Millions of modifications have been granted without principal reduction of the mortgage and millions more turned down that could have worked if the principal were reduced. But now banks are starting to see the light. They have recognized though the pain of owning a lot of real estate doing a modification and some principal reduction, if it's warranted, makes more sense than just foreclosing or doing a short sale. This wasn't always the case. Also millions of homeowners have seen the light too and stopped beating their head against the banker's walls trying for months on end to get a modification and turned it over to a professional, usually an attorney. Why do modifications make more sense moving forward than in the past?
One of the prime advantages to a reverse mortgage is that the money you withdraw is non-taxable. This allows senior citizens to add funds to their monthly budget without having to pay additional taxes which they would have to do if you chose to go back to work to get some extra money. Besides that, Social Security has a cap on the amount of money a retired person can make but since a reverse mortgage is not considered as an income but a loan; therefore it is exempt from being taxed.
There are several options the borrower is allowed to exercise when it comes to getting payments. You can receive monthly payments, a lump sum amount, a line of credit or a mixture of all three payment modes. The best part is that there is no limitation how the money is used. You can us it in any way you want as there are no conditions as to how the borrower uses the money. It can be used as a regular monthly income or used for paying emergency medical bills as long as the property is used as the primary residence of the borrower.
It is very important to stay on top of the application to make certain that all the required documents have been received and that your file is in review. Of course, if your application is reviewed and it is determined that you do indeed qualify for HAMP, you will be offered a loan mod and your foreclosure will be stopped. How can you stop foreclosure and be certain that your loan modification application has the best chance of approval? The only way to take control of the situation is to understand just what it takes to get approved for a loan workout, then prepare and submit your application correctly.
You can use the very same formula that your lender will use so that you will be confident that you fit right into the guidelines for HAMP. Remember, the information you provide on your financial statement will be reviewed and a determination made based on that information-so it just makes sense to fine tune your information so that you have the best chance of success.
One of the prime advantages to a reverse mortgage is that the money you withdraw is non-taxable. This allows senior citizens to add funds to their monthly budget without having to pay additional taxes which they would have to do if you chose to go back to work to get some extra money. Besides that, Social Security has a cap on the amount of money a retired person can make but since a reverse mortgage is not considered as an income but a loan; therefore it is exempt from being taxed.
There are several options the borrower is allowed to exercise when it comes to getting payments. You can receive monthly payments, a lump sum amount, a line of credit or a mixture of all three payment modes. The best part is that there is no limitation how the money is used. You can us it in any way you want as there are no conditions as to how the borrower uses the money. It can be used as a regular monthly income or used for paying emergency medical bills as long as the property is used as the primary residence of the borrower.
It is very important to stay on top of the application to make certain that all the required documents have been received and that your file is in review. Of course, if your application is reviewed and it is determined that you do indeed qualify for HAMP, you will be offered a loan mod and your foreclosure will be stopped. How can you stop foreclosure and be certain that your loan modification application has the best chance of approval? The only way to take control of the situation is to understand just what it takes to get approved for a loan workout, then prepare and submit your application correctly.
You can use the very same formula that your lender will use so that you will be confident that you fit right into the guidelines for HAMP. Remember, the information you provide on your financial statement will be reviewed and a determination made based on that information-so it just makes sense to fine tune your information so that you have the best chance of success.