Sunday, April 26, 2009


First time home buyers face many challenges. Often times their credit is not as strong as current homeowners. The NY FHA allows these borrowers with less robust credit histories to still obtain financing for their home purchase in New York. New York FHA Loans is "common sense underwritten" and the main thing they want to see on a NY FHA Mortgage is that the borrower can afford their payment and has a relatively good history with making their payments on time. Another advantage for NY First time home buyers is that the NY FHA Loans does not require reserves in their account in order to be approved for a New York FHA Mortgage. Most conventional financing requires several months’ payments in reserves at least. Often times they want to see up to six months of their mortgage payments in reserves to be qualified. With NY FHA Mortgage first time home buyers can get a loan without having to save up for years to get approved.NY FHA Loan Down Payment:In order to get a [NY FHA Mortgage, borrowers only need to put down 3.5% of the purchase price of the loan. This down payment does not necessarily have to come from the borrower themselves. They can receive the 3.5% NY FHA Loans down payment from a family member, their church, their job, or from another quailed source. In addition the closing costs can be gifted from the seller of the property up to 6% of the sales price. This means that a first time home buyer looking to purchase a home in New York with no money out of their pocket can actually accomplish this feat with a New York FHA Loans!The New York FHA Mortgage allows not only first time home buyers but also existing home owners to get access to safe and secure 30 year fixed rate mortgage loans. These loans have lower mortgage insurance requirements than conventional financing which means that NY FHA Mortgage holders can enjoy much lower monthly mortgage payments than borrowers with other types of financing that have high mortgage insurance premiums. In order to obtain financing for a NY FHA Mortgage, all one needs to do is apply with an FHA approved mortgage company such as us. You can apply for a NY FHA Mortgage on our website and one of our NY loan specialists will follow up with you immediately to go over your options and pre-qualify you for your new loan.As you can see the New York FHA Loan program is excellent for many types of borrowers. In future articles we will discuss the various NY FHA Mortgage programs in detail such as the NY FHA Streamlined refinance loans and the NY Rehab loan.

Financial Statements For Loan Modifications

One of the leading factors used in applying for a attorney loan modification is a change in your financial situation that makes paying your current mortgage a hardship. The financial statement you provide to your lender during a loan workout request is the single most important document to prove your case.

This is the “make or break” document that for the most part is one of the main documents that the lender bases their decision on.There are many documents that you will have to provide to your lender when you receive your loan mod package. One of the most important will be the financial statement. Often times the lender includes a simple one page financial form in your loan mod paperwork. Pay special attention to this document and complete it with great care because more often than not this will be the first document the lender will review when they are attempting to consider your worthiness for a loan modification!

What is the financial statement?

The financial statement is a complete breakdown of all of your household income is NOT like getting approved for a normal home loan. When you applied for your current loan your lender looked at your last two years income history. They compared this against only the minimum payments for any debt reporting on your credit report to determine if you could afford the mortgage payment. With a loan modification it is quite different. They are going to look at all sources of your household income. For W-2’s employee, last two paychecks for borrowers are fine. One major difference in how a lender evaluates a loan modification versus the original loan is how expenses are treated.

The lender will request a complete picture of your monthly expenses. In the original loan the lender evaluated your minimum payments for accounts reporting on your credit report. With a loan mod, all household expenses are evaluated, such as child support. The list of your expenses is quite detailed. There are no exact guidelines that the lenders have written in qualifying expense ratios. That is why it is important to find a company that has experience in dealing with your particular lender. However, If the homeowner has plenty of income and can afford the current payment, and then a loan modification is not warranted. The lender is not about to tell you how to complete this section and help the homeowner adjust this section to help qualify for a loan mod. It many cases, the homeowner may need to cut expenses or figure out ways to increase income.

The best way to get help in this section is through a loan modification company that is experienced with each lender, and can show a track record of working with that lender. Remember, the lender does not have any written guidelines for this section and thus puts you as the homeowner in a disadvantage with the lender.Contracting the services of a qualified attorney backed loan modification company can help you ensure that you have properly filled out your financial statement so that you have the maximum chance of receiving a loan modification. You can apply for a free loan modification consultation now and we will be happy to review your financial situation with you in detail.

Thursday, April 16, 2009

The loan mod process can be cause for much frustration for homeowners that are looking for help. If you are considering contacting your lender about a loan modification to save your home from foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light. With the current economic crisis many lenders are gaining additional programs to help modify loans for their clients. To help you understand how the process works, here are the Top 10 Questions and Answers about loan modifications:
1. Can the loan mod include late payments that are due? Per HUD, the accrued late charges should be waived by the lender at the time of the loan modification. Lenders handle this differently, which is why it’s important to know the tactics of each particular servicer

2. What Is A Hardship? Each situation for each homeowner that caused them to fall behind on their home loan is different, but generally the lenders consider divorce to be acceptable reasons to consider a loan workout. It’s critical to include a complete and detailed hardship letter along with your loan modification request.

3. Do the new Government programs make it any easier to get a loan modified? The Federal government has allocated $75 billion dollars to subsidize lenders who offer a loan workout to their clients. The Federal Government is offering incentives to homeowners to modify loans and make payments on time. The short answer is YES

4. Can I get pre-qualified for a loan modification? In order to find out how likely it is that your lender will modify your mortgage it’s important to understand your financial situation. We must look at your income before being able to say with any certainty that we can get your lender to modify your loan. Often people try to make themselves look destitute which is not good because then the lender will assume you cannot afford any payment no matter how low. Also showing too much surplus of income will trigger the lender to think you do not need a loan modification. It’s important to strike a balance between the two

5. What is a loan modification anyway? A loan modification is a change in one or more terms of a borrower's mortgage note in the long term.

6. Is it worth it to pay someone to do the loan modification for me? You can definitely try to get a loan modification as a home owner, however, the success rate and negotiations for the best terms is not as successful as an Attorney negotiating on your behalf. The Attorneys know what can be negotiated and if need can do a site legal violations that force the banks

7. For a modification is it required to be behind on the loan? Most lenders are now doing loan workouts for their clients that are not behind, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. If you have some other type of hardship it’s important to be starting the process with your lender as early as possible

8. Can I Stop Foreclosure If I get a loan modification? The short answer is YES. The entire point of doing a loan modification is to get a homeowner into a payment that will be sustainable in the long term for their particular situation.

9. What happens to my arrearages? The payments you are currently behind on can be added to the back of the loan to bring you up to a current status.

10. Do I need An Attorney to negotiate better terms. A great example is that if you go to court, would you bring an Attorney, and the answer is yes. Again, the strength in negotiations is by far in the hands of an Attorney. The cost is minimal, less then a refinance and is recouped usually in two to three months.

11. What is the first step to getting a attorney loan modification? Definitely spend time educating yourself. Go to to see what Attorneys or Companies have been “black” listed! Do as much research and ask as many questions as possible. Do not feel rushed; if you’re talking to a modification company that is rushing you, it is a red flag. This about finding a Company that really cares about helping you and is in good standing.

You can get the help you need to find out if you qualify for a attorney loan modprogram by using our easy online application form. We will Find out if you meet the approval guidelines and how to increase your chances of getting a loan mod for you. Don’t waste any time since the further you fall behind the more difficult it will become to turn things around. Stay in communication and stay educated about your options!