Tip About Loans For Small Business

Getting a good start is critical to maintaining a small business venture. It is important to have a steady cash flow of funds during the start up of a new business. With the nation experiencing one of the worst financial crises in American history it is very difficulty for anybody to obtain a loan for a small business these days. Anyone wishing to start up a new small business, getting a business loan will be very difficulty and could make the difference in the success or failure of your new business.

Most government agencies are offering loans to small businesses that want to start up quickly to provide the community with services, products, or events. Most governments are more than happy to offer loans to help you get started but please keep in mind that there are many others seeking the same. Of course, most of the loans have different repayment plans and you need to pay attention to the interest so you do not end up in debt instead. The idea consists of paying off the small business loan once you have started earning from your business so it is basically a win-win situation here.

Of course, you may not need government loans for small business proposals. There are also many organizations that will grant loans to people from time to time for free. It really depends on your situation and the type of business you want to start up. They will not be accepting businesses that want to start up as a paintball company or a business that sells items for profit that people can find anywhere else so try and be logical here. You will need a business plan developed solely for public needs in order to help others.

Every year, many of the grants are given to those who use welfare since they do not have enough funds to get on their feet. This is a good idea because it helps those who have trouble finding a job and allows them to assist the community in better services while making a great life for them, thus adding to the ultimate financial goals.

Most of the government goals are often used for generating their own income though. They know that people paying them off will be paying a higher price for their business because they are also paying off the interest that comes with the loan. Incredibly sneaky but, if your business becomes successful it is worth it.

About Loan Modifications

There has been a lot of reporting on the term “loan modification” in the news media for the past several months – yet many people don’t even know what a loan modification is. This article is intended to provide an introduction to loan modifications, and to provide a basis for understanding if a loan modification is right for you.

A loan modification is, by definition, a formal agreement between a borrower and a lender to legally alter (i.e. “modify”) the terms and conditions of an existing “Promissory Note” and/or “Mortgage” (and/or any other legally binding documents) used to provide financing for a secured asset, such as real estate.

Until very recently, the concept of getting a lender to willingly agree to a loan modification with an individual consumer (such as a homeowner) seemed unrealistic and far-fetched. “The deal is the deal” and the lender, or mortgage-holder, held all of the power – or so it almost always seemed. There have been times when lenders have demonstrated a willingness to renegotiate the terms and conditions of existing loans, but they were relatively rare (at least as far as the average consumer was aware).

In some cases, of course, well-known businesses and tycoons became overextended and were able to get their lenders (or “investors”) to renegotiate the terms and conditions of their agreements because the were “too big to fail”. For the most part, however, it was only businesses, or people, with vast holdings who were able to wield such power with their lenders.

Due to the current economic crisis, however, the opportunity for individual homeowners to obtain a modification to their existing home mortgage loans exists, like never before, This is not the result of any “kindness” or generosity on the part of bankers and lenders, but rather, it is the result of cold-hard financial facts such as: the mortgage default rate is at all-time high levels, home values have fallen sharply, the amount of unsold housing inventory is extraordinarily high, the cost to a lender of foreclosing on an existing homeowner and repossessing a property, and re-marketing the property – especially during a distressed housing market is very costly, the “land courts” (which process foreclosure proceedings) are backed-up for months, and more.

Despite all of the above, however, mortgage bankers and other lenders have been reluctant to actually modify existing home mortgages in large numbers. There are many reasons for this (which will be explained in other articles), but the United States Government is now applying pressure on the lenders to actively engage in the loan modification process. As a result, more modifications are actually being conducted now than at any prior time.

Is loan modification right for you? It may be if you meet any of the following basic criteria: Are you unable to make current payments on your mortgage loan due to increases in the interest rate of your loan? Were you misled, or defrauded, by the lender during your loan application process in way(s) you can prove? Have you personally encountered any unusual, temporary, adverse economic conditions such as a job loss, medical emergency, natural emergency, or similar “one-time event”? There are many other viable justifications for getting a loan modification (these, too, will be explained in other articles.)

The key question that needs to be addressed is the following: If your loan was modified, within the general framework of government approved modification programs, would you then be able to prove your creditworthiness for the loan?
If you can answer, positively, to this last question, then a loan modification may be right for you – and for the country.

Top 10 Facts & Information About Loans

1. What is a finance loan?

A finance loan is basically any type of loan where you borrow money. You can get a secured personal loan, an unsecured personal loan, a mortgage or a line of credit to help give you the money that you need for various reasons. The loans carry different terms of repayment and different rates of interest for repayment.

