How to Get a Mortgage Loan Modification With Obama's Federal Plan By Susan V. Gregory

You may qualify for a mortgage loan modification using Obama's federal plan. Most lenders are ready to accept applications for this aggressive loan workout program, but before you contact your lender, make sure you understand how to improve your chances of qualifying. $75 billion dollars has been allocated to fund this program, and approximately 5 million homeowners are expected to apply. Here is some important information that may help you qualify to lower your monthly payment.

The federal mortgage loan modification plan is a standardized program that offers the same terms to every qualified homeowners. There is no negotiating-either you meet the approval requirements or you don't. The secret to approval is to have a general understanding of how to prepare your application so that it has the best chance of meeting those guidelines. Here are the basics required to qualify:

1. Loan must have been originated prior to January 1, 2009
2. Loan amount must be less than $729,750 (higher allowed for 2-4 units)
3. You must live in the home as your primary residence
4. Your current payment must equal more than 31% of your gross monthly income (including taxes, insurance and homeowners dues)
5. Only available on first trust deeds (second loans do not apply)

If you can meet these criteria, then you may be a good candidate for the Obama federal mortgage loan modification program. The program is voluntary, however most lenders are participating. As an incentive, lenders will be paid for each modification completed under this program. In addition, homeowners who successfully pay their new payments on time will be eligible for bonus payments of $1000 per year, for up to five years. Those bonus payments will be deducted directly from the loans principal balance to help recapture equity.

Homeowners who want to apply for the mortgage loan modification plan will be asked to complete an application and provide their income documentation. The application will include required loan modification forms that must filled out detailing income and expenses, as well as a hardship letter verifying an acceptable financial hardship situation. How these forms are completed will in large part determine the lenders decision to approve or deny the application. If you can show clearly that you meet the approval guidelines, you will have a very good chance of getting a new lower payment. If you qualify, your mortgage loan payment will be reduced using these methods to acheive a new payment that equals 31% of your gross monthly income:

1. First, the interest rate will be reduced to as low as 2%, then
2. Term lengthened to 40 years, if more is needed, then
3. Some principal may be deferred

These terms are some of the most aggressive mortgage loan modification options available, and are designed to give the homeowner an affordable and sustainable monthly payment. If you are interested in applying for this plan, take the time to learn a bit more about how to complete your loan modification application forms so that you will have a better chance of approval. This is the second chance that many homeowners need to avoid foreclosure and stay in their homes. A little preparation before contacting your lender could be the difference in success or failure.

Get the help you need to understand and apply for the Obama mortgage loan modification plan by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read home edition loan modification kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly.

The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory

Finding (and Getting) The Best Prepaid Debit Card By Scott McQuarrie

One tremendous advantage of prepaid credit and debit cards is that they are available even to people with poor credit histories. Even though they are easily obtained because of the pre-payment requirements, it is not wise to get a prepaid card if you are unable to keep track of purchases or hold to a budget. On the other hand, when you are ready to start learning responsible financial behavior, a prepaid debit card, specifically, can be a real help.

The terms "credit" and "debit" actually become moot when discussing prepaid cards, because whether there is a Visa or MasterCard logo, or some other company name one them, they all operate the same way. You deposit funds, and those funds are what are available for you to spend. One card, the All-Access Prepaid MasterCard, is ideal for occasional use with no monthly fee, no minimum balance to maintain and no bank account required. It is "reloadable" via various means, up to a high deposit amount of $10,000.

Various features distinguish the best cards

Like most prepaid cards, the All-Access Card also safeguards the user from overdrafts and bounced checks because of the prepayment requirements. And as with all modern credit and debit cards, there is complete protection against unauthorized use. If you are building your credit back up following some financial reversals, the All-Access card is one your should definitely consider, as it has all the benefits you need for spending flexibility, without the pitfalls of high interest or spending limits.

The Wired Plastic Prepaid Visa has very modern features, and is even usable nationwide on the new :"tap-n-pay" payment terminals. As opposed to basic, stripped down prepaid cards, the Wired Card has a rewards program that earns you a point for every dollar spent, redeemable for wireless airtime, music downloads and long-distance phone calls. You can even set this youth-oriented card up to receive mobile or email alerts about your balance, purchase history and reward point accruals.

