If you are struggling with your monthly mortgage payments, you have probably been paying special attention to the news about the loan modifications available through the 2009 Stimulus Package, the Making Home Affordable Program. Millions of homeowners are getting assistance in avoiding foreclosure, but does your bank or lender have a mortgage modification plan?

Click here to learn how you can get approved for a loan modification today!

The Making Home Affordable Program has various guidelines for qualification, but the first and foremost one is whether your lender is on the approved lender list. If not, then a loan modification through this government-sponsored program is not possible for you. It is easy to determine your bank’s participation by accessing the list at the government website. A local HUD office, or Department of Housing and Urban Development office, can also help you with this important information.

Even if your lender is not participating in the government program or you don’t qualify, this does not mean you still could not work out a loan modification to keep you in your home. The truth is that banks do not like to do foreclosures, and this is more true than ever in this current economic downturn. They cost them much in time and money.

If you find yourself in that situation, you should not give up on the possibility of a reworked mortgage. The lender’s website is a good place to start, with “Loss Mitigation” or “Hardship Help” being two headings to look for in the menu. So, you should find out today if your lender has a mortgage modification plan.

For must know facts about how you can get approved for a loan modification, visit our blog at http://1MortgageModifications.com/ to get help today.

I am a loan modification expert. I have written hundreds of articles on loan modification. I enjoy helping my readers modify their loan.
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The stimulus package which has been signed by US President Barrack Obama has led several banks to participate in the program. One of these approved participants is the Citimortgage loan modification program. This is among the highly trusted companies which you should deal with if you are applying for the loan modification. The reason behind this advice is due to the fact that this company is a division of Citigroup. This sector focuses mainly on mortgage loans and because of that, they have been able to help thousands of families alter their loans. If you are interested in getting a loan modification from the company, here are some things which you must know.

Ensure that you have accurately completed your application for the loan modification. This is because it is necessary to learn about the process of loan modification and what the company’s loss mitigators are going to look for so that your application will be approved. Once you have a duly fulfilled application which has no unanswered areas, there will be no reasons for the company to deny your application.

Your financial documents must be prepared beforehand as well as a pre-calculation of your debt ratio. This is so that the lender will favor you for personally supplying what they need from you. In order to get an approval, it is important for you to know what Citimortgage is searching for in the financial documents and the debt ratio. This must be done before your Hardship Packet is submitted.

Relatively, it is important to have a hardship letter which can melt the toughest hearts. This is because this letter is a crucial part in determining the approval or decline of your application. As such, this is usually the very first document which the Loss Mitigator of Citimortgage will see upon reviewing your file. So that your application will be approved, you must have a moving and compelling story. When writing the letter, you have to put yourself in the readers’ shoes so that you will know how they will react upon reading the letter. Make sure that your letter stands out from the rest.

If you feel that you can be accepted to the Citimortgage loan modification program, you must act now. This is because the company is very eager to help individuals with their mortgage problems. As a matter of fact, more participating banks are being sought by the administration of President Obama to join the new $9 billion program which is intended to fund the US economy and the mortgage industry.

For detailed facts and essential tips about how you can be approved for the Citimortgage loan modification program, visit this simple, easy to understand loan modification guide and resource: http://HomeLoanModifications101.com.

Article Source:http://www.articlesbase.com/mortgage-articles/eligibility-for-the-citimortgage-loan-modification-program-1407352.html

SBA financing has seen many ups and downs in the last year.  No one did or could have predicted what has actually happened.  The Stimulus Package administered by the government, a welcomed surprise by most in the business, has for the most part been a success.  It has kept SBA loans viable (relative to other commercial mortgage programs that are now dead and gone) as well as motivated borrowers to use the program due to the reduced SBA financing fees. 

For banks and lenders it did two positive things as well – it increased the guaranteed portion of the loan amount from 75% to 90% (on SBA 7a loans) which encouraged banks to lend again and take on more risk.  Secondly, it has helped free up the SBA secondary market by purchasing approximately $15 billion of “frozen” debt that was clogging this market.  This is a very important point. 

SBA Financing

Most banks do not hold onto the loans that they fund.  They normally sell the loans off onto the secondary market for a premium.  During the height of the crisis the fees earned for banks by selling loans was down by approximately 90%…  From 12% to 2%.  This was one of the major reasons why SBA financing was so down during the end of 2008 and beginning of 2009.  The only banks and lenders that were lending, had the ability to hold onto the funded loans on their balance sheets. 

Most banks did not want to do this or could not do this for a varity of reasons, such as their own liquidity issues.  They needed to be able to immediately turn around and sell the loan off for a quick profit on the secondary market.  Because premiums where so down, many banks did nothing and waited until the market normalized. 

Premiums as of this writing are back up to approximately 85% – 90% of where they were before this crisis started.  Loans are being sold for a 9% and 10% spread.  This is perhaps the biggest success of the Stimulus Package. 

SBA Business Financing – Where are we going? 

All of the above is good news and but where do we go from here?  There are a couple of interesting dynamics in play.  One is what happens when the Stimulus Package runs out, which is now estimated to occur in November of 2009?  Will it be re administered, like some predict?  If not, the SBA fees will be put back into place and the guaranteed portion will drop back down. 

Will this slow borrowers and banks appetite for the program?  Probably, but what other options will borrowers have and for how long can healthy banks go without doing deals? 

What about the conventional secondary market?  Surely the government is looking at this though little seems to be publicly discussed.  The Mortgage Bankers of America reported that $50 trillion of conventional investment deals are coming due in the next 2 years, which currently do not fit any main stream underwriting parameters.  If this is not fixed, most of this debt could go into default. 

Conventional owner occupied loan requests, that do not fit the SBA underwriting box also face similar issues.  Try getting an 80% loan to value refinance done, without the SBA guarantee for example.  It is not going to happen. 

Bottom line, for most owner occupied borrowers, SBA financing will remain the most reliable and cost effective financing available in the market for the next year or so. And this is regardless if the SBA fees are put back into place.  If the conventional secondary market is repaired then things will surely re open and borrowers and us lowly commercial mortgage brokers will have more options to work with. 

Jeff Rauth is President of Commercial Finance Advisors, Inc . They close commercial real estate loans between $400,000 – $5,000,000. Reach him at 248 885-8797 or at SBA 7a or SBA Business Loan or SBA Lenders

Article Source:http://www.articlesbase.com/mortgage-articles/sba-financing-in-2009-1294454.html