Home Loan Modification refers to modifying the terms and conditions originally agreed upon by the borrower and the mortgagor (lender). Similar to mortgage refinance, it is principally geared towards making payment of installments more convenient for borrowers, particularly in times of financial difficulty.
Borrowers can choose from various mortgage modification plans. Among these is the interest rate reduction. Instead of having an unfixed rate, borrowers may request for a fixed rate. Another modification strategy involves the simplification of the principal amount of money. Maximizing the time for repaying the loan is as well another alternative. In addition, cutting down late fees or other penalties are provided in the plan. There are also cases wherein the mortgagor agrees to precede part of the balance of the borrower. It is wise for the borrower to cautiously check these options in order to arrive at a good modification plan that best suits his or her financial situation.
Normally, any borrower current, late, in default, in bankruptcy, or in the brink of foreclosure is entitled to apply for a mortgage modification. However, the scheme prioritizes homeowners with financial conflicts. Such financial conflicts must not be in the light of the borrower's unreliable use of money; instead, it should flow from adversities such as unemployment, salary reduction, loss of a family member, divorce/separation, medical expenses, and the like. Furthermore, the borrower must prove that he or she will conserve the modified plan and not default again. Therefore, it is important to furnish an accurate and accomplished financial statement that stands for the borrower's ability to stick to the new repayment system.
The borrower should take the first step in applying for loan modifications. This can be handled personally by contacting the mortgagor in order to discuss selections and to acquire other valuable information. Note that the key in gaining the modification plan is by expressing responsibility. This will leave the mortgagor with the picture that loan modification and not foreclosure is the most suitable option for the borrower. Loan modification offers borrowers a successful way to get ahead of their financial adversities.
http://ezinearticles.com/?Home-Loan-Modification---A-General-Overview&id=4097100
Tuesday, April 13, 2010
Tuesday, April 6, 2010
Be Careful With 125 Loans
Many borrowers think they have found the perfect loan -- the 125. But you should be cautious when considering this product.
A 125 loan is named for the amount of equity you can pull out of your home, which is usually 125%. Some of the loan is secured by your home and some of it isn't, making it a mixed loan type. The portion that is unsecured causes your interest rate to be higher than with a fully secured home equity loan.
Many borrowers turn to 125 loans because they can simply make one payment to their lender instead of several payments to many lenders. The single payment is often lower than the total of all the payments it replace, due to differences in interest rates. The rates are often much better than credit card rates, but if you roll other loans in, such as student loans, you may actually be raising some rates on your debt.
For example, you may have a car loan with a balance of $11,000. You have an interest rate of 8.5% and 4 years left of payments. You roll the note into your 125 loan, which has a rate of 11.5%. You've actually raised your interest rate.
If you roll in a credit card with a $12,000 balance and an interest rate of 19%, you are lowering your rate. But you will be looking at upwards of ten years of payments.
The real danger comes in when borrowers take out a 125, roll over their credit card debt and then go out and max out those cards again. This is called reloading. You now have double the debt to repay. You are in a worse situation now and are risking losing your home.
When you take out a 125, you have to be dedicated enough to cut up each credit card right then and there. This will help you avoid temptation.
You may be saying, but wait -- I get to deduct the interest on a 125 on my income taxes. Yes, you are saving 28 cents for every dollar you spend. Doesn't make a lot of sense. Plus, the amount of interest on the loan above the value of your home is not tax deductible. If you deduct it, it will bite you in the taxes.
You are also now upside down in your home equity. You owe more than your home is worth. You can't sell it until the value of the house increases or you pay off the loan enough to reduce the balance below the value of the house. That takes around five to 10 years in most cases.
If you are forced to sell your home, you will probably have to pay money at closing just to get it off your hands. You are paying to sell your home. If you plan to stay in your home for a long time, you may not need to worry about this as much.
But keep in mind that the unexpected happens. When you open yourself up to a lot of debt, you are putting your future at risk. Taking out a 125 loan to get rid of the debt isn't necessarily your best option. It certainly isn't the easy way out, as you may have been told. It is the same debt, just new place. Be very careful, it's your house on the line this time.
A 125 loan is named for the amount of equity you can pull out of your home, which is usually 125%. Some of the loan is secured by your home and some of it isn't, making it a mixed loan type. The portion that is unsecured causes your interest rate to be higher than with a fully secured home equity loan.
Many borrowers turn to 125 loans because they can simply make one payment to their lender instead of several payments to many lenders. The single payment is often lower than the total of all the payments it replace, due to differences in interest rates. The rates are often much better than credit card rates, but if you roll other loans in, such as student loans, you may actually be raising some rates on your debt.