Big names enter the card games

America's best-know "money sending" company is just one of many large, recognizable names that has entered the prepaid segment of the credit card market. After a short, easy application-with no credit check and no bank account required-the card can be loaded with cash at any of over 48,000 company locations nationwide. You can even deposit your paycheck directly to your card, keep in touch with your balance via phone and Internet and receive corroborating text messages to your mobile device following every purchase you make. Now that's security, especially for those who need to learn stricter financial habits.

There are many prepaid cards, with and without the major Visa, MasterCard and Discover logos, and they offer a sometimes confusing range of options and services. It definitely pays to do your homework on these kinds of credit cards, but a little shopping around-and a decent amount of number-crunching-you should be able to get into a prepaid debit (or credit) card that has the best array of services and features for you.

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After founding his first security firm in 1990, Scott McQuarrie built several security-related companies into regional and national powerhouses over the ensuing years. Since 2000 he has focused his sales and marketing efforts on the Internet, which opened up a virtually unlimited, international market for his flagship product line, EZWatch Pro.

The EZWatch Pro brand has come to stand for world-class expertise in electronic security, video surveillance and the myriad technologies involved in both fields. From small houses to gigantic international airports, there is an EZWatch Pro solution to meet any and every residential, business, commercial and government security challenge.

Article Source: http://EzineArticles.com/?expert=Scott_McQuarrie

Write Off Credit Card and Loan Debt - The Consumer Credit Act 1974 By Kerry Jonas

The Government introduced The Consumer Credit Act 1974 (The Act) in to Law, to provide people with specific Consumer rights and to protect them from Lenders. The Act sets out very strict guidelines for the content and format of all Credit Cards, Loans and other Financial Agreements, that must be followed by all Lenders in this Country. Write Off Debt under the Consumer Credit Act.

Government Legislation in the form of The 'Act' states that if a Lender provides Credit using a written Agreement that does not fully comply with certain Conditions of the Act, it becomes an unenforceable Credit Agreement. Therefore the borrower will not need to repay the outstanding balance and may be entitled to a refund of payments and compensation.

The Consumer Credit Act and other Government Legislation, explicitly detail the exact content and format a Credit Agreement must use if a Credit Agreement is not to become an unenforceable Agreement. However, because of changing legislation and Legal new presidents, Lenders regularly change the content of the Credit Agreements they use.

Solicitors have now discovered that over the years, some of the many often inexperienced people used by the Lenders to draft or amend their Credit Agreements have made errors by failing to include all of the content required, in the exact format required by Consumer Credit Act Law.

This area of Consumer Credit Law is relatively complex, however in simple terms some of the areas which can make Credit Agreements become unenforceable Credit Agreements include:

NON PROVISION OF PRESCRIBED TERMS

The Lender did not include in the Agreement all of the information they were required to provide, in breach The Consumer Credit Act.

INAPPROPRIATE EXECUTION OF AGREEMENT

The Lender did not provide an Agreement in the format allowing correct execution, in breach of The Act.

MISCALCULATION OF APR's or THE TOTAL AMOUNT REPAYABLE

The Lender did not use the correct method to calculate the Interest Rate or the Total Amount Repayable, in breach of The Act.

NON PROVISION OF RELEVANT DOCUMENTATION POST AGREEMENT

The Lender is unable or unwilling to provide copies of the original signed Agreement and supplementary documentation, in breach of The Act.

NON DISCLOSURE OF COMMISSIONS OR FEES

The Lender did not disclose all of the commissions and fees they paid or received in connection with the Agreement, in breach of The Act.

MIS-SELLING OF ANCILLARY PRODUCTS

The Lender inappropriately included an ancillary product with the Credit Agreement, in breach of The Financial Services and Markets Act 2000.

If you use Solicitors to arrange for your Lender to write off your unenforceable Credit Agreement, you will not need to know which aspects of the Law your Lender has broken, Solicitors will deal with these matters.

Visit http://www.CreditIssuesUK.co.uk - Write Off Credit Card and Loan Debt with the Consumer Credit Act and take the 2 minute test to find out if your credit agreements qualify.

