Feldman Law Center asked:


You may have a number of questions regarding loan modifications and how they can help you avoid foreclosure.  Loan modifications have been all over the news lately.  President Obama has passed major, historic legislation giving homeowners more access to loan modifications; the California legislature has also passed legislation promoting loan modifications.

Here are some questions and some answers for loan modifications:

Q: What is a loan modification?

A: A loan modification is an agreement between a lender and a borrower to change the original terms of a loan in order to make payments more affordable.  For homeowners, a California loan modification could be a way to stay in their home.  A loan modification attorney can be a major asset when trying to get a loan modification.

Q: How can a loan modification be accomplished?

A: There are actually a number of different ways to get a loan modification.  The interest rate on a loan can be either lowered temporarily, or permanently set at a lower rate.  An adjustable rate could be set to a fixed rate.  The term of the loan could be changed, from say 30 years to 40 years.  There could be a principal reduction of the loan amount.  There are other ways and you could also have any combination of options.  All of this is geared towards lowering your monthly payments and making your mortgage more affordable.

Q: How common are loan modifications?

A: As the real estate crisis continues, loan modifications are becoming increasingly common.  Loan modifications have been around for a very long time, but only when many people are in danger of losing their homes does everyone begin to ask questions.  Some think loan modifications are a new invention, or a scam, but people with mortgages have been getting loan modifications for quite a while.

Q: Does the federal of California state government play a role in loan modifications?

A: As so many people are suffering due to the economic crisis, President Obama and the California legislature have passed various laws pressuring lenders to offer loan modifications.  Lenders are not opposed to loan modifications, especially at a time when so many Americans are facing foreclosure.  A foreclosure hurts the banks’ bottom lines, and the industry has already seen hundreds of billions of dollars in financial loss due to the mortgage crisis.  California passed a law in 2008 promoting loan modifications, and in early 2009 President Obama wasted no time in helping people get the loan modifications they need to stay in their homes.  With Freddie Mac and Fannie Mae in serious trouble due to foreclosures (both of which are federal entities), it behooves the federal government to act that much quicker in saving people’s livelihood.

As you can see, there is a lot of information out there on mortgage loan modifications, and many people are unaware as to whether or not they qualify.  If you are facing foreclosure or facing another financial crisis, contact a qualified California home loan modification attorney today and get “in the know.”

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.



CARSON

Matt Burgess asked:


What is a chattel mortgage?

A chattel mortgage is a popular form of car financing that allows the borrower to take ownership of the car at the commencement of the chattel mortgage.  A chattel mortgage is sometimes referred to as a goods mortgage. 

What does chattel mean?

Chattel is any article of movable property, but when it comes to chattel mortgages it is most often a car or other vechicle.  Business equipment is also commonly financed with a chattel mortgage.

What are the benefits of a chattel mortgage?

A chattel mortgage offers tax benefits for businesses that use the cash accounting method.

The interest rate on a chattel mortgage is fixed so you never need to worry about rate rises.

A chattel mortgage is flexible – you set your deposit, repayment and balloon payments to suit your cashflow.

A chattel mortgage can be repaid before the end of the term.

Subject to the lenders’ approval, 100% of the purchase price of a car can be financed using a chattel mortgage.

How does a chattel mortgage affect my tax?

If you use the cash accounting method, a chattel mortgage enables you to claim back the GST component.  If the car is used for business purposes, interest paid on the chattel mortgage and depreciation can be a tax deduction.

Is a chattel mortgage right for me?

A chattel mortgage may suit you if:

you want to purchase a car primarily for business use

your business uses the cash accounting method

you are looking for flexible car finance to suit your cashflow.

Do I pay interest on a chattel mortgage?

Yes, the interest rate on a chattel mortgage is fixed, so you know exactly what your repayments will be for the life of the loan.

Can a chattel mortgage have a small or no balloon payment?

The flexibility of a chattel mortgage means you choose whether you want low monthly repayments and a high balloon payment, or higher regular repayments and a low or no balloon payment.  This means your chattel mortgage repayments can be tailored to suit your cashflow.

Can I use a chattel mortgage for something other than a new car?

Yes, a chattel mortgage can be used for financing a boat, truck or equipment used primarily for business purposes.

What happens if I miss a repayment on my chattel mortgage?

Because a chattel mortgage is a secured loan, the lender can sell the car to recover the debt.  If you are having difficulties making repayments, please contact your lender or 360 Financial as soon as possible to avoid this happening.

