Finance Tips

Getting Your Short Sale Approval

I would like to assist you in setting up your financial hardship letter that is needed for your loan modification or to get a short sale approval for your existing mortgage.  Your first step should be to call your financial institution.  They will not offer you a short sale without talking with them.  This is a rare thing if this happens. Getting Your Short Sale Approval

There are many different kinds of hardship letters including creditor and foreclosure letters.  Any type of hardship letter will give you the chance to tell your side of why your situation has happened and why you have begun to default on your loan.  This letter is to be used to convince your financial institution to let you pay less than your regular monthly payment.

When writing your letter you need to remember that there is an actual person on the other end that will be reading it.

 Financial Institutions have loss mitigators who will work with you on your delinquent payments.  It is usual for a loss mitigator to receive hundreds of hardship letters each and every week, so you must make yours stand out and provide the correct information in a way that will catch their attention.

Bill and Mary Sydney

555 Central Avenue

Town, MI. 00000

Robert Jones

USA Lender, Inc.

999 Town Street

Town, MI. 00000

September 6, 2009

RE: Your Loan Number: Hardship Financial Letter

Dear Mr. Jones,

This letter serves as an official request to get a short sale approval for my property that is located at 555 Central Avenue, Town, Michigan, 00000.

 We would like the chance to give you an explanation of why we have had problems paying our loan and have recently defaulted on our terms.  Although we have cut out all unnecessary expenses, we still find that we do not have a sufficient amount to make our loan current.

The main reason we have fallen behind on our loan is due to six months ago, my wife and I both were laid off from our jobs.  We were employed by the same company for over ten years.  In April, our employer told us they were closing their business and provided us with two weeks notice. Getting Your Short Sale Approval

We have been getting unemployement benefits, but this amount does little more than cover our other expenses along with our mortgage payment.  We are very upset because we are falling behind further and further and do not know how we can get it turned around.  We want to bring our account current with you, but we simply have no way of how to do this.  For these reasons mentioned above, we would like to ask for your help in getting a short sale approval on our home.

We believe that a short sale is the option that would help us so that we could sell the home for about the amount that we you to you.  We currently have an individual interested in our property.

Please let us know what the process is to begin the application for a short sale.  We would like to get this taken care of as soon as possible and appreciate you prompt attention to this matter.

Sincerely Yours,

Bill and Mary Sydney

Sign Your Names Here-

Loan Number-

Re-write your address here-

Phone Number with Area Code

Email Address – if available.

All documents pertaining to your request should be placed in one envelope and sent to your financial institution through the United States Postal Service – Certified Mail with a return receipt requested.  This will make sure that you have proof of delivery.  Someone will have to sign the form at time of delivery and then this receipt will be returned to you via regular mail. Getting Your Short Sale Approval

It is really annoying and frustrating to think that you might lose your home due to a bad mortgage loan. Foreclosure proceedings can really be difficult and emotionally draining especially if it involves a property that has a significant sentimental value to you. One of the foreclosure options given by law to any aggrieved creditor is by virtue of a trustee sale. How can you stop trustee sale?

First of all, a trustee sale is a foreclosure process which is non-judicial nature and instigated at the instance of the creditor or lender. The property foreclosed is then sold at public auction with a bank intervening to reduce losses already incurred by the unpaid loan.

When a borrower becomes delinquent in his payments, a grace period of fifteen days will be accorded to him or her giving time make good his or her payment. After the expiration of the grace period, the lender can now file a legal action for foreclosure. If you are lucky enough, some lenders will choose to accept any repayment plan that you might have in mind rather than go through an expensive and litigious process of foreclosing on your property.

There are a lot of options available under the law to stop trustee sale. One of this is to pay your loan outright. Settle your outstanding balance plus other fees to avoid legal suit. However, if this is not feasible, then you may either reinstate your loan or go for repayment scheme. This might increase your monthly payments but you may avoid foreclosure altogether. Other options include refinancing, FHA loans, bankruptcy, and short sales.

What happens during a trustee sale? A public auction is scheduled. During this interested investors are invited to bid for the property. Any successful bidder will be given a chance to raise the money and pay off the amount of the property. Reservation paid for the foreclosed property usually involves the unpaid amount of the previous owner. Transaction is finalized once the auctioneers issues a receipt and terms on how the deed to the property will be handled.

