Understanding The Mortgage Loan Modification Process

By Simon Volkov

Mortgage loan modification is a home-saving strategy available to borrowers who have defaulted on loan payments or those facing financial challenges that could lead to foreclosure. Banks can reduce interest rates, extend loan terms, or reduce mortgage principal.

The mortgage loan modification process can take months to complete. Borrowers who have entered into preforeclosure must become extremely proactive in attempting to work out a modified loan. Borrowers who are not in preforeclosure, but struggling to meet loan obligations may find obtaining a loan modification nearly impossible until they default on their loan.

The first step of negotiating begins by contacting the bank’s loss mitigation department. This is often a frustrating experience because borrowers normally must place multiple phone calls to talk with a human being. The key to success is patience and persistence.

Bank loss mitigation oversees all transactions related to delinquent mortgage loans. These include deferred payments, mortgage forbearance, loan modification, mortgage refinance, foreclosure, deed in lieu of foreclosure, and real estate short sales.


Next, borrowers present a ‘Request for Modification and Affidavit’ (RMA) to the bank. RMA forms are available at no charge at MakingHomeAffordable.gov, along with tax return authorization forms and income verification worksheets.

Borrowers provide an IRS 4506-T-EZ form which authorizes lenders to obtain a transcript copy of the most recent tax return. Required income verification documents depend on if borrowers are employees or self-employed; if they receive government assistance, pension, or unemployment benefits; and if they depend on child support or spousal alimony to maintain mortgage payments.

Once these documents are provided to lenders, most will request a loan modification hardship letter outlining circumstances that led to financial hardships. Hardship letters should be concise while including sufficient details. Borrowers who have engaged in activities to reduce expenses should include actions taken in their letter of hardship. Banks tend to appreciate borrowers who are being proactive in resolving financial problems.

Bank loss mitigators review financial information and loan documents to determine if a loan modification is the most viable option. If so, they will work with borrowers throughout the process. If not, banks may offer additional remedies such as real estate short sales or deed in lieu of foreclosure.

Making Home Affordable is a government-sponsored entity that can be invaluable to borrowers. In addition to providing required forms, visitors can also locate information and resources that can expedite the process of applying for a mortgage loan modification.

Mortgagors can enter information into mortgage calculators to determine if they meet loan modification criteria; locate HUD housing counselors; and research foreclosure prevention programs.

It is important to note that more than 50-percent of borrowers who enter into mortgage loan modification default on their agreement within the first year. The Office of Thrift Supervision reports default occurs because borrowers do not have sufficient income to remain current with loan installments, or because lenders or borrowers do not complete required paperwork.

When mortgagors receive loan modification approval they must be proactive in remitting payments in full and on time. Borrowers who fail out of loan modification programs will have limited options available to stop foreclosure.

Borrowers facing financial hardship and unable to achieve desirable results with their lender should consult with a HUD housing counselor. These trained professionals can assist borrowers and help determine if a mortgage loan modification is the best option or if other foreclosure prevention strategies should be explored.

About the Author: Understanding the mortgage loan modification process is essential for achieving a successful outcome. California real estate investor, Simon Volkov shares a comprehensive foreclosure prevention article library to help borrowers make informed decisions at SimonVolkov.com.

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Global Banking Accelerate The Transformation Of Capital Intensive Business

By Himfr Oreitta

Basel Committee on Banking Supervision recently announced that 27 central banks and regulatory agencies have been responsible for the content of Basel II agreement ?, and is expected in 11 months through the G20 summit. Thus, Basel II a new generation ? as the regulatory framework for the international banking community the basic shape the framework of international norms and the global banking industry will inevitably have a profound impact.

The new regulatory standards for individual bank’s capital quality, capital quantity, capital regulatory approach will have a significant impact that can affect the macroeconomic situation, the entire banking system’s credit supply capacity and the global banking business model. In the more stringent regulatory environment under pressure, banks must develop reasonable capital supplement mechanism to achieve the new standards and maintain continuous operations.

Taking into account the requirements of the capital cushion the bank’s core tier one capital adequacy ratio increased to 7%, a capital adequacy ratio increased to 8.5%. Although the data show that the American and European banks with capital adequacy ratio of 10% of the average level, but also the core of a capital adequacy ratio of distance, the new regulations would constitute a significant pressure on structured finance, the current bank in the capital of certain types of assets will be removed, and banks need additional capital assets of high quality supplement.

According to the original provisions of the Basel Capital Accord, an innovative hybrid capital instruments to complement a capital, hybrid debt capital instruments and subordinated debt can add two long-term capital.


The new regulatory capital requirements defined, a capital can only contain ordinary shares (including retained earnings), two future risk capital can not provide adequate protection, can only absorb losses in liquidation under the conditions, and thus the quality of global commercial banks to raise capital enhance the loss of absorptive capacity, must adjust the capital structure, attention to ordinary share capital added, the development of capital accumulation based on internal financing of capital within the source added channels.