2. Can a business loan be considered a finance loan?

A business loan is the most common form of finance loan. This gives you start-up capital for the business and allows you to buy a building or equipment that you might need to help you with your business. You will need to have a business plan in place when you apply for a business loan.

3. Why is a secured finance loan easier to get?

A secured loan means that you have assets of some kind that the lender can take and sell if you default on the loan. When the loan is secured, it means that the lender has less risk of not getting back the money you borrow because you also have a stake in making sure that you make the monthly payments.

4. Can I get a finance loan with bad credit?

Yes you can still get a finance loan with bad credit, especially if you are looking for a secured loan. The lender will look at all facets of your credit history and you may have to explain some of the negative items that led to your bad credit rating. In addition, lenders may also charge a higher rate of interest for those with bad credit.

5. Can I have payment protection with a finance loan?

Payment protection is an optional insurance you can purchase when you take out any finance loan. This is an insurance that will make your monthly payments for you in the event of illness where you don’t have an income. You do have to make premium payments on this insurance in conjunction with your regular payments.

6. What is the benefit of having the payments automatically debited?

If you have the lender automatically take the monthly payment out of your bank account, you have the peace of mind knowing that your payment is always made on time. Many lenders charge a late penalty when you don’t have the payment in on time. With automatic debit, you can also budget much easier for the month.

7. Can I get a payment break with a finance loan?

Many lenders reward their customers for making their payments on time by giving them a break once a year where they can miss a monthly payment, such as at Christmas or in the summer. If you take advantage of this offer, you do need to know that the interest still accrues on the balance, so that you will pay more interest from the payment in the following month.

8. What are deferment payments for a finance loan?

The deferment payment means that lenders give you a break from the time you take out the loan to the time that you have to make the first payment. You usually don’t have to make a payment until the following month. The due date is usually the date of the month that you took out the loan.

9. How does Rule 78 apply to finance loans?

Rule 78 applies to loans that you took out before May, 2005. This is the method by which some lenders work out the repayment schedule. It works out the amount of interest that you would repay over the term of the loan and it means that it is not spread out evenly over the term. Under this rule you pay more interest at the beginning of the term and less towards the end, so that the lenders do get the money from the interest.

10. How does the APR affect the repayment of a finance loan?

The APR is the annual percentage rate charged as the cost of borrowing. This is the amount of money that the lender charges you for borrowing the money. It is calculated according to the current market conditions and different borrowers can qualify for different interest rates. If you have excellent credit, it is very likely you will get a lower interest rate than a person with bad credit. Secured loans also have a lower interest rate than unsecured loans.

About Loan Modifications – An Option For Homeowners!

Homeowners in this economy need to know about refinancing options. Loan modifications are the process whereby a lender and a homeowner agree to change the loan terms so that they are favorable and realistic for both parties. In other words, getting a modification to your loan means that essentially you and your bank are agreeing to throw out your old mortgage contract and write up a new one that works for both of you.

Why would a bank agree to do this instead of just foreclosing on your house? Believe it or not, banks actually want to avoid foreclosure whenever possible. Foreclosing on a house costs them a lot of time and money, and ultimately it results in a vacant house on their hands that earns them $0 a month in mortgage payments. Whenever reasonably possible, a bank would much rather compromise on the loan terms and still get paid, even if it is a lesser amount than originally agreed on.

Banks don’t offer loan modifications to just anyone. They need to meet certain criteria for eligibility, which usually include:

A valid “hardship” – some financial crisis that suddenly makes it impossible to make monthly mortgage payments
A minimum percentage of monthly mortgage payments to gross monthly income, usually about 30% to 45%
Other criteria set by the bank regarding income, loan amount, and primary homeowner status

Each lender will have its own specifications for participants in its loan modification program, so each interested homeowners need to contact their bank or read up on their bank’s policies via their website.

There is also a federal program about loan modifications that is another option for homeowners. People whose loans originated before 2009 could be eligible for federal loan mod through the Making Home Affordable act from now until 2012.

With loan modifications, the ultimate point is to lower the monthly payment to an amount that is now affordable to homeowners who may have lost a job, gone through a divorce or unexpected injury, or have had to accept a pay cut at work. The monthly payment is lowered through any combination of reducing interest rate, extending the loan life, or even forgiving loan principle. Keep in mind that while a modification will lower monthly payments, it may not save money in the long run (especially if the loan is extended by several years.) Therefore, loan modification should only be used as a last resort when homeowners just can’t seem to make ends meet in any other way.

