Below is a question I got asked recently. I thought this was valuable info, so I am sharing it with you here:

“I’ve been reading everything I can about why lenders would be willing to sell properties at large discounts…

Dean, what would be a lender’s main concern which would get them to sell mortgage notes at deep discounts? I feel that since we’re trying to get into the minds of the LMREP, it would be more advantageous to all, if we could sell our services to their main concerns”.

This was my reply: You need to be clear (both in your language and the way you think) about the difference between properties and mortgage notes. In your question, you mentioned both of these.

If you used this same language when making your call to the bank rep. I can guarantee that they would probably brush you off. In their minds, you are probably just a some knucklhead that doesn’t know the difference between a deed of trust and a deed. You can bet that you won’t be getting further repsonses from them.

A Tip For Buying Mortgage Notes

Study your lingo, and make sure you know it before you try contacting your lenders:

You get one chance to make a good first impression, when you’re talking to the key person/gatekeeper when buying mortgage notes.

Great information right?

A list of reasons:

Reasons to Sell Mortgage Notes at the Institutional-Level

a) Selling notes is quick. Sometimes the banks need to clear their balance sheets or may be in the process of merging, in these instances they need to move fast.

b) their might be a relatioship between the borrower and the bank, or some kind of other circumstance.

c) in certain cases, the bank might now want to foreclose on borrowers because of the negative press they will get. These actions may affect their public image.

d) the bank may have started the foreclosure processes, but they do not actually want to take the borrowers to sale. (in the past, I have purchased mortgage notes 1 week prior to sale).

e) the loan can be negative equity, and the banks dont want the recovery action/expense. (small loans amounts might never be foreclosed on because the expenses are too high, this is a fantastic opportunity in buying mortgage notes)

f) In order to see what the market would pay for these loans, banks may price a part of its non performing book and send it out.

Individual Reps- Reason to Sell Mortgage Notes

a) Borrowers can be flaky, they won’t follow through on payments, or just unwilling to work with the bank. The loss mitigation rep does not want to work them anymore as well.

b) borrower is non-responsive, no contact

c) foreclosure processes in their state are too long

e) authorization over certain write offs and mortgage note sales is within the rep or their direct managers authorization. When required to go to upper managment for aprovals the process is lengthened…so in those cases they may pass.

f) the rep might be shooting for their monthly bonus and sell off some mortgage notes to reach this. Sometimes it could just be a matter of meetin a monthly quota.

Hope this information helps you.

Foreclosure can be pretty alarming and intimidating if you’re not sure what’s going to happen next. If you are aware of the steps leading up to foreclosure, you can do something to prevent it from happening. That’s the reason you have to find the time and energy to study the mortgage foreclosure process.

The second you miss that first mortgage payment, the steps on the way to foreclosure are set in motion. You will get a letter from the lender saying that you’re behind on your payments. The lender will leave you alone if you pay the past due bill. But if you don’t pay the past due payment, the mortgage company will call. They will announce to you that you are formally in default. If this looks like your situation, get in contact with your lender.

If you get hold of your lender soon enough, you may get the chance to do mortgage loan modification. Going through this process can be one of the best ways to avoid mortgage foreclosure. If you get behind on payments for more than 3 months, odds are that your lender will file for foreclosure. It can take a bit longer than that, but if you keep missing payments you will be sent a foreclosure notice eventually.

The problems multiply when you receive your foreclosure letter. You can try to stall it if you decide to attend the court hearing, but you will lose in all probability. The banking company acquires the right to sell your house through an auction when the court hearing is done. At that moment, you only have a couple of days to leave your home. If you stay, you will be forced out by the police.

Meet with your lender before it gets to this point. Oftentimes, mortgage loan modification can be a solution to your problems and it would be a shame to squander that opportunity. When applying for a mortgage loan modification, make sure you study the paperwork so you have the best chance of getting your application accepted.

