Stop Foreclosure – Your Credit Scores May Be Zapped by A Loan Modification

The focus of loan modifications is to help people facing foreclosure save their homes. Through the Making Home Affordable Modification Program and many other programs the modifications are accomplished by lowering the monthly payments on loans to amounts that the people can afford to make. The mortgage company normally does this by lowering the interest rate on the loan.

While it may enable a person to save their home from foreclosure, lowering the monthly payment can have a negative impact on them in another way. It may adversely affect their credit score.

When the person facing foreclosure negotiates a modification and pays the amount agreed to, they are actually paying less than the amount they agreed to pay originally when they got the loan. Technically the credit bureaus view that as settling the account for less than the full amount.

In the past many people with high credit card balances who had difficulty making payments sought help from credit counseling firms. These firms would contact the creditors and negotiate a lower balance on each account. The creditors in effect would be eliminating some of the interest which had accumulated on the accounts. The credit counseling firms would also negotiate a lower monthly payment on each.

On their part the creditors would close the accounts so that the people could not charge any more on those accounts. As the people made their reduced monthly payments, the creditors reported to the credit bureaus that they were paying less than the full balance owed.

The credit bureaus created a separate category for these accounts. They updated the accounts showing that the payments made were less than what was owed. They also considered these people a greater credit risk. Because of the greater risk the credit bureaus reduced the credit scores of these people.

Let’s fast forward to today. The person facing foreclosure who negotiates a loan modification and starts to pay a lower amount monthly is in the same category as the people for whom the credit counselors secured reduced payments. The mortgage companies are now reporting that these people are paying less than the full amount owed.

When the credit bureaus are notified of this, they lower the person’s credit scores. Large mortgage companies, such as, Citigroup, JP Morgan Chase and Bank of America are doing this. Most probably the smaller mortgage companies are doing the same.

Who are hurt most by this? Those people who have not fallen behind on their monthly payments but requested a loan modification because they knew that there was no way they could continue to make their payments.

One example is the person whose income is reduced drastically. That could happen because they lost their job and had to take one for less money or their employer suddenly cut their income substantially. Another example is the person who becomes totally disabled and whose income is reduced significantly. These people may see their credit scores drop as much as 100 points or more.

Auto Insurance – Do You Wish to Modify Your Car?

A top leading insurance firm’s spokes man claims that there would be a rise of about 20% in the car insurance rates towards the ending of the year. The causes of the increment are due to the increased claims in car insurance and other numerous increase of fraudulent claims.

Increment of insurance prices is the only option that insurance companies can use in covering their cost. If you have plans of modifying your car, always remember that your rates must surely increase.

Alloy wheels, tinted windows and engine adjustments are the type of car modification that brings about 10% increase in your rate. This is due to the fact that you are beautifying your car and making it attractive by modification which could lead to theft or damages so policy providers sees this as a great risk.

In the world today many people still find it hard to believe that about one third of the car modifications are done by the women in our economy. Insurers always advice individuals especially the younger generation of drivers who are likely to modify their cars, that they should take note of the steady increase in rates. Also the insurers make them understand that the added value of modification will have great effect on their finances and therefore them advice people to make sure that they can afford this extra cost. For security reasons, insurers appeals to customers to be careful and honest with their car modifications because if they are not noted on your premium, your provider would not bother to pay you out on a claim even if there is no connection on the actual modification of the car.

Auto Loan Modification – Understanding What It's About and How You Qualify

When the concept of loan modifications became universally popular, it was all about home loans. Then, the idea was picked up in the commercial market as well. Now, we are seeing more and more auto loans being considered for modification as well.

On the surface, the idea of modifying much smaller car loans may seem a little odd, but it’s very necessary to the many people looking for relief in tough economic times.

Why do we need auto loan modification?

The reasons someone may need to modify their car loan are very similar to that of any other type of loan. Economic and/or personal hardships have created a lot of situations where people are looking for answers. Job loss, reduction of income, family emergencies…all are perfectly viable reasons to get your car loan modified.

As an example of why you may need to get a car loan modification, say you recently lost your source of income or a significant amount of it. Your car payment at $500 was once very much within your means. Now, not so much. The lender doesn’t really want to repossess the car. That’s not in their best interest. The lender has incentive to consider a lower payment based on what you can reasonably afford. If you can get that payment down to $300, perhaps it’s now affordable based on your unemployment or reduced income. It’s a win-win for both parties.

How are you going to qualify?

Qualifying depends on a variety of factors. Let’s look at the ones that are most common.

