Sunday, 15 September 2013

Automobile Loan Modification and Your Credit Score

With so many individuals having problems in the current economic climate, there is all manner of misinformation about procedures such as car loan modifications and your credit score. In many cases, individuals who are having problems paying for their car and keeping up with the bills believe that a car loan modification will cause problems with their credit score. This particular perception could not be farther from the truth. The point behind a automobile loan modification is a concerted effort to save the automobile owner from having their vehicle repossessed and suffering the negative effects on their credit score. Considering that a repossession stays on your credit for seven years, almost any alternative would be preferable.

By utilizing a loan modification expert, the automobile owner can find themselves in a substantially more suitable situation as well as reach friendly terms with the finance company or automobile dealership. While many dealerships and finance companies have been less than friendly in the past when it comes to collecting on these types of debts, in the modern day, many collectors have come to realize that car loan modifications are far more effective than simply repossessing vehicles and the threat of a bad credit score. Since many individuals have been taken by surprise by the ruinous economy, some have found themselves with no other choice but to go into repossession. These individuals are quite often completely unaware of the possibility of modifying the loan on their automobile or otherwise negotiating with the finance company or dealership to ensure that they can keep their vehicle and stay out of repossession. By avoiding repossession, you can keep your credit score and possibly even improve it over time. It is simply a misconception that the automobile loan modification process damages the credit score. Nothing could be further from the truth, as the entire concept behind modifying your automobile loan is to help you stay out of repossession and keep your credit strong.

Regardless of what an individual's situation might be, if there is any chance at all that you could be facing repossession, it only makes sense to do everything possible to keep the vehicle and keep payments being made on time. Without timely repayment of the financed purchase amount, the credit score of the automobile owner will plummet, eventually causing severe difficulties for the individual and their credit score. Car loan modifications can avoid all of these nasty entanglements and keep you on the road where you need to be. In this way, the dealership gets paid, the finance company is reasonably satisfied and the individual automobile owner is able to continue going to work every day and earning money. This entire process is necessary to ensure that everyone involved gets what they need. After all, it is much easier to save a sale then to repossess the vehicle and sell it to someone else, meaning that it only makes sense for the finance company as well as the dealership to bend over backwards and make sure that a car loan modification is utilized in order to keep the purchaser in the driver seat.

Using An Effective Child Behavior Modification Plan

Behavior problems can be the result of a number of points including idleness, emotional problems, and bodily challenges such as Attention Deficit Disorder. The child behavior modification plan might help parents successfully and effectively work with their own child to accomplish any kind of new as well as desirable behavior.

For instance, if your teenager is speaking with you the behavior modification plan is starting to work. If you want your child to go off to bed without a battle a behavior modification strategy will work for you. Behavior modification plans do not just cover the correction of poor child behavior. You can use these such plans to introduce the behavior you want your own child to adopt.

For instance, you want your own child to develop great study routines from the very first day they start college. You can use behavior modification in order to instill individual habits. It also allows you to take a look at the fundamental steps associated with any behavior modification strategy:

Step One: Identify your own childs behavior problems. If your child is actually exhibiting the behavior you would like to get rid of or prevent, identify exactly what that behavior actually is. For example, for any teen it may be procrastinating on their homework. For any younger child maybe you want them to visit bed with no struggle. Discover what activates the bad behavior too. This may assist you to outline outcomes and benefits.

Step Two: " Determine the behavior you would like your child to understand. This may be the simplest step. Determine the behavior you want your own child to learn as well as adopt. If you want your child to do their homework as soon as they receive their assignment. The habit you want them to learn would be to come home and start their homework, rather than wait until the last minute to do it. For the more youthful child you may want to establish a bed time routine, hug you goodnight as well as fall asleep quickly. You would also want absolutely no arguments regarding bedtime with no tears or even struggles.

Step Three: Create a program of benefits and outcomes. Whether you are working with small children or teenagers this is an extremely important step also it doesn't differ too much. The concept here is to become very particular about what you anticipate. The anticipation and objectives should be considerable so the outcomes and benefits are easy to realize. The benefits and outcomes need to be obviously charted. The "Happy Child Guide" exhibits how this is achieved. It also helps mothers and fathers with the subsequent critically important action when raising their children.

