Green Trust Cash Foreclosure Bailout Lenders - 5 Faqs On Foreclosure Bailout Loans

Green Trust Cash Foreclosure Bailout Lenders - 5 Faqs On Foreclosure Bailout Loans

green trust cash installment loans for very bad credit

Foreclosure. Just hearing the word strikes abject fear into the heart of any homeowner who is in danger of falling behind on his or her mortgage payments. Unfortunately, the prospect of foreclosure is all-too-real for millions of people today.

In order to avoid foreclosure, you have no doubt tried everything from borrowing money to taking on odd jobs to selling your possessions - all in the efforts to save your home from reverting back to the bank. One option you may have heard of is that of finding a federal bailout lender.

If you are looking for foreclosure bailout lenders, here are 3 FAQs to help you make a good decision:

1. What is a foreclosure bailout loan?

A: This term as it is typically used can refer to two different options for homeowners in danger of foreclosure. Traditionally, the term has referred to special programs offered by any number of mortgage lenders to help people restructure their home loans (see #2 below). Over the past year or two, the term has come to refer to something called the The Home Affordable Modification Program (HAMP), which was created by the Financial Stability Act of 2009 in the U.S. (see #3 & #4 below).

2. What is a traditional foreclosure bailout loan?

A: For years, banks and other lenders have been offering special loan programs to assist homeowners in danger of losing their home. These foreclosure bailout loans have nothing to do with the federal government bailout (HAMP) program. Rather, they are special green trust cash bad credit direct lenders only that banks offer people who are 90-120 days late in making their mortgage payments.

In order to qualify for this type of loan, you should have a 65-75% loan-to-value (LTV) - which is not easily attainable for many lenders. On the other hand, while equity requirements are stringent, income requirements are not. Homeowners may be able to use up to 55% of gross monthly income to meet debt payments (i.e., housing plus other debt service). Legal fees and related foreclosure costs may in some cases be capitalized into the modified principal balance.

3. How does HAMP work?

A: Back to the Home Affordable Modification Program (HAMP). This program was built as a collaboration between lenders, credit unions, the FHA and other lending organizations. It consists of a set of green trust cash installment loans for very bad credit modification guidelines and incentives to homeowners, lenders and servicers. Over 110 major lenders are now participating in the program.

Under HAMP, lenders have a series of options to assist struggling homeowners to stay in their homes through mortgage modification. Tools at their disposal include:

* Reducing the interest rate to as low as 2%

* Extending the loan term to 40 years (if necessary)

* Deferring a portion of the principal into the loan is paid off, waiving interest on the deferred amount

4. How can I qualify for HAMP?

A: In order to qualify for HAMP, your situation should meet the following conditions:

* you are delinquent on your mortgage or face imminent risk of default

* your home is occupied as your primary residence

* your current mortgage was originated on or before Jan. 1, 2009

* the unpaid principal balance on your mortgage must be no greater than $729,750 for one-unit properties

* all borrowers must fully document income

* modifications can start from now until December 31, 2012

* green trust cash indian tribal installment loans can be modified only once under this program

5. What if I am not eligible?

A: If you do not meet some or all of the requirements for HAMP above, don't panic. You should consider going out for a traditional foreclosure bailout loan. Just be sure to act quickly in order to avoid foreclosure. Payments and other penalties are continuing to accrue for each day that you wait to act.

Consider these 5 tips as you determine which type of foreclosure bailout lender is right for you.