How do I apply for a chattel mortgage?

Contact 360 Financial Services or apply online for a chattel mortgage.



MILLARD

Jeff Bangerter asked:


The reverse mortgage is starting to become more preferred among older voters who would like to pay down their liabilities and increase their retirement cash. It is envisioned that as the Baby Boom generation moves towards retirement, use of the reverse mortgage will become more frequent. Reverse mortgages differ from a normal mortgage in that there are no standard payments. The funds can be paid out as a monthly earnings, taken as an one-off sum or withdrawn as needed. This mortgage guarantees a retiree can stay in their home until she passes away or moves out.

The bank gets none. Reverse mortgages are not without their failings, and they do not appear to be for everyone.

While rates are comparable to typical mortgages, there are high start up costs. Part of this is to insure the loan, that has an inclination to be riskier than standard mortgages, as the borrowers must be at least 62 years of age. Reverse mortgages may become more favored in Texas and reverse mortgages will immediately permit line of credit paymentsThose seeking a reverse mortgage or mortgage in Texas were long disappointed, as Texas was one of the last states to allow such lending. Mortgage laws dating to the nineteenth century forbidden such lending, as the state’s founders feared that banks would exploit people and deliberately seize their homes thru foreclosure. This made it unheard of for Texans to use their home equity for desires of debt consolidation, home improvement, or other bonafide uses, as voters of other states may do.In 1997, the Texas legislature at last amended the state constitution to let home equity loans, but did so in an ungainly, poorly worded way that left many questions unanswered. Reverse mortgages have been fairly favored recently, particularly in areas like California, where high property costs have left many householders short of cash but equity rich. These people have been prepared to pay for their retirements using the equity in their houses, purchasing vacation homes, recreational autos, or taking long-desired vacations. Nationally, virtually 90 % of those that take out a reverse mortgage do so by employing a credit line.

This enables them to use the money when and how they see fit, and no interest accumulates unless the cash is essentially used.

It is an awfully convenient product, and it costs the home-owner much less in interest than an one-off sum payment. Sadly for voters of Texas, an one-off sum payment is the only option, and as a effect, few reverse mortgages have been offered to date.This may at once change, however. The Texas Legislature has lately authorized a change to the state constitution which will permit homeowners who take out a reverse mortgage to accept payment in the form of a credit line.

Texas law demands that this change be put on the ballot for a vote, and it is forecast to be voted on this autumn. Folk who work in the lending industry expect the vote to pass, and say that it’ll lead to a superb increase in the amount of reverse mortgages offered in the state.

With over 20 million people, Texas ranks second only to California in population, and there are plenty of folks in Texas who would qualify for a reverse mortgage.By dumping laws that have been on the books for more than a hundred and fifty years, Texas may at once join what’s left of the states in having fair and equitable home lending laws.This could be interesting to those worried about California adjustable pay mortgagemastersonline.com and that is the reason why we have included this info.

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ORLANDO

Bill Gatton asked:


People who work in the lending industry know all about home loan modifications, but homeowners – the very people who stand to benefit the most from this process – typically know nothing about it at all. The following FAQ lays out the basic facts behind this option and can help mortgage holders make an informed decision about whether or not a modification is a good option for them.

1.) What does it mean when you modify a loan?

When you enter a loan modification agreement, you and your lender agree on changes to the terms of how you will repay it, typically by agreeing to lengthen the period of time you have to pay back the money you borrowed. For example, a 15-year loan might be turned into a 20-year loan. You still have to repay the same amount of money – plus interest – but you have more time to pay, meaning that each of your monthly payments will be smaller. Loan modifications are one way that financial institutions can make it easier for mortgage holders beset by financial difficulties to stay in their homes.

2) How does a homeowner benefit from loan modification?

Modification can reduce the size of your monthly mortgage payment. Obviously, that adjustment can be crucial to your ability to keep your home if you lose your job or experience other financial distress. A typical restructuring gives you an additional five years to pay off your mortgage. It may also be possible to re-negotiate your borrowed advance to reduce your interest rate.

3) Is loan modification the same thing as refinancing?