You can always have this sale cancelled with the help of a real estate lawyer. Attorney’s give you an edge over cunning creditors who only want to profit on your property. They know the law and they can help you out with the processes involved so it is wise to hire one to represent your interests in court. A sharp lawyer can get you a deal other than having to go through foreclosure or a trustee sale.

Foreclosure can be very embarrassing and may cause you bad financial reputation in the community. That is why it is always wise to do what you have to do to avoid this problem. How you got into this financial mess is irrelevant. What is important is to act decisively and save your property from being forfeited. Stop trustee sale with legal expertise, quick decision making and initiative to look for means to cover for your unpaid loan. A mortgage is still a mortgage so pay up and avoid a legal headache in the future.

Online payday loan allows you to get funds immediately to pay for your expenses. If you are lack of cash, the best solution is to get a loan from the payday loan company. Payday loan companies offer loan amount in between 0 – 00. The amount you can borrow depends on your financial situation. If you are in a bad financial situation, the creditor will only borrow a small amount of money to you. If you have a good financial situation, the creditor will borrow a large amount of money from you.

There are a few requirements you need to meet if you want to apply for the payday loan. You have to be above 18 years old. You must be employed permanently. Your monthly income must not be more than the minimum requirement. If you want to apply for online payday loan, you need to fill in a form. The form only has a few fields.

Some of the information you must enter in the form include name, address, employment, job income and etc. The application will be reviewed immediately after you submitted it. Normally, your application will be approved within the same business day. Some payday loan companies will review the online payday loan applications and approve them within 1 minute. As soon as your application is approved, you will receive an email that asks you to provide your checking account details. You need to provide information on your valid checking account so that you can get paid. The checking account must have good reputation.

After you send the checking account information, the payday loan company will transfer the funds. As soon as the payday loan company transfers the funds, you can remit it from your account. The funds from the payday loans can be used to pay for your utility bills. Payday loan is suitable for people who are not able to afford the bank loan. The interest fee of the bank loan is expensive. In addition, bank will ask you to provide credit proof and income tax statement. It is difficult to obtain a loan from the payday loan company.

Some creditors allow you to defer your payday loan repayment. If you apply for payday loan repayment, you need to make repayment for the charges. It is recommended that you pay as many fees as possible to prevent getting charged even more fees. After you sign up, you will be given an online account where you can manage your loan amount and repayment.

Debt settlement is very helpful for consumers as it’s provides them an alternative path to reduce there chances of bankruptcy. This process provides consumers with enough time for repayments of debts and also helps them in saving a good amount of debt by reducing the interest rates. Consumers who are interested in debt settlement can either initiate this process themselves or they can hire the services of some debt settlement agency to initiate this process on there behalfs.

Debt settlement proposal letter is also called an invitation to debt settlement which is offered by debtors to the creditors. In these letter consumers invites the creditors to start a negotiation process as they showed there interest in repayment of debt but in full. In debt settlement proposal letter consumers makes a proposal that they are willing to pay this much amount of debt with this much monthly payments. Consumers also propose some interest rate which is suitable for them.

Now in return to settlement proposal letter the creditors have three options one is to accept the letter second is to start negotiation process and try to convince consumer to pay some more and the third is to reject this letter. Mostly creditors try to initiate the negation process with consumers as a result of this letter. It’s very rear that some creditor rejects this letter or they accept it immediately. This is because creditors want that consumer will pay maximum debt to them with maximum possible interest rate.

A settlement proposal letter is one of the way through which consumers try to show there positive attitude towards debt repayments. After sending this letter they make there minds to get ready for negations with creditors so that they can gain maximum benefits and convince creditors to reduce there debt amount as well as the interest rates.

It is totally depends on consumers that at what stage in debt life they decides to take an initiative move towards debt repayments. It is good if they start thinking about it as soon as possible.

Debt Negotiation happens in two basic ways: by a professional, or by yourself.

Here are a few strategies the professionals use when handling a debt negotiation on your behalf.

