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If you have been denied for a hamp home affordable modification loan program find out why and reapply.

By: Anna  Cuevas

Lets take a look Inside the Home Affordable Modification Program to see the possible reasons why you were declined:

If you have been denied for the Home Affordable Modification Program, often called the HAMP or Obama loan modification assistance program, it is of upmost importance for you to #1 remain calm and #2 find out in great detail all the reasons why you were declined.  Many people that have gotten denied can get approved for a loan modification if they have changes to their previously submitted information and they make the necessary corrections to their  application and then reapply.  Being denied is frustrating and scary but it definitely does not mean it is the only chance that you have. If you are determined to keep your home and you know you can make a reasonable payment you have a chance to still make it work., don’t be discouraged. I know people that have been denied up to 10 times for loan modifications that end up saving their homes because of their determination and refusal to give up even when it seemed they had no hope.

If you are not in jeopardy of losing your home in the very near future  this may give you an opportunity to find a job if you are unemployed, raise your income, or lower some of your expenses to then be able to reapply with updated financials and possibly qualify where you might have not qualified before.  Sometimes a chance to regroup and take a breath is all we need to turn the page and have success.

Common reasons for denial are: Insufficient Income, too much income, payment already under 31% of your gross income, too much money in the bank, borrower not living in the property, lack of hardship or voluntarily left job or went back to school, lender could not reach borrower for missing documentation, they may not feel that a default is likely to happen with information submitted and for the permanent modification the borrower did not make trial payments on time or income changes were more than 25% different than when originally qualified.

Keep in mind that if after performing the 3 steps available to the servicer to modify your loan under the Home Affordable Modification Program, H.A.M.P.  it still appears more lucrative to the investor to foreclose that is cause for a denial for them.  This is why it is imperative to verify the income and expenses they used line by line to check for human error and you just have to be resourceful and examine your information with a fine tooth comb and with a different perspective, regroup, make changes and then resubmit your complete updated modification request.  Give it all of your effort, follow up weekly, or even every other day if your in jeopardy of losing your home soon. Keep a log and follow a submission checklist.  The other reason for disqualification is missing requested documentation so stay organized, calm, patient, and keep a positive attitude.

The 3 steps your servicer will perform to qualify you for a HAMP loan modification are Term extension, rate reduction, and principle deferment or forgiveness(very unlikely and solely at lenders discretion, they are not obligated to defer principle).

If they say it is because of your income or your expenses you need to go down line by line with the representative of your bank and then compare the numbers.  It is important for you to prepare your household financial budget for yourself prior to submitting this information to your lender.

We are all human and in my experience I have witnesses many a mistake in this area.

I have been told by negotiators at many of the lenders that the lack of explanation of the hardship is another big reason people are denied.  Consider all of these factors when writing out your Hardship letter and make sure you put all of the reasons you have a hardship and are in need of help but try to keep it to one page if possible and legible.

Lets examine the Fannie Mae explanation of how the Hardship is determined per guidelines given directly to the servicers/lenders to qualify borrowers for the Home Affordable Modification Program H.A.M.P.

Determining Hardship

Every borrower and co-borrower (if applicable) seeking a modification, whether in default or not, must sign a Hardship Affidavit that attests to and describes one or more of the following types of hardship:

1. A reduction in or loss of income that was supporting the mortgage loan, e.g., unemployment, reduced job hours, reduced pay, or a decline in self-employed business earnings.

2. A change in household financial circumstances, e.g., death in family, serious or chronic illness, permanent or short-term disability, or increased family responsibilities (adoption or birth of a child, taking care of elderly relatives or other family members).

1. A recent or upcoming increase in the monthly mortgage payment.

4. An increase in other expenses, e.g., high medical and health-care costs, uninsured losses

(such as those due to fires or natural disasters), unexpectedly high utility bills, or increased

real property taxes.

5. A lack of sufficient cash reserves to maintain payment on the mortgage loan and cover basic living expenses at the same time. Cash reserves include assets such as cash, savings, money market funds, marketable stocks or bonds (excluding retirement accounts and assets that serve as an emergency fund – generally equal to three times the borrower’s monthly debt payments).

1. Excessive monthly debt payments and overextension with creditors, e.g., the borrower was required to use credit cards, a home equity loan, or other credit to make the mortgage payment.

Do Not Move Out Of Your Home you will be disqualified for HAMP – if you moved out prematurely consider moving back in if you want

If a servicer has information that the borrower does not meet all of the eligibility criteria for the HAMP (e.g., because the borrower has moved out of the house) the servicer should explore other foreclosure prevention alternatives prior to resuming or initiating foreclosure.

If you are current on your payments you may still qualify, the difference is that they won’t reach out to you- but they will not disqualify you simply for not being late, these are the guidelines they use:

Reasonably Foreseeable (Imminent) Default

A borrower who is current, contacts the servicer for a modification, appears potentially eligible for a modification, and has suffered an eligible hardship (as described above) must be evaluated using the imminent default screen set forth below. This must also be used to evaluate such borrowers who are in default but less than 30 days delinquent.

