Pre-Requisites From Homeowners Before Loan Modification is Availed

Pre-Requisites From Homeowners Before Loan Modification is Availed
By Khmer Lee P. Lugod

Homeowners with at least three-month delinquency from its mortgage should right away seek for counseling. This situation might already be considered for a loan modification. This is one of the few initial requirements under the new loan modification program. This guideline is intended to be true across all mortgagors.

In the new guidelines, as detailed by Freddie Mac Inc. and FHFA, homeowners may consider applying for loan modification if payments are delinquents. The minimum is three months. If a property is already foreclosed, chances for availing a loan workout might be difficult. At this point, homeowners will be at the mercy of its mortgagor.

Granting that homeowner is already a delinquent, mortgage lender conducts an initial evaluation of income strength. Borrowers' gross income should at least be able to cover 38% of mortgage do, on a monthly basis. Initially, homeowners will be required to remit the payment for three months. This is to test if homeowners will be able to pay with the new monthly do regularly for three months.

After the trial period homeowner and mortgagor may now start with the loan modification process. So it's wise that the homeowner has already documented its financial state, so everything is intact. As soon as a mortgage lender will entertain homeowners' proposal, all documents are ready for submission.

Among these documents include, cover letter, hardship affidavit or letter, documents proving a state of hardship, and homeowners' loan modification proposal. In addition, homeowner is required to be residing to the subject property; otherwise no modification of loan will transpire. This could mean submission also of proofs of residency to the property.

Eligibility according to type of home property is also a pre-requisite for loan adjustment. Such as a one-unit family occupied condominium, or primary residence manufactured homes. And state of these properties should not be beyond repair or dilapidated.

Homeowners are guaranteed to be help by its mortgagor to avail for a modification of loan, given that all pre-requisites must be complied. Although mortgagor will gain less if foreclosure is declared, because of present housing industry issues. However, it doesn't mean for homeowners to be complacent about a possibility of foreclosure.

Homeowners should not wait for the notice of foreclosure, when mortgage delinquency becomes apparent, rather, they visit mortgagor right away. And start to settle with preliminary requirements to avail a loan modification.

Article Source: http://EzineArticles.com/?expert=Khmer_Lee_P._Lugod

Pre-Requisites From Homeowners Before Loan Modification is Availed

Homeowner Secured Loans

Homeowner Secured Loans
By Divya Kannan

Secured loans are generally based upon keeping a property as security. In Homeowner secured loans, the difference is keeping the house as security which can be understood from the name itself.

There are many advantages in keeping house as security as desired amount of money can be got as loan. Large amount of money can be got as loan due to the fact that the value of house will increase only. The value of house is based upon the current market value of the land, cost of the building and various other factors.

The future value of land would also be considered. Many people desire for secured homeowner loans so there is a high level of competition among lenders. Financial companies does not participate much due to this high level of competition. Applying for secured homeowner loans implies submitting of all legal documents relating to the house.

Homeowner secured loans can be got in case of multiple owners also. In that case, all the co-owners should sign for the loans. For example: Husband, wife and relatives. Due to this high level of competition, banks have reduced their interest rate to 10- 12 percent. Everything has its own constraint, Homeowner secured loans also have its own constraint.

If the installments are not payed properly, then there is a risk of house being taken over. Better steps would be proper assessment of the home, demanding loan amount equalizing the value of the house. The best preventive step would be paying the installments in time.

Article Source: http://EzineArticles.com/?expert=Divya_Kannan

Homeowner Secured Loans
By Divya Kannan

There Are Times When a Remortgage is Less Favourable Than Homeowner Loans

There Are Times When a Remortgage is Less Favourable Than Homeowner Loans
By Liz Moir

There are numerous ways of raising funds when someone needs to borrow.

Borrowing money obviously involves taking out a loan of one kind or the other, as loan is the name given when a person borrows from another individual but most commonly from an official lender such as a bank or a building society.

There are two main kinds of loans and these are secured and unsecured ones.

As the name unsecured makes obvious, this type of loan requires no form of security whatever and as such both tenants and homeowners are eligible to apply.

Unsecured loans are especially difficult for non homeowners to be granted.

An unsecured loan applicant would have to be in long term employment with the same company, have a stellar credit history, etc. the interest charged is expensive.

The reason that a homeowner can obtain an unsecured loan more easily than a tenant is because of the fact that if the borrower defaults on repaying his loan, the lender can secure an inhibition on his property which is like a secured decree which is recorded at the Land Registry.

This inhibition means that the lender should receive the loan funds back sooner or later as the defaulter cannot sell his property without first paying off the inhibition.

