Below are a few of the typical questions we field on a daily basis regarding Commercial Mortgage Refinance’s.

How long does it take to close?

The time to close is universally under estimated by banks, lenders and brokers. Many firms advertise 30 days, which is simply not the norm. Despite borrower’s frustration and confusion on why it takes as long as it does to close, the reality is that it is odd for a commercial mortgage to close in less than 60 days.

Oddly, one of the biggest delays actually is caused by the borrower’s inability and or reluctance to provide requested information. The borrower can have a huge impact on shortening the process by responding quickly to the lenders requests, even if they seem irrelevant or ridiculous.

What are the fees?

On a commercial mortgage refinance the borrower can expect to pay a bank fee of 1%, lender processing fee of approximately $1000, an appraisal will cost $2,000 – $5,000, title ranges from $800 – $2000, environmental report will cost between $800 – $1,800. The larger and more complex the deal the higher the costs generally will be.

What are my loan options?

The classic bank loan for owner occupant is a 5 year fixed, 20 year amortization program. In the wider market, options range from interest only, to 1 year adjustable, to 30 year fixed. Some lenders have created “stated income loans” where the borrower provides a limited amount of documentation.

What are prepayment penalties?

Prepayment penalties are a way for lenders to preserve their return on funding loans, if the mortgage is prematurely paid off. From the borrowers perspective this is a negative feature that tacks on an additional fee, which is in the form of a percentage of the remaining balance. For example, 5% for 5 years, prepay is market. In means that if the borrower was to sells on refinance the loan within that 5 year period he would owe 5% of the existing loan balance.

What is the application process?

Normally, after a preliminary verbal review of quotes and loan programs the borrower will be expected to fill out an application and provide documentation. Three years of business and personal tax returns, year to date profit & loss and balance sheets are requested. After a review of the above, the lender will issue a Letter of Intent which lists the terms of the potential loan. Assuming the borrower wants to move to the next step, they will be expected to sign off on the LOI, although this is not a binding step. At this point the lender will engage an underwriter(s) to thoroughly review the funding request.

If approved, the bank will issue a full Commitment Letter which is a binding documentation for both the bank and borrower. At this point and if agreeable to the borrower they’ll be expected to execute the Commitment Letter, provide money for the appraisal, environmental report, and processing fee. The loan has at this point been officially engaged.

Keep in mind that it is in the borrowers benefit to have their loan thoroughly reviewed before they commit to a lender so as they do not waste additional time and money on 3rd party reports.

248 885-8797 Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He specializes in Commercial Real Estate Loans between $300,000 – $5,000,000. Offers unique loan programs such as Commercial Second Mortgages, Commercial 30 Year Fixed and 90% non SBA financing, and Commercial Equity Lines. 248 885-8797 Commercial real estate loans or SBA 7a Loan Commercial Loan Brokers
Article Source

Related Blogs- sorry the script doesn’t always fetch the right sites

• Mortgage Canada Ontario – Why working with a Broker is better …
• Fee would prevent cuts in in-home care for elderly, disabled …
• Understanding the Bad Credit Car Loan Process | Auto Credit …
• Need of Cash Urgently? – Consider Direct Lender Payday Loans …
• Student Loan Consolidation and Borrower Assistance Programs …
• Commercial Real Estate Investing | Live4Trading.com
• Karoshi Ethos » Smarty base href Modifier
• Four state-owned banks Bank Interbank funds transf « 人生地起点
• Borrower, Employ Thyself! But First… | Mortgages Unzipped
• Cypress Bio Rejects Buyout Offer, Shutting Down Commercial …

A bit of humor...


Powered By WPHumor

Famous Quotes..


Powered By Famous Quotes

Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

Powered By WP Footer

A loan modification program works by taking your current loan held against your home, and adjusting it in such a way as to where it helps you slowly get out of debt with your current loan provider.

And also helps you financially become capable of also paying more of your bills on a regular basis. What is a mortgage loan modification?

A mortgage loan modification is a change to a current loan agreement, typically lowering monthly payment rates to pay off your loan more efficiently.

What is a mortgage loan?

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…A mortgage loan is a signed agreement as to where you receive a sum of money from either a bank or loan company, as long as you agree to pay the loan back either on a weekly, monthly, or yearly basis, sometimes just a few time lump sum. The amount of money in which you have borrowed from the bank or Loan Company will hold your home as collateral until you have fully paid back the loan to ensure that the company or bank will get their money back…”

What does a bank or loan company get out of a loan modification?

Normally a bank or loan company will actually lose out more profit wise in foreclosing your home, then working with you on arranging more affordable payments. This is because there are lots of processing fees involved in foreclosing a home, and then there is to adjust a payment plan.

Typically with reducing your monthly payments the bank or loan company will also gain more profit on your either monthly or weekly interest rates, therefore adjusting your payments is in the companies favor as long as you can afford to pay it regularly without falling behind again.

When will a bank or loan company deny a modification request?

“…Typically a bank or company will only tell you no, for one or two reasons. Either it costs the company or bank in profit, or the bank or company finds you financially unfit to afford even a lower adjustment…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
Article Source

A bit of humor...


Powered By WPHumor

Famous Quotes..


Powered By Famous Quotes

Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

Powered By WP Footer

Have you missed a mortgage payment? Are you more than 60 days late in making your monthly mortgage payment? If the answer to any on of these questions is a ‘yes’, a foreclosure is a real possibility and the only option to save your home is home loan modification. Not only is a mortgage modification simpler and cheaper than refinancing but also you can opt for it without worrying about your poor credit rating.

When you ask your bank for a home loan modification you are essentially telling them that you cannot meet your monthly mortgage payments. This may be due to a range of reasons that have caused a decrease in your income like divorce, death of an earning member, work related injury, chronic illness, unemployment etc. However, you are letting the bank know that you are confident that you will be able to make the payments if the amount is brought down to a more affordable figure.

You can also tell the bank about the option that is most suitable for you; there are two ways to reduce the monthly mortgage payment:

• To reduce the interest rate

• To increase the loan term.

There are two ways to initiate the home loan modification process you could either approach your bank on your own or you could avail the services of an attorney or a company that can negotiate the terms of the mortgage modification on your behalf.

If you have already been served with a ‘Notice of default’ you may want to enlist the help of an attorney. On the other hand if you are finding it increasing tedious to meet your monthly mortgage payments you can approach the bank on your own to find out about your options.

When you are opting for a home loan modification it is of utmost importance to go for a realistic and affordable amount because you will have to convince the bank of your capability to make the payment once the mortgage modification has been granted. It is also essential to understand that securing a home loan modification does not stall the foreclosure proceedings automatically. You will have to contact your lending institution again to stop the foreclosure and continue with the new terms of loan after securing the mortgage modification.

If you are considering mortgage modification, you should really look into 60 minute home loan modification. It is a great resource that contains a lot of important information about the process of applying for a mortgage modification. It was created by a loan modification expert who has modified numerous home loans. The kit included a professional hardship letter outline, and one on one support in case you have any questions. It is a must have for homeowners.

If you want to learn more about mortgage modification and 60 minute loan modification visit homeloanmodificationfaq.com. The website has plenty of free resources that will help you to modify your mortgage. Click Here if you want to save your home from foreclosure.

Article Source:http://www.articlesbase.com/mortgage-articles/how-loan-modification-can-stop-a-foreclosure-1654813.html

A bit of humor...


Powered By WPHumor

Famous Quotes..


Powered By Famous Quotes

Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

Powered By WP Footer