Hardship. Your lender wants to see that your inability to pay is brought on by some hardship and not your own negligence. Otherwise, you would look irresponsible for not paying and be considered a risk no matter what the payment. Medical issues and employment concerns are chief examples of hardship that you can claim has seriously effected your ability to pay your loan.
Financial Picture. No modification can take place without a serious breakdown of your financial situation. How much are you making? How much are you spending? What’s the difference at the end of each month. Too far either way (surplus or deficit) and you won’t be a serious candidate. A heavy surplus is looked at as if you can easily afford the current payment. A heavy deficit is looked at as if you won’t be able to afford even a modified payment. As such, the closer your bottom line is to 0 every month, the better.
Are you late on payments? Whether it’s right or wrong, lenders tend to look at those that are late on payments with a more serious eye than those that are current. The thinking goes that if someone is current, then they can make the payment so why bother modifying the loan? Even though being late seems to help your cause, it’s never advised to purposely miss a payment. After all, you no one wants to be late and it can have serious negative effects on your credit.

What Modifications Can Increase Auto Insurance?

There are many modifications you might make to your insurance plan that can actually increase your car insurance. When you are searching for online insurance quotes it is important to try several things to see what will get you the best rate.

One of the biggest things that will increase your auto insurance policy is the amount of miles driven every year. The more miles you tell the insurance company you drive the more the policy will be. If you tell them the vehicle is used every now and then and you put a few thousand miles on it each year this will make a big difference.

If you have a teenager you want to add to your auto insurance coverage this will cause the insurance policy to skyrocket. If you have tickets already and a teen this doesn’t mix well. You might consider looking for the cheapest auto insurance you can find for your teen separate from your policy.

A garage can make a big difference when you are looking for an insurance premium. If you have a garage, tell the insurance company about it. When you don’t tell the insurance company about safety measures you have on the vehicle like a car alarm or the fact that you park it in the garage every night your car insurance will be higher.

Car modifications can increase online insurance quotes dramatically. You will need to provide proof of insurance when you go to the dmv to get your driver’s license or to renew your registration. Discount auto insurance can be found when you don’t make modifications to your vehicle. These modifications might include a lift on the vehicle, bigger tires; surround sound stereo systems, hydraulics, and more. When you increase the value of a vehicle by making modifications to it this will increase your online insurance quotes.

Women get lower rates with any auto insurance company. This is a proven fact. The reason for this is because they drive logical vehicles rather than big hefty four wheel drive trucks. Women rarely modify their vehicles to a big extent. The insurance company is at less of a risk of having to pay a high dollar amount if the vehicle is stolen or wrecked. Women also get less traffic infractions than men do too. When you compare car insurance quotes you might want to type in that you are a woman and then a man to see the significant difference it makes if you are male or female.

When you are searching for discount auto insurance rates online there are many changes you can make to the policy to test the prices the system gives you. Many things will increase the rate for an auto insurance company but these can usually be resolved. The best solution to getting the best auto insurance coverage is by not making physical modifications to your vehicle. Any type of modification to a vehicle can cause the insurance rate to be a lot of money. If you alter the vehicle too much the insurance company may not even classify it as what it actually is.

Things to Know About Modified Auto Insurance

There are many people who spend more time with their valued auto than they do with other people. These people have usually modified their auto in numerous ways depending on their specific interests. Modified auto owners spend hundreds and sometimes thousands of dollars making their beloved auto the most special one on the road in their eyes. They get much gratification from this type of hobby even though they know that the more they specialize their vehicle the more the auto insurance will cost them if this vehicle is damaged in any way. But that doesn’t stop them.

Sometimes it is even hard to find an insurance company that will insure these types of vehicles even at higher rates. Most insurance coverage will recognize changes to the outside of an auto and will consider insuring them. They will also usually insure modifications to the in-car entertainment systems. The part of the modifications that seem to pose the most problems for modified auto owners is the engine modifications. When it comes to engine modifications that make an auto an extremely more powerful engine, tempting drivers to go faster on the road, some insurance company will not even consider offering quotes.

If small engine modifications are made you have a better change of procuring insurance for your modified auto; but, if you are a young driver you will not likely be able to find coverage for your high-powered modified auto with a lot of engine modifications simply to make your auto faster than anyone elses.

Determination of the amount of risk involved with the driver of a modified auto is decided on other factors also, including gender, income, the area where you live, your credit rating, your driving history to date, the amount of moving traffic violations you have received, etc.

There are two classes of modified autos. One is the “show” car which obviously would be a lesser risk as they are not usually driven on the road as much as a street auto. The insurance companies are usually more lenient regarding auto insurance rates for the show car for this reason alone. Also, they are usually stored to protect them and therefore not as likely to be stolen or damaged by vandals. This scores another point for the owner of a show car.

On the other hand, “street” cars are usually owned by a person who likes to show off his prized possession putting the auto at higher risk for accidents, theft, vandalism, etc. They are often driven in illegal street races, therefore their name of street cars. Also, because they are driven in these races there may be times when someone other than the owner would be driving the modified auto. The auto may not always be driven or kept in a safe place thereby putting it at even higher risk. These types of vehicles will always have high premiums but the owners live for the thrill of the ride and are not usually considering any costs if the auto is damaged in any way.

