The loan modification process can be frustrating and confusing for many distressed homeowners. If you are considering contacting your lender about a loan workout to avoid foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light.

Programs and guidelines are changing and it is getting much easier for homeowners to get the help they need. To help you understand how the process works and what you can expect, here are the Top 10 Questions and Answers.

Home Loan Modification: Frequently Asked Questions/Answers

1. What exactly is a loan modification? A loan modification is a permanent change in one or more terms of a borrower’s home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford.

2. Can the lender include late charges in the Loan Modification? The federal plan mandates that the bank waive any administrative charges, late fees and penalties when offering a loan workout.

3. How will the new government programs help me get a loan modification? The Federal government has allocated $75 billion dollars to subsidize lenders and servicers who offer a loan workout to their clients.

Now, the banks will have a monetary incentive to offer help to qualified borrowers. In addition, homeowners who pay their new modified payments on time will be eligible up to $5000 credit to their loan balance.

4. How do I know if I will qualify for a loan modification? The number 1 criteria your lender is looking at is your ability to make the new modified payment now and in the future.

You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the modification, you will be able to afford the new, lower payment. You must also be able to demonstrate that you are facing a financial hardship-lower income or higher expenses for example.

5. Do I have to be currently delinquent on my payments to get a loan modification? President Obama has included a special incentive under the Home Affordable Modification Plan that will pay lenders an extra bonus for reaching out to homeowners not yet delinquent but at risk in the future. The goal is to help borrowers before they fall into default.

6. What is an acceptable Hardship situation? Each homeowner has a unique set of circumstances that caused them to fall behind on their home loan, but generally the lenders consider divorce/separation, loss of income, death of spouse, co borrower or family member, illness, job relocation, military service to be acceptable reasons to consider a loan modification.

A compelling hardship letter included in your application is a very important part of a successful application.

7. Will a loan modification help me stop foreclosure? Yes, that is the goal-by working with your lender to find a loan workout solution, your loan is brought current and the foreclosure process is halted.

8. Can my missed payments be added back into my new loan modification? Yes, the arrears can be added to the new loan balance and spread out over the term to allow the loan to be brought current.

9. Can I do a loan modification myself or should I pay someone to represent me? That is entirely up to you and your comfort level with dealing with your lender.

The Treasury Department is strongly discouraging the payment of any fee to a third party to represent you in a loan workout. Regardless of what you decide, the first thing you should do is learn all you can about the process, your legal rights, and what it takes to get your application approved. An informed homeowner is harder to take advantage of and will have a much greater chance of success.

10. So how do I get started to modify my loan? Before contacting your bank’s loss mitigation department or a loan mod company, do your homework-learn as much as you can about the loan modification process so you can make informed decisions.

President Obama’s Home Affordable Modification Plan offers real hope for millions of homeowners who need a solution to stay in their home. Not everyone will qualify however, and interested borrowers will have to complete loan modification application forms, provide proof of their income and meet certain eligibility requirements.

Most lenders are participating in this new government subsidized plan, and homeowners are encouraged to learn how they can qualify and apply for a loan workout and avoid foreclosure.

You can get the help you need to apply and qualify for a loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide.

This is a low cost, easy to read home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender.

Learn how to apply and qualify for the Obama federal program too. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

About the Author: For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com. Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory

P.S.: You Can Save Hundreds of Dollars — Or More — Per Month on Your Mortgage:  There are homeowners just like you who have saved thousands of dollars in loan modification fees. And, they’ve lowered their mortgage payments by hundreds — and in some cases over a thousand dollars — a month. Get the details in this home loan modification kit.

P.P.S.: Found this post informative? Follow Foreclosure Business News on Twitter.

Foreclosure cleanup is a lucrative business to start right now because of the foreclosure crisis that has been sweeping the country since the fall of 2007. However, this is not an “of the moment” type of business. Following are three excellent reasons to start this type of business – no matter what the economy is doing.

1. Foreclosure Cleaning Is Evergreen: Because this business has the name “foreclosure” in it, a lot of people confuse it for an “of the moment” type of business. But it’s not. Let’s explain.

Foreclosure Cleanup is an Evergreen Business

What are foreclosures? They are real estate properties that have been taken over by lenders because the existing owners have failed to pay their mortgages. The important words in the previous sentence are “real estate.”

As long as real estate is bought and sold, there will be a need for “foreclosure” cleanup companies. Now, we’re in a mortgage crisis, so of course, foreclosures are in the news a lot. But, properties are foreclosed on all the time – no matter what the economy is doing.

