Tag Archives: mortgage
Refinance or Loan Modification
Foreclosure is definitely one of the hardest things anyone has to face. Imagine losing your home, a place your children grew up in, and the place you thought youd have for years to come. The economic situation in the entire country has left families and individuals homeless and others are on the verge of losing it all.
For the families and homeowners who still have time to save their homes, there are two solutions that might just save your home Refinancing and Loan Modification.
The complexity of the foreclosure problem means that there are differences in each loan or mortgage. The circumstances of the delinquent borrower are also factors in deciding which solution is best for you. However not all applicants will get approval for refinancing or loan modification.
Which would be best? There is no exact answer to this question because every mortgage is different so what may be better for your neighbor might not work for you. However, each of these solutions has its own advantages and disadvantages.
Refinancing:
In a refinancing strategy, your old loan is replaced with a new one where terms are changed to one you can handle and pay. For example interest rates can be lowered or payment terms extended from 15 years to 30 years. This is seen by many as a more permanent solution compared to modifications.
While there are various advantages to refinancing mortgages, there are also challenges in the strategy. You have to pay for closing fees to your new lender that can be quite a huge amount for a family already facing foreclosure. Its also difficult to get approval because of a lot of requirements you have to meet. Declining market value for your property, for instance is a major no-no. A property appraisal is required in your application. Underwater mortgages are almost immediately denied. Loss of income is an automatic red flag for your potential lenders as well.
Loan Modification:
Loan modification is more forgiving in that it takes the delinquent lenders hardship into consideration. In some cases, the lender can lower the principal it self to reflect the decreased market value of the property. In negotiating new affordable monthly payments, lenders will consider your living expenses so you can pay your mortgage but still have money to pay your utilities. Loan modification also helps you keep your credit score where it is.
Another advantage is that while processing your loan modification, the foreclosure process is halted and you get another chance to keep your home. In the new government loan mod program, desperate borrowers are counseled by financial experts so they can avoid getting into foreclosures in the future.
There are only a few disadvantages to loan modification. Many of the lenders do not offer the government loan mod program (HAMP) but they have their own in-house strategies. Borrowers can only apply to the program if they can prove their hardship like a loss of family, loss of income, etc. Lastly, the borrower cannot increase the loan and take out equity.
Hsu Chi Lin: Property Owners, “mortgage” Street Sale – Ent Medicals Disposables
Construction in Wuhan, the tide of two types of society, a real estate owner “light” LED energy-saving lamps. In early June, held in Beijing, “China’s first Innovation Day & 2009 China Business Innovation Forum”, Wuhan Optical Baron Lai Chi Lin Hsu, chairman was named “2009 Outstanding Innovative Entrepreneurs in China.”
As the only native of Wuhan, the LED head of the entire lamp enterprises, Hsu Chi Lin painstakingly. First R & D problems, almost failed to be 6 million yuan. Was successfully developed low-power, high brightness, long life LED light source lamps and other products, they face high prices, the market is difficult to quickly accept the bottleneck.
However, Hsu Chi Lin and his team finally found a “financial marketing” of the clever ways to promote energy-saving light into the fast lane. Two weeks ago, Bo Le Lay has just signed a single, his LED lamp lit Wuhan Airport Road.
Aim: to find business opportunities along with two types of society
Hsu Chi Lin sea in 1996. At that time, real estate development entry barrier is low, he will soon get the first barrel of gold digging.
China has strongly advocated green energy, Wuhan approved two types of social experimental zone, Xu Lin’s determination to give new energy saving industry, targeting his fancy lamp industry, the street lamps shining warm, but Voeux Road 250 watts each lamp, each sub-trunk 400 watts, 600 watts each main road, 10 hours every night, a waste of amazing.
Xu Lin decided to give a significant energy saving LED lamp made of standard lamps. The greatest difficulty is, LED lamp with birth defects, such as flashlights direct bright light, and insufficient proliferation, unlike ordinary lamps, to illuminate both sides of 15 meters.
Twists and turns: R & D costs almost six million ducks and drakes
Began in August 2007, Hsu invited to give Lam Central China Normal University, a professor of physics Electricity, R & D team composed of an attempt to overcome the shortcomings LED lights.
Hsu Chi Lin said, the factory developed repeated trial, although R & D investment are prepared, but at the baskets of imported chips are thrown away like garbage when there is some distressed. February 2008, R & D costs are more than 6 million yuan.
Last month and a half, Hsu Chi Lin re-enter the 2 million yuan, accompanied the R & D team day and night, sleeping only four to five hours a day. April 8, 2008, standard LED lamps that light has finally been lit. This LED folding light energy saving lamps, energy saving, 60% were identified to 80%, the results obtained patents.
Marketing: The “mortgage” means to sell street lamp
Product out, Hsu Chi Lin began to introduce to the market, his LED lamp unit in between 1800 to 3800 yuan, but only 1,000 yuan a general light, which greatly exceeded the original budget of customers, many units of the recommendations put forward installments.
Hsu Chi Lin is a real estate started to do, he knows, “mortgage” appeal. After more you ask, Hsu Chi Lin HP leasing company to the United States to seek cooperation. June 2008, HP is willing to provide 3 to 5 years of installment financing. HP bought the first light, leased to the user, until the other party to pay the rent finished, it will transfer ownership in the past.
In the second half, this lightweight model approved by the Hunan Huarong Industrial Park, Industrial Park, bought thousands of lamps, a few million dollars turnover, which makes Hui Chi Lin confidence. This model project opens sales Hsu Chi Lin deadlock, products have moved into Jiangxi, Jiangsu and Xinjiang.
Now, Hsu Chi Lin is working with the banks, hoping to the same street as the housing, through the “mortgage” means sell.