Friday, November 13th, 2009 at
8:59 am
Many home owners often find themselves in a financial bind making the home loan difficult or hard to pay on time. This is a bad place to be for anyone because late mortgage payments will drop your credit score and cause you to have to pay late fees that can add up very quickly.
Negotiating Late Payments With Mortgage Lenders
The first thing that you as a home owner should do when you know your are facing financial problems is call your mortgage lender or whoever services your loan and workout a repayment plan or payment modification. The last thing your lender wants is your house back, most lenders will work out some sort of plan with you in order to keep your credit score safe and your home out of foreclosure.
What Should You Tell Them
Explain to the lender in detail what caused the circumstances you are now in and what if anything you are doing to work yourself out of the mess. You should also provide them with a time frame of how long you think it will take you to get back on your feet financially.
In a rare instance they may chose to do nothing for you but as long as you have been a good paying customer that is very rare. In most cases they will more then likely either adjust your payment for a period of time to allow you to catch up or even allow you to skip a payment or two.
However you must keep in mind that you still owe the money and it will be added to the term of the loan. So if you skip two months payments your loan will be two months longer in the end.
If they reduce your payment amount down they will generally want you to make it up within a years time by adding an extra amount to your payments after you get back in control.
If you are struggling as a direct result of an adjustable rate mortgage increasing the lender may offer you a fixed rate or give you an extended fixed rate period on the ARM. Changing the loan terms of a mortgage is referred to as a loan modification and is currently quite common.
By: Darin Sewell
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Tuesday, November 3rd, 2009 at
6:49 pm
The mortgage broker calls to tell you that your credit score doesn’t qualify for a mortgage. He needs at least a 580, preferably a 620. What do you do? Wait? Take action? Does it feel like in order to get a mortgage you must sell your fattest cow for some magic beans, grow a giant stalk and find a banker that will lay a golden egg? If it does, your not alone. In fact, your going through what millions of Americans are experiencing right now: The Credit Crunch. I like to call it the “puckering up” of banks’ behinds.
If its just your score there may be a couple things that you can do to give your credit score a jolt. Although, there is no magic beans to grow a great credit score there are some things that you can plant that will grow your credit score. Keep in mind that it’s not always just your score that’s affecting your ability to qualify. Most of the banks also want to see established POSITIVE credit. More specifically Three trade-lines that have a good payment history for the past Twelve months.
Thinking about taking action to improve the score on your report may take the consideration of several factors:
1. Do I have a copy of my credit report?
2. How many negative credit items are on my report, and how recent are they?
3. Do I have at least 3 established positive credit items?
Even though disputing, debt negotiating, and positive credit establishment can seem pretty self explanatory there are actually better ways than others. Governed by hundreds of pages of consumer protection laws and Acts it can seem extremely confusing to navigate a proper action plan to improve your credit quickly without the help of an Attorney or Credit Repair Organization.
On one hand you don’t want to throw away hundreds if not thousand of dollars on a professional, on the other hand, you don’t have the time or experience to educate yourself enough to purchase a home in the time-frame you want. (You might also want to capitalize on that nice O’bama tax incentive!)
Guess what? You don’t have to hire anybody or go to college for a year to find the most effective way to repair your credit score! Someone else has done it for you already and there are plenty of Free Self Help Credit Repair Communities on-line to help you!
Here’s a couple things you can do right away:
1. Sign up with a Community of Self Helpers, its usually Free.
2. Go to Opt-Out Pre-screen and “OPT” yourself out from receiving solicitation for a score jump.
3. Find a relative or close friend with a long responsible credit card history and ask if you can be an authorized user on the account. The extra card can be sent to the holder and cut up, you enjoy a positive trade-line history giving your score a boost!
For more information in getting your credit back in shape look to the free resources. It’s really not so bad. You can overcome this. I believe in you. You don’t have to break the bank, you just have to stay motivated.
The magic beans are YOU!
By: Joe Dougherty
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Wednesday, August 26th, 2009 at
10:45 pm
People have the perception that availing a bad credit unsecured loan is a tough task. No doubt, it’s not so easy but continuous effort in looking for a loan may help you in availing a viable loan deal. Even if your loan application has been turned down by the lenders, because of your bad credit history, you should not get disheartened. As each and every lender has different loan criteria, so you should not give up and keep on trying with different loan providers.
A bad credit history could be anything like missed payments, defaults, County Court Judgements etc. This loan option is a boon for the tenants, as they don’t have their own home to keep as collateral. Most of your needs can be easily fulfilled with this loan type like buying a car, going for a holiday trip, consolidating your multiple debts or for the purpose of your home improvement.
As it is an unsecured loan, you will find certain benefits which are not there with a secured loan. The first and the foremost is that the loans can be procured faster, because the valuation of the property is not involved with it. On the other hand, less paper work with this loan option makes the entire loan process easy.
The lenders might charge higher interest rate with this loan type. The interest rate also depends upon your credit record. The good thing with this loan type is that, you can get an opportunity to improve your credit record. If you repay the loan amount within the stipulated time frame, your credit score can be improved. A good credit record can help you in availing a loan easily in the future.
By: Adam Jaylin
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