Because of the recent foreclosure boom, loan modification is a hot subject nowadays. A loan modification comes down to asking the lender to alter the terms of your mortgage for good. The change of terms oftentimes comes down to lowering interest rates. Also, extending the time of the loan is frequently done to keep the damage for the bank to a minimum.

The magnified demand for loan modification has not been overlooked by con men throughout the country. Scammers will try to get an upfront payment from you, promising that they can help you out. These scams can damage your prospects of getting a loan modification and lose you a lot of money in the process.

Most of the times, when you apply for loan modification, you want fast results. Some companies will guarantee you certain results with their service. Because the loan modification is not in charge of the decision, they can’t guarantee anything about the results.

It normally takes at least a month before the lender even considers a mortgage loan modification application. The bad loan modification businesses will say and try anything to pressure you into signing with them. They will concur with any condition you have, because they only care about their upfront payment.

Don’t be lackadaisical in finding out facts about the company you want to deal with when doing mortgage loan modification. Don’t be pressured into signing with some money hungry company when it doesn’t feel right. You will never see your money again when you give it to one of these scammers, so you’ll have to be careful.

A bad credit score can be a real burden in getting mortgages and loans. Because of a bad credit score you have to pay more interest for a loan or mortgage. Not only that, you also have less possibilities to choose from.

But despite a bad credit score, you can still get a mortgage or a mortgage refinance. It might cost a little bit more, and it will take some more preparation, but it can be done. You should think about consulting with a mortgage broker that specializes in bad credit cases.

You get a free copy of your credit report every year. If you compare the most recent one to the ones in the past, you will see if your credit is getting better or worse. If you want to improve your credit, look around online or in other places. There are a lot of ways to dispute false credit records on your credit report and improve your credit score this way.

If you succeed in improving your credit scores, you will get lower rates on your refinance and more mortgage options will become available to you.

Seek out an expert when trying to do a refinance with bad credit. If you seek the help of a mortgage advisor specializing in bad credit, be honest. If you don’t give all the relevant information, or you hold information back, you make it very difficult for a mortgage advisor to help you. You may even get the wrong advice because of a lack of information.

If you are getting annuity from a structured settlement deal, the idea of structured settlement sale has probably crossed your mind already. Or it could be that you are offered by a company to sell it to them for a lump sum.

The sales process of structured settlement is a complex process. But don’t get intimidated. Read further and find out how you are protected by the government.

A law called Structured Settlement Protection Act has been protecting the concerns of the recipients of these annuities without them knowing it. If you choose to trade your payments for lump sum cash, the dealings are regulated for your best interests.

The objective of structured settlement legislation is to safeguard the public from purchaser’s motives of high profit. The Structured Settlement Protection law set various mandate for the protection of individuals accepting structured settlement payments.

To make certain that the regular individual is prevented from being tricked by salespersons or by mere marketing, many states now demand that you be presented the authority to sell. This will demand an application and filing of papers before the court.

The Act also compels you to obtain personal consultation about the prospective sales transaction. This is just a way to check that you obtained competent legal and financial counsel from registered professionals. Trading your settlement could actually impact your particular financial situation and the consultation only educates you to consider the consequences.

Admit the fact you truly need these recommendations. They are worth your time as you might not have some receivables from a guaranteed income in the near future. Or you can simply waive your right to the advice in writing.

Structured Insurance Settlements is a site dedicated to learning how to purchase structured settlements safely and get the best offer possible plus make sure you are dealing with financially stable company.

Get structured settlement tips on structured settlement blog. Start your research with this free article on how tosell structured settlement today.

Loan Modification is a HUD approved workout solution becoming more common during this foreclosure crisis.

Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default. Loan modification is actually a process or transaction between the lending company and the debtor. The purpose of the transaction is to renegotiate the payment terms and other debts such as payment delinquency on mortgage.

Loan modification is not only for those who are facing foreclosure. Those that are experiencing trouble in their mortgage payments should seek this type of help. Loan modification is restructuring your current loan to re-establish your mortgage and create a monthly mortgage payment that will work within your budget. A loan modification is not a refinance; it is an enhancement to your current mortgage loan to create a payment that you can afford. Loan modification sounds intimidating to the average homeowner but the process is indeed simpler than you might think. By following a prescribed action plan, the process can reach a successful conclusion in a relatively short time.