Step Four: " Expose the program to your child and collectively set objectives and a program of analyzing success. Simply because clear conversation about what is anticipated is critical in order to succeed, think about creating a dialogue of what you need to say to your child. The objective is for the actual behavior modification plan to end up being received favorably.

Behavior modification plans function when mother and father are clear as well as consistent. It is stated that behavior modification ideas always function. When it does not work it is because there's a problem in the strategy and the mother or father wasn't constant when using the program. If your child is actually exhibiting actions that you want to eliminate or you want to avoid, consider using the Child Behavior Modification Plan, this is an effective way to assist your children and make them succeed in life.

The Popularity of Body Modification

One very strange aspect of our society's culture and the culture of many societies around the world is that of body modification. Body modification has been going on for hundreds of thousands of years for different reasons. Early modification had something to do with cultural significance in many cases but in other cases it was simply due to vanity. People from cultures around the world throughout time have been concerned with their personal appearance and would go to great lengths to improve it.

The concept of beauty would seem to be one that was the same throughout the globe and throughout time but that is simply not the case. In one particular African culture long necks are considered beautiful. It is in fact considered so important that women have long necks that they place metal rings around their neck starting at a very young age and progressively add more rings to force their necks to stretch into abnormally long proportions. This modification is so severe that if the metal rings were to be removed from their neck, these women would not be able to hold their heads up.

At one point small feet were considered beautiful and very important for women to have in Japan. It was considered so important for women to have small feat that starting from an infant, Japanese women had their feet bound in tight ribbons to prevent their feet from growing.

One of the most common types of modification is tattooing. Tattooing has been going on throughout the ages and it is only getting more popular as time goes on. One of the reasons for this increase in popularity is due to television programs that have glamorized the tattooing culture. People from all walks of life are being tattooed these days. In days past, tattoos were reserved for specific social groups. This is not the case anymore and people are tattooing themselves simply because it is the popular thing to do and it has become more culturally accepted.

More severe forms of body modification include branding. When a person is branded, a very hot metal device is heated to super high temperatures and that instrument is held against the skin for several seconds to cause a severe burn. When the burn heals it leaves be hing a raised scar of a particular design that the individual chose. This particular type of body modification is quite dangerous as burns easily become infected.

One very strange body modification that is coming into vogue with the underground pop culture is implants. A stainless steel or Teflon piece is implanted under their skin to form bumps on the outside of the skin. This is quite rare still but it is gaining in popularity.

Another strange type of body modification is called "guaging". Having ones ears pierced is certainly not new but this particular spin on ear piercing is somewhat new. It starts by an individual simply having their ears pierced. Then a larger device is inserted in the hole every week or so until the hole stretches up to 2 inches in diameter.

Whatever form of body modification one chooses, whether it be tattooing or having metal implements implanted under the skin, the reasons are generally very personal nature. Although it is becoming more and more popular to see people with strange body modifications many of these body modifications are still quite taboo. The only exception would be getting a tattoo. This is one particular type of body modification that is gaining in popularity at surprising rates.

Patty Hahne

You may enjoy reading my website on tattoo removal and this website on home tattoo removal methods.

Loan Modification Foreclosures Explained Simply

If you own a home, you have probably heard a lot of talk about loan modification during this time of economic recession. You might know a few details of the program, or you may have just heard the word. Do you need loan modification foreclosures explained simply?

Modifiying a Loan is a simple concept: Instead of foreclosing on a home when the homeowner can no longer make mortgage payments, the bank may agree to actually change the terms of the loan to make it realistically affordable. The bank gets to avoid the costly foreclosure process, and the homeowner gets a second chance to stay in their home.

Who Can Get a Loan Modification?

For homeowners who simply can't afford to make their mortgage payments any longer, loan modification may be an option. Mortgage modification programs are available both at the federal level and through your individual mortgage lender. Depending on the program, there are eligibility criteria that must be met to participate in the program. They may address:

  • Amount of principle balance left on the loan
  • Percentage of monthly mortgage payment to gross monthly income
  • Type or insurer of mortgage
  • Primary occupant status (generally no rental properties, vacation homes, or house flipping)

What Circumstances Warrant Loan Modification?
Loan modifications aren't for everyone. In addition to the specific criteria above, all participants must usually demonstrate an acceptable financial hardship that makes it impossible to continue paying down the loan at the present rate.