Raise capital for, including not only the improvement of capital adequacy standards, but also the adjustment of the scope and quality of capital, which is bound to improve bank capital requirements, it would also force the banks to profit model and the corresponding risk of the assets structure adjustment .

First, the expected profitability of the banking space will be accompanied by lower leverage and asset growth slows and decreases. On the one hand, the core of an ordinary share capital is divided into a higher capital requirements proposed, and the improvement of common stock will increase the capital requirements of banks operating costs, when these costs onto consumers when they put lead to a decline in financing needs; On the other hand, in order to maintain a high level of capital adequacy ratio, the denominator the number of risk-weighted assets must be controlled, which means that operating leverage and asset size reduction, especially in some European and American banking business and the higher leverage assets will shrink substantially.

Under the existing model the gradual narrowing of margins in turn affect the accumulation of capital, thus changing the profitability of the existing model, for low-leverage, low capital consumption, innovative profit model will be the international banking industry, banks in Europe and America in particular, urgent problem.

Second, a direct impact on the level of capital to the bank’s future development. Although published in the new Basel II regulatory leverage ratio was introduced indicators, both the capital adequacy ratio, or leverage, the molecular study are the size of the capital, it can be said of capital will determine the level of the existing regulatory framework Under the Bank’s development model. The capital adequacy of banks more to accelerate the expansion of credit to carry out mergers and acquisitions, to seize the market is relatively more room to maneuver, but for lack of capital for future business development bank will be subject to various restrictions.

Whether or not capital adequacy, optimal allocation of capital improvements, capital intensive business, steering the business model of low capital consumption, improve return on capital will be the future direction of development of the banking industry.

Since the financial crisis, the Chinese banking system, increasing the risk of regulatory requirements, respectively, large banks and small and medium state-owned bank’s capital adequacy ratio of 8% from the previous increase to 11% and 10%, some large banks increased to 11.5% . According to China Banking Regulatory Commission released at the end of June 2010 the relevant data, the domestic large, medium and small types of banks average capital adequacy ratio reached 11.1%, core capital adequacy ratio of 9%, core capital to total capital ratio of more than 80% From the quantitative point of view, beyond the minimum requirements of international capital regulation. For the 3% leverage ratio requirements for businesses engaged in low-leverage China’s banking sector is much higher than the natural regulation of the level of international requirements.

Therefore, the international bank capital regulatory reform in the short-term impact on domestic banks is limited, but long-term effects of concern, in particular, to work together to adjust and perfect the system of domestic bank capital regulation, including the number of standards, quality standards, schedules, and other regulatory measures to improve effectiveness of capital regulation. Meanwhile, to encourage new capital in the banking system to speed up innovation and regulatory system, and steadily improve the efficiency and leverage the use of capital and reduce the profit model over-reliance on capital, promoting capital formation saving business model, and actively expand the variety of capital additional channels.

About the Author: I am a professional editor from Hardware Wholesale, and my work is to promote a free online trade platform. http://www.hardware-wholesale.com/ contain a great deal of information about hdmi splitter cable,mens jean jacket,m16 airsoft gun, welcome to visit!

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Refinancing A First And Second Mortgage With Bad Credit 5 Pieces Of Advice

By Robbie T. James

Carrying a mortgage is both a privilege and a burden. It is a privilege because it means that you are the proud owner of a home – something that not everybody can say these day. And, it is a burden because with that pride of ownership comes financial responsibilities. Namely: you need to make your mortgage payments each month.

One of the best ways to save money on your monthly household expenses is to reduce your monthly mortgage payments as much as possible. If you are the holder of both first and second mortgages, the smart path to a reduction in your expenses is through mortgage refinancing.

You may have considered refinancing before but have held back given your bad credit score. It is true that having a poor credit score could have a very negative effect on your chances for a low-interest refinance loan. However, if you know how to go about it, you can actually find excellent mortgage refinancing deals despite your score.

For someone who is looking for a good deal on refinancing their first and second mortgage with bad credit, here are 5 good pieces of advice:

1. Loan consolidation into a single first mortgage is probably your best move:


When refinancing two mortgages at once, your best move is most likely to consolidate everything into a single loan. Why? Because, you will almost certainly pay a lower interest rate on a first mortgage than on a second.

2. Calculate your current total monthly interest payment across both mortgages:

To be able to compare refinancing offers, start by figuring out how much money in monthly interest payments you are paying now. Simply add the interest portion only (note: be sure to exclude the portion that goes toward your principal) of your first and second mortgages together.

3. Look for interest rates that beat your current average rate:

Now, figure out what interest rate you will need in order to beat the new rate. Note that it may be the case that you could end up paying a slightly higher rate on your first mortgage than you have now, but you could still come out ahead with your new loan in terms of total interest paid.

4. The best portal to a new loan is through a bad credit mortgage lender:

Keep in mind that your best route to a refinancing loan is always going to be via a bad credit mortgage lender. Given your bad credit score, you should definitely limit yourself to only working with such lenders. They will know how to evaluate your creditworthiness in innovative ways that other lenders cannot do.