Loan modification is an increasingly popular concept on saving your property. As the name suggests; this is a type of transaction wherein you ask your lender to make some changes in your mortgage agreement. Loan modifications are the best solution for you and your lender. Nobody wins these days in foreclosure. Loan Modifications are complex often resulting in tens of thousands to hundreds of thousands of dollars saved. Our specialists may be able to reduce your loan payments 20, 30, 40, 50% or more.

Loan modification is the focus on our website, however; we do provide our clients with proper legal advice and share expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. Feldman who has been licensed by the State Bar of California for over 25 years. Loan modification programs are offered for individuals who are in danger of foreclosure of their home. With foreclosures on the rise, it is important to be educated about the array of loan modification programs that are available to you. Loan Modification is arguably the most effective tool you can use if you are behind on your mortgage and in midst of a financial hardship to save your home from entering foreclosure. We are dedicated to helping you achieve a prompt resolution to your mortgage related debt.

Loan modification on the other hand, is not available for everyone. This is only available for those who are unable to pay for their current mortgage based on their agreed payment terms and conditions. Loan Modifications help homeowners avoid foreclosure by negotiating with your bank and allowing you to stay in your home. Loan modification is still a relatively new arena. Many lenders have not definied clear criteria about which loans will qualify for a loan modification, and process for obtaining a modification may be similarly unclear.

Loan modification is not only for those who are facing foreclosure. Those that are experiencing trouble in their mortgage payments should seek this type of help. Loan modification is restructuring your current loan to re-establish your mortgage and create a monthly mortgage payment that will work within your budget. A loan modification is not a refinance; it is an enhancement to your current mortgage loan to create a payment that you can afford. Loan modification sounds intimidating to the average homeowner but the process is indeed simpler than you might think. By following a prescribed action plan, the process can reach a successful conclusion in a relatively short time.

Loan modification is an increasingly popular concept on saving your property. As the name suggests; this is a type of transaction wherein you ask your lender to make some changes in your mortgage agreement. Loan modifications are the best solution for you and your lender. Nobody wins these days in foreclosure. Loan Modifications are complex often resulting in tens of thousands to hundreds of thousands of dollars saved. Our specialists may be able to reduce your loan payments 20, 30, 40, 50% or more.

Now, let’s have a look at some ways to increase the chances of obtaining a loan modification. These little known facts greatly step-up your chances of success. Let’s go over a couple of tips.

To qualify for mortgage loan modification, you need to show financial hardship. You prove financial hardship by composing a financial hardship letter to your lender. In this letter, you explain your financial problems. Also, make sure you tell your bank what steps you will take to improve your financial position. Also, mention you’re committed to home ownership.

If you set up a new home budget and free up some money, this gives you more space for monthly payments. If you know your disposable income, you can determine an affordable monthly payment. Reassure the bank that can pay that amount now and will be able to keep it up in the near future.

Inform your lender about your financial situation by filling out the essential financial statements. Never try to omit information and be meticulous when filling out the forms. Supply your financial statement and a financial statement for the future to make the lenders job easier.

If you’re applying for mortgage loan modification, plan ahead and do your research. The second you know the approval criteria, you dramatically increase your chances of success. Know that time is not your ally when doing mortgage loan modification. Saving your home starts with doing the necessary planning.

Having a crystall ball that told you if mortgage interest rates would rise or fall would be great. Especially in the erratic times we’re living in. Forecasts are never entirely dependable, but in the light of recent events we can make some good guesses.

Lenders around the country are telling every person that will listen about their low interest rates. The fact that only consumers with an above 700 credit score are eligible for these low interest rates is frequently not brought up in the ad. Oftentimes, a big down payment is also necessary for these favorable interest conditions. If your FICO score is under 700, or you do not have the financial reserves for a big down payment, you will have to pay a little more interest.