To get the modification process underway for your loan, contact your lender and ask about the program. Have your financial information at hand to answer questions that the loan modification specialist may have for you. If such a loan might be for you, then you’ll be sent the appropriate application paperwork to fill out. Attach appropriate income verification and financial documentation, and send along a handwritten hardship letter to explain why you need a modification and how it will help you to stay on your feet.

Homeowners shouldn’t be embarrassed if they need the help of loan modification. In this tough economy people are losing their jobs and experiencing other financial crises that make it the only option. There is hope for holding onto your home!

The Top 10 Questions About Loan Modification Homeowners Have

Since 2006 when the real estate bubble burst, millions of homes were foreclosed, and many more are on the brink. With the recession considered to be the worst since the great depression, honest people lost their jobs and the ability to pay their mortgages. Many have discovered that a loan modification is an optimal choice to avoid foreclosure or stop the foreclosure proceedings. But with the success of the loan modification, many struggling home owners have many questions. Here are some important questions that homeowners may have.

1. What is it? A home loan modification is a permanent change to the terms and conditions of the existing loan. This usually means that the lender will reduce the monthly payments through available options. These options may include a reduction of the interest rate, the extension of the term of the loan, elimination of accumulated fees, grace period, or any combination of the available options.

2. Who can apply? In order to apply for a home loan modification, you need to have a solid and serious reason showing that your household income has been drastically decreased and that you will not be able to pay the mortgage. Some examples of such a circumstance might be the loss of a partner, recent divorce or separation, loss of employment or conversion of an adjustable rate mortgage to a fixed one.

3. Is it necessary to hire someone to negotiate my loan modification? It is not necessary to hire a firm to apply for a home loan modification as you can apply for it yourself; however, you need to prepare and organize yourself beforehand. Agents and lawyers can charge you hefty amounts of money. However, it is advised that you go for representation if you do not know the process completely.

4. I have not missed any payment, am I still eligible? Yes, you can. However you have to show that you had unexpected expanses that will hamper your ability to pay your mortgage.

5. Can the government help me? Yes, it can. Actually the new Obama administration has announced a $75 billion worth of a relief package to assist lenders and buyer to modify home loans.

6. Does home loan modification require a credit check? No, a home loan modification does not require a credit check as your lender already has your credit history. It also requires less paper work than refinancing, which involved applying for a new loan. On the plus side, it is actually good for your credit report; once you’ve gone through the loan modification process and have had your debts forgiven, your credit report would show that you have actually been paying your payments on time.

7. Would I be successful? Lenders want to avoid foreclosure because they want to save themselves the time and effort of finding new borrowers and doing more paper work. If you present with a good reason, a strong serious hardship or a genuine circumstance you might succeed. Most successful hardships showed job loss for a loan mod.

8. Will my credit rating fall? No, your credit rating remains unaffected by a loan modification. It is actually better for your credit rating.

9. Would the lender add the late charges and arrears to the modified loan? Per the rules of the HUD, these arrears have to be relinquished and are seldom taken out by other means.

10. How will the lender forgive pass late payments and arrears? The past arrears may be added to the loan but placed over a period of time to make the loan more feasible to be paid easily.

Hopefully this article has answered some of your questions about loan modification, and made you more aware of the benefits of loan modification. If you have decided to modify your loan you will need to do more research about the subject. That is the biggest pitfall struggling homeowners don’t get the best results they can. They don’t do enough research and don’t understand the subject to well.

The best solution is to get a do it yourself loan modification kit. One such kit is 60 Minute Loan Modification. It include a professional hardship letter outline that will catch your lenders attention, it also includes conversations between homeowners and representatives, so that you can hear what to say and more importantly what not to say. The kit will teach you all the needed vocabulary, and most importantly the kit was created by a person who modified five of his home loans, and numerous loans of his clients. Many people used this kit with success, and overall it’s a great product.

Questions & Answers You Should Know About Loan Modifications

If you are among the many who are struggling with their current home loan set up, then you might need to know a little something about loan modification. A lot has been made about these programs in the media, and those who are going to take advantage of them will need a solid understanding prior to putting in an application. The modification process does offer relief to many people, but it’s not for everyone. Knowing whether or not you qualify is the first step.

How do I qualify for loan modification?