This is the Formula used when you are not currently in default to determine whether or not your default is imminent:

The borrower’s debt coverage ratio is less than 1.20. The debt coverage ratio is the borrower’s monthly disposable net income divided by the borrower’s current monthly principal and interest payment on the first lien mortgage loan (excluding tax and insurance payments). Monthly disposable net income is the borrower’s monthly gross income less (1) monthly payroll deductions, (2) monthly escrow allocations of property taxes, property insurance and mortgage insurance premiums, (3) monthly homeowner’s or condominium association fees, (4) monthly allocations of all other monthly credit

obligations, (5) all other reasonable living expenses allocated monthly, and (6) any other monthly net negative amounts paid or incurred by borrower (such as negative rental income, mortgage loan payments on investment properties); and

? The borrower’s cash reserves are less than three times the current monthly mortgage payment, including tax and insurance payments (using estimated payments if the mortgage loan is not currently escrowed). Cash reserves are liquid assets the borrower has available for withdrawal from any financial institution or brokerage firm, including checking and savings accounts, certificates of deposit (even if held for an extended time), mutual funds, money market funds, stocks or bonds.

For more Free Loan Modification Assistance go to www.askaloanmodguru.com and sign up to get your free special report “Dirty Little Loan Modification Secrets, You Must Know” along with many other tips and tools.

Consumer Advocate/ Expert Trainer for Mindset & Empowerment to Successfully Modify Mortgages & SAVE Homes/Loan Mod Guru.
Proven Record of Achievement: Modified over 100 loans including Sale Reversals. My expertise can empower others during the housing crisis w/insider tips, process, & knowledge. Extremely Resourceful. Trustworthy. Excels in meeting objectives using independent action, prioritization & leadership. Confident & poised interactions w/individuals at all levels. Self-motivated. Dedicated, Expert Reputation of Going Above & Beyond whats required. High standards. Achieves results in all life issues.

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A bad credit home equity loan is the well deserved second chance that many struggling homeowners with a blemished credit history rating.

It is the way out of the impossibly high interest credit loan you took a while back, it is the last trump you can play to finally move the direction of your life back to the selfsame comfortable routine.

It is not unnatural for people to not be able to bear against the bad economic conditions and consequently get their credit history pock marked.

In such a situation one is eligible for nothing but the highest interest loan which can also turn out the inescapable noose in your neck. A bad credit home equity loan is specifically designed to help such people out of their predicament.

The numbers of ways through which you can take advantage of your bad credit home equity loan are countless.

Due to the apparent security available to the lender (home), usually you can negotiate a pretty low interest rate for your bad credit home equity loan.

Henceforth you can either consolidate this loan to pay up a previous high interest loan, use the cash to build a new home, repair a previously owned home or use the money in whichever other way you choose to.

Application of a bad credit home equity is fairly easy, you can apply for your loan through any of the countless sub credit lenders, and these lenders specifically specialize in dealing with people with a less than perfect credit score.

A bad credit home equity loan is a lot like a mortgage of your home, the only difference being that your credit score can play a fundamental role in determining the amount of money you are eligible to receive.

With a very little persuasion, lenders are reputed to sanction almost 80% of your homes appraisal value. Some lenders are also reported to offer a whopping 125% of the appraisal value.

A bad credit home equity type loan is a very serious transaction and it would be strongly recommended that you make absolutely sure you understand exactly what you a re stepping into.

By signing on that dotted line you would be ensuring a second mortgage of your home and if unfortunately you begin defaulting in this loan then there is a big chance that the lender will take ownership of that house.

On the plus side this is probably the very best opportunity for you to finally begin rebuilding your credit report history, even from scratch.

To discover more information about bad credit loans have a look at Bad Credit Help

Article Source:http://www.articlesbase.com/mortgage-articles/securing-a-bad-credit-home-equity-loan-1649144.html

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Every quarter the economic indicators like the unemployment and inflation figures paint a bleak economic outlook; with no respite in sight more and more home owners have to contend with the bitter reality of foreclosure. Now while some homeowners explore the refinancing option many just accept the inevitable and the lending institution foreclose their homes. However, what many of these homeowners fail to realize is that there is another option in the form of home loan modification which can help them to save their homes.

A mortgage modification entails the renegotiation of the existing loan terms. So a home loan modification can encompass a gamut of solution like decreasing the interest rate, increasing the tenure of the loan and others; all ultimately aimed at reducing the monthly mortgage payments. This makes mortgage modification the ideal option for home owners who are facing a financial crunch.

If you are wondering what in it for the bank; the answer is quite simple, given the current sub prime crisis coupled with the fact that there are very few buyers in the market makes foreclosure an unfeasible option for the lending institution. Not only do they have to incur the cost of foreclosure proceedings but also they may not be able to recover their dues by selling the home in the absence of buyers.

Another reason for the availability of mortgage modification is the fact that the US government has pumped in billions of dollars to avoid foreclosures with the aim of reenergizing the economy. So if you are wondering if home loan modification is legit; the answer is ‘yes’.

