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What is a Loan Modification and how can it help you save your home?

by

Lender411

Loan modifications are becoming a big deal now that the subprime mortgage industry has caused a nationwide shakeup of the mortgage industry. Little more than a change of an existing mortgage’s terms without the need for a complete refinance, bottom line information on loan mod shows that it is considered the best way for borrowers to work with an existing loan to avoid foreclosure and remain in their home.

The danger of foreclosure is one of the prerequisites for a lender to even consider a borrower’s request to renegotiate the terms of their mortgage. Borrowers must prove to the lender’s satisfaction that they are willing to remain in the home, unable to pay the mortgage due to a complete lack of assets that could be turned into cash, and that there is a demonstrable likelihood that the borrower would be able to continue paying on the mortgage if one or more terms of the loan were adjusted.

Borrowers must realize that this is not a short term fix, much like one month forbearances might be, but instead it is a business decision that will have a far reaching impact on the home owner that will span the same amount of time as the duration of the loan he/she is holding. Conversely, a loan modification is not the same as a refinance, a second mortgage, or even a debt consolidation loan. The modification only affects the currently outstanding loan and does not cancel it but just revises the terms.

This method has the power to end foreclosure and rather than having to cure the default, the homeowner may modify the terms of the agreement and reinstate the preexisting mortgage. Since lenders need to see at least some profitability from this business, there has been the stipulation that accrued fees and penalties do not have to be forgiven but instead may be rolled into the actual loan itself, thereby not being lost to the lender. In the same vein, the missed payments may be incorporated in a number of different ways to ensure that the lender is not shortchanged.

In return, the lender agrees to not blemish the credit profile of the homeowner and in addition agrees to accept the declarations of the borrower with respect to his ability to make future mortgage payments in good faith. Homeowners who have undergone this process will do well to remember that this is a one time chance and it is crucial to remember that this may very well be the final chance to save homeownership for this consumer. You can find out more about mortgage loan modification by visiting our site loan-modification411.com.

Krista Scruggs is an article contributor to loan-modification411.com. Loan-Modification411.com connects you with service providers that can help you avoid foreclosure. We have several Loan Modification companies within our network, each with their own strengths and specialties. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will match you up with the right company.

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What is a Loan Modification and how can it help you save your home?

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Online Payday Loans: The Faster Way To Get Urgent Cash

by

Daniel Wesley

Many a times in life we come across a situation that needs us to make some urgent arrangements for cash. It might be the medical bill that needs to be paid urgently or a great offer that you simply cannot afford to miss out on. In such a situation, payday loans are an easy and great way to get some instant cash.

What Are Payday Loans?

Payday loans are small amounts of cash that range from anywhere from $100 to $1000. This loan amount has to be paid back on the next payday. They are also called as cash advance loans. Now payday loans are becoming very popular across the country as they do not have many of the hassles that are common with other forms of loans. The main reason for the popularity of payday loans is the convenience of the whole process.

Requirements

There are hardly any tedious processes and requirements for you to get the payday loans. All that you need is a checking account with a bank in America and proof of employment. You will then be eligible to get the payday loan approved. Now there are many online payday loan companies that instantly approve the payday loans and you can even get the cash credited into your account on the same day. A few simple questions is all that is asked by the companies. They might also require you to fax certain documents in some cases, but still the entire process does not take more than a day to complete. No other loan process is as fast as payday loans.

Repayment

Usually most payday loan companies require you to give them a post dated check which will be deposited on your next payday. Some payday loan companies can also arrange for the money to be directly taken out of your account on the next payday. So you won t even come to know that you have paid it off. So you have up to 30 days to repay the amount. If you cannot pay the money on this payday, then you can get up to a couple of extensions as well. However, this service involves a separate charge.

Downside

The high interest rates or the APR is one major drawback of payday loans. The entire term of payday loans is synonymous with emergency cash. You should only opt for payday loans if you need some fast cash urgently and you have no other resource to turn to. This is because you will be charged approximately $25 on every $100 that you borrow. So if you borrow $1000, you owe the company $1250 on the next payday. You may not even receive the full $1000 in the first case. The lender deducts financial charges before giving you the money.

If you roll over your loan to the next payday, the charges mount further and can actually get out of control. So it is extremely important that you know all the pros and cons of payday loans before you sign up for a service of this sort. Seeking counseling from a financial consultant will give you a better idea about these loans. What you are looking at is a short term solution for some urgent requirement of cash. You definitely do not want it to become a long term never ending problem for you. So, the bottom line is that you should only opt for payday loans as a last refuge. Pay it off on your first payday itself and you shouldn t have any trouble with the service.

Payday Loans

are being used more and more, unfortunately as a long term financial tool.

Article Source:

ArticleRich.com