http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/home-and-family/home-security/how-to-write-a-proper-loan-modification-hardship-letter.html http://www.articletrader.com/home-and-family/home-security/how-to-write-a-proper-loan-modification-hardship-letter.html Tue, 24 Mar 2009 02:03:58 -0500
Foreclosures are handled by the Loss Mitigation Department of your lender. Employees of this department are known as Loss Mitigators. When you are facing foreclosure, the bank will assign a Loss Mitigator to oversee your account. This individual can make or break your deal, so treat them with respect and provide them with the information they are seeking.

A business format should be used when composing your loan modification hardship letter. Your name, address, city, zip and phone number should be placed at the top of the paper. The Loss Mitigator's name, lending institution and address is placed under your contact information. The next line should include the current date, then your loan number placed underneath the date. The body of the letter should be between four to six paragraphs. Close the letter with by signing and printing your name.

We are contacting you today to explain the circumstances which have caused us to become delinquent on our mortgage payments. Although we have done everything possible to improve our financial situation, we are still short on the money owed to you. We would greatly appreciate the opportunity to obtain a loan modification (or short sale).
The main reason we have become delinquent in my mortgage payments is (explain the reason here). Since we do not have enough income to pay our regular monthly mortgage payment, we are falling further behind and are concerned we will not be able to pay what is owed. We truly want to pay what is owed, but at this time do not know how to accomplish this. Therefore, we are turning to you for loan modification assistance.

We are asking for consideration to temporarily reduce or suspend our mortgage payments for a few months (or allow us to sell our home via a short sale). Doing so, would help us get back on track. Our home means a great deal to us and we desire to work with you to keep it out of foreclosure. Please advise us of all options available to stop foreclosure (or initiate a short sale) at your earliest convenience. We are anxious to reach an agreement and appreciate your prompt response.

For more information about loan modification please visit Modifications.com.

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http://www. Modifications.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/how-to-plan-to-use-your-merchant-cash-advance-the-right-way.html http://www.articletrader.com/finance/loans/how-to-plan-to-use-your-merchant-cash-advance-the-right-way.html Fri, 20 Feb 2009 07:59:42 -0600
This raises an interesting question. “What are the best ways to use the Merchant cash advance money you get?” The reason this is an important question is a merchant cash advance is an expensive source of funds. That means you should carefully plan how to best use this business capital to actually grow your business.

Let’s first look at how a merchant cash advance works. A merchant cash advance is NOT a loan. It is a purchase of “future credit card sales at a discount”. Here’s a restaurant example (but any business doing credit card sales may qualify). You want $12,000 to upgrade your bar. A funding source agrees to buy a portion of your restaurant’s future sales. They evaluate the last several months of your credit card sales and see that you average $10,000 in MasterCard & Visa receipts monthly.

The funder looks at a number of factors but agrees to fund you. They offer to buy $16,000 worth of future credit card sales for the $12,000 that you need.

Typically, funders will determine the rate factor to charge you by analyzing the risk, merchant cash advance amount, years in business and a few other factors. Almost all funding sources in the merchant cash advance industry use a factor between 1.3 to 1.5 times the cash that they advance to you. In our example above, the factor I used was 1.33.

One great merchant cash advance feature that most entrepreneurs love is your payback is totally dependent on your actual credit card sales. There is no fixed payback amount. The merchant cash advance funding source sets a “holdback” or credit card reserve percentage.

This holdback should never be higher than 25% of your monthly credit card sales. If your credit card sales drop, then your monthly payback will also decrease.

In our example, let’s say there is a 25% holdback on the $12,000 merchant cash advance. That means you will pay $2,500 per month for about 6 1/2 months. You need to determine whether your business can support the payback of the merchant cash advance.

This brings us back to the question of how to use these merchant cash advance funds wisely. It makes a lot of sense to invest in expansion or efficiency related improvements.

When you expand you obviously expect increased sales. Cost of funds is far less important when you are relatively certain sales will increase. The same is true for new equipment or high value added inventory. These add leverage to your business and should yield higher profits.

On the other hand, think long and hard about using a merchant cash advance for digging out of a deep financial hole. That thirty to fifty percent premium you have to pay back in under a year can make it impossible for your business to recover.
Not all merchant cash advance companies are charging such high rates. BusinessCashAdvances.com offer rates that are competitive to conventional business loans. For more information please go to BusinessCashAdvances.com.

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http://businesscashadvances.com/

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/mortgage-loans-and-information.html http://www.articletrader.com/finance/mortgage/mortgage-loans-and-information.html Wed, 31 Dec 2008 05:11:45 -0600 Since Mortgage rates are not constant and they may fluctuate depends upon market’s situation. So choosing appropriate Mortgage Loan is also an intellectual step. Since there are many resources that provide Mortgage Loans, so it is advisable to check mortgage rates, since it may vary with the lenders and the type of the mortgage we choose.
There are some Mortgage Loans that helps us to decide which loans we should opt for:
Fixed Rate Home Mortgage: In this type of Mortgage Loan; interest rate will be fixed throughout last payment. And monthly payment will not change, we need to pay same amount that we have agreed for.
Variable Rate Home Mortgage: In this type of Mortgage Loan interest rate may vary depends on market situation. If market situation is good and interest rates are appraised in time to time normally in between 1-3 years. In that case you need to pay less, or when if market is facing crisis in that case you have to pay even more.
FHA Mortgage loans are normally ends up to 10 to 30 years so we need to search for competitive mortgage interest rates since many banks and institutions provide lucrative offers. It’s a tricky process when it comes to home purchase we need to take care if it is expensive investment. There are some financial institutions that provide helpful Mortgage Refinance Information in their websites for making good deal for mortgage Loan. In this way they are giving their services to the common people.

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Michael Black is an eminent analyst and writer of Business and Finance industry. He has authored many books on FHA Home Loans & Bad Credit Home Loan Mortgage. Currently he is rendering his services to http://www.fhahomeloan.com/

Source: http://www.articletrader.com ]]>