So, don’t get sidetracked by the term “foreclosure”. It’s just real estate. And it is bought, sold and foreclosed on every day of the week. This means that it needs to be cleaned, repaired and maintained – every day of the week. In other words, it’s an evergreen business.

2. Competition Is Weak: A lot of aspiring entrepreneurs are jumping on the “foreclosure clean up” bandwagon. But, that’s because it’s in the news right now and many of them are thinking they can make a quick buck.

This means many of them will disappear as quickly as they appeared once home foreclosures are no longer in the news. And, this is why competition is weak.

As with any business, only those who stick around long enough will reap the rewards. Because of the reasons mentioned in the evergreen section above, foreclosure cleanup is a viable business – no matter what the economy is doing. BUT, you can’t hop in and hop out, hoping to make a quick buck.

Every business requires a commitment. Those who reap the rewards of business are the ones who are in it for the long haul.

And while now is the ideal time to start this type of business and perhaps make that quick buck that so many seek, the ones who will really enjoy the fruits of their labor long term are the ones who go into it with the mindset of “I want a viable business I can run for years to come.”

3. You Can Structure It Any Way You Want: The wonderful thing about a foreclosure cleaning business is that you can offer as many or as few services as you want.

This means you can grow your business as slowly or as quickly as you have the resources to. If you can only do minor repairs and lawn maintenance, do that. When you can afford to, then you can offer more specialized services (eg, roof repair, pond draining, electrical wiring, etc.).

Foreclosure clean up is a lucrative, viable business no matter what the economy is doing – if you enter it with the right mindset (ie, for the long haul).

P.S.: Learn more about how to price foreclosure cleaning jobs.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted with the following, in full: Learn everything you need to know about what how to start a foreclosure cleaning business at foreclosed http://Start-a-foreclosure-cleanup-business.com.

If you’re a property preservation, real estate services, plumbing or foreclosure cleanup company, winterization is a hot service to offer to banks and other lenders who have foreclosed homes. This is especially true right now.

Winterizing More Than a Hundred Homes

According to the October 2008 KAALTV article, “Winterizing Foreclosed Homes,” in Austin, MN a local plumbing company winterized more than 100 homes, and expected things to get busier as foreclosures continue to escalate.

Why Banks Like for Foreclosed Homes to be Winterized

When a home is foreclosed on, it can sit vacant for months – even over a year in this economy. When a home sits vacant, especially during the winter season, pipes can burst causing water to flood.

Even if the water is turned off, the water that sits in the pipes can cause floods or damaging leaks. And, what follows floods and/or water damage? Mold.

Now imagine this sitting for weeks or months with no one being aware of it.

This is why lenders pay plumbing companies, property preservation companies, real estate services enterprises and/or foreclosure cleanup companies to winterize properties. In the long run, it costs them less money.

If you’re a foreclosure clean up company, winterization is an easy service to offer. And, it can be quite lucrative because it is one of those services that banks don’t hesitate to pay for, unlike some other services.

So, you may be wondering, exactly . . .

What Is Winterization?

Basically, winterization is protecting a home while it is unoccupied for long periods of times. A lot of this has to do with preventing water from entering a home and pipes from bursting. Another equally important component is dealing with the heating and cooling system. Following are some things that should be done to a home during the winterization process.

Shut Off Water: This should be done at the main valve or at the inlet to the meter. Once the water is shut off, the meter should be capped – preferably by a professional – so that it can’t be turned back on.

Drain Water Heater: Remember, even if the water is turned off, if something happens, water left in pipes or a water heater can still cause flooding.

Drain Pipes: For the same reason as above, this should be done.

Open Faucets: This allows them to drain completely.

Drain Toilets: Be sure to get rid of any excess water left in the tanks; wipe them dry.

Turn Off Heating System:  If you have an electric system, make sure it’s turned off at the circuit breaker. This prevents the burning up of heating elements.

Turn Off Gas & Electric: Call your local electric company to make sure this is done.

Check for Faulty Faucets and Broken Pipes: If damage is found, make sure it’s repaired so that when water is turned back on, there are no leaks.

This is by no means an exhaustive list, but it gives you an idea of what goes into winterizing a home.

HUD Payment Guidelines: Home Much Do Banks Pay for Winterizing a Foreclosed Home

If you’re a foreclosure cleaning company and want to offer this service, what you will be paid depends a lot on what HUD pricing guidelines are in many cases. This is because many bank-owned properties fall under HUD.

