Wells Fargo Loan Modification - Things to Know Before You Apply

Stuck in an unaffordable mortgage and wondering how you can qualify for a Wells Fargo Loan Modification? You are not alone-thousands of borrowers are trying to get approved for a Wells Fargo loan modification program that will lower their monthly payment so they can afford to stay in their home. Unfortunately, not all homeowners will qualify for this help, so it is very important to know a few tips that the professionals know so you can increase your chances of getting the help you need and deserve.

Here are a few INSIDER TIPS that can help you when you apply for a Wells Fargo loan modification:

1. You must prove to the lender that you have suffered a financial hardship and thru no fault of your own can no longer afford the current mortgage payment. An acceptable hardship can be any number of circumstances, however the most common include a divorce or separation, job loss or income decrease, military service, adjustable rate mortgage payment increase, death of family member, or mortgage refinancing bills or illness. A successful borrower will provide a convincing and compelling hardship letter that explains to Wells Fargo your current situation, but also tells them how you plan to rectify it and your intention to remain mortgage refinancing to home ownership. Get help to compose an acceptable hardship letter by following an outline and a letter template to assist you.
2. Back up your story with proof of your hardship. For example, if you were ill, provide copies of the medical bills. If you were laid off, a letter from your employer. This will demonstrate that the delinquency was out of your control and you are doing your best to deal with an unexpected situation.
3. Work out a new family budget that eliminates all unnecessary expenses and then decide what a truly affordable mortgage payment would be. This is your "target" payment and the goal when working on your Wells Fargo loan modification. The new lower payment needs to fit within the lenders guidelines and meet a certain debt ratio requirement. Learn how to calculate your ideal payment so that it is affordable and meets the lenders guidelines for approval.
4. Carefully complete the required loan modification forms so that you clearly demonstrate that while the current payment is a hardship, the new lower modified mortgage payment will be affordable and sustainable. This can be tricky, but make it simple to do by providing a Current and a Proposed Financial Statement completed properly.
5. Now, put it all together into an accurate and professional Wells Fargo loan modification application by following an easy submission checklist.

The first step in getting a lower mortgage payment with a Wells Fargo loan modification is to learn and understand what the bank needs to see from you in order to grant approval. It is pretty hard to qualify for something that you do not even know the requirements for, right? Homeowners who follow a few simple steps can greatly increase their chances of success. So take the time to learn and prepare before you submit your Wells Fargo loan modification application and you will soon be on the path to secure home ownership again.

You can get the help you need to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook 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

Mortgage Payment Protections

Mortgage payment protection is beneficial to both lenders and borrowers. Without adequate safeguards against default, the financiers would be taking additional risks, which could reflect in higher interest rates. For borrowers, loss of job, sickness, accident, or death could lead to defaults. To avoid a distress sale to pay off the loan, refinancing mortgage kind of shield is required.

Different types of insurance products are available to cover the mortgage refinancing When the down payment is less than 20%, a Personal Mortgage Insurance (PMI) or Lenders Mortgage Insurance (LMI) will protect lenders from potential default by the borrower.

The fee is passed on to the borrower and collected as a part of the monthly payments. If the arrangement is properly incorporated into the mortgage documents, the borrower can obtain tax benefits on the payment of the premium. In some cases, lenders permit discontinuation of PMI/LMI after a period.

Accident, sickness and unemployment (ASU) insurance, which is often called 'mortgage payment protection', provides monthly installments for a period of time. There would be a maximum limit for such payments. Credit disability and life insurance takes care of mortgage payments if the borrower loses his job, or

dies. The disbursal, which is made direct to the lender, is not taxable. There is also Mortgage Life Insurance. Almost everyone is eligible for these schemes.

Mortgage protection is available from the Federal Housing Administration (FHA) for loans advanced by lenders approved by it. Bush Administration proposals to be made effective in 2007 contain a new scheme to help those buying a home for the first time. Higher insurance premiums may be charged on people with weak credit histories, but this would taper down if regular repayments are made.

