Mortgage Crisis? Try These Mortgage Refinance Strategies
To take advantage of the low mortgage refinance rates, you’ll have to jump through some hoops to get there. Recently, mortgage rates dropped as the government has taken drastic measures to heal the housing market. This means that you may finally have an opportunity to save money on your mortgage refinance.
Due to the subprime mortgage fiasco, a solid mortgage refinance strategy is more pertinent than ever. A lot of attorneys and “mortgage specialists” hopped on the boat charging $3,000-$4,000 to negotiate a lower mortgage rate. With as much as $2.5 trillion funneled through mortgages, it’s no wonder.
Unfortunately, some people are so underwater with their mortgage that there’s no chance they can hire an expensive specialist to help them along in their time of crisis. It’s possible to do it yourself, but you need to develop a systematic strategy to help you along the way. One wrong move and your mortgage refinance request may find itself sitting on the desk of an overworked loan modification specialist.
To avoid any further delays in your mortgage refinance, you’ll need to be meticulous in your process. Develop a plan of attack with your loan modification which includes these essential elements:
- Hardship letter – The letter needs to state your unusual circumstances that have made it difficult to pay your mortgage. This will include job loss, income loss, medical expenses, and divorce. However, your extenuating circumstances do not include a loss in equity or decline in property value.
This letter serves to outline your current situation in regards to your financial income. No more than one or two pages are necessary. With that in mind, don’t write a book. Your $12-per-hour loss mitigation employee has read it all.
Short and sweet will get it through the door over a long, drawn-out, convincing letter, which will not get you the attention you’re hoping for. They’ve read it all during this foreclosure crisis, and they are extremely busy and backed up.
- Proof – All of the things you wrote about in your hardship letter? Back it up with papers, medical bills, divorce papers, and pay stubs. Get whatever documentation you can. It could even be child support, severance agreements, or unemployment stubs.
- Financial papers – Everything and anything stating your debts and assets will be needed.
- Loan Modification Packets – Most major financial institutions have a loan packet to fill out. It’s easy to miss something here. Make sure you’ve crossed all your t’s and dotted your i’s. This is the number one cause of delays.
If you are going the DIY (do it yourself) method. You may want to pick up a program to help you along the way. Most of the people who feel loan modification is a farce have went at it alone. Their information has been incomplete or inaccurate. If you decide to opt-in for a program, it could save you money over an attorney, but be careful when you choose.
Look for professionals who have been in the business several years to design your program. Is there step-by-step instructions and videos that help you modify your loan? Some programs will even include a list of all the major lenders and documents and forms in a downloadable format. If the program offers a guarantee and has a high success rate, you’re on the right track for your mortgage refinance.
Do you want to know the hardcore facts concerning loan modification before you lose your house? Click here if you want to learn the ins and outs of loan modification from someone with credentials. My Friend Bill Priore was a Loan Mitigation Specialist for over 20 years. He took all those years of experience and put it into a DIY Loan Modification Kit. Article Source:http://www.articlesbase.com/mortgage-articles/mortgage-crisis-try-these-mortgage-refinance-strategies-1064688.html
