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Loan Modification Companies How They Work
If you are searching the internet for loan modification companies, this article will help you narrow down your search by teaching you what to look for.
Loan modification companies are used when a homeowner is struggling to make his/her payments and needs help. This can be caused by a loss of income, a type of hardship or an increase in your interest rate resulting in higher monthly payments. I know I suffered from a combination of all three of these at one point. I was in construction, my daughter needed two eye surgeries that were not covered by our insurance and my interest skyrocketed when my loan adjusted causing my payments to double. Yes, double!
The perfect candidate for a loan modification is someone who has higher interest rates, an adjustable loan and still has an income coming in. These tend to get approved quite easily.
So, what does a loan modification company do? Well, instead of you calling your lender and trying to resolve the problem with your loan yourself, they handle this for you. It is a very complex process that can take months to resolve and if you don’t get it right you’ll get denied. Or, even worse, if you don’t know what you are doing you could actually get a loan modification that does you no or little good and you’ll be stuck in it. There are no second chances with these.
It just makes sense to hire a professional in these cases and get the best possible resolution. If an experience loan modification company can get you a 4% fixed for 40 years loan and you get your current adjustable rate frozen for 3-5 more years, the difference in your payments each month with be substantial and the difference over the life of your loan will be tremendous!
The problem is, the press tends to highlight the negative aspects of loan modification companies. You never here stories on the news about a good company that just saved someone $800 a month on their mortgage payment! Instead, you here the exact opposite where some company took a homeowners hard earned money and didn’t accomplish anything. Both of these situations happen all the time, so you need to know what to look for in a good company.
Here are some tips:
1. Make sure they are licensed by the DRE in whatever state they are operating out of. They need to have a license or be an attorney to take payments for negotiating loan mods.
2. Just because someone is an attorney does not mean they are honest! Find out the attorneys name and check their bar status and see if you find any complaints against them. If there are excessive complaints you may want to think twice – especially if they are related to loan modification.
3. Choose a company that makes the most sense! Talk to a few different companies. Don’t make any rash decisions! If one company is just pushing for you to pay them and promises things that sound too good to be true, they probably are. Find a company that is extremely professional and outlines a good plan for your unique situation.
4. Get pre qualified! Did you know that some companies can actually have an underwriter call your lender and see if you will qualify for a loan modification under current guidelines? This way, you should know before you go in what kind out outcome to expect.
5. Check references. See if they have actual homeowners who have used their services that you can call. See if they can email you examples of their past successes. If they are a good company, they will have no problem with this.
I wish you luck in lowering your mortgage payments and hope this will help you make a wise decision.
Invoice Factoring Can Save Your Business
Invoice factoring is the basic practice of selling invoices to financial factoring companies for the purpose of receiving money right away. Smaller companies often fall into the financial trap of not having available resources and therefore sell their invoices to financial agencies in order to gain working capital. This practice does not require the business to swallow more debt and in fact operates in an opposite manner. Small businesses that don’t utilize the financial tool of accounts receivable factoring acquire more debt by waiting for the accounts receivables to be paid.
Invoice factoring is typically used as a measure to avoid falling further into debt. Without this effective financial management tool many businesses have to adopt more loans or alternatively, put up more collateral for existing loans. Invoice factoring is available at a minimal fee, which makes it an attractive substitute to assuming more debt. In fact, accounts receivable factoring fees are usually set up by way of discount and these rates differ from individual company to company. The great advantage to this type of liquidation is that there are no interest fees to pay and the result is most often better profit margins.
There are many financial companies that offer invoice factoring services. The individual agencies will set up a company with the right set of accounts receivable factoring parameters. After the professionals from the invoice factoring agency assess the individual situation, they will set up the receivables to be factored and proceed accordingly.
Financial agencies that offer accounts receivable factoring are located worldwide and support every industry under the sun. Even truck drivers can sell their invoices to an invoice factoring financial service to free up capital fast. One of the most attractive aspects to an accounts receivable factoring agency is that they customize the service to each business’s individual requirements.
There are as many different types of invoice factoring agencies, as they are rates for factoring invoices. Some purchase the invoices no matter what the receivable total is and some accounts receivable factoring agencies will only liquidate invoices that accumulate more than $100, 000. Generally the higher the invoice factoring total is, the lower the rates will be to take advantage of this financial escape. In cases where the total is in excess of a hundred thousand, a solid accounts receivable factoring agency will offer rates that can be as low as two per cent!
There are many different types of invoice factoring agencies. For example, some agencies will only serve those businesses in the medical profession while others only serve purchase order factoring. There are some accounts receivable factoring agencies that are specifically designed to cater to small business and offer many great advantages that a larger agency wouldn’t necessarily offer. Despite the type of invoice factoring agency that is required for every individual business need, accounts receivable factoring typically happens within a 24 hour time period.