Article Source: http://EzineArticles.com/?expert=Kerry_Jonas

Sample Late Payment Explanation Letter By Lyn Collier

When you write a creditor to explain your late payments (mortgage, car, or credit card), the letter should state:why you are late, (see paragraph 1 of the letter below)

• how serious you are about fulfilling your commitment to them (paragraph 2 of the letter below), and

• when you expect to be able to resume full and regular payments, (paragraph 3 of the letter below),
• what you want from them (paragraph 4 of the letter below)
• the financial details of your hardship (paragraph 5 of the letter below)

Below is a sample late payment explanation letter. Change it to describe your own circumstances, but make sure that you enclose copies of financial documents like: checking account statements, tax returns (past two years), all bills from creditors, all late notices, pink slip, anything else that will prove your hardship.

Cindy R. Williams

9 Turnbill Ct.

Anywhere, USA 55555

To: ABC Mortgage

Re: Late Payments; Account # 12345678

Daytime phone number: (555)555-5555

I am writing to inform you of my recent financial hardship. I was laid off from my job at XYZ Company just before Christmas of 2008. I am diligently seeking other employment, but as you know, jobs are scarce in today's economy. I have not found anything yet. Being out of work has caused me to be late on my bills.

I believe in hard work and have never been without a job for more than a few months. Until this unfortunate event, I have maintained a solid payment history with you.

My goal is to pay everything I owe. I take my financial obligations very seriously and plan to continue regular and full payments as soon as I find a job.

I expect my situation to be temporary and would like to discuss loan forbearance. I would also appreciate any suggestions you might have that would help me get back on track.

Please find the enclosed spreadsheet of my monthly expenses, as well as copies of financial documents, my pink slip from XYZ Co, and late notices I have received during my financial setback. I'm sending these to show that I am indeed experiencing financial hardship. This letter and all documents attached are true and accurate to the best of my knowledge.

Thank you for your time. I hope to hear from you soon.

Sincerely,

Signature/Date

Forbearance is an agreement by a creditor to reduce or delay payments for a specified period of time. Interest accrues during forbearance and will increase your loan amount. The good thing is that you will not have to pay late fees and penalties. There is no negative affect on your credit either.

Learn from Lyn Collier's years of Real Estate experience.

Read simple, to-the-point articles about avoiding costly mistakes and how to get the best loan modification at http://www.e-home-mortgage-loans.com/index.html

Article Source: http://EzineArticles.com/?expert=Lyn_Collier

Can You Really Pay to Repair a Bad Credit Score? by James Copper

You have probably seen commercials at one time or another that offer to eliminate your bad credit score. Usually they require that you pay a hefty sum of money before they begin eliminating the problem. They may promise to raise your score in as little as 30 days and have you qualified for the loan of your dreams. But, can anyone really wipe out a bad credit score?

Well, you cannot pay someone to magically eliminate your credit score for you. Many people have found out the hard way that these companies are just a scam. These companies will request money even before they have looked at your credit report. These types of companies may try to persuade you to create a new credit identity. This is actually illegal and while your bad credit will be erased, you will more than likely find yourself spending time in prison or paying back a hefty fine.

The bottom line is that no one can wave a wand and erase your bad credit score. If you want that number erased, then you are going to have to do some work yourself to improve your credit score. Some things that you can do to improve your score are as followed. It may be hard work, but it is something you should certainly try to do to better your credit.

Look for inaccuracies in your credit report. It doesn't take a whole lot to send your credit score plummeting. If you find a problem in your credit report, immediately report it to the consumer reporting company. Make sure that you are not sending original documents, only copies. This is because any document you send them will not be returned. Be sure that each item in question is clearly identified so there will not be any confusion. Once your information is processed and the correct businesses are contacted, your credit score will then be investigated. If they do identify that there is a problem with the items in question, they will fix them or sometimes erase them from your report, but only if there is a problem. It is always recommended that you keep a copy of all the disputes that you may file.

Debt consolidation can greatly improve your credit score. If your credit score is lowering because you are unable to pay off debt and you are considering filing for bankruptcy, don't do it. Working with your credit company and consolidating your debt can have a major impact on your credit score. As a matter of fact, many companies see this as being more responsible than filing for bankruptcy. Debt consolidation basically lumps all of your unpaid bills into one monthly payment. This will make sure that everyone is getting money every time this payment is made.

Any company offering to erase your bad credit score is telling you a lie. They are either going to scam you or supply you with information that is freely available from consulting a credit counsellor. So, protect yourself and do you research before signing on with anything that seems shady.

James Copper is a writer for http://www.repossession-stopper.co.uk where you can find hints to prevent repossession