In this discussion, we are only looking at “unsecured debts”, which includes credit cards or medical debts most commonly. It simply means any debt which has no collateral, such as a car loan, home loan, boat loan, etc.

Before you start any debt negotiation, you should expect that you’ll take a “hit” on your credit score. Any creditor who lent you money is not going to just let you get out of paying any less than the full balance and let you retain perfect credit.

That said, all credit automatically repairs itself when all future payments are made on time. In many cases someone can suffer credit damage from a debt negotiation and within two years, provided all future payments are made on time, have an excellent “A+” 730+ fico score.

In addition, many people confuse credit “Score” and credit “ability”. If you have a perfect 850 fico score, but do not qualify for more financing because you are carrying too much debt already relative to your income, then you have zero credit ability. Frankly, the creditors have worked hard to make you believe these are the same, so that you keep paying. If you are looking for debt negotatiation, you are probably carrying too much debt. If you’re willing to stop using your credit cards for a while and don’t plan to buy a home or car in the near future, then it may save you many thousands of dollars.

The most common strategy the professionals use is to stop making payments, and instead save the money up so that a single lump-sum payment can be offered.

In addition to this, a debt negotiation professional will also prepare a specially formatted letter containing a legitimate reason why you could afford the debt before, but cannot afford it any longer, and if things continue, it will end in bankruptcy or charge-off. This usually contains a factual story, referred to by professionals as a “hardship”. This can include medical events, loss of job or income, dramatic increase in expenses due to some sudden unforseen reason i.e. divorce or adjustable mortgage changes, or a natural disaster.

There are a few reasons why a debt negotiation professional can reach a better, lower debt negotiation settlement offer than you doing it yourself.

First, debt negotiation companies deal with thousands of clients at a time, so they’re able to reach higher up the chain of command. A consumer will usually reach a lower-level technician, who is not authorized much leeway for debt negotiation. An attorney or non-attorney professional can speak with a vice president because they are offering sometimes hundreds of thousands of dollars spread over many accounts based on certain status and net discount amount.

Second, debt negotiation companies know how to say and how to package what needs to be said, at the right time, to the right people.

Third a debt negotiation expert knows the system and averages for each company. A creditor has the legal right to sue you in court for non payment, which could result in a legal judgement, which can mean garnishment of wages directly from your employer, additional court fees, and more credit damage. A professional debt negotiation company can minimize the risk of being sued while still reaching a settlement around 42 cents on the dollar.

Last, because a debt negotiation company has either attorneys on staff, or non-attorney trained negotiators on staff (depending on your state’s laws, and your file), they know the creditor’s tricks. The credit card industry makes literally billions of dollars per year in profit, and they don’t make this by being nice. However nice the customer service representative may seem on the phone, they have one agenda: to get as much money from you as possible. Most typically, for anyone in a bit of debt trouble, the creditor will suggest “Credit Counseling”.

The dirty secret about credit counseling is that “Credit Counseling” was invented by the credit card companies. They want you to feel like they’re helping, but when you enroll in these programs, you’ll repay 100% of your debt plus interest, suffer credit damage, and they’ll often collect a monthly fee on top of it ($49 a month x 48 months, for example is $2,352 in fees, not including interest). They usually won’t tell you this, but they also get a 15% “fair share fee” from the credit card company, so the IRS has revoked the “non-profit” status of many of these companies.

Like plumbing, taxes, or fixing your computer, you can handle debt negotiation yourself, or you can hire a professional. Those willing to educate themselves to learn how to do it right can definitely save some money. That said, for the reasons stated above, often times the settlement amount offered on a debt negotiation you conduct yourself may not be as discounted as what a professional may get, and therefore the service in almost all cases pays for itself. For example, if you get offered $.80 on the dollar, but a professional gets $.42, then it’s actually cheaper even with the cost of service to have a debt negotiation service handle your case.

One dangerous byproduct of staying in debt is not having enough time to invest for retirement. Most people don’t know exactly how much money they’ll need to retire. Do you? The sooner you use debt negotiation to clear your debts, the sooner you can build your investments to ensure you can retire the way you want – instead of living your golden years as a burden on family, with lower standard of living, or working past retirement.