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Back-end DTI: indicates the percentage of income that goes toward paying all recurring debt payments, including those covered by the first DTI, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments.
Cash-for-keys negotiation: This is a variation of the deed in lieu of foreclosure. The difference is that the lender will actually pay the homeowner to vacate the home in a timely fashion without destroying the property. The lender does this to avoid incurring the additional expenses involved in evicting such homeowners.
Debt-to-Income Ratios: are often expressed as two sets of two digit numbers separated by a slash. For instance, 28/36, where 28 is percentage of the "front DTI", or proposed housing expenses in relation to the applicant's income, and 36 is the percentage of the "back DTI", or total debt divided by income.
Lenders look at both your front end ratio and your back end ratio. The front end ratio is calculated by taking the sum of your mortgage payment, property taxes, and homeowners insurance, and dividing that total by your gross monthly income. The back end ratio includes all of your other monthly obligations such as credit cards, car payments, personal loans, etc.
Deed in lieu: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage
payments.
DTI to High: If you do not qualify for a loan because your DTI is too high there are a couple options you have available. You can either try to increase your monthly income, or decrease your expenses. If you have some additional income that is hard to document, such as a part time cash job, or rental income, etc. that you did not include talk to your mortgage professional they may be able to use that income to help qualify you. You may also be able to decrease your expenses by paying off the remainder of a car loan, personal loan, or credit card that has a high payment.
* We offer a Debt Settlement program to help reduce the Hard Debt in 1/2... You signup into Funding-Loans.com Debt Settlement Program. Then include the sign agreement with the Loan Modification. If this is done the debt included in the debt settlement can be adjusted in the DTI equation (usually 50 percent).
DIY Mortgage Modification Kit: Funding-Loans DIY Mortgage Modification Kit
This kit will provide you with everything you need to understand the process, submit your modification, and fight for a better deal! + includes (3) months free phone support from certified Home Loan Modification Specialists.
Forensic Audit: also called “forensic loan document review” or ”mortgage audit.”
The #1 goal of the mortgage audit is to determine whether there were violations of federal law.
If these violations are found, then the borrower may be eligible for complete relief of the predatory loan or a very favorable loan modification.
* Funding-Loans.com - Forensic Audit & DIY Mortgage Modification Kit
The Forensic Mortgage Audit will uncover and identify any errors, unfair or misleading practices, overcharges or other lending violations made during the mortgage process. The Forensic Audit also determines if the mortgage is in compliance with RESPA, TILA, APR and other regulations.
Complete relief of the preadtory mortgage is called as a loan rescission. Meaning the lender takes back the “predatory loan” and awards or credits back to the borrower all interest made on payments thus far, loan origination fees, all applicable lenders fees, penalties and attorney’s fees.
However, in most cases the borrower may be uneligible to rescind their loan because they are just too far underwater to obtain a mortgage and their credit rating may have been adversely affected by the loan that has cause them pain and suffering.
The most common option is just to mediate the loan with your lender and fight for an affordable loan modification based on the legal violations on the loan. Everyone wins here.The homeowner has their loan fixed and may have their principle balance may be reduced also. The lender does not lose their shirt because they have mediated the matter without employing their full legal staff on the file and wasting operating expenses.
Front-end DTI: indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (PITI includes mortgage principal and interest, mortgage insurance premium [when applicable], hazard insurance premium, property taxes, and homeowners association dues [when applicable]).
Hard DTI: are debt obligations that show up in the credit report.
Loss Mitigation: is used to describe a third party helping a homeowner, a division within a bank that mitigates the loss of the bank, or a firm that handles the process of negotiation between a homeowner and the homeowner's lender. Loss mitigation works to negotiate mortgage terms for the homeowner that will prevent foreclosure. These new terms are typically obtained through loan modification, short sale negotiation, short refinance negotiation, deed in lieu of foreclosure, cash-for-keys negotiation, or a partial claim loan or other loan work-out. All of the options serve the same purpose, to stabilize the risk of loss the lender (investor) is in danger of realizing. The different options are available to homeowners to try getting the homeowner to "perform" (pay timely) and cure the potential loss the lender/investor projects incurring through the foreclosure process and auction sale of the property
Qualifying: The two most important facets of a loan modification application are the financial statement and the hardship letter. The lender will determine whether the borrower qualifies for a workout program based primarily on these two factors.
Benefits: The most common benefit to the homeowner is the prevention of foreclosure because loss mitigation works to either relieve the homeowner of the mortgage obligation or create a mortgage resolution that is financially sustainable for the homeowner. Lenders benefit by mitigating the losses they would incur through foreclosing on the homeowner. Immediate foreclosure creates a tremendous financial burden on the lender. Loss mitigation allows the lender to take a lesser loss right now in order to avoid the much greater losses caused by such foreclosures.
Mortgage Modification: is a permanent alteration to the terms of your existing mortgage.
If your lender agrees to modify your mortgage then you keep the same loan that you used to purchase your property but the terms of that loan are modified. Because you are keeping the same loan and not applying for a new one, as you would with a re-finance, your credit score is not relevant.
The reasons for modifying a mortgage are much the same for both the lender and you. Both parties do not want the property to go in to foreclosure. Foreclosure will likely cause the lender to lose money and it will cause you to lose the property and damage your credit.
Read about Funding-Loans.com - Traditional Mortgage Modification
Read about Funding-Loans.com - Obama Modification HAMP
Partial Claim: Under the Partial Claim option, a mortgagee will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to United States Department of Housing and Urban Development (HUD). Currently, these promissory or "Partial Claim" notes assess no interest and are not due and payable until the mortgagor either pays off the first mortgage or no longer owns the property.
Short refinance: This is a process whereby a lender reduces the principal balance of a home-owner's mortgage in order to permit the homeowner to refinance with a new lender. The reduction in principal is designed to meet the loan-to-value guidelines of the new lender (which makes refinancing possible). In some cases, the loan can be converted to an FHA loan and the servicing retained by the current lender.
Short sale: This is a process whereby a lender reduces the principal balance of a home-owner's mortgage in order to permit the homeowner to sell the home for the actual market value of the home. This specifically applies to homeowners that owe more on their mortgage than the property is worth. Without such a principal reduction the homeowner would not be able to sell the home.
Special Forbearance: This is where you will make no monthly payment or a reduced monthly payment. Sometimes, the lender will ask you to be put on a repayment plan when the forbearance has been finished to pay back what you missed, while other times they just modify your loan.
Soft DTI: are debt obligations that do not show up in the credit report.
General Pricing on "Home Loan Assistance Programs"
(Prices and programs very depending on what state you live in.)
Standard Loan Modification program includes - Loan Modification + Basic Forensic: $3495 [ details]
HAMP - Obama Home Affordable Program + Basic Forensic Audit: $3000 - $3500 [details] - this is the best program if you qualify! 
WACHOVIA Loan Modification - Fast Track 30 Program $3000-$3500 [details] - 1st only
(DIY) Mod Kit with (3) month phone support: $324 [details]
Mortgage Resolution Services: $2500 - $3500 fee [details]
Nationwide Bankruptcy Program: $2500 - $3400 fee [details]
Homeowners Defense: $1000 fee charged per transaction [details]
[ Programs and Prices may very from state to state, not all programs are available in all states. ]
We have helped many home owners like yourself qualify for one the programs listed above.
Please let us help you today get into one of these great programs, while they are still available.
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