For example, you may have a car loan with a balance of $11,000. You have an interest rate of 8.5% and 4 years left of payments. You roll the note into your 125 loan, which has a rate of 11.5%. You've actually raised your interest rate.
If you roll in a credit card with a $12,000 balance and an interest rate of 19%, you are lowering your rate. But you will be looking at upwards of ten years of payments.
The real danger comes in when borrowers take out a 125, roll over their credit card debt and then go out and max out those cards again. This is called reloading. You now have double the debt to repay. You are in a worse situation now and are risking losing your home.
When you take out a 125, you have to be dedicated enough to cut up each credit card right then and there. This will help you avoid temptation.
You may be saying, but wait -- I get to deduct the interest on a 125 on my income taxes. Yes, you are saving 28 cents for every dollar you spend. Doesn't make a lot of sense. Plus, the amount of interest on the loan above the value of your home is not tax deductible. If you deduct it, it will bite you in the taxes.
You are also now upside down in your home equity. You owe more than your home is worth. You can't sell it until the value of the house increases or you pay off the loan enough to reduce the balance below the value of the house. That takes around five to 10 years in most cases.
If you are forced to sell your home, you will probably have to pay money at closing just to get it off your hands. You are paying to sell your home. If you plan to stay in your home for a long time, you may not need to worry about this as much.
But keep in mind that the unexpected happens. When you open yourself up to a lot of debt, you are putting your future at risk. Taking out a 125 loan to get rid of the debt isn't necessarily your best option. It certainly isn't the easy way out, as you may have been told. It is the same debt, just new place. Be very careful, it's your house on the line this time.
2 Ways To Eliminate Your Competition – It’s Easy!
Eliminating your competition is the easiest way to increase your chances of business success. And I don’t mean literally eliminate them, in the sense of doing something “bad” to them.
When I say eliminate, I mean ... take them out of your prospect’s consideration set for your product or service category. Make it so your prospects ONLY think of your business, product or service when they are contemplating making a purchase. That way you get their business, instead of your competition making the sale.
What this means is if you sell widgets, you want your prospects to only think of your widgets when they are thinking of buying widgets. This is pretty easy to do if your business is not in a competitive industry.
But let’s suppose there are all kinds of businesses selling what you are selling, or filling the same consumer or business need you are filling.
How can you make sure your prospects ONLY think of you — and therefore only BUY from you — and not all those other companies?
Answer: By thoroughly understanding those competing businesses and then doing one of two things:
(1) Finding a position in the category you can own.
This will separate you from all the other businesses and will make you uniquely qualified in the eyes of your prospect to fill their need.
This usually requires finding a specific market niche you can focus on, or finding a specific product or service attribute or benefit, that is of value to your prospects, that none of your competitors can claim or are currently promoting.
This puts you in a class of your own and virtually eliminates the competition. No one does exactly what you do. Or in the quite the way you do it.
(2) By turning your competitors into “co-opitors.”
What the heck is a “co-opitor?” It is a competitor that you turn into a partner or a cooperator. Are there businesses or individuals with whom you could partner, with the idea of referring business to each other?
For example, a wellness coach could partner with a weight watchers clinic or a health club or a massage therapist. All of these practitioners are selling improved health and well being, but they can also be positioned as complementary services.
Or, let’s say you are a web site designer and you decide to focus primarily on working with small businesses (a market niche). You could create a partnership with another web site designer who has decided to focus on large corporations.
If you both agree to only take on business that fits your identified niche, and to refer business outside your niche to the partner, you both win.
You can partner with other businesses in your exact business in this manner, by identifying niches, by geographic area served, or by size or type of clients served.
And you can partner with businesses in different categories that fill a similar customer need by agreeing to work together to help each other get customers.
There is not a business out there that cannot effectively use one of these two strategies to significantly reduce their competition. So figure out which strategy fits your business best, and make it a priority to eliminate your competition this year.
(c) Copyright 2005 Debbie LaChusa, 10stepmarketing
When I say eliminate, I mean ... take them out of your prospect’s consideration set for your product or service category. Make it so your prospects ONLY think of your business, product or service when they are contemplating making a purchase. That way you get their business, instead of your competition making the sale.
What this means is if you sell widgets, you want your prospects to only think of your widgets when they are thinking of buying widgets. This is pretty easy to do if your business is not in a competitive industry.
But let’s suppose there are all kinds of businesses selling what you are selling, or filling the same consumer or business need you are filling.
How can you make sure your prospects ONLY think of you — and therefore only BUY from you — and not all those other companies?
Answer: By thoroughly understanding those competing businesses and then doing one of two things:
(1) Finding a position in the category you can own.