No. When you refinance a loan, you are in essence retiring – paying off – your original loan with money you get by taking out a second loan. But when you modify it, you keep the original loan but change some of the repayment terms. Refinancing can help you save tens of thousands of dollars on the lifetime cost of your home, but you need a good credit record and reliable income to qualify for the second borrowed amount. Loan modification, by contrast, is an option for homeowners who are under financial duress and who would have difficulty qualifying for refinancing.

4) My credit score isn’t the best. What are my chances of getting a loan modification?

You can have a less-than-perfect credit history and still qualify for a loans modification, although you may have to work harder to get your lender to agree to it. The companies that broker the modification agreements will be looking at different things to decide whether you’re a good bet for a modification or not. These companies will certainly look at whether you’ve been paying your mortgage on time in the past. But they also understand that people may going through hard times for reasons that are beyond their control, such as losing a job or seeing their hours or compensation cut. You won’t necessarily get the same sympathy if you apply to refinance.

5) I ‘m falling behind on my mortgage payments and am terrified of losing my home. Can a loan modification prevent that?

Here, modifying might keep you from having to default on your mortgage by making your monthly payments smaller and easier to handle on a reduced income. It’s important to understand, though, that modifying a loan does not mean taking it off the books. You will still have to repay your lender the amount of money you borrowed, plus interest. You should make sure that you understand what your financial obligations would be under the terms of a loan modification before you agree to one.

6) Where can I find out more about getting a loan modification?

There are public agencies that help homeowners figure out whether a loan modification is the right option for them and advise them on how to secure modifications. There are also private companies that specialize in negotiating these type deals.



ANTHONY

Sadhana Dhanyal asked:


The word bankruptcy gives rise to an image of utter helplessness. This is primarily due to the fact the there are many mis-conceptions associated with it. Often, people resort to it without even understanding its full meaning. The decision to file for bankruptcy must be based in facts. This is possible only when a person seeks expert advice.

People with multiple debt problems juggling with payments often consider bankruptcy. They feel it can offer some respite from the debt problems. If a bad credit score is attached with multiple debts, the situation can get worse. Such borrowers can make use of bankruptcy bad credit mortgage loan. Accessing these loans is not that difficult. Bankruptcy mortgage loan experts can guide any person to get a suitable loan.

One can use the loan for either buying a new house, refinancing, home improvement purpose, payoff credit cards, etc. There are many lenders in the loan market who offer such loans. One can choose from the most competitive programs. A borrower can easily get rid of credit cards, missed payments, mortgage lates and high interest mortgages.

A bankruptcy information lawyer can guide a person considering bankruptcy make a right decision. As is said earlier, the decision to file for bankruptcy must be base on facts, one should consider other alternatives if available on way to bankruptcy.

One can easily resolve debt problems by seeking their service. Following some simple steps will ensure one gets rid of all the debt problems in a short period of time. There are many debt elimination services that one can make use of. One can hop back to normalcy without filing for bankruptcy, IVA or borrowing more money that will have a person drowned in debt.

A bankruptcy lawyer can let you know the pros and cons of filing for bankruptcy. The prime purpose of Bankruptcy Law is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debts. A person considering filing for bankruptcy can benefit form the service of these lawyers.

What does Chapter 7 Bankruptcy say?

A Chapter 7 bankruptcy wipes out a borrower’s debts usually within four months. The debtor has no assets that he or she would lose as a consequence of filing for bankruptcy. Chapter 7 bankruptcy gives a person a relatively quick “fresh start”. One can begin life afresh.

Chapter 13 bankruptcy

Chapter 13 bankruptcy, on the other hand is meant for people who want to pay off part of their debts over a period of three to five years. Visit our FAQ’s, which give information on most of your questions. Also visit our Audio Clips, which provide information on many of the most common concerns about debt. If your questions are still not answered we have an “Ask our Bankruptcy Lawyers” feature so you can ask one of our bankruptcy lawyers in your area a question. Filing Chapter 13 Bankruptcy can prove to be helpful if a debtor has a regular income, and thus can afford to request for such adjustments or reductions.



RICKIE

Ken Charnly asked:


This article will seek to answer some frequently asked questions about home improvement loans, and help you make an informed decision about whether a home improvement loan is right for you, and what kind to choose.

What is a home improvement loan?

A home improvement loan is a loan which is secured on your property, allowing you to free up cash to spend on whatever improvements you might wish to make.

Why get a home improvement loan?

Whether it is a loft conversion, a new kitchen or bathroom, or even a swimming pool, a home improvement loan can be used to make those changes you have always wanted to, but never quite got around to making.