For example, in the state of Georgia, HUD will pay anywhere from $100 to $460 for winterizing a home, depending on the type of heat it has (ie, dry heat, steam heat, wet/radiant heat).

As you can see, this can be a very lucrative service for any foreclosure cleaning service to offer – and it shouldn’t take more than a few hours (or less) for a skilled professional to do.

P.S.: Learn more about how to price foreclosure cleaning jobs.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted with the following, in full: Learn everything you need to know about what to charge for winterizing foreclosed homes – and how to price foreclosure cleaning jobs in general — in The Pricing Guide for Foreclosure Cleaning & Real-Estate Service Businesses: How to Price Jobs for Profit, which can be found at http://Start-a-foreclosure-cleanup-business.com.

There are several ways to price foreclosure cleaning jobs. The method discussed here is a very simple, straightforward one because all you have to do is figure out your costs and job markup.

Add costs to markup and that will you give the “what to charge” amount. The formula looks like this:

Direct Costs + Indirect Costs + Markup = What to Charge

Foreclosure Cleaning: Example of a Job Priced Using This Formula

Job Particulars: Say you are asked to submit a bid on a job for a simple trashout and cleaning of a house.

Cleaning particulars: Not a white glove clean, but a broom-swept and major appliance clean (eg, clean tub, toilets, refrigerator; sweep floors; dust cobwebs).

The home is a 2-bedroom, 1 bath, 1,100-square foot ranch. The job should take approximately 5 hours. Once you look at it, you know that you need to rent one small dumpster for the day. That will be enough to carry everything away.

For the cleaning, as it’s not white glove, you only need one person. For the hauling, you need at least two guys because there’s some heavy stuff — dressers, an old refrigerator in the garage, some mattresses, a bookcase, etc.

Estimate Time to Complete Job: 5 hours

So to cost this job out, let’s look at what your direct costs will be:

Dumpster Rental: $300

Disposal Fee: $75

Cleaning Crew: $75 (1 person, $15/hour x 5 hours)

Moving Crew: $150 ($75/day rate x 2 workers)

Misc Cleaning Supplies: $50 (broom, garbage bags, gloves, pine sol, masks, etc.)

Direct Foreclosure Cleaning Costs Total: $650

Now, let’s add in your indirect costs.

Let’s pretend that you know that all of your indirect costs are $2,000 per year (insurance, phone bills, gas, office supplies, etc.).

And, let’s say you plan on doing at least one job a week, starting part time. So, your indirect costs per month are $166 ($2,000 / 12 months).

So your indirect cost for each job is $41.66. So you would figure that into the job estimate.

Indirect Foreclosure Cleaning Costs Total: $41.66

Now you have two of the three figures you need. Let’s say you decided that you want to operate at a 35 percent markup (that is, you want to make at least a 35 percent profit on every job you do). This is different for each person and is discussed in detail in the next chapter on soft pricing.

To get the third figure — the profit — you multiply .35 x 691.66 (41.66 + 650). That’s $242.08. Not bad for four hours of work on the weekend.

Percentage of Foreclosure Cleaning Job Profit: $242.08

Totals: $242.08 + 41.66 + 650 = $933.74

Foreclosure Cleanup Bid Amount: $935 (rounded up to the nearest whole $5 amount).

Learn more about how to price foreclosure cleaning jobs.

May be reprinted with the following, in full: The above was excerpted from The Pricing Guide for Foreclosure Cleaning & Real Estate Service Businesses: How to Price Jobs for Profit. Learn everything you need to know about how to price foreclosure cleaning jobs, which can be found in this ebook at http://Start-a-foreclosure-cleanup-business.com.

Many entrepreneurs who have started foreclosure clean up businesses are new to entrepreneurship business. And, even if they’re not, giving an estimate may still stump many. Following are some tips for preparing to give an estimate that will not only make you appear more professional in front of clients, it will help you land more foreclosure cleaning jobs as well.

Foreclosure Cleaning Estimate Checklist

Gather the following before you go out to give an estimate.

Be Professional When You Go Out to Give an Estimate on a Foreclosure Clean up Job

Clipboard: This is a small detail that makes a big difference. The reason is, when you’re giving an estimate on a foreclosure cleanup job, you’re usually doing a walk-through of the property. Hence, you need something to write on and take notes on so that you can remember everything when you sit down to prepare the final estimate. This brings us to the next seemingly unimportant thing, ie:

Note Pad: Those legal yellow pads that are used by attorneys work great. Even a spiral bound notebook that you can tether to your clipboard works great.