You will have to talk to your bank about their mortgage modification procedure. If after analyzing your situation the lending institution believes that you are eligible you will be asked to submit documents that will help the bank to ascertain your financial condition. Not only will you be able to save your house with the help of mortgage modification but also your credit score is not a determining factor in the home loan modification process.

So if you are faced with a possible foreclosure you may want to seriously consider mortgage modification as a solution to your problems.

If you are considering mortgage modification, you should really look into 60 minute home loan modification. It is a great resource that contains a lot of important information about the process of applying for a mortgage modification. It was created by a loan modification expert who has modified numerous home loans. The kit included a professional hardship letter outline, and one on one support in case you have any questions. It is a must have for homeowners.

If you want to learn more about home loan modification and 60 minute loan modification visit homeloanmodificationfaq.com. The website has plenty of free resources that will help you to modify your mortgage. Click Here if you want to save your home from foreclosure.

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A bad credit home mortgage loan is a valuable option in times of economical difficulties and our credit scores a taking a bit of a battering.

However it can be difficult sourcing a financial institution willing to offer you a home mortgage loan under these circumstances. And worse still if you already have a bad credit score it will be even harder. But despite all of this the possibility of getting a bad credit home mortgage loan is still there.

When FICO analyses your credit history they will rate you with a good or bad credit score.

A bad credit is when you were not able to pay off a large number of the debts you owe to various institutions. So when FICO takes a look at your credit history it can be an anxious moment.

Regardless of the fact that you might have a bad credit score there are financial institutions that will still be able to advance loans to you. The name of the loan is the bad credit home mortgage loan and it is advanced to people who have a bad credit history.

But before you start celebrating there are a few things you must know.

To start with, when you’re paying back a bad credit home mortgage loan the overall sum will be much larger than if you had good credit.

Essentially the down payment on the home itself will also be much more than what you would have been expected to pay if you had good credit. Down payments on bad credit mortgage loans are between 5-10% more than the ones on a normal loan.

On top of this when you’re paying back the money the monthly payments you will be asked to pay are a lot more than if you had good credit.

The interest rates on such bad credit loans can be exorbitantly high and it begs the question, how then will a person with a bad credit score be able to improve it with such interest rates?

The reason for this is the risk involved with giving a person with a bad credit score a home loan with high repayments.

But before rushing to such lenders I would strongly advise a person with bad credit to save up money for a down payment on a home loan. In the event of you approaching a lender with a sizeable down payment such a lender might be able to advance to you a loan on the basis of you paying 5-7% for a down payment.

And the interest rates might be lower as well.

For the mean time your primary focus should be on trying to improve your credit score, it’s fairly easy. Just be disciplined enough to work harder and pay off all your debts and after a year it might actually improve.

To discover more information about bad credit loans have a look at Home Loans

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In the down market of the real estate industry, people are always on the lookout for great deals and investments. In the contemporary economic downturn however, it is not surprising that many homeowners experience losing their precious properties to short sale and foreclosure. If you are going through the pain and stress of selling your house through short sale and still the bank rejects your offer to carry on a transaction, then there are salient things you ought to consider.

It is primary to learn and understand how to make a good counter offer which you can definitely resort to. When you make a counter offer, you encourage your potential home buyer to make a much higher home purchase offer so that your lender or bank will concede to your offer.

Banks or lenders are essentially in the losing end when short sale is becoming apparent because it means that they adhere to the sale of the property with an amount which is lower than the mortgage the home owner still owes. If you are offering the bank to sell the property in a very low rate, then it is more likely that the lender or bank will reject your offer in order to avoid further losses.

In some cases, your offer for short sale is rejected because of the incomplete requirements you submitted to the lending company or bank. Bear in mind that the loss mitigation department of the bank or company is the one taking charge of processing the review and approval of your offer. They are initially taking care of other clients and borrowers, hence if you have missing documents, they will surely not waste their time and attention on your case. The best way of remedying the problem is to simply reject your offer.

In order to avoid being rejected due to incomplete requirements, make sure that you prepared all the needed papers and documents for your short sale application weeks prior to actually submitting the requirements to the loss mitigation department of the bank. Make sure that you gather everything you need in order to support your claims and eventually get approved.

Another significant reason for rejection of short sale offer is because your reason for applying is basically not valid and acceptable. Make sure that you present solid and convincing cases which manifest and support your claim that you are indeed experiencing financial burdens that makes it impossible for you to afford your payment obligations.

There are innumerable valid and acceptable factors that are considered good basis of approving your offer, along with a complete requirement submission and mutually beneficial price rate. If you are undergoing divorce, retrenched from work and thus suffer unemployment and are having financial constraints due to medical expenses, then you have higher chances of getting approved.

Financial constraints and property loss due to the imminent patterns in the economic sector is not the end of your real estate investment. Having the right resources to ensure that your offer is accepted will definitely help you get back on your feet and start anew.

For more information, tricks and tips when it comes to home improvement and real estate as a whole, simply visit Commercial Real Estate for Sale in Tempe AZ, Commercial Property for Sale in Gilbert and Cave Creek Commercial Property.

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