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Monthly Archives: November 2017

Tips to Get Approved For A Loan Modification At Any Bank

There were a lot shady and predatory lending practices that banks may have used to get you into a mortgage that has made it very difficult for you to pay it back. When things aren’t sustainable for you, the bank loses and so do you. That means you both have a mutual interest in modifying the bank loan to something that makes you both better off.

There are things that you have to show the bank that you’re doing to really get them to consider your application. They’re not really looking for a sob story about how you can’t pay your bills. That doesn’t really instill confidence in them that you can pay for things into the future. The first thing you want to show them is that you’ve tried every avenue available to make this mortgage workable for you. They have to see that you’re not someone looking for a free ride, but someone that is working to keep their house and are willing to do what is necessary to keep it.

Another thing you can do that will really help the bank out is providing them with a very detailed budget of what you do with your finances. They need to see exactly how much you are working with and where you have to put it. You will also want to include another budget of what how you would expect to pay a cheaper mortgage. Include as much detail as possible, as well as the amount of hours you work to pay the bills. The more information they have, the more serious the consideration will be.

The last part on how to get approved for a loan modification is honesty. It can seem so convenient to just bend the truth or add on a little more expense here and there. You’re not going to get ahead by telling lies. Banks will go through your records, credit history and do every sort of background check available. If you lie, you’re not going to get one. If you get caught lying you won’t get any help and will probably be foreclosed on.

Loan Modification Contract

Everyone needs a place to live, but the cost of living is a great one, especially if your bank gave you an unfair contract that has resulted in you overpaying for your home for months if not years  The credit crisis has really put the crunch of banks to try to find a way to keep their clients paying without driving them into bankruptcy.

The desire of banks to keep a steady cash flow coming in has led them to offer Mortgage Loan Modifications, which is essentially the contractor and the contractee coming together again to modify the original terms of the loan as stated in the original contract.  Obviously, since a contract modification entails going back in to the contract, those seeking to reduced their mortgages and interest rates should be ready to learn some of the technical jargon the banks use in their often daunting contracts.

Yes, they are quite boring to read through, but odds are if you are that desperate to get a mortgage mod than you are probably willing to bite the bullet and look through the contract.  Indeed, it is quite likely that know the terms of your contract because if you weren’t meeting them you would have been foreclosed or possibly imprisoned for fraudulence, but you it would behoove you to look over the contract.  It is especially important to look at your contract or have a lawyer look at your original contract, because there is a very good chance that it was drawn knowing that you wouldn’t not be able to make the payments; this is one of the huge factors that led to the whole housing and credit crisis.

Due to the banks greed, you may be able to now modify the contract to remove these fraudulent additions.  After lowering the premium and the high interest rates on your loan, the hopes are that you will actually be able to pay your loan, putting money back in to the banks and hopefully some money back in to your own pockets.
Maybe after all of this credit crisis is resolved and the recession is reversed, the banks will get the picture and write good contracts from the start so that contract modification isn’t needed.

Car Title Loans

The total loan process can be completed quickly on a title loan, the money is often made available the same day. As long as you pay this loan back on schedule, this is a great borrowing option with less headaches and less paperwork.

A car title loan is a loan that you secure through the value of your paid off vehicle. A title loan will not be granted, as a usual order of business, on a vehicle that is not paid off and it must be granted only to the person who is named on the title document. The resale value of the titled vehicle will be the base amount of cash offered on the title loan. An older less gently used vehicle is going to help you receive a lesser amount on a title loan, but a newer vehicle will bring in a loan amount of greater value.

These types of loans generally carry high interest rates, which do encourage the borrowers to pay them off more quickly and create a larger profit margin for the lender. If you pay back the loan within thirty days, the average time limit of the loan, you will pay one large interest fee; it will seem to be worthwhile if you are in great need of money at the time.When you cannot pay off the loan within the thirty day time period, the loan can be rolled over to the following month for up to six months; each time it is rolled over there will be additional interest fees added on. You may find you are owing a great deal more than you borrowed, because these extra fees can mount up quickly.

If at the end of six months you are not able to pay off your loan, your car is at risk to be repossessed by the lender and sold to recoup their losses.

If your plumbing has gone out and you’re trying to clean up three feet of water in your home, a loan like this may be your answer. If you have unexpected medical expenses, this type of loan can also take care of that. These are examples of how to use this type of loan in a responsible way.

Before you agree to this type of loan, be sure to have a plan for repayment, so you will only pay one finance charge and still have the money in plenty of time for your need.

When used appropriately, a car title loan can save you, from ruin. The money will be there for you if you need it, but careful consideration should be taken before agreeing to any loan plan.

Applying For Unsecured Loans With The Same Lender Benefits

The fact that you already have an outstanding loan with a lender may be negative or positive for your new application according to your repayment record and financial situation. The thing is that both these factors will affect your approval process with other lenders too and thus, there will not be much difference. However, there are several advantages that you can obtain when applying with your already known lender.

Avoiding Long Credit Verification Processes

As an existing customer, your credit score is probably already being monitored by your lender from time to time. Also, your credit worthiness has been established by the lender already as well as your ability to repay the outstanding loan. Thus, there will not be many hassles if you have to go through an approval process with the same lender as compared to what you would have to go through with another lender.

A simple credit pull and income verification may be required and sometimes, if the new amount is not that high, this can also be bypassed. After all, if you have already qualified for a loan with them and your credit and financial situation have not changed that much, there is no reason to doubt your ability to repay the new loan just like you were repaying the existing one in a timely manner.

Single Monthly Payment As Opposed To Multiple Payments

When you apply for an additional unsecured loan with the same lender, you get to make a single monthly payment every month instead of several payments like you would have to make if you took different loans from different lending institutions. This is really an advantage and provides at least two benefits for the borrower we can think of.

For starters, it is definitely cheaper. This is due to the fact that you will only pay for the costs of a single lender instead of two separate ones. Thus, unless you are dealing with an unscrupulous lender, you will only be charged administrative fees, and other costs associated with the lending process once. Also, the fact that you need to remember to pay to a single lender will contribute to avoiding delinquencies and thus keeping your credit clean.

Longer Repayment Program Or Higher Monthly Payments

When you request an additional unsecured loan with the same lender, there are basically two methods that can be used to provide the money. If you want to keep your payments the same so as to obtain the funds but avoid compromising your income any further, the lender can easily extend your repayment program so as to include the new amount keeping your monthly installments unaltered.

If you want to repay your loan sooner and you do not mind raising your monthly payments a bit, the outstanding loan can be fully cancelled and a new loan that includes both the amounts of the previous and the new loan will be assigned. The resulting installments will be a bit higher depending on the loan amount you requested but the repayment program will be shorter.