Loan Modification Vs Refinance

Loan Modification and Refinance: Definition and Differences

Loan Modification Definition

A Loan modification is when you make amendments to the terms of an existing loan. This process may involve dropping the interest rate, spreading the length of time for the repayment, another type of loan, or a combination of these.

Loan Modification on a Mortgage?

A mortgage loan modification is an alteration in your loan terms. The adjustment is a sort of misfortune management. The adjustment can lessen your regularly scheduled installment to a sum you can bear. Changes may include expanding the number of years you need to reimburse the loan, lessening your loan fee, and additionally refraining or decreasing your chief balance.

Difference Between Refinance and Loan Modification

There are two ways to lower your monthly loan payment, loan modification and refinancing. Most property owners hope for a reduction in their mortgage payments. However, others who have no other option to avoid foreclosure must lessen their mortgage payments. Loan modification and refinance both offer economically struggling homeowners to lower their mortgage payments. Let’s discuss the comparisons between loan modification and refinance.

Pros and cons of Loan Modification

Pros Cons
You can avoid a foreclosure by accepting a loan modification A loan modification can have a negative impact on your credit score
You can make modifications to the loan terms and make them affordable and secure better loan plans. Not all lenders agree to modification to a loan term

 

You are not obliged to pay the closing costs when modifying your loan. Though there might be some legal fees associated with the process that might fall on you. If you somehow miss a payment after loan modification this can escalate the foreclosure process

Doucet-Gerling Firm have experienced foreclosure lawyers in Ohio who will prepare a great legal strategy to get you out of your financial crisis.

Pros and cons of refinancing

Pros Cons
You can have the advantage of current low rates The closing costs will be paid by you
Your monthly payment can be lowered Variable savings depending on your current interest rate and time in home
You can make changes to the terms of your loan. You can change the time period of a loan or switch from a fixed-rate mortgage to an adjustable-rate loan You will be going through the underwriting process again

Balloon Payment

The bigger than-normal installment to be made generally toward the end of a home loan term or an amortization credit, is known as a balloon payment.

Key Points of Balloon Payment

  • Lower regularly scheduled installments than conventional loans
  • Higher hazard because of lump amount installment
  • Usually limited to generally reliable and pay stable borrowers

What Do Lenders prefer?

Since there is a renewed loan in mortgage refinancing, there is a good amount of paperwork and requirements to qualify. Lenders would normally prefer refinancing to burrowers with higher credit scores who are punctual with their mortgage payments. However, with the modern government-back program, refinance has improved and now requires even less paperwork.

However, a loan modification simply makes changes to the existing home loan with the involvement of even lesser paperwork than refinancing. Therefore, loan modifications are convenient and faster to receive. Lenders recommend loan modifications to burrowers who are currently in a financial hardship and are already late on their home loan payment because they are unable to get refinancing.

Troy Doucet leads the team of well trainer lawyers who regularly work with foreclosure clients to obtain loan modifications. Contact him firm today to get your foreclosure issues sorted.

A Comprehensive Guide to the Provisions of Compensation for Land Acquisition in Australia

Australia is a big country with six states and two territories. They are New South Wales, Queensland, South Australia, Western Australia, Tasmania, Victoria. (North and Australian capital. The total area of Australia is 768 million hectares with a population of 2.41 crores people.

Just like any other country, the Australian government acquires land from its inhabitants for the construction of roads, cities, gas pipelines, railway tracks, etc. In exchange for the acquired land, it provides the compensation amount to the people. Today, in this article, we will talk about the provisions of compensation for land acquisition in Australia and try to understand how individuals can get a reasonable sum of the compensation amount.

The Land Administration Act 1997

As per the Land Administration Act 1997 (LAA), the Australian government can acquire land for public works. The Minister for Land, the Department of Regional Development and Lands, the State and local governments, agencies with their own special statutory powers, and property acquisition staff monitor the process of land acquisition in Australia.

In most cases, the land purchasing Agency makes it mandatory for the landowner to go through the registration process and agree to a fixed price after the evaluation of the land. On the other hand, the government also uses compulsory acquisition if serious attempts at negotiation have failed, Land is urgently needed for public works and the landowner is agreed to section 168 (1) (b) of the PTA.

To complete a mandatory land acquisition process, the concerned agency needs Proof of negotiation, Indemnity to the Minister for Lands against any claims or costs, evidence of an owner’s consent to the acquisition, and a statement from the local government (section 56 of the LAA) that the land is needed for the construction of roads.

To acquire the land, A Notice of Intention to Take (NOITT) should be lodged with the land gate and registered against the relevant title and must be published in newspapers. The Documents must also be served to the owner, occupier, or any related parties. The notice contains the full Info about the relevant land, the interest in land, public work details, reasons why the land is suitable for acquisition, etc.

The landlord can object to the acquisition of land within 60 days of registration of the NOITT. So, the landowner can ask for the return of the acquired land if the land was acquired one year ago but has not been used for the intended work or it can be sold jointly by its former owner if unused.

The power of state or local governments in land acquisition

The LAA allows the state or local governments to conduct surveys and perform feasibility surveys or to commence work for the urgent acquisition of lands. For such works, notice must be given in advance as shown in the chart:

Entry for the feasibility study 30 days (s182)
Railways, under a Special Act  7 days (s183)
Entry for the survey, inspection 48 hours (s184)
Entry for temporary occupation 7 days (s185)
Entry for the urgent beginning of the work 7 days (s186)

 

Land Acquisition Compensation

All those government agencies that acquire land from individuals are responsible for providing the compensation amount to the needy people. The state department involves in land acquisition and acts from the side of client agencies. The client agencies talk about the compensation amount for the acquired land as per the provisions of LAA.

In general cases, government agencies evaluate the base price and current market price of the land and offer the compensation amount to the people accordingly. In case of dispute, related parties can negotiate with the help of a local property lawyer and strike a mutually beneficial deal. The lawyer can help you in the survey and plan preparation, negotiation with government agencies, legal complexities and fulfill the procedural requirements of the NTA.

 

Final Words

Land acquisition in Australia is a common happening. The federal and state governments acquire land for public works. By following the above-mentioned tips, you can have fair compensation from the government in exchange for the acquired land.

Michael Birch  is a senior Corporate & Civil lawyer at Law office of Sydney, Australia and focuses his practices in the areas of Building Construction Law, Civil Litigation, Commercial Contracts, Commercial Litigation, Domestic and Commercial Conveyancing, Probate, Mediations, Conciliations and Arbitrations. Mr Michael has extensive knowledge in real estate development, real estate finance, real estate lending, asset management, asset purchase and sales, commercial leasing, mixed-use development and planned communities, including condominium ownership.