Loan questions

  1. 60
    dtreaderposted 6 years ago

    Home owners who find themselves upside down on their mortgages may qualify for a loan modification that will reduce monthly payments, making the loan more affordable. However, contrary to popular belief, a home owner does not need to owe more than the home is worth to submit a request for a loan modification. Those with adjustable-rate mortgages and equity may qualify to modify a loan as well.
    Most of the loan modification requests come from home owners who prefer to try to hang on to their home than let it go to foreclosure or attempt to do a short sale. Both short sales and foreclosures affect credit in an identical manner if a Score Factor 22 is entered into a borrower's credit report.

    However, some loan modifications call for debt forgiveness, which may include a negative impact on credit as well if the lender writes off part of the existing mortgage.

    By fall of 2008, the U.S. government, as part of its Bail Out Program, applied pressure on banks, pushing banks to try to work out loan modifications with borrowers. As a result, some banks decided to hold off on filing foreclosure notices against delinquent borrowers for three to four months, buying home owners more time.

  2. goldenpath profile image80
    goldenpathposted 6 years ago

    Expand it!  This would make a great hub.  As far as input, I'd say try to stay away from personal debt at all cost if possible. smile