Today Loan Modification by Bank of America Getting involved in mortgage modificationAccording to a report issued by the ministry of finance, Bank of America the largest U.S. banks based on the number assetnya has become one of the banks participating in loan modification programs that they provide in housing sales. such as Auto Loan Financing By Syariah Bank that
Bank of America to register as many as 27,985 their housing loans to be modified, this value is comparable to 4 percent of the loans they have. Finance department also reported that in addition to Bank of America, JP Morgan also did the same thing with doing a loan modification which has as many as 20 percent, Citigroup is also registered as much as 15 percent of total housing loans to be modified.
Obtained in this report there were 31 companies that participated in this loan modification program.
Obama makes housing loan modification program worth $ 75 billion to help the approximately 4 million people to their homes was not confiscated. So far there are as many as 235,000 loans were modified, and the government spokesman on Obama last month that there would target 500,000 loans were modified on 1 November.
How does a loan modification program work?
Something like the following (from:http://answers.yahoo.com/question/index?qid=20080828095620AAutYkC):
A loan modification for a borrower that has been making payments on time usually means rates are lower now. Instead of going through the whole refinance process the lender will agree to modify the interest rate of your loan only for a small fee. (ie ...your rate is 7%, current rates are 6.25%). You ask your lender to modify, there is a good chance that they will because keeping a loan at 6.25% is better than losing the loan.
The above modification will have no affect on your credit.
A loan modification for a borrower that is in default or a "workout", coule be worth doing ... but beware*. If the modification is adhered to, your credit won't get any worse. If the modification/work out goes into default, then your credit will get worse.
* A heads up to you (if you are) or someone with late mortgage payments (something not your average person knows)
First of all ... know how your payments are applied.
1) Interest, 2) Principal, 3) Taxes and Insurance, 4) Late Charges
Second as long as you make a mortgage payment 1, 2 and 3 your payment date will advance. The Late Charges will accrue, but don't not make a payment because you don't have enough to pay a payment plus a late charge(s)
Thirdly, Credit ... Only 30, 60 and 90 day+ are reported on your credit. As long as your payment is applied before the next payment due date, your credit won't be affected. This does not mean that you won't have late charges, but late charges do not hit the credit report.
Fourth ... Payment Arrangments w/Lender. Stay away from these if at all possible. Try to do it on your own. See Fifth
Fifth ... If you owe July 1 payment and it is now August 29, the bank is going to tell you that you are now due for 3 payments. (Jul, Aug and Sep). You would need to make the July payment. If you did not make your payment today (last business day of the month), you would receive a 60 day late on your credit. Once you hit this 60 day mark, the bank will force you into payment arrangements. If you fail to adhere to the payment arrangements, they can accelerate the foreclosure process.
For additional information you can try this :Loan modification program guide
Bank of America to register as many as 27,985 their housing loans to be modified, this value is comparable to 4 percent of the loans they have. Finance department also reported that in addition to Bank of America, JP Morgan also did the same thing with doing a loan modification which has as many as 20 percent, Citigroup is also registered as much as 15 percent of total housing loans to be modified.
Obtained in this report there were 31 companies that participated in this loan modification program.
Obama makes housing loan modification program worth $ 75 billion to help the approximately 4 million people to their homes was not confiscated. So far there are as many as 235,000 loans were modified, and the government spokesman on Obama last month that there would target 500,000 loans were modified on 1 November.
How does a loan modification program work?
Something like the following (from:http://answers.yahoo.com/question/index?qid=20080828095620AAutYkC):
A loan modification for a borrower that has been making payments on time usually means rates are lower now. Instead of going through the whole refinance process the lender will agree to modify the interest rate of your loan only for a small fee. (ie ...your rate is 7%, current rates are 6.25%). You ask your lender to modify, there is a good chance that they will because keeping a loan at 6.25% is better than losing the loan.
The above modification will have no affect on your credit.
A loan modification for a borrower that is in default or a "workout", coule be worth doing ... but beware*. If the modification is adhered to, your credit won't get any worse. If the modification/work out goes into default, then your credit will get worse.
* A heads up to you (if you are) or someone with late mortgage payments (something not your average person knows)
First of all ... know how your payments are applied.
1) Interest, 2) Principal, 3) Taxes and Insurance, 4) Late Charges
Second as long as you make a mortgage payment 1, 2 and 3 your payment date will advance. The Late Charges will accrue, but don't not make a payment because you don't have enough to pay a payment plus a late charge(s)
Thirdly, Credit ... Only 30, 60 and 90 day+ are reported on your credit. As long as your payment is applied before the next payment due date, your credit won't be affected. This does not mean that you won't have late charges, but late charges do not hit the credit report.
Fourth ... Payment Arrangments w/Lender. Stay away from these if at all possible. Try to do it on your own. See Fifth
Fifth ... If you owe July 1 payment and it is now August 29, the bank is going to tell you that you are now due for 3 payments. (Jul, Aug and Sep). You would need to make the July payment. If you did not make your payment today (last business day of the month), you would receive a 60 day late on your credit. Once you hit this 60 day mark, the bank will force you into payment arrangements. If you fail to adhere to the payment arrangements, they can accelerate the foreclosure process.
For additional information you can try this :Loan modification program guide