The other main type of loan is the secured loan range which includes mortgages, remortgages and homeowner loans which are often called by their other name secured loans for obvious reasons.

Mortgages, remortgages and homeowner secured loans are all secured on residential property, making their interest rates favourable.

A homeowner loan should always be the loan of choice for a person who owns his property as the interest rate charge is normally lower than the rate for an unsecured loan and homeowner secured loans are more readily available.

Interest rates commence currently at about 9% and the homeowner loan has other added advantages over the unsecured variety.

The repayment period is very flexible being from a minimum of five years to a maximum usually of twenty five years and as such the repayments can be put in place to suit the budget of most people.

Secured loans are also multi purpose loans meaning that they can be used to buy or do almost anything from car or caravan purchase, to funding home improvements. can pay for exotic holidays to far flung places.

Remortgages are the replacing of a mortgage from a current mortgage provider to another, sometimes to simply obtain a better rate of interest with a new mortgage provider and this is called a like for like remortgage meaning that no additional funds are taken out.

However when the homeowner does in fact want to borrow additional funds, a remortgage can be used to do this in the same way as a homeowner loan.

The interest rate for a remortgage is lower than that of homeowner loans starting presently at 1.84%, but there still is an occasion in which a homeowner loan would be the better way for a homeowner to borrow.

This is when he is in a tie in period with his current mortgage and the tie in period is normally from two years to five years, and during this time an early repayment penalty would be charged.

The penalty is from a minimum 2% of the outstanding mortgage balance to as high as 5%, meaning that a penalty of £the penalty on a mortgage of 100,000 would come in at 2,0005,000 on a similar mortgage if charged at 5%.

Therefore during this time homeowner loans would be the ideal solution for homeowners wanting to borrow, and when the tie in period is over a total remortgage would be put in place.

Homeowner loans have normally a one month interest penalty if cleared early and as such although remortgages and homeowner loans are ideal loans, the secured loan is the better choice at such times.

Article Source: http://EzineArticles.com/?expert=Liz_Moir

There Are Times When a Remortgage is Less Favourable Than Homeowner Loans
By Liz Moir

Secured Homeowner Loans

Secured Homeowner Loans
By Kamalkk Kannan

Homeowner loans are a class of secured loans offered by banks and financial establishes in several countries. A secured loan is a loan that can be applied by placing a collateral as a compensation for the money borrowed. By this, if the borrower faces financial problems and doesn't repay his loan in time than his property placed as security would be taken over by the bank.

Secured Homeowner loans are the loans obtained by placing one's own house as security. Even a house with multiple owners can be placed as security with documents signed from co-owners as well. This may apply to cases where a house is co-owned by husband and wife, relatives etc.

Advantages of homeowner loans are manifold. Generally huge amounts can be demanded when house is placed as security. This is because of the fact that value of house would generally increase in future. Since this is a very common type of secured loans available, there is a high level of competition among lenders.

This has significantly reduced the competition levels amongst the financial companies. Especially banks in UK are known for their very low secured loan rates ranging from ten to twelve percentage of the money borrowed.

The prime disadvantage is the amount of risk involved. In case of failed repayments the house may be taken over immediately.Being careful on assessing the value of house placed as security and demanding an adequate loan amount to match the value of security can help a lot in preventing future financial crisis.

Article Source: http://EzineArticles.com/?expert=Kamalkk_Kannan

Secured Homeowner Loans
By Kamalkk Kannan

Best Home Owner Loans

Best Home Owner Loans
By Balajee Kannan

We shall discuss here about secured loans for homeowners, the advantages and disadvantages of taking that loans etc.

Secured loans are offered by banks and financial institutions in several countries. These loans can be borrowed by placing a collateral as compensation for the money borrowed. In any case if the borrower is not able to repay the money, then this collateral will be taken over by the bank.

When a borrower places his house as a security or collateral, then it is called as secured homeowner loans.

If a property is in the name of the multiple owners, then also it can be kept for collateral, provided you have to get a no objection signature from all the co-owners even if the owners are husband and wife, relatives etc.

If we keep our home as collateral, we get some advantages like we can ask for more loan amount. As the value of the house will increase in future, we can ask more loan amount. This is a more common type of secured loan.

So most money lenders prefer for home loans and give less rates for secured home loans. The banks in United States of America and united kingdom mostly prefer this loans. The rate of interest varies from ten to twelve percentage of the money borrowed.

The main disadvantage in this loans is the risk involved in case of failed repayments, the financial institution will remind us and give us a chance to repay in consecutive months. If not, they will take the house and sell it in auction and take the amount back.

Article Source: http://EzineArticles.com/?expert=Balajee_Kannan

Best Home Owner Loans
By Balajee Kannan