If you’ve been watching mortgage interest rates, you know that they have been descending the past couple of months. The million dollar question is, should you act now, or wait it out? If you’re not sure if the interest is at the lowest point right now, you may be inclined to hold off on buying a home. The problem is, if we are really at the lowest point right now, you lose your opportunity of buying at the best time.

Over the past couple of months, many people have applied for a mortgage. Because of the sharp jump in applications, lenders can’t keep up. Mortgage interest is set to keep going down, but we will see a bounce in the near future.

Many so called ‘experts’ will see the bounce as something bad, but it’s just natural. What you want to do is wait it out and buy when interest rates are sinking again. The market will reach it’s bottom in that period of time and you can gain from it. Think about getting a fixed rate mortgage if possible. This way, you lock in the low interest and protect yourself from mortgage interest rates rising again.

To improve the chances of getting your loan modification approved, we’ll go over a few means to do. that You can increase your chances of success by using some of these little known secrets. Let’s look into a couple of tips.

If you want to get your mortgage loan modification approved, you need to prove financial hardship. You show financial hardship by writing your lender a financial hardship letter. This letter shows and explains your circumstances. Also, make sure you tell your bank what measures you will take to improve your state of affairs. Finally, write that you are committed to remaining a home owner.

Free up money by designing a new home budget. To determine a healthy monthly payment, you have to know your disposable income. Reassure the banking company that you’re able to pay that amount now and will be able to pay it in the near future.

Take the time to complete the required financial statements for the lender. Don’t omit information and be thorough. Make it easy for the lender by supplying your financial statement and a financial statement offer for the future.

It’s essential to do your research and plan ahead when doing mortgage loan modification. The second you know the approval criteria, you drastically increase your chances of success. Know that time is not your ally when doing mortgage loan modification. Saving your home starts with doing the necessary research.

Unlike a fixed rate mortgage an adjustable rate home loan (also known as an ARM mortgage) gives you variable interest rates. So, the repayments that you make on this kind of mortgage will not remain the same and could go up or down depending on the actual terms of your deal.

In most cases these mortgages come with rates that are adjusted by the mortgage lender in certain market conditions. Rates will usually and to a certain extent track changes in centralized financial industry interest rates such as the LIBOR (London Interbank Offered Rate) and COFI (Cost of Funds Index) indexes. These mortgages are popular with consumers who feel that interest rates may go down rather than up.

The adjustable rate mortgage loan does come with a downside, however. If the rates to which the loan is linked start to rise then the borrower’s monthly repayment could well rise too. This can see a lot of borrowers left unable to afford their mortgage repayments and in risk of losing their homes.

Not all adjustable rate mortgage loans will change their rates in the same way. Some, for example, will match their linked index like for like, some will add a margin percentage on top of the index and some make rate changes on the adjustments to be made rather than the rate given with the initial mortgage.

Many mortgages of this kind come with an initial ‘honeymoon’ period (often called an initial discount) where the interest rates that are charged are fixed or given at a rate below the linked index. The rates here can be significantly lower than market rates as an incentive for borrowers to apply for a loan and, when they do rise, the increase in payments can, as already mentioned, come as something of a shock.

Some mortgage products here also offer a useful benefit known as a ‘cap’. This benefit sets a maximum limit on changes to the interest rates charged. Borrowers should check the terms of any caps offered carefully before taking them up. Sometimes the difference between the cap and the standard ARM payment is not enough to repay the mortgage itself which could lead to an increase rather than a decrease in your mortgage balance over time. This is often referred to as negative amortization.

In certain cases you may be able to take out an ARM mortgage that also works like a conversion mortgage. This kind of deal will allow you to change your deal to a fixed interest one at certain times and for certain periods which could be useful if rates rise considerably.

It is important to think hard about whether this kind of mortgage will be the best option for you. When interest rates are low or start to fall then this could be the best deal to have. However, if interest rates look to rise then you could find yourself paying a lot more for your repayments than you first thought.