Will a Loan Modification Help you Lower Your Mortgage Payments and Avoid Foreclosure?

Will a Loan Modification Work for you?

The term "Loan Modification" is one that is being used often and repeatedly in the news and society today. In spite of its prevalent use, many people are not sure of what a loan modification is exactly. Sure, it is a "modification" of a "loan," but beyond that, how can you tell if a Loan Mod, as it is often called, is right for you?

First, you have to know what it is. A Loan Mod is basically an alteration of the existing terms of a loan. These terms can include the amount/due date of monthly payments, the interest rate, term or duration of payments on the loan. Any alteration that does take place, however, can only be done with the approval of the Lender. This process of working with the lender to alter the terms of the loan usually comes about when a person can no longer afford to timely make the payments on the loan. Often, engaging in and completing a loan modification can save a borrower from defaulting on a loan.

A vast majority of borrowers that are currently seeking Loan Mods are borrowers who have ARMs. ARMs are Adjustable Rate Mortgages, meaning that they are mortgages that do not have a fixed interest rate but one that varies. A major difficulty that borrowers often face when they are in ARMs is that because the interest rate is variable, meaning that it changes, the amount of the monthly payments a borrower is required to make, changes as well.

A Loan Mod is a good option for a borrower who: a) does not want to experience any negative tax consequences and b) does not want to have negative marks on his/her credit report. While there are other means of modifying the terms of a mortgage (i.e. forbearance, or short sale), a Loan Mod will enable a borrower to keep his/her home while making a decreased payment. A Loan Mod is an excellent way to avoid foreclosure.

Career Advice for Real Estate Agents

Being a Real Estate Agent is exhilarating. The rush you feel when a deal finally closes and you are waiting for that wire transfer is unparalleled by any other paycheck you will receive. But this rush does not come easy, nor does it come quick. Being a good agent requires a certain level of patience and stamina. Closing a deal is akin to running a marathon, you have to be in it for the long haul; because it’s rarely a sprint. Here is some advice for Real Estate Agents that will help you endure the marathon and finish with flying colors.

Invest in yourself. The investment you make into your career is one that you make into yourself. From time and effort to clothing and personal hygiene, the more you tend to your own needs, the more your clients will feel that you are capable of tending to their needs. As a Real Estate Agent, you will probably work evenings and weekends. While your schedule will remain flexible, remember to address and exceed your customer’s expectations with regard to your time and availability. It will often become necessary to show a home or take a listing appointment in the evening, or a weekend may be the only time you can write up an offer. Regardless of whether you plan to be a full-time or part-time agent, in order to be successful, you will need to make yourself available when your customers are available. If you are committed to success, and are willing compromise your time, to best serve your customers; there is no limit to the benefits you will enjoy as a result of this career choice.

The amount of time you invest in your career will directly impact what you reap. You’ve heard the saying "you reap what you sow" and real estate is no exception. A great way to maximize the benefits you receive as a result of the time you invest, is to educate yourself. Bu "educate" we mean that you should spend time reading, researching and talking to folks. Get a feel for the wants and needs of buyers and sellers; demonstrate your clear understanding of their concerns early on in conversations and you’re sure to grab their attention. Also, stay on top of industry news and market conditions. Doing this will make you seem like an "expert" and generate a sense of trust and reliance between you and your potential clients. Finally, think about new ways to reach potential customers. You can do this by attending events, networking or even joining social networking sites.

Much of the help and training you will receive will come from your employing broker. This is why it’s so important to choose the RIGHT one. Your real estate broker will help you in many ways, matching your efforts and investments by making some of his/her own and supporting your work and providing direction.

Investing in Your Real Estate Career

Investing in Your Real Estate Career

Have you ever thought about doing real estate as a full-time profession? Have you heard the term "buyer's market" and want to know how YOU can capitalize on that? If you're considering a real estate career, or have begun one and are still new to the industry, there are a few things that are important to keep in mind as you travel along this journey.

First, keep in mind that in real estate, as with most things, the rate of your success is directly related to the amount of "investment" you make. Now, you are probably thinking " I have to SPEND money to make money?!" Yes and no. The investment that we are referring to here is mainly made up of time and effort, but you may need to invest some money into your career. Careers are like homes, they may seem perfect but they can always stand a little work. Here are some things you'll need to consider.

Automatic success does not exist. While we believe that almost anyone can be successful at a career in real estate, no one does so automatically. Unless your daddy is a real estate mogul and buys a multitude of million dollar properties every month, you will need to work at it. A very smart real estate agent told me once, about her career, that she loves real estate because "you eat what you kill" and that is so true. You do have to put effort into your work, just like in any career, to become truly successful. This advice will help you to think about what you need to do to better serve your customers, and to grow your real estate career. For more advice and information, feel free to contact me directly.