Acceptable hardships include things like death or illness of a household wage earner, divorce, natural disaster, pay cuts, or job loss. Loan modifications are reserved for those who had financial crises happen to them, and thus are unable (through no fault of their own) to make payments as usual.

How Do I Get a Loan to Modify my Finances?

Contact your bank to ask what types of alternative repayment plans they offer. Most offer modification programs as an alternative to foreclosure, but usually use them as a last resort.

If you are approved for loan, you'll be asked to fill out an application, attach the requisite financial paperwork, and write a hardship letter outlining your financial disaster. After a review and verification process that may take between a few weeks to a few months, you'll be notified whether your application was accepted or rejected.

Who Can Help Me Get a Modification on My Mortgage?

Getting a mortgage modification is kind of like filing taxes: it can be done on your own, but usually it pays to hire a professional to help you with it. Professional loan modification companies, as long as they are trustworthy and reputable, can help you seek modification, fill out an application, write a hardship letter, see that your application is processed as quickly as possible, and help you negotiate with the lender when your case is approved.

If the conditions are right, you could take advantage of modification for your mortgage that enables you to get back on your feet, make payments, and keep your house.

How to Avoid Mortgage Modification Fraud

Back in 2004 I worked in a busy mortgage banking office that was overwhelmed by the volume of business coming in due to the extremely low interest rates available and the boom in real estate sales. We had a backlog of refinance files pushing closings out past the 90 day mark. Many of the files were simple no cash out refi's for borrowers who just wanted to take advantage of the low rates. When the funding delays reached critical mass we started losing the business of some very good customers. Lucky for us our primary investor Fannie Mae took action and implemented the Mortgage Modification to streamline the refi process for those who just wanted to save some money.

Things were more simple then and our modifications required far less work and decisions than modifications to avoid foreclosure. Borrowers seeking rate and term refinances were given a choice of a full refi with customary fees at closing or a modification for a flat fee of about $400. Full refi closed in approx. 60-90 days, modification in 15-30 days. Everything was done in-house and we offered the service to eligible borrowers as they contacted us to inquire about refinancing. There were no middle men, no negotiations, and no reason for arbitrary denials. A lot has changed since the boom days and none more than mortgage modifications.  

Simplicity is an elusive concept lately, however I will keep this as simple as possible. If you apply for a modification of your mortgage loan, always deal directly with your lender or mortgage loan servicer. That's it, follow that one rule and you will avoid Mortgage Modification fraud. There is of course more you need to know to be successful. The lure of modification companies is their claim they will properly create, package, and negotiate a successful modification proposal with your lender completely taking the task out of your hands. If you are going direct you must create a proposal yourself based on guidelines for the governments "Home Affordable Modification Program (HAMP)" to have a reasonable chance of success. The HAMP guidelines are currently available at as well as several other places on the web, some are more concise and readable than others.  

Why not just call your lender and get an application for a loan mod going over the phone? Mortgage loan servicers are swamped with requests for modifications and they are not set up to handle the processing, or the work load. They would prefer not to process modifications. Sending in a complete proposal has a number of advantages for example; calculations are completed and known by you, most of the work is done eliminating the common excuses used by servicers to give borrowers the run around, and you will have a copy of the complete proposal and all supporting documents in case your servicer conveniently "loses" your package. Once you begin the process you should keep a call log of your communication, date and time, to whom you spoke with, and what was said. Be persistent and make scheduled follow up calls.  

It would be great if you could trust that you were getting an honest and professional effort from a company or individual advertising a modification service. The simple fact of the matter is you can't. That doesn't mean you can't get a favorable deal on a modification. It does mean you will have to do some work. There are resources available to help you with preparation and organization.

How to Qualify For a Car Loan Modification

If you are falling behind on your car payment, chances are good that you have at least heard tell of the concept of the vehicle loan modification or other modifications of an automobile loan. The concept of modifying an existing loan is certainly not new, but has come into a new light as the economy continues to crumble. With more and more individuals having a hard time keeping up with their bills, it is not the least bit surprising that so many finance companies, banks and automobile dealerships are concerned with the ability of their consumers to make their payments. By going out of their way and allowing modification of existing auto loan, consumers can be made to feel more secure in their situation and a compromise can be reached in order to keep from repossessing a vehicle.