Note Pad Tip: Try to use the same note pad all the time. Why? Because this way it’ll be easy to track the kinds of things you are asked to do on each job. This note pad will serve as kind of a log for future reference. You can use this log to adjust your service offerings based on what potential clients have asked for.

“But,” you may be thinking, “I can use my formally submitted estimate for this.” This is true. HOWEVER, not everything you’ve discussed with your client and taken notes on as you walked through a property will make it into your formalized estimate. BUT, it will be in your notes.

So, keep all of your notepads – and try to do more than scribble. Make your notes make sense so that when you look back at them six months from now, you’ll know what the heck you’re reading.

Contract: Assume that you’re going to get the job and always have copies of contracts on hand. That way, if the client hires you on the spot, you’ll be prepared to have them sign on the dotted line – on the spot.

Service Checklist: Having a service checklist handy will allow you to check off the particular foreclosure clean up services the job requires quickly. The aforementioned note pad allows you to fill in the details.

Foreclosure cleaning checklist tip: If the client is present when you’re doing the walk through to prepare an estimate, give them one of these checklists. Do this for two reasons: (i) to upsell; and (ii) to impress.

About Upselling: By having all of the services you offer in front of them, many times clients will say something like, “I didn’t know you offered this service. We actually need that done. Add it to the job.” This is classic, easy upselling.

About Impressing: Overtly and subliminally, you impress the heck out of potential clients when you are so organized as to have a service checklist to offer them. Many times, clients will hang on to it to remind themselves of all the foreclosure clean up services you offer.

Business Cards: Staple this to your service checklist. Never, ever let a prospect leave your presence without giving them a few business cards.

Oh, just think how professional your foreclosure clean up business will look when you operate this way. You’ll be landing foreclosure cleaning contracts in no time.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

Copyright © 2009 Yuwanda Black for Foreclosure Business News

Foreclosure cleaning is an excellent business to start — especially right now. Many get excited about it because they figure the work will flow in seamlessly. After all, “foreclosure homes for sale” signs are all over the place and it’s discussed on practically every newscast.

Well guess what buster, if you think foreclosure cleaning is a good business opportunity, so does your neighbor down the street, the guy in the cubicle across the way and the service station attendant you see when you pump gas twice a week. This means competition, which means you’re going to have to work to bring in the business.

Welcome to small business reality! You will spend about 80% of your time marketing when you first start a business — any type of business. Ask any successful small business owner how much time they spent marketing — and still do — and they will verify this.

Now that you know why your phone is not ringing with endless job orders, following is what you can do about it. Here are three concrete, cheap marketing ideas you can implement to start getting foreclosure cleaning jobs.

Foreclosure Cleanup: 3 Marketing Tips Guaranteed to Bring In the Business

Flyers: Hand deliver them to every place you even think can use the type of services you offer. This means more than realtor offices, but also junk haulers, insurance offices, mortgage firms, tax firms (they do work for all types of businesses, especially realtors), residential homes, etc.

Email: It’s easy to find the email addresses of realtors. Just go to realtor websites. Set up a full-on realtor email campaign. Contact 50, 100, or more per day. Now instead of focusing on foreclosure cleanup, pitch yourself as a real estate services firm. Why?

For one, realtors are inundated with foreclosure cleaning company literature. So to stand out, take a different tact. Introduce yourself as a full-service real estate property preservation firm. This not only helps your correspondence stand out, it prevents the realtors’ eyes from glazing over when they get yet another email from a foreclosure cleaning firm. It’s a subtle difference that can make all the difference.

Cold Calling: You know why cold calling is still the number one way to make a sale? Because it works. And, many hate to do it which is why if you do, you have a much better chance of landing jobs than your competitors.

Will it be easy? No. Will you get brushed off — a lot? Yes. Do you want to the business? Then pick up the phone. Make it a habit to make 5 or 10 cold calls a day. If you do 5 a day Monday through Friday, that’s 100 calls a month; 1,200 a year. The law of averages alone will land you some jobs.

Just because foreclosure cleaning is a hot business opportunity does not mean you don’t have to market to get the phone ringing. You do. This is why so many fail at owning small businesses. They get discouraged too easily. If you want to work for somebody else all your life, then fine, throw in the towel.

But if you want to make your foreclosure cleanup business a success, get off your butt and do the work it takes to get the phone ringing. There is plenty of work out there. Now go get it!

