Tag Archives: terms
Secured Loans And Remortgages Are Great Debt Consolidation Loans
Hassled by creditors everyday? Then perhaps it’s time to sit down and think about an appropriate solution that will make all your problems go away.
Being in debt can be painful. The ongoing harassment by creditors isn’t going to go away just like that. It’s up to you to do something about the situation. There are many approaches when it comes to debt management. One of the easiest ways is to take a good look at your existing assets. For instance, you may be the owner of a home that has acquired equity over several years. Maybe now is the time to cash in on that equity and solve your debt problems.
You can do so by either taking out a secured loan, or go for a remortgage.
What is a secured loan?
A secured loan is a loan that is backed by your existing assets. The exact terms depends on numerous factors such as the loan amount, the value of the assets, and the repayment terms. If you fail to pay back the money on time based on the repayment terms, the lender has the right to forfeit your assets.
What is a remortgage?
A remortgage is like having an extension for your existing mortgage loan. For instance, your home may be full paid up. But in order to raise the amount of money you need, you opt for a remortgage. The bank provides you with another home loan and you get a lump sum payment. You can use the amount of money you receive to pay off your debts and manage your finances. Of course, now you have to service a new loan. Note that you don’t have to wait for your home to be fully paid up to qualify for a remortgage. As long as your home has equity, you can opt for a remortgage.
Secured loans and remortgages are two options you can choose from. To find out which option best serves your interest, speak with a professional debt management consultant. They will be able to provide valuable advice. You will need to find out the prevailing interest rates for the amount of money that you will be borrowing. An appraisal on the property may also need to be conducted to find out the current market value of the property.
Some homeowners are fearful about pledging their property for a loan as they are afraid of losing their home. But look at it this way.
If you are in debt, and you are unable to meet your monthly payment commitments, you are going to lose your home anyway. So it’s better to take up a loan just to tide you over the current tough patch. Understand that this situation is only temporary – no one stays in debt forever.
When you borrow money to repay your debts, you are taking passive action. And that is commendable. The monthly repayments may also force you to stay focused on managing your finances. In the process, you will be developing better money management habits. That will help you to stay off debt once your current debts have been fully repaid.
Feldman Law Center – Ten Tips for a Successful Home Loan Modification (Page 1 of 2)
Feldman Law Center – News by Feldman Law Center – A home loan modification, for many homeowners, is the only option standing between them being able to stay in their homes and being forced to move after a foreclosure, a short sale, or a “cash for keys” negotiation. If events are unfolding rapidly, the modification is one shot deal that must be done correctly and as quickly as possible. The following tips will give you the best chance at getting your home loan modification completed with terms that you can sustain for the long term. They are:
1) Be realistic – If youre behind on your payments without relief in sight, magical thinking isnt going to get it done. Its time to figure out who is going represent you in your modification.
2) Hire a professional Getting a loan modification executed, with terms that address your specific needs is not childs play. This is the roof over your familys collective head. Hire an experienced attorney to make sure the modification happens and that the terms are within your budget and sustainable for the long term.
3) Pull your paperwork together – Youre going to turn in about as much documentation as you did for the original loan. Have it copied and ready to go. Keep an extra copy just in case the lender needs a re-submittal.
4) Bring statements for all your credit card and consumer debt to your initial consultation Your attorney is going to need to know the total of your monthly expenses to be able to negotiate the right loan modification for you. Additionally, there may be an opportunity to set up a debt negotiation to run concurrently with your loan modification. The debt negotiation can save you more money and increase the odds of getting your modification approved.
5) Be honest with your attorney – Whether you were stating assets and income or something else, come clean with your representation. If you got creative with your tax returns during the application process, the new 4506-T form could work against you by permitting your lender to verify that the tax returns used to apply the first time are the same as the ones you turned in to the IRS. Let your attorney know about the situation so that he can prepare for it.
6) Be honest with your lender Trying to put one over on your lender isnt likely to work. Remember, they still have all of your original documentation, so forgetting about bank accounts or enhancing your “resume” will be caught and definitely frowned upon.
7) Write a compelling hardship letter – This will be the basis of your loan modification. Its basically a chronology of how events unfolded to put you in need of a loan modification and how youre going work your way out of it. 8) Be patient Loan processors have more than they know what to do with at present. Working with a law firm will expedite the process but the workload on the lenders side is so heavy that process will take time.
9) Respond to requests for additional information quickly You may be asked for updated versions of statements and paystubs as the modification process moves forward. Responding quickly will keep your file moving and on the top of a processors stack of applications.