Check the market for competitive mortgage insurance rates.

Mortgage Payments provides detailed information on Mortgage Payments, Calculate Mortgage Payments, Bi-Weekly Mortgage Payments, Mortgage Payment Protections and more. Mortgage Payments is affiliated with Online Mortgage Lending.

Refinance Obama - How Will Obama's Stimulus Help You Refinance Your Mortgage?

The 2009 Stimulus Package is meant to make the homes more affordable for the home owners. It stresses refinancing mortgage refinancing & loan modification to avoid the foreclosures.

Here are some pointers of the Obama Stimulus Package that would help you refinance your mortgage:

The loans that are owned and / or insured by Fannie Mae & Freddie Mac are certainly eligible for refinance as well as loan modification.

In case your mortgage amount exceeds 105% of the current market value of the home, you can apply for the refinance.

You can get professional help from the experienced counselors with out any charges. For that you must contact the HUD (US Federal Housing & Urban Development) counselors. These counselors would guide you the best financial resorts, draft your case and would act as your representative while dealing with the lender.

Under the Stimulus Package, many banks have announced new refinance & loan modification programs for your help. You must research on the internet and locate for such deals.

You can now limit your monthly mortgage payments up to 31% of the gross amount of your current income.

The new program features several loans, tax credits, grants, etc. for your help. You must look up to those in case you require any financial aid in the process.

Now there is a great stress being given that all new deeds of homes must be made for long term that is 20 to 30 years.

Also the rate of interest is lowered down from 6.5% to 5.16%. The economy being at its all time low, it would be wise to strike a deal at a fixed rate of interest for a long term.

The banks & mortgage institutions would get incentive - $ 1000 per loan modification or refinance. The idea is to promote these and stop foreclosures as far as possible.

To know more about Refinance Programs and to check if you qualify for the same

Click Here --> Federal Mortgage Refinance Help

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale mortgage refinancing Foreclosure.

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here --> Federal Grant For Homeowners

FREE Trials are for a limited time only, so get yours today.

Is the FHA Hope For Home Owners Program a Bad Deal For Home Owners?

Actually this FHA Hope Program may prove to be HOPELESS, for both home owner's and lenders.....Let me explain.....

The President has signed into law legislation that will allow HUD's Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they mortgage refinancing cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program was implemented on October 1, 2008.

Let's start with the lenders perspective with participating in the Hope Program: To do this transaction the lender will have to reduce the loan to 90% of the current value of the home, so that means if the original loan was $300,000 and the current market value has dropped to $200,000, and then the lender has to reduce the loan to $180,000 that's 60% of the original loan amount. The property must also be the principal residence and the homeowner cannot own more than one property.

Now if the lender did a modification of the original loan amount they wouldn't necessarily have to reduce the loan amount, but instead just reduce the interest rate and extend the period of the loan to make it affordable. Now this may seem as a good deal for the home owner....but keep reading. The new loan will be at today's current rate, versus with loan modifications interest rates can be negotiated way below today's rates, sometimes as low as 2%. In addition the new FHA Loan will come with upfront mortgage insurance and it will be a 30 year fixed, while with the loan modification they can extend the loan up to 40 years with out mortgage insurance. Not to mention all the other closing cost associated with getting a new loan.

While in the HOPE Program, the homeowner cannot get any second mortgages for the first 5 years of the FHA hope Loan and when mortgage refinancing think it couldn't get worst, well....if the house appreciates in the future, the home owner will have to share that equity with the government. This shared equity starts at 100% to FHA during the first year and will remain at a minimum of 50% to FHA from five years throughout the duration of the mortgage. For the current lender, it will make more sense to modify the loans themselves than to participate in the FHA Hope For Home Owners Program. And for the home owner they will have more flexibility in rates and terms and they won't have to share they built up equity with the government.

Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://www.specializedfinancialsolutions.com or Call 954-678-5796