subject: Should i refinance my mortgage - Why ask the right time for a loan modification [print this page] Should i refinance my mortgage - Why ask the right time for a loan modification
If you plan to change the loan is the answer to closing the current market crisis. It only makes sense.
Let me explain to you.
Reason # 1
If a credit lender in the notice of Default / Foreclosure, it is considered negative and is committed to the debt of the creditor to preserve the same amount of money in dollars in reserves (loan). This is a huge problem for them. Why? Not only have the bad debt that has to do with the funds in reserve. This isbasically its your fault. Remember that debt and can not earn interest on that amount.
Therefore, the loan modification is useful for you and them. Change if the debt is considered bad debts, and you can remove the same amount of reserves. You can take that money from interest and can start for them. But above all, their balance sheet is effective for investors.
Just like in any business the smaller the amount ofnegative debt have their degrees more valuable to their collections and save them from being taken over by the FDIC takes
There is no advantage for the banks to do a loan modification because it seeks to avoid, are foreclosure on the home page. Most homes have a 30% -50% of lost value, and is expected to go even lower in 2009. Not to mention the cost of the creditor are anywhere from $ 20,000 $ 85,000 or more to foreclose the market today.
Reason #3
You can do it yourself. Call the bank for a package of training to ask. The package will tell you exactly what you need. What interests them is that you pay for, in fact, the calculator if you modify it. This is useful if you have too much debt, is likely to be rejected. But you have a decent income ratio debt 38-45%, you should be fine.
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