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

© 2009 Yuwanda Black for Foreclosure Business News

Since the foreclosure crisis started a few years ago, one of the most often-asked questions by business opportunity seekers has been, “How do you start a business cleaning out repossessed and foreclosed homes?”

But perhaps the first question should be, “Who will I market my foreclosure cleanup services to?” For marketing is the lifeblood of every business, and without a clear idea of who your clients are going to be, it’s going to be really tough to succeed — no matter how hot a business opportunity foreclosure cleaning is.

Following is one group to target that you may not think of right away, but who make fertile ground for which landing foreclosure cleanup jobs.

Junk Haulers: A Great “Partnering” Opportunity for Foreclosure Cleaning Companies

“Why junk haulers? Aren’t they ‘the competition?’”, you may be thinking.

Yes, they may very well be. But junk haulers make good companies to market to for the following reasons:

(i) Not Multi-Service Firms: Many junk and debris haulers are just that — they clear out and haul away junk and debris — and that’s it. While debris removal may be a service your foreclosure cleaning company offers as well, you can partner with a firm like this and outsource this portion of the job to them, while you handle the other portions of the job (eg, interior cleanup, minor repairs, lawn maintenance, etc.).

(ii) Not Fully Insured: Many junk haulers are not insured like a full-service foreclosure cleanup company would be. This makes them ineligible to handle a lot of what needs to be done to foreclosed homes for sale.

You see, most of these jobs are handed out by the REO (real-estate owned) departments of banks and/or realtors who handle foreclosures. The reason it’s important to know this is that they require proper insurance and business licensing before they will subcontract the work these properties need.

Their subcontracting guidelines vary by state, lender and/or municipality, so check with them to know exactly what you need in the way of insurance and business licensing. As a heads up, some of the types of insurance you’ll be asked for are liability, workmen’s comp and/or an official business license.

Many junk haulers may have some or none of these. Because many start out as sole proprietorships and never grow beyond that, they don’t have the full battery of qualifications to be able to take on jobs from banks and realtors as primary subcontractors. But, they make perfect subcontractors for you if you’re a full-service foreclosure cleaning company with the proper credentials in these areas.

So be sure to target junk haulers when you start to market your foreclosure cleanup services. While everyone else is inundating realtors and banks (and you should be also!) with their marketing materials, you can also start building relationships and pulling in jobs from these types of businesses as well.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

© 2009 Yuwanda Black for Foreclosure Business News

If you have a business cleaning foreclosures, or are thinking about starting one, there is plenty to learn. This is especially true when it comes to pricing, bidding on and giving out estimates for jobs. Here, we will tackle the estimate – as in, two reasons you should not give a detailed estimate.

Foreclosure Cleaning Business Owners: 2 Reasons Not to Give Broken Out Estimates

Estimate Source: One reason not to give detailed estimates is that many times, you are just being used to as an “estimate source.” 

To explain, most of your foreclosure clean out jobs are going to come from realtors and/or the REO departments of banks. This is important to know because many of them have to submit two or three estimates to their superiors before they can outsource a job (ie, hire a foreclosure cleaning company).

And, this is why giving out detailed estimates – in the beginning – can be a waste of time for you. Putting together a detailed estimate takes time. So in the beginning, just give whoever is asking for the estimate a job rate – on your company letterhead of course, so it’s official.

If they ask for a more detailed estimate, tell them that you can provide that if you’re hired for the job. Stress that the job estimate won’t change, but that it is your company policy to only give out detailed estimates once a contract has been signed.

The next point will clarify even further why this is important.

Price Shop: Many times when you provide a detailed estimated, it is used to subcontract out certain parts of a job – to other foreclosure cleaning companies.

For example, let’s say you bid on a job that came out to $5,000. You included $1,200 for the painting; $600 to hang sheetrock; $2,000 for the trashout; and $1,200 for exterior painting.

Now, your profit is built into each of these. So a realtor, banker, investor – whoever asked for the estimate – could ostensibly take this and start to price shop. Take the painting. What if the person requesting the estimate called around and got someone to do the interior and the exterior painting for $1,500? That’s $900 less than what you charged (a total of $2,400 for exterior and interior).

With your estimate in hand, they can use you as a bargaining chip, ie, “We already have a company that’s going to do it for $2,400? Can you beat that?”

And, this is why if you own a business cleaning foreclosures, you should only quote job rates – until a contract is signed. Then, and only then, should you give a more detailed estimate.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lucrative foreclosure businesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!

© 2009 Yuwanda Black for Foreclosure Business News