan is financial hardship.

Those people who are a few months behind on their payments
Those with ARM loans that are about to adjust or very recently adjusted
Those who have upside down on their loans
Those with negative amortization loans where in payments is lower than the interest rate so the balance owed actually grows.
Before you go into loans especially at the bank, you need to know all the rights you can have. So, that at least when you have financial hardship, you have another chance to cope with your loans before foreclosure.

Which Loan Modification Banks Are Trustworthy and Which Are Not?

In this time when the headlines in everyday main news tells a story of a major bank failure, an average Joe caught in the financial turmoil falling behind in mortgage payments is unable to decide which loan modification banks are trust worthy.

After the government announced loan modification scheme to bail out the homeowners, most of the major bank are offering home loan modification service if you qualify. It is a widespread misconception amongst people that banks are not willing to give loan modification service. If scrutinized closely it is a win win proposition by the government for both the lender and the borrower. Where on one hand the borrower gets to keep the house, the lender not only gets government incentive but also minimizes the static assets in form of foreclosed houses.

Most banks have more or less same criterion with some exceptions in the lowest permissible mortgage rate and whether the borrower should already be delinquent on payment before being eligible or not?

As a borrower one would want a bank that should be there with them throughout the period of loan repayment and work with them.

There are several banks offering loan modification services but most trustworthy ones are:

Wells Fargo, Federal home loan bank: There is a federal government home loan modification plan of which many banks are a participants are Fannie mae, Freddie mac, Federal Home loans banks, Hope Now participants, Department of Treasury and Federal housing administration and Wells Fargo. The banks under this program are backed by the government and very trustworthy for availing loan modification service.

The eligibility criterion is:

You should have missed out on payment for more than three months
You should be living on that property
No Bankruptcy filed
The debt to income ratio should be 38%
JP Morgan Chase and co, Washington Mutual and EMC Mortgage Corp: These three banks provide combined home loan modification program. They proactively reach out to the borrowers to initiate the proceedings for borrowers who qualify.
The eligibility criterion is:
It must be loan that JP Morgan Chase owns.
The scope of the loan mortgage service is Washington Mutual, Chase and EMC Mortgage corp. borrowers having loan with adjustable rate mortgages (ARM) dated before 31st Dec’07.
The debt to income ratio should work out between 31% to 40%
Citi Bank: This bank is committed to make its service of home loan modification available to all the Citi group borrowers who are eligible and work honestly with Citi bank .
The eligibility criterion is:
The mortgage must be the first and loan should be owned by Citi group
The borrower must be living on that property
The borrower need not be delinquent on payments but one who need assistance to keep from delinquency on future payments.
One for whom the calculation of gross monthly income payment calculation doesn’t cross 38%.
Bank of America (Countrywide financial): Under this home loan modification program bank of America is committed to modify troubled mortgages up to $8.4 Bn in interest rate and reducing the principal rate for approximately 400,000 countrywide customers.
The eligibility criterion is:
The scope of the loan mortgage service is Bank of America borrowers having loan with adjustable rate mortgages (ARM) dated before 31st Dec’07.
The borrower should be delinquent for a period of 60 days or more.
The Debt to income ratio should not be less than 34%
Indy Mac Federal Bank: The Indy Mac Federal Bank is committed to help its borrowers with sustainable and affordable mortgage payments.
The eligibility criteria:
The mortgage must be the first and loan should be owned by Indy Mac federal bank.
Should be a client of Indy Mac Federal.
The property should be owner occupied.
The debt to income ration should be more than 38%.
The borrower need not be delinquent on payments but one who need assistance to keep from delinquency on future payments.

California Home Equity Loans from Banks

Many banks in California offer home equity loans, including Wells Fargo, Chase, and many others. Most people prefer to borrow home equity from banks and not from private lenders simply because banks are perceived as ‘more stable.’ But did you know that limiting yourself to just banks can hurt your finances?

Lengthy processes. Most banks take about two to three weeks to process a home equity application, only to reject it (sometimes). Banks also generally ask for more documentary requirements that can take days and even weeks to produce.

Higher interest rates. Banks generally impose reasonable interest rates for California home equity loans, but because of competition, these ‘reasonable’ rates now seem higher. In some cases, banking institutions can loan you more money than you actually need or can pay, and this could get you into financial trouble and cause you to lose your home. Many non-bank lenders catering to borrowers with smaller equity offer lower rates and more flexible terms. It is wise to explore your options with these lenders first before you signing up with a bank.

Discriminatory approval. Banks are very conservative by nature, so don’t expect to get a California home equity loan from banks if your credit score falls below the ideal level. If you have bad credit history, turn to non-bank home equity lenders instead. You can expect your interest rates to be a little higher than what people with good credit standing pay, but your chances of getting approved are much higher, too. Pay your home equity bills regularly, and you maybe able to renegotiate for a lower interest rate within a few months.

The Best Car Insurance Rates

If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.

In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.

Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.

Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.

Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.

Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.

In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.