Today’s modification programs are primarily intended to help those people with serious financial hardship issues. In order to qualify for this type of exception, you will need to show that you have either become disabled, lost your job, suffered some sort of serious family trauma, seen your home value dip below the amount that you owe, or some other piece of established criterion.

How are applications handled?

Know that the application process is highly individualized, so they will take a look at your situation specifically. This means that it’s important to state your case and to state it well. There is no guarantee that you will be approved for modification, but if you have a legitimate claim of hardship and your application is completed the right way, chances are quite good.

What kind of assistance is available?

Depending upon which lender you are working with and what your situation happens to be, your solution might be different from someone else. Some home owners will run into a situation where their interest rates are chopped down either permanently or for a short time. Some home owners might see their loan term extended for an additional five years. The best solution is having some of your principal loan amount forgiven by the lender. This solution does not happen all that often, though, so you will more than likely be looking at one of the other scenarios.

What is the ultimate goal of modification?

The modification programs are operated with the intention of helping people get their loans under control. They are designed to bring down monthly payment amounts to levels that are reasonable. Basically, they bring the loan up to date with the realities of your situation. If you can’t pay, then foreclosure is in your future, so modification is a way of staving off that disaster and helping you retain your home.

NOTE: By researching and comparing the best loan modification companies [http://www.bestloanmodificationcompanies.com/] in the market, you will determine the one that meets your very specific financial situation.

What Everyone Needs to Know About Loan Modifications

On December 31, 2012, the Home Affordable Foreclosure Alternatives Program (Also known as HAFA) expired. This program helped homeowners who could no longer afford their homes to sell their homes while releasing them from all future liability for any money that the bank lost, back interest, or legal fees. A benefit of HAFA was that it allowed those doing short sales to walk away from their homes without any further liability including income taxes on any losses their bank incurs.

Banks typically issue a form 1099 C on the amount of the loss so they can write the loss off on their taxes. Homeowners are now liable to pay income federal income taxes losses incurred by their bank. HAFA forgave homeowners from paying taxes on the money their bank lost.

Since HAFA has expired homeowners are now liable to pay income taxes on losses their banks incurred. If a house sells for $100,000 less than what was owed on the property, the homeowner will receive a form 1099 C from their bank and they will now be taxed on that loss as ordinary income.

This means if your bank loses $100,000 on your home you will be taxed on that amount as ordinary income. Which means single filers could end up owing income taxes of $21,292.00 assuming no other income. Any income earned after that is taxed at, at least 28% which could end up costing even more in taxes. (Figures do not include any deductions. Readers should check with their CPA).

Borrowers are now held liable for any losses that their banks incurred plus legal fees. This results in anyone doing a short sales to potentially be stuck owing thousands of dollars in income taxes. Now homeowners really must think twice before walking away from their homes.

People with foreclosures on their credit reports will have difficult times trying to find a landlord. Many apartments do not allow dogs or cats and may have to give up their family pets. When relocating to a smaller apartment, children may even have to relocate to different schools.

The good news is that President Obama’s Making Homes Affordable Program still allows borrowers to get a loan modification and keep their homes. Loan modifications allow homeowners to reduce their interest rate down to as low as 2.00% which can significantly lower mortgage payments.

With the depressed housing prices, many homeowners often wonder if it is even worth keeping their homes. After all, who wants to pay back twice the amount owed on their mortgage without knowing if they will ever get any of their money back? Homeowners need to consider where their payments will be if modified and compare that with the cost to rent similar houses. It is often cheaper to own a home with loan modification than renting.

Many people who tried to get modifications in the past had terrible experiences because the banks were not prepared to accommodate the large demand for loan modifications. Many of the banks now have new systems in place to handle them. Now many people are getting their loans modified and lowering their payments and in some cases, getting principal reductions.

To qualify for HAMP, loans must meet the following:

* Home must be primary residence and not vacant.
* Loans must be originated on or before January 1, 2009.
* Mortgage must be delinquent or in risk of default.
* Mortgage must not have been previously modified under HAMP.
* Your current mortgage payment mus exceed 31% of your gross annual income.
* There must be documented hardship.
* Balances must be less than $729,750.
* Borrowers must pass the Net Present Value Test.

If your loan does not meet this criteria, you may still qualify for an external modification. With an external modification, many lenders may grant a loan modification even with a low interest rate.

The benefits of a loan modification can be substantial and greatly lower mortgage payments drastically making it cheaper to own than rent. Some banks are now giving principal reductions. There is no better time to get a modification than now. Loan modifications are the best way to lower your mortgage payments and stop the foreclosure process.

