Loans, Insurance & credit card information

Are you in the right situation to use a home equity loan to add on to your home, fix it up, consolidate some debt, or for any other reason you might have? If so, then you might consider using a no doc home equity loan if your situation is the right one. Here is what you need to know about the no doc options.

First, if you are self employed, then you are the prime candidate for this type of home equity loan. This type of loan was actually created to make it easier for self employed individuals to get a mortgage because it is very rare that someone that runs a business has an easy time proving all of their income. With business expenses and cash payments not getting documented it can be difficult to come up with your real income.

Second, if you are a tipped employee or someone that works mainly for cash, then you already know how hard it will be to prove your income and that makes it very difficult to get a good mortgage. However, if you have very good credit or at least pretty good credit, then you can use the no doc options and you will have a much easier time getting approved for your home equity loan.

Last, if you work a steady job and you get paid a regular paycheck, then you would be making a terrible mistake to get a no doc home equity loan. This is not for you and any mortgage broker or account executive that tries to talk you into this type of loan will be setting you up for failure. This is just not a good situation and this could be the cause of a foreclosure so be very careful if you find yourself in this category.

You have probably figured it out by now, a lot of people are making big money in the loan modification business. One of the reasons for this is that there are not a lot of laws out there that regulate the loan modification business. Some people are just getting into this new business may not be aware that new laws are being passed that affect one important part of this business, namely the charging of an advance fee.

In this article, I am going to provide you with some information regarding the types of new laws we are seeing that affect our industry. To those of us in the loan modification business, advance fees are important as as the collection of these fees help us guarantee that we will be paid for the services we are providing.

When helping a client with a loan modification where we are unable to collect an advance fee, we get concerned that even if we are successful in negotiating a great modification for the client, we might not get paid for our services because the client does not have the money available to pay us once the loan mod has been approved.

We are now seeing states that are starting to come out with new laws restricting advance fees. Florida and California for example have new laws that restrict advance fees charged by foreclosure consultants or foreclosure rescue consultants. The California law is already in place with further restrictions going into effect in 2009. The Florida law goes into effect on October 1, 2008.

The new Florida law has two main prohibitions that apply to most loan modifications.

You cannot engage in or initiate foreclosure related rescue services without first entering a written agreement with the homeowner.
You cannot charge or receive or even collect a fee for your loan modification services before completing or performing all services contained in your written agreement.

There’s still plenty of money to be made in the loan modification business. You just need to be alert to the changing laws that are being implemented that affect the loan mod industry.

To learn more tips about starting a loan modification business, download this.