5. Choose to apply to at least five lenders:

Make sure that you apply directly to at least five bad credit mortgage lenders. This will help widen your options as you go after the right loan offer.

In the end, it is all about getting the same thing you have now (your home) for less money (lower mortgage payments). Refinancing can be just the thing to help – even if you have a bad credit score.

About the Author: Find more tips on how to secure a bad credit mortgage refinance loan at:

Bad Credit Home Mortgage Refinance




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Renting Your House

By Jonathon Hardcastle

In case you are the owner of a property that you wish to rent to an interested prospective tenant, you have to decide which would be the best way to make your rental property most appealing to potential renters. Real estate agents support that there are several ways in which this can be done.

– There is always the solution of furnishing your rental property. Many landlords decide that this is the best possible way to increase the rental agreement on their property and if they do have furniture in excess, it is actually a convenient way to store them and make profit from their use by the tenant. In case this sounds like something you would be interested in doing, you have to make sure that your rental property is in excellent condition and that the phone jack on the wall and other appliances are in perfect shape.

– There is also the option of partly furnishing your property. This method will appeal to renters who are interested in finding a house that is not packed with furniture that do not match and that they want to bring in some of their own. But it is always a good idea to offer a nice quality couch, bed, mattress, drawers and kitchen appliances. Nice looking furniture will make your property much more appealing to potential renters and will help you securing the rent you wish to receive every month.


– Do not forget that your property has to be shown to its potential residents clean. Everything has to be as clean as possible and especially the kitchen appliance, cupboards along with the bathroom have to be in great shape. Consider hiring a professional team to do the cleaning and remember that in most cases, providing a clean apartment is among your responsibilities as the rental’s lawful owner.

– Repair ceilings, kitchen cabinets, existing wallpaper, closets and doors. Make sure your contractor will take care of your bathroom damages and ask him to replace the bathroom tiles that have been damaged by the previous tenants or owners. Installing a new bathroom curtain and brand new hooks can further assist your efforts of renting it at the price range you have in mind.

– Repaint with the right light colors the walls of the residence and get rid off difficult to handle paints.

– Increase the existing lighting and replace old blinds with bright new ones.

– Take care of the things the previous owner or tenant has left inside the house and if you are thinking of using some or all of them to furnish the house make sure you write down what you are leaving in there and what type of furniture are missing and your tenant wil probably request you to supply.

– Shampoo carpets and for deep cleaning that helps reduce the allergens and the odors caused by dust mites, pollen, dust and pet dander. It generally advisable to deeply clean your carpets so as to brighten and deodorize their surface.

About the Author: Jonathon Hardcastle writes articles on many topics including Real Estate, Business, and Employment

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Get A Bad Credit Home Equity Loan 5 Things To Avoid

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By Susan Willis

A home equity loan may be the ideal choice for homeowners who need quick access to cash. After all, equity loans provide the him or her with the opportunity to use the equity in their home as collateral against a new loan.

The proceeds from a home equity loan can be used for whatever the homeowner wants, including paying off debt, paying down medical bills, taking a vacation, throwing your daughter a wedding, or doing home improvements.

However, it can be a different story entirely if you have a bad credit score. Homeowners who have a low credit score often face the same issue each time they visit a new bank to apply for a home equity loan: rejection.

Sometimes, getting approved for a loan is just as much about what to avoid as it is about what to do. Homeowners with a low FICO score routinely find themselves stepping right into a situation whereby they make the wrong move and it costs them a loan offer.

If you are interested in qualifying for a bad credit home equity loan, here are 5 things to avoid:


1. Do not just approach any home mortgage lender for a loan:

As you may have already found out, the majority of home mortgage lenders are not interested in working with an individual with a less-than-perfect credit score. That is why it is essential that if you are in need of cash via an equity lender, do not just approach any given lender and apply for a loan. If you do, you will likely continue to experience the same pattern of rejection you have seen thus far.

Instead, look for “bad credit home equity lenders.” These are the ones who offer just what you need for someone in your situation.

2. Avoid failing to properly prepare:

Bad credit equity lenders are not just going to look at your credit score. Rather, they go much deeper than that. Gather together any documents that indicate your employment history, your current income, and any relevant items related to your personal financial history.

3. Do not just apply to one lender:

Many homeowners interested in a home equity loan end up only applying with a single lender. This is a big mistake. If you do this, you will likely not be offered the best-possible rate the first time around. Instead, improve your odds tremendously by applying to multiple lenders.

4. Avoid accepting the first offer you receive:

Since you are anxious to get access to cash quickly, you may be tempted to accept the first loan offer you receive. Avoid this temptation. Instead, apply to all of the lenders on your list.

5. Do not skip the fine print:

Remember, before signing this – or any type of – loan documents, be sure to read the fine print. Make sure you understand the repayment period, interest rate, and other important loan details.

Be sure to avoid these 5 common mistakes as you go after a bad credit home equity loan.

About the Author: Find more tips on how to secure a bad credit home equity loan at:

Bad Credit Equity Loan Approval




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