Car Loan Refinance

Posted in Car Loan Modification by admin

Car loan refinance is simply to trade off your old loan with a more favorable new loan. The new lender settles off your old loan and you shift the payments to the new lender. Same is the case with car loan refinance  in which a new lender pays off your car loan to transfer the title of the car to its own name and you make the monthly payments to the new lender.

Benefits of Car Loan Refinance
Car loan refinance can bring you a lot of benefit only if you handle it wisely and make your calculations properly. Benefits associated with refinance car loan include:

  • Refinancing provides you the opportunity to negotiate your car loan at a much better interest rate, flexible loan terms & conditions, and lengthen or shorten the loan term as per your convenience. This not only saves you money but also allows you to shift to a better lender in case you previously made a bad choice or the loan was provided by a car dealership with high markup rate.
  • Refinancing can help you retain your credit score in case you are at risk of not satisfying your current loan on time. Through refinance, you not only can pay off your current loan on time but also avail the opportunity to lengthen the loan term or reduce your monthly payment.
  • Refinancing can reduce your total debt if you can successfully negotiate it at a lower “Annual Percentage Rate” while maintaining the period left in the old loan term. This comes handy in a situation when your current loan is more than the car worth i.e. in upside-down loan.
  • If your current car loan is not in your name by any reason then you can put it under your name easily through a car loan refinance.

Car Loan Refinance Procedure

  • Search for the best car loan refinance available in market. Short list the ones that suit you best and provide you the benefit you are seeking in a car loan refinance.
  • Compare the rates, flexibility in loan term, and terms & conditions of the shortlisted lenders.
  • Choose the one that is more suitable and offers the best rate. Submit the necessary documents for loan qualification.
  • Pay out the incidental fees which may include state re-registration fees, lien holder fees or any prepayments if demanded by the lender.
  • Once your car loan refinance is approved, the lender will pay off your current loan.
  • The new lender attains the title of the car and you make your monthly payments to the new lender.

Approaching Your Lender About a Modification

Posted in Car Loan Modification by admin

A lot of men and women, with interest only mortgages whereby the mortgage has reset to a greater interest rate or is pending a reset, have discovered themselves desperate to modify their mortgage and minimize their monthly payment.

The great news is that mortgage modification is achievable whenever you are armed with excellent details. It is also critical to know that far more than 50% of mortgages originated between 2002 and 2007 violate mortgage laws. Therefore, it is possible to use this details to your benefit. Locating incorrect details within your loan documents via a QWR or qualified written request, as it relates to interest, principle and tax calculations within your mortgage can alone supply you with just sufficient leverage to pursue a mortgage modification along with your lender.

When you notice that your mortgage is either set to reset or you’re in a mortgage that’s frankly too high to pay, send the QWR to your mortgage lender or servicer. The QWR notifies your lender which you call for proof of every little thing which includes: principle and tax calculations, interest calculations, interest trigger dates and if the mortgage servicer is authorized to represent the lien holder or mortgage business to collect your mortgage payments.

Your subsequent step in mortgage modification when making use of the QWR need to be to locate a sample copy of the document on the web. Copy and paste the document into a text file and bear in mind to add your name, address and applicable mortgage account numbers. Also note that the language within the document reflects precisely what it can be you’re disputing. Should you be also attempting to modify your second note, be sure you might have submitted a QWR for your second mortgage too. Do not forget to send the QWR certified receipt. Maintain the certified receipt request numbers for your record.

You may must wait no less than 20 days for an acknowledgment that your mortgage firm or loan servicer received the QWR. This QWR once again acts as leverage in obtaining your mortgage modified. You’re basically notifying your lender or loan servicer which you are disputing the relative aspects of your loan as identified within the QWR. The lender, pursuant to federal laws, is needed to investigation and resolve the matter inside 60 days.

As your 60 day QWR timer ticks, make sure to pay your mortgage on time or as negotiated along with your lender. A QWR doesn’t provide you with the best to not pay your mortgage, it just puts you into far better negotiating power. Furthermore, it really is also beneficial to see if you’re able to apply for HAMP, House Inexpensive Modification Program. Using the HAMP your mortgage ought to be at or above 31% of your gross monthly income.

Call your lender also to inquire about their in residence modification program should you don’t qualify for the HAMP. Frequently times the in residence lender choice has a greater mortgage modification strategy than the government strategy. Wait for the choice of all mortgage modification programs in which you’ve got applied. Keep in mind to remain on leading of the QWR requests and response deadlines. In case you discover that your mortgage firm or loan servicer still has not responded inside 60 days, you could have even higher leverage in pursuing a mortgage modification and filing a federal and/or neighborhood complaint.

When to apply for car loan modifications

Posted in Car Loan Modification by admin

Getting a car loan modification is one of the many options you can choose to keep your car from being repossessed by banks and lending companies. The idea behind car loan modifications is easy to understand; it changes the agreements made when you applied for a car loan, making it easier for you to pay off the remaining loan balance. It’s a win-win situation for both the creditor and the borrower. The borrower gets to keep the car and the creditor will still have their money back (albeit a little later, or according to the new agreement).

A car loan modification can also save your credit rating from getting into the “red zone”. Should you fail to pay the loaned amount and the lending company repossesses your car, not only do you not get to keep the car, but you also suffer a penalty; a negative remark on your credit rating. A negative remark can make your future loan applications a little harder than before, as the lending companies might think twice on lending you money, for fear of them being scammed or you being a fraudulent person. Should they approve your loan application, they will implement more strict payment deadlines, and high interest rates to make sure that you pay back the loaned amount. Getting car loan modifications will save you from these problems in the future.

If you want to apply for a car loan modification, make sure that your lending company offers these loan modifications, as small companies usually don’t offer these modifications. Making a phone call to your lending company should suffice. If they are indeed offering such services, make sure that you bring the documents (e.g. resignation letter / lay-off letter) required to make an application for one. From there, the only thing you can do is wait and see if they will approve your application for one. Should they approve it, you will be given several options (e.g. extend terms, reduce payments by providing them with mortgage, etc.). After you pick one, they will let you know about the new terms of agreement, ask you if you agree with the new terms, and hopefully, reach a compromise between you and the creditor.

If you are facing problems with your current loan payments, you should phone your lending company right away to know more about car loan modifications. Doing so will let you keep your car, as well as keep your credit rating positive and free from negative remarks.