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Loan Modification & foreclosure scams
Colorado Foreclosures Frequently Asked Questions
It is understandable to have questions when coping with a new and challenging situation, especially when a home is at stake. The reality is that millions of homeowners across the country are finding out that they have more questions than answers. We hope that the following information will help you better understand the circumstances. If you have further questions not addressed below, or would like additional information resources, feel free to Contact Us.
Do I qualify for a short sale?
The qualifications for a short sale include any or all of the following:
1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
What is a mortgage modification?
A mortgage modification is a process through which your mortgage lender changes any or all of the following:
* Your interest rate
* Your principal balance (through a reduction)
* Your loan terms (example: from an adjustable to a fixed rate)
This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.
Why would a lender modify my mortgage?
Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.
What do I need to qualify for a mortgage modification?
According to the Making Home Affordable Web site (www.MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:
* Information about your first mortgage, such as your monthly mortgage statement
* Information about any second mortgage or home equity line of credit on the house
* Account balances and minimum monthly payments due on all of your credit cards
* Account balances and monthly payments on all your other debts such as student loans and car loans
* Your most recent income tax return
* Information about your savings and other assets
* Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources
If applicable, it may also be helpful to have a letter describing any circumstances that caused your income to reduce or expenses to increase (job loss, divorce, illness, etc.)
How do I qualify for a mortgage modification?
The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):
* Loss Mitigation
* Mortgage Modification
* H.O.P.E.
Prior to contacting your mortgage lender you can quickly complete an eligibility test at www.MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP). For a list of mortgage lenders and servicers, visit www.HopeNow.com.
What if I don’t qualify for a mortgage modification, can’t afford my home, and owe more than it’s worth?
You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents like me, with the Certified Distressed Property Expert® Designation, have undergone extensive training in how to process and negotiate short sales. A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.
What is a Home Affordable Refinance?
If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.
What are the qualifications for a Home Affordable Refinance?
According to the resources released by the government, following are a list of qualifications:
* You are the owner occupant of a one- to four-unit home
* The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
* At the time you apply, you are current on your mortgage payments (you haven’t been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
* You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
* You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan
Accept Business Credit Cards: Empower Your Business and Your Clients
Businesses today are increasingly making use of business credit cards to transact, both as vendors and as buyers. This trend in spite, there are still a number of vendors who do not accept business credit cards from their business clientele. The truth of the matter is that if such a vendor wishes to achieve higher trading volumes and increase its client base, accepting business credit cards changes from being an optional, to a must.
Accounts receivable is not only a nasty trap, but also creates a vicious cycle. Vendors that do not accept business credit cards, often agree to extending credit to their clients in order to retain their custom. Although this may be a necessary business practice, it does place unnecessary strain on the business finances: Unnecessary, because by accepting business credit cards, you can retain your clients and mitigate your cash flow risk at the same time.
The benefits of accepting business credit cards are numerous and include:
Boost Your Sales: When your clients are in a position to purchase what they want immediately, most of them will. When they make that immediate purchase, your sales are boosted. A simple browse – either in your store or on your web site – may turn into a profitable visit if you enable your clients to make payments with their business credit cards.
Bolster Your Cash Flow: Many merchants who do not have sufficient cash flow with which to support growth, may be victims of high accounts receivables. One of the quickest ways to free your business from this trap is to start accepting business credit cards. Stop billing your clients and start billing their banks instead! When you accept business credit cards, the revenue from the sale will reach your bottom line much sooner than accounts receivables would.
Put Smiles on Your Clients Faces: Clients obtained their business credit cards for a variety of good business reasons and will want to use these. Dont allow your clients to find alternative suppliers purely because your business is not able to process business credit card transactions. When business clients are searching for a supplier, and they want to pay by means of their business credit cards, they will search until they find a supplier who does. Accepting business credit cards places you in the running for their business and that is a good place to be!
Put Smiles on Your Financial staffs Faces: Your accounting department will be very happy when you decide to accept business credit cards as payment for purchases. They will be freed from the hassles of paperwork and the headaches of collecting all your accounts receivables on time. If one compares the collection of outstanding accounts from many of different clients to collecting from the relatively few merchant services that issue business credit cards, the latter is a walk in the park.
Accepting business credit cards may be necessary to enhance and grow the business relationship you enjoy with your clients. It affords your clients the opportunity to make use of their preferred method of payment and liberates you from the accounts receivable trap at the same time.