Showing posts with label Loan Modification. Show all posts
Showing posts with label Loan Modification. Show all posts

Friday, April 8, 2022

How to Adjust Your Home Loan When You Get a New Job

When you sign mortgage papers, you will likely fail to consider what will happen if you change jobs. However, if you find yourself making a career change that results in lower pay, you will need to have your home loan adjusted accordingly. 

Below are a few ways you can adjust your mortgage so that it better aligns with your current income.


If you suddenly find that you cannot afford your mortgage payments after beginning a new job, refinancing may be an option. While lenders do not always want to refinance if you have just started a new job, it will depend on several factors. 

Many times, as long as you are still in the same profession, they will be happy to help. Other factors lenders take into consideration are payment history and credit score. 

Maintaining a solid credit score is essential when financing your home. You may even want to consider building your credit prior to starting a new career.

Loan Consolidation

Another option for adjusting your home loan after changing jobs is getting a consolidation loan. If you have other loans, you can find a lender who will consolidate them all into one monthly sum. 

They will typically work with you to give you a lower payment than you currently have. In addition, consolidating your loans will make it much easier for you to keep track of regular payments.

Loan Modification

Most people don't realize it, but it is possible to have your home loan modified if you change jobs. However, this is a difficult task without help because some banks may not be able to assist you. 

If you would like to modify your home loan, contact a loan modification lawyer. Loan modifications can lower your monthly payments and sometimes they can even lower the principal owed.

Chapter 13 Bankruptcy

If you are having problems paying more than just your mortgage after changing jobs, it may be time to consider filing for bankruptcy. Chapter 13 will allow you to keep your home and the equity you have in it. 

You will still be required to pay the mortgage, but other loans will be forgiven. This loan forgiveness could make it easier for you to make your mortgage payments.

There are a variety of reasons that people change jobs. Ideally, they would be switching to a higher-paying job, but that is not always the case. 

This is especially true now that the COVID-19 pandemic is wreaking havoc on the economy. If you are struggling to pay your home loan after getting a new job, don't get discouraged. 

There are steps you can take to adjust your payments. Speak with a financial specialist today to help you make the best decision for you and your family.

Wednesday, March 9, 2022

Tips for Sourcing Money for Large Home Projects

Do you plan to renovate your house? You may want to customize it to meet your style, or some components might require refurbishment to increase their longevity.

Whatever the reason, you need to consider several factors before starting the project. One of them is how you will fund your home improvement. There are different strategies you can use to raise the cash you need. Here are some of them.

Set Aside Some Cash at the End of the Month

Saving is one of the best ways to raise money for your home renovation. However, it may not be the best way to fund an emergency project because it might take time before you have enough money in your improvement fund. 

However, if you plan to renovate your house in the next few months or years, setting aside some cash will enable you to have a successful project. Start by deciding the amount of money you will save every month, depending on what you earn and when you plan to undertake the project. 

You may also consider using different strategies to cut costs on bills and none essentials to enable you to save more cash within a short time.

Consider Looking for a Part-Time Job

A part-time job will enable you to earn more money, which you can use on your renovation project. There are many options you might consider, including offering dog walking services, selling different products online, or offering babysitting services. 

Furthermore, you can decide to offer cab services during your free time or rent out your vehicle. You can also rent out one of your bedrooms, garage, or storage units. Then use that money to finance your project.

Consider Getting Credit

You can also consider getting credit, which might only take a few days or weeks to have the cash you need. However, it is advisable to take some time to compare different creditors to determine the one that offers the best terms. 

Bank officials can help you choose the best loan option, depending on your requirements. One of them might be taking out a home equity loan. It may be the best alternative if you've not finished paying your mortgage. The bank officer will guide you to ensure that your loan modification is successful.

If you're planning to renovate your home soon, go through the financial strategies above to enable you to find out the most favorable option. You should ensure that the strategy you choose enables you to have enough money in your account when you plan to start the project.

Tuesday, September 14, 2021

Need to Modify Your Loan? How to Do It Right the First Time

You should be thorough, savvy, and concise before making any significant financial decisions. A good example would be when you want to modify your loan when the going gets tough. Doing this can be a considerable challenge because you have to consider several details. Fortunately, there is a helpful guide you can use.

Find out If You Qualify for a Loan Modification

Not everyone who has challenges with mortgage payments can qualify for loan modifications. You must be facing imminent default, meaning there is a legitimate issue compromising your ability to make up for payments. Usually, challenges such as a developing health issue, the loss of a spouse, or a job are some common reasons.

Learn More About Loan Modification Programs

A significant number of lenders offer in-house loan modification programs. The modifications they make to your repayment plans can be temporary or permanent. You can learn about the modification programs your service offers by asking. 

While the state offered help with modifications through the Home Affordable Modification program, it's no longer functional these days. There is also a financial downside that can occur due to loan modifications

It's likely to hurt your average credit score. While the resulting compromise on your score won't be as bad as a foreclosure, it will hurt your ability to get financial help.

Consult With Your Loan Servicer

If you are facing a challenge with loan payments, get in touch with your servicer. They should provide you with all the available options to help solve the problem. You have to act fast, as procrastination will likely lead to more financial challenges. 

Usually, the process of applying for a loan medication varies between different lenders. They might have to determine whether your application is legitimate first. If the servicer denies your application, you can also file an appeal.

Consider Seeking Help From a Financial Consultant

A good financial consultant should provide you with excellent suggestions for loan modifications. While their services might come at a cost, they will help make getting such financial help easier. 

 If you are already hard up, you can also use the services of a HUD-approved housing counselor. They should help you in challenging the decision and gain better insight into the options available.

Applying for a modification loan using an informed approach will give your peace of mind. If you need help, don't shy away from getting it from a reputable servicer.

Wednesday, June 30, 2021

How to Prevent Foreclosure When Struggling to Pay Your Mortgage

When you cannot continue making your loan repayments, lenders and banks will consider selling the asset you had registered as collateral, such as a home. 

There are, however, steps that can help you prevent foreclosure from happening. Below are the hints that you need to consider.

Request for a Loan Modification

When you are stuck on repaying your mortgage loan, one thing you can do is negotiate with your lender. The negotiation will help you reduce the loan terms that you had agreed upon when signing the agreement. 

When requesting a loan modification, you want to either reduce the monthly interest rate or request an extension of your loan term. It, therefore, ensures that you do not struggle to pay for the remaining loan.

Forbearance Agreement

You are eligible to enter this agreement only when you are facing financial constraints on paying the loan. For example, it could be a medical emergency or sudden income reduction. 

You will, therefore, need to prove to your lender the situation that you are currently in, as this will increase your chances of the forbearance is granted. During this period, you should regain your financial stability hence can, after that, pay for the mortgage loan without trouble.

File for Bankruptcy

By filing for bankruptcy, you will be delaying the foreclosure process. You could either file for chapter 13 or chapter 7 bankruptcy. 

To know which is best for your current financial position, it would be best that you consult with a bankruptcy attorney. However, you should note that the lender has the authority to get full payment for the mortgage loan if your request for bankruptcy is suspended. 

Due to this legal move, you will have created a negative credit score, which means that you will not qualify for refinancing.

Consider a Short Sale

When you have considered all the available options yet are not working to your benefit, selling your home is the last resort. You will have to sell the lender your house even though it does not cover the entire outstanding balance. 

Before you proceed with this option, it would be best that you consult with your lender to know whether they agree with your plan.

To ensure that you do not get into this situation, it would help if you do not accumulate your debt. However, if it is inevitable, ensure to go through the options above to know which would be helpful to you.

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