What You Should Know About Loan Finance

Most people will at one point need a loan. For many people that time comes when they are making a large purchase like a vehicle or a home. Part of loan finance is the responsibility that comes with taking out the loan.

For many people, understanding the seriousness of the loan is a given, however, for others, the importance is a mute point.

Loan finance is something that really needs to be understood. In the case of a large purchases such as a vehicle or a home, a person is going to be securing the loan with the vehicle or the home.

What this means to them is if they fail to keep their end of the agreement with the lender, which is paying on time, the lender can seize or take their vehicle or home. The lender can then sell the property to get the money owed to them.

It is a big deal to take out a secured loan. The lender will not hesitate to take the property and sell it to get their money. For the borrower that means they lose their property and can never get it back. Likely, they will never be able to secure a loan again without a lot of hassle either.

When a borrower signs a loan agreement they are signing a legally binding document. This document will stand up in court and the lender immediately has the upper hand should the borrower default on the agreement. It is completely the borrowers responsibility to make their payments on time and in full when they are due.

Defaulting is when the borrower fails to make the agreed upon payment on the agreed upon date. Sometimes lenders extend a grace period, which is a small amount of time, usually 5 days or less, in which the borrower can still make the payment without being in default on the loan. This is not required and if such a grace period exists it will be stated in the loan agreement.

It is very important that a borrower completely understands their loan agreement. Hey should especially note the interest rate they are being charged, any fees or penalties and specific terms, like a grace period.

Understand the agreement is essential to keeping up the deal. If the borrower does not understand anything they should ask for clarification or simply not sign the agreement until they understand it completely.

Loan finance is something that almost everyone will deal with at some point. Unfortunately for many, it will become a problem. It is quite easy to fall into financial difficulties. However, defaulting on a loan should be something that is avoided at all costs.

A person should never let a problem go unattended to. Defaulting on a loan is something that will cause problems. The lender is within all legal rights to retaliate. They can seize property, garnish wages and take a person to court over a bad debt. Loan finance is something important and something every borrower should understand.

Important Facts About Loan Modification

With the world economy in a quagmire the real estate trends in New York and New Jersey are changing. The market continues to slow down and there is an observable drop in the prices even in the year 2009. A fair number of homeowners are resorting to home loan modification as they are struggling with their existing mortgage payments and bills. Many companies in New York and even in New Jersey with a smart mortgage policy can trap their customers by adding more bills and hidden fees, eventually leading a few towards foreclosure. For such borrowers home loan modification can be a good solution.

In home loan modification your present lender modifies the existing mortgage for you to make loan payment easy. It can be done by reducing the rate or by fixing. Home Loan modification – the changes to your loan agreement help whenever a borrower is undergoing serious financial troubles, is jobless, has painstakingly high medical bills or rising interest rates and property taxes are creating difficulties. A borrower can ask for loan modification to adjust the unaffordable rate, or to defer payments to the time his financial state gets better and he can afford to pay the due monthly amount.

Mortgage holders in New York and New Jersey who have failed to give many of their loan payments can apply for loan payments. However, one does not necessarily have to be late on home loan payments to get a loan modification; it is possible without that but becomes a tough battle for the homeowner. The New York or New Jersey homeowners who have not missed any payments but have payments exceeding thirty-one percent of their monthly income are also eligible for home refinance or home loan modification.

Here are a few tips on home loan modification. to get home loan modification in New Jersey and New York a homeowner must have his home mortgage loan plan/deal checked for any complications and frauds by a good mortgage law attorney. He must keep a complete written loan history so that all extra charges and fees should be checked and recorded. A homeowner must also check the terms he believed he agreed on with the ones actually mentioned in his loan pact, especially the amount decided per installment. Another good idea for a New York homeowner is that prepayment penalty and late payment penalty should be checked. Once it is determined that no laws have been violated on your home loan then it becomes easy to get a mortgage modification.

There are a number of factors which lenders consider before allowing a loan modification. Your chances of getting a modification in New York and New Jersey depend upon the kind of hardships you are facing. They can be illness, death or job loss. The lenders judge the borrower’s ability to pay monthly mortgage against the amount he has to pay every month and then decide whether he deserves a loan workout or not. Future financial situation of the homeowner, amount owed, and equity in the property are also some factors influencing the homeowner’s chances of getting a mortgage loan modification.

Before applying for a loan workout or mortgage modification, devise a good workable plan because these mortgage companies are to prevent loss and to get the most amount of money out of the clients. Lenders have a good number of employees to deal with loan resolution and delinquency. These professionals know how to minimize the possibilities of a modification.