How much can I borrow?

It depends on your circumstances, and the value of your property. Generally you can borrow an amount equivalent to a significant proportion of the value of your home.

What period can I repay a home improvement loan over?

Specific terms vary, but home improvement loans tend to be repayable over a period of between 5 and 25 years.

How do I choose the right home improvement loan company?

Look at the interest rates on offer, and also the reputation of the companies offering them – there are a lot of lenders in the market nowadays, and not all of them necessarily have the best track record.

What other factors do I need to bear in mind when applying for a home improvement loan?

Apart from the interest rates, look out for insurance schemes to cover you for changed circumstances such as unemployment or illness, the possibilities for early repayment, and penalty clauses for late repayments.

 



COLBY

Sadhana Dhanyal asked:


Borrowers, who have accumulated too many debts, find it difficult to clear the outstanding debts. The impending debts over a period of time create debt problems. When the situation gets worse, such borrowers find it extremely difficult to avail loans. The constant pressure to payback the loan creates financial problems.

Opting for bankruptcy may seem as the last option to get over credit problems. Before deciding to go ahead with this, it would be advisable to know what exactly bankruptcy is. Bankruptcy loan process and FAQ’s, can help such borrowers get a fair idea about what involves bankruptcy. A person can become aware of the bankruptcy loan process by knowing in depth before hand what bankruptcy means.

Here are some of the FAQ’s on bankruptcy.

What is Bankruptcy?

Bankruptcy is a legal process that is available to anyone, who is burdened with debt problems to make a fresh beginning financially. To go into bankruptcy, a person must be insolvent. It means:

•  A person must be absolutely incapable of making any further payments.

•  The debts must have exceeded the value of the assets.

•  The person must not be a bankrupt already.

What is a Trustee and what do they do?

Trustees in bankruptcy are the only debt professionals, that can provide a full range of debt relief options and the only debt professionals that can guarantee protection from the creditors.

Will My Creditors Stop Harassing Me?

Yes. Once the bankruptcy documents are filed, any kind of action against the person must be ceased.

What is the procedure to apply for bankruptcy?

There are two ways a person can become a bankrupt. The first and most common way is to make an assignment in bankruptcy (voluntary bankruptcy). The second method is the creditors asking the court to make an order that a person is bankrupt (involuntary bankruptcy). In both cases a Trustee in Bankruptcy is required to administer the process.

Will I Lose My House or Car?

This solely depends on how much equity you have. With a house for example, the equity would be the amount left over after mortgages, penalties and property taxes are taken into account. If your equity in the asset is within the allowable limit, then the Trustee will generally release the asset to the secured creditor.

What if I Have the Cash Flow to Make a Proposal?

If a person has the ability to make a proposal (i.e. his or her income exceeds their living expenses), then he or she should consider making a proposal.

There are many alternatives of bankruptcy. Opting for an IVA can help a person immensely. It will eliminate the risk of going bankrupt. A person can make use of the available options and avoid bankruptcy.



GAIL

Ken Charnly asked:


Just because you have filed for bankruptcy, you should not give up on your dreams of owning your own home. There are mortgage companies that will give you a home loan after bankruptcy. These lenders specialize in bankruptcy home loans and work with people in most any financial situation. Most bankruptcy home loan companies require that you have a minimum of 500 on your credit score. If you fall in this category, these lenders will work hard to customize a home loan that will work for your individual needs.

* If you are seeking a home loan after bankruptcy, you should know you will only be eligible for 80% financing. This means that you must come up with the remaining 20% and it will be used as your down payment.

* You should know that your debt to income ration will need to fall within the 45-50% range when you are seeking a bankruptcy home loan.

* Lastly, you should know that the interest rate on your loan will be higher than a typical mortgage.  However, do not let this stop you from purchasing a home. As time passes and your credit rating improves, you can refinance your home for a lower interest rate.

Everyone dreams of owning their own home, just because you have been declared bankrupt in the past there is no reason to stop dreaming.

Your past mistakes should not affect the living situation of your children for the next eight years.

There are now many mortgage lenders who are reaching out and offering individuals who have filed bankruptcy a way to purchase their own home. No one wants to see a family of four living in a cramped, two-bedroom apartment.

Do not feel that that your bankruptcy has backed you into a corner and that you have no other option but to rent. That is no longer true, you can turn that rent money into an investment for your future.

 



ZANE