While it is easy to think of banks and finance companies as heartless bloodsuckers, the truth is, they have no interest in repossessing your vehicle. When a bank repossesses a vehicle or any other financed product, they have to deal with the task of reselling it. Banks are not in the business of selling anything, banks are in the business of loaning money. Whatever money that they have loaned you in order to purchase a vehicle, they need to recoup. By making a vehicle loan modification and working with the consumer, banks and automobile dealerships can help everyone involved and keep from repossessing a vehicle. Naturally, the bank has no interest in taking your vehicle back, as they would simply have to sell it again. This is the last thing that the bank or finance company wants to deal with, as they would much rather just let you keep the vehicle and make some type of modification of the existing automobile loan in order to prevent such drastic measures as a vehicle repossession.

While it might seem obvious at first that the individual might want to keep from having their vehicle repossessed, there are a multitude of reasons that make it almost critical to avoid a repossession. First and foremost, a repossession stays on your credit for seven long years. Nobody in their right mind wants to sabotage their credit in this manner and would very likely do almost anything to avoid having these types of problems. By working on a modification of loan with the bank or lending company, a compromise can be reached that can allow the individual to keep their vehicle and avoid losing their investment. But not only will a repossession damage the owners credit, they also lose every penny that they put down as well as any recurring monthly payments that they have kept current. Losing all of this in one blow is hard for many consumers to come back from, and a vehicle loan modification can make all the difference in the world for these individuals who are having problems staying on top of their bills.

In many cases, a vehicle loan modification is the only option for those who are under water in their car payment.

What Are the Tax Implications of a Home Loan Modification

What is a Mortgage Loan Modification?

The first mortgage loan modification law was created after the Great Depression to help keep struggling families in their homes. When the recent U.S. housing marketing bubble began to burst, the concept started gaining attention again.

The concept of a loan modification is actually quite simple: negotiating a modification to your mortgage loan so that you will not be forced into a short sale or foreclosure. It's a win for banks because they avoid having to resell a foreclosed property, and it's a win for consumers because they get to stay in their homes.

Although modifications to a loan will vary depending on a homeowner's current financial situation, the list below includes the most common types of modifications that can be made:

o Reduction in interest, or a change from a floating to a fixed rate 
o Reduction in principal amount 
o Reduction in late fees and penalties 
o Lengthening of the loan term

The Mortgage Debt Relief Act 
Before 2007, all forgiven mortgage debt was considered taxable income. Therefore, if, as part of your loan modification, your lender agreed to reduce your principal amount (e.g. by $20,000), then you would have been required to claim that as income on your tax return. However, as loan modifications and foreclosures began to increase significantly, Congress passed the Mortgage Debt Relief Act (MDRA) in 2007, which excludes forgiven mortgage debt on a taxpayer's principal residence as taxable income.

Principal Residence 
Forgiven debt can only be excluded from your taxable income if the home is your principal residence. As such, if you obtain a loan modification for a rental property or summer home, the forgiven debt will be considered taxable income for IRS purposes unless the taxpayer qualifies for the "insolvency" exclusion or if it is discharged through bankruptcy.

Home Affordable Modification Program 
Another big change in the loan modification industry to be aware of is the new federally enforced Home Affordable Modification Program (HAMP). The program, which took affect in 2009, offers incentives to mortgage companies to help homeowners stay in their homes. Because of this new program, the demand for loan modifications has increased tenfold, which has unfortunately slowed down the loan modification process for many struggling homeowners. If you are hoping to modify the terms of your loan, be patient as it may take a few months to complete the process.

Form 1099 
If you are approved for a loan modification, which involves forgiven debt, then you may still receive an IRS Form 1099 at the end of the year. The total amount of the debt that was forgiven will be listed in box 2. However, do not be concerned just because you receive this form as it does not mean you will necessarily have to include the amount in your total income.

Form 982 
If you receive a Form 1099, then you may need to file a Form 982 to seek exemption from your loan relief debts. To fill out Form 982, you will need to list the amount of debt that was forgiven, which you can find on your Form 1099. You will need to file your Form 982 with your tax return.

Why the Need For Mortgage Modification?

With the rapidly going down hill economy and ever lowering real estate rates, a large number of people who have mortgaged houses have become familiar with the idea of "mortgage modification". But even if you have heard the term, it does not necessarily mean that you understand all the dynamics involved in it.

