home loan disclosures

truth in lending disclosure statement?

we buying a house in linden NJ, our broker told us that the offer is underwriting and he is waiting for the responds from the lenders. but today we receive a letter ( bunch of paper to be sign and other explanations) from PLAZA HOME MORTGAGE, INC we confuse because one of the papers says… ” Its is a pleasure to notify you that your application for a first mortgage loan has been approved subject to the following matters set forth below ” does this means that we are really approved isn’t the broker who is suppose to receive the “mortgage approval” answer? im very nervous about it because the closing date is Feb. 5 2010

That is very confusing but no, it does not mean your loan was approved. It means they have a bunch more questions they want to ask and need more documentation.

Home Loan Modification

The economic recession is causing a lot of turmoil in the country today. It has affected a lot of people, and millions of homeowners who cannot afford their mortgages are asking for home loan modifications to get out of their rut. This process fine tunes the current contract, and adjusts it to the current status of the borrower in order to bring the interest rate and payment down, decrease the principal balance, transform an adjustable rate into a fixed rate, forgive delinquent payments, and even stop auctions and foreclosure actions.

In cases where people find it difficult to process their loan modification, they hire “third-party” negotiators – or lenders — who will assist the client in the process. This is a considerable action for a borrower to take, since there is a tendency to lose more if the loan remains in the delinquent status. Many seasoned lenders agree that changing the current loan and modifying it into the borrower’s current situation can keep the home owner’s loan in “good standing.”  When the borrower reduces the delinquent amount, he remains in good stead with the shareholders because they believe that the he is still making a profit.

One question remains, though. Is loan modification applicable to everyone?  Lenders choose which cases to take, and they will usually help modify a loan that will benefit them and the homeowner as well. They also look if the borrower fits some qualifications. They usually know if a borrower is qualified if a) the borrower wasn’t able to receive disclosures within a specific time, b) the homeowner is involved in rate adjustments, c) the lender would rather renegotiate your loans than have your home foreclosed or d) if the borrower is suffering from situations, such as death, divorce, separation, military service, loss of job and sickness.

In case the homeowner fits the bill, the waiting period for their loan processing will be 60 to 90 days. It is not rare for a bank to ask a deposit upon approval. But before it happens, the homeowner and his lender must be determined and consistent. Many things might happen that they cannot control. Possible scenarios might include bank mistakes and inefficient customer service. What they need to do is just roll with the punches. It is a difficult, long, and arduous process to take. However, many have gone through it and have gotten out of it relatively unscathed. Some of them are happier after the change – and all of them are certainly much wiser after going through this experience.

About the Author

A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.

For more inquiries, you may visit Loan Modification

Court Orders $2 Trillion Loan Program Details to be disclosed by the Federal Reserve

home loan disclosures