Important Things to Know About Loan Modifications

There has been a lot of news lately about loan modifications. And, guess what? As usual, the sharks come out to see who they can bite. So, you need to be aware of some things if you want a loan modification so that you don’t get screwed. First and foremost, legally, it takes a real estate license to negotiate loans, so ALL of these companies that are coming out of the woodwork offering to help modify loans? Well, there are MANY companies/individuals operating these businesses illegally. I will say that some of them really do want to help people, and may even have good intentions, but regardless of good or bad intentions, technically some are running illegally. A lot of people stating that they help with loan modifications do not have a real estate license.

Another KEY point is that it is ILLEGAL to charge ANY upfront fees to help with a loan modification. Even if they say they just charge for paperwork and charge $5, that is ILLEGAL! So, basically, the 2 real key points just right off the top is that someone needs a real estate license to help with a loan modification and can not charge even one penny in upfront fees. Disclaimer: As far as I know, this goes for EVERYONE, except for possibly some attorneys may be exempt. If there are ANY exceptions to this rule, go ahead and email me the law from a legal source that supports the activity is legit and I will update my blog. Otherwise, don’t bother emailing me without supported legal documentation to argue this point.

So, I have heard it all. I heard that one person charges one month’s worth of mortgage payment which goes to an escrow account. If the homeowner gets the modification, the one month mortgage payment is her fee. If she doesn’t, she supposedly reimburses the client the whole amount. I have heard stories of clients being charged up to $6000 in upfront fees for the modification. Logically, if someone has $6000, then they should PAY THEIR MORTGAGE! I have heard of $92 upfront fees, a percentage of the mortgage payment upfront, etc, etc. If the person is legit, they can help you with a loan modification and if the modification is successful, then charge a fee at the end, but no UPFRONT fees are legal.

The bottom line is that really, it is fairly simple. You just call your lender, ask the customer service person for the loan modification department. They will either send you a form to fill out or tell you how to get it online. You fill it out, write a hardship letter, maybe need to send in some information like bank statements, pay stubs, tax returns, and then you wait for an answer. It is pretty simple.

The people that want you to pay them make it sound like it is impossible to do it with out their help, but it really isn’t that hard. Yes, it is sometimes frustrating to be on hold or be switched to different departments when the customer service person sends you to phone forwarding hell, but really, it is not worth a full mortgage payment or anything near it to do it yourself.

Obviously, if you are struggling with your mortgage and making ends meet, is it really logical to spend $1000 or more for help with doing something you could do yourself? And, truly, if you know anyone in the business of selling real estate, I am sure they would be more than happy to help you with any questions. I surely am more than happy to let people know what to expect and what to ask for and such. And, I have a real estate license and give the advice for FREE!

The moral of the story is if you are struggling to make your mortgage, don’t pay even more money hiring someone that may very well be illegally operating a business when you can just make a simple call and spend maybe an hour or so gathering some information. The people that do the as a job make it sound like there is tons of paperwork and they package it the way the lender likes to see it.

Well, newsflash, for example, Washington Mutual sends out a one page form to fill out, asks you to write a hardship letter, give your current bank statement, 2 current pay stubs, and if you are self-employed then tax returns. Once you get the form in the mail, you can call customer care, give the person the info verbally, she plugs in your numbers, tells if you if prequalify for a loan modification. If you do, you fax in your documentation and wait anywhere from 30-90 days for an answer and it is a good idea to maybe check up on it every week or so.

If you truly have a hardship and late on your payments and such, sometimes that is an advantage in getting a loan modification. So, if you are late and struggling, don’t feel like there is no hope in getting one. Although, I am not advising you to stop making your payments so that you can get a loan modification. I have also heard people not getting a loan modification because they were late on their payments, so it’s case by case, there are no real general rules and regs. Also, if a lender does agree to a loan modification, there should be no consequences to your credit. A loan modification is like a refinance in a sense. However, if you are 30 or more days late, of course, that will go on your credit.

Just as a couple of examples of success stories. I heard of one guy upside down on his home. He owes $604,000 in loans and his home is worth in the $400,000’s. He had a 6% interest rate with GMAC. His rate went down to 1%, they amortized the loan over 40 years, rather than 30 years, and now his payment on $604,000 is around $1500 per month. And, I heard of someone going from 7.5% to 2.5% rate. And, a few other stories. So, it can be a major change!