In order to make the mortgage modification work for you, you first have to have a deep insight into it. Mortgage modification is a form of rescue from home foreclosures when the home owner is having trouble making the full mortgage payment on the house. A mortgage modification is commonly confused with the concept of taking another loan; it is not a refinance, but simply a modification of your mortgage terms. This is done to reduce your mortgage payments so that they become easily affordable for you.

Mortgage modification is a concept that wasn't very familiar to the masses until the recent economic recession. As more and more people find themselves at the risk of losing their homes to foreclosures, the idea of mortgage modification is gaining popularity and is giving hope to those who have nothing else to turn to. The rate at which homes foreclosures are being done in America has become alarmingly high recently, as even those home owners are going down who thought their financial situation was strong until the recession hit and affected everyone.

An ever declining economy and increasing interest rates has put many a home owners at the brink of losing their homes as they can no longer afford it. Houses being the most expensive asset that a majority of common people invest in, it is very important for them to hold on to it, and in most cases, mortgage modification is their only hope.

You qualify for mortgage modification if you fulfill the following criteria:

  • You are having difficulty coming up with the funds to make your complete mortgage payment
  • You have run into sudden and unexpected financial problems that have rendered you unable to make the payment
  • You have missed a few mortgage payments, or fear that you are going to miss it in the coming months
  • You are living in your mortgaged property
  • You haven't filed for bankruptcy
  • You still make and have enough to make the mortgage payments when they have been lowered

The toughest part of mortgage modification process is convincing your lending bank that you need it. It can be a tiring and overwhelming process for the user. Honesty and being proactive are the two key factors that will help your cause. When considering you for mortgage modification, following are the thing that almost all banks will take into account:

  • The date when the mortgage was started
  • The principal amount you still owe the bank
  • Your mortgage payment in terms of a percentage of your monthly income

Once you have convinced your bank with proper financial evidence the bank can provide you mortgage payment relief in the following ways:

  • The bank can temporarily lower the rate of interest they are charging you
  • The bank can permanently lower the rate of interest they are charging you
  • The bank can let you miss the mortgage payments for a few months, and continue later
  • The bank can extend the total time period you have to return the mortgage loan as much as by 10 years, hence lowering your monthly mortgage payment
  • The bank can defer some of your principal amount

Negotiating mortgage modification with your bank can become an arduous task, and you might want to hire professional help or a lawyer to help you through it.

How Does the Mortgage Loan Modification Concept Work?

Loan modification programs have been designed to help a home owner repay their mortgage at a lower rate and avoid foreclosure. These loan modifications are a new agreement between the mortgage holder and the home owner. Unlike refinancing, loan modifications are a re-issuance of the current loan under new terms.

Many mortgages recently were made without the prospective home owners fully understanding the terms. Now, as the interest rate increased or the full amount is due each month, the owners find they can not make their payments. To avoid foreclosure these home owners can apply for a loan modification in the hopes of creating a repayment plan that they can afford and the mortgage company will accept.

Another large issue in this area is unemployment or under employment. Many people have lost their jobs in the last year and have had to accept employment at a much lower wage. Since their original mortgages were calculated at their former pay rate, they can no longer meet the repayment terms. Loan modification is a great resource for these people to utilize. By applying for a loan modification because of the change in circumstances the home owner can avoid foreclosure.

Loan modifications are considered a new loan and agreement. Once you are approved for a loan modification your mortgage is considered current and your credit score will reflect this change. You must stay current from that point on or you will find yourself facing foreclosure again. Loan modifications are often a one time only deal and you will have little luck changing the payments again.

Even if you are on the brink of foreclosure or the beginning stages of the foreclosure process you can still apply for a loan modification. This may be your best chance in saving your home. Mortgage lenders want to keep you in your homes. It is better for them financially to have you paying a lower payment then to receive no payment at all. Overall it is a brilliant program that benefits both borrower and lender.

Final Tip: By researching and comparing the best mortgage loan modification companies in the market, you will be able to determine the one that meets your specific financial situation, plus the cheaper and quicker options available. However, it is advisable going with a trusted and reputable stop foreclosure specialist before making any decision, this way you will save time through specialized advise coming from a seasoned loan mods advisor and money by getting better results in a shorter span of time. Meaning getting your house out of risk as soon as possible.