This will separate you from all the other businesses and will make you uniquely qualified in the eyes of your prospect to fill their need.
This usually requires finding a specific market niche you can focus on, or finding a specific product or service attribute or benefit, that is of value to your prospects, that none of your competitors can claim or are currently promoting.
This puts you in a class of your own and virtually eliminates the competition. No one does exactly what you do. Or in the quite the way you do it.
(2) By turning your competitors into “co-opitors.”
What the heck is a “co-opitor?” It is a competitor that you turn into a partner or a cooperator. Are there businesses or individuals with whom you could partner, with the idea of referring business to each other?
For example, a wellness coach could partner with a weight watchers clinic or a health club or a massage therapist. All of these practitioners are selling improved health and well being, but they can also be positioned as complementary services.
Or, let’s say you are a web site designer and you decide to focus primarily on working with small businesses (a market niche). You could create a partnership with another web site designer who has decided to focus on large corporations.
If you both agree to only take on business that fits your identified niche, and to refer business outside your niche to the partner, you both win.
You can partner with other businesses in your exact business in this manner, by identifying niches, by geographic area served, or by size or type of clients served.
And you can partner with businesses in different categories that fill a similar customer need by agreeing to work together to help each other get customers.
There is not a business out there that cannot effectively use one of these two strategies to significantly reduce their competition. So figure out which strategy fits your business best, and make it a priority to eliminate your competition this year.
(c) Copyright 2005 Debbie LaChusa, 10stepmarketing
5 Ways To Better enjoy a Barbecue
Since Americans in the South began publicly roasting pigs at parties and get togethers, Barbecues have been a common item in the lives of North Americans.
For most of the population using a grill is a essential part of cooking and for the hard core barbecuers once the summer comes in it's barbecues all the way.
Every barbecue is always a good fun family event. Here are 5 ways to make your routine evening barbecue a more unique experience:
1) Who said you have to only barbecue meat? There is quite a lot that can be done with bread or fruit and veg over a naked grill. One way to make barbecues and grilling more fun to the whole family is to use pastry cutters for what ever it is you are grilling. It is up to you or your kids what design and type of food you use.
2) Try some of those foil packed recipes which cook in less than 20 minutes which are very handy and clean and kids will also love the surprise element. Combos can be great fun as you can mix it up any way you want and it makes a great game for the kids mixing different items of bread, fruit and veg.
3) They say variety is the spice of life so if you only ever cook the same old sausages and steaks why not try something different like a nice bit of cod or a juicy bit of venison. Similarly, try to mix it up with condiments and seasoning.
4) Barbecues should not be rushed, they are supposed to be fun, many of the die hard barbecue fans out there will state that broiling is an insult to the barbecuing criteria. Barbecues should represent a process of slow cooking on low to high heat and while you wait for the food to grill its a great opportunity to have a good laugh with who ever is in your party be it friends and family.
5) When we were all small children are moms told us never to play are food, well there is an except to every rule isn't there? Barbecue games are a great way to have really good fun while cooking. In the game Glutton, every player gets either mashed potatoes, turnip or mac cheese, then they must pick at random a utensil from the kitchen and eat and the first person to eat all of their dish wins
For most of the population using a grill is a essential part of cooking and for the hard core barbecuers once the summer comes in it's barbecues all the way.
Every barbecue is always a good fun family event. Here are 5 ways to make your routine evening barbecue a more unique experience:
1) Who said you have to only barbecue meat? There is quite a lot that can be done with bread or fruit and veg over a naked grill. One way to make barbecues and grilling more fun to the whole family is to use pastry cutters for what ever it is you are grilling. It is up to you or your kids what design and type of food you use.
2) Try some of those foil packed recipes which cook in less than 20 minutes which are very handy and clean and kids will also love the surprise element. Combos can be great fun as you can mix it up any way you want and it makes a great game for the kids mixing different items of bread, fruit and veg.
3) They say variety is the spice of life so if you only ever cook the same old sausages and steaks why not try something different like a nice bit of cod or a juicy bit of venison. Similarly, try to mix it up with condiments and seasoning.
4) Barbecues should not be rushed, they are supposed to be fun, many of the die hard barbecue fans out there will state that broiling is an insult to the barbecuing criteria. Barbecues should represent a process of slow cooking on low to high heat and while you wait for the food to grill its a great opportunity to have a good laugh with who ever is in your party be it friends and family.
5) When we were all small children are moms told us never to play are food, well there is an except to every rule isn't there? Barbecue games are a great way to have really good fun while cooking. In the game Glutton, every player gets either mashed potatoes, turnip or mac cheese, then they must pick at random a utensil from the kitchen and eat and the first person to eat all of their dish wins
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