How Car Dealers Negotiate New Customized Rides

People in the market for new wheels can determine the brand, model, and year they want via online browsing. This is a standard operating procedure across the country and results in “build and roll,” meaning the customer builds then rolls a car off the lot. Naturally, there’s no actual building, but rather a system that allows buyers to select basic criteria while online. The procedure is popular primarily because of “build and price” options found via the websites of manufacturers and car dealers. This process makes it possible to stipulate factors such as the manufacturer’s suggested retail price (MSRP), Environmental Protection Agency Estimated Miles Per Gallon (EPA Estimated MPG), and the number of passengers a model carries.

Buyers who think better pricing stops with the “build and roll” have already cheated themselves out of savings and the possibility of even more affordable customization. Incorporating certain mediation tactics helps save money and secures a stellar ride. Working with knowledgeable people makes the process easier for car dealers, too.

Basic Negotiation Pointers

Dealers usually offer better prices on what is already parked on the floor. Therefore, clients should make sure what they want is on the floor. Another point: end of the month is a good time to find a lower price. Buyers should take advantage of a salesperson’s desire to meet monthly quotas by shopping a few days before the end of the month. Arriving early also demonstrates a serious intent to purchase and may inspire incentive for better pricing.

When looking to buy a selection with or without special order options, buyers should avoid one overall negotiation. Separating all the moneymakers such as rebates, trade-in-value, bank fees, and interest rates into separate negotiations often results in better pricing. This means each item must be well-researched before sitting down at the table. There are other pointers to keep in mind about specialization, too.

Special Order Pointers

Some people enjoy driving sleek black vehicles. Others enjoy whizzing by in a lime green speedster. Generally speaking, auto lots stock colors and designs they know appeal to the general public. The lack of a particular color can kill a deal for some clients, but that’s where customization can help seal the deal. Anyone with a particular style should consider special ordering. This option works for both practical and extravagant purposes. It’s not, however, a quick process. Anyone looking to cruise away on purchase day in a one-of-a-kind vehicle is going to be in for a bumpy ride.

Insurance rates run higher for a customized automobile. Most modifications are ordered to increase speed, catch eyes, and increase user practicality. The most expensive of these modifications comes from improving performance. If the owner of a roadster enhanced for better performance is a younger man, insurance rates will vastly increase. Young men are subjected to higher insurance rates because of their tendency to take higher risks than the rest of the population. When they cruise the roads in a hot rod, insurance companies take notice. Car dealers should be able to help clients resolve these issues so that every set of wheels rolls with ease.

What Considerations Are Important When Buying An Infant Car Seat?

Unintended catastrophes and automotive mishaps are definitely the number one reason behind traumas – as well as mortality – for a great deal of young kids! These types of personal injuries could in fact be prevented by the buying and utilization of infant car seats. Pretty much all vehicle seats for infants have now qualified under federal government crash evaluation tests. Nonetheless, there are many which actually have additional features that can safeguard an infant in the happenstance of a wreck. A few of the added features you may see comprise of: quick installation, in-built locking clips, and often even twist free shoulder straps.

Although almost all mothers and/or fathers will usually be on the lookout for the number one car seat already in the market, the best thing to keep in mind is to purchase a seat that best matches your auto, your resources, and also offers ample protection to the baby boy or girl. Lower in this article are several aspects to consider while you are picking out baby seats:

~ Pre-owned Infant Car Seats

It is certainly advised to be 100% knowledgeable with the past of any given seat being purchased. In order to confirm a seat’s safety, a mother and father should buy the seat from someone he or she is familiar with personally and knows well; you must trust the seller’s explanation of any crash history, and never purchase a seat that has been involved in any accident in its past.

As well as confidence in the person selling the car seat, consider the fact that a seat may have other unknown damages that may fail in an accident scenario. That is why it’s imperative to also make certain that there are no modifications which have been made to the car seat.

~ Recalls

It is critical for a mother (or father) to see to it the seat bought hasn’t had any recalls. Seats are pulled from the shelves immediately once a recall notification is released by the manufacturing corporation, and these recalls are generally announced when there is a safety concern. Additionally, by keeping track of this, a good seat owner is guaranteed that the seat should have repair or replacement parts if ever it would be required to replace a seat’s belts or clips, or replace the upholstery or fabric covering of a given seat.

~ Ensure Newborn is Reasonably Safe

To insure the most safety whilst in the vehicle, always make a point of investing in a seat with the most protection gear and quality. By using well-known brands of carseats (Evenflo as an example), you are consistently guaranteed safety and security because of the upgrades these folks regularly include in their merchandise. Ultimately, each addition to their seats is without question aimed toward maintaining your infant’s safety, security, and comfort during a car ride.

~ The Safest Child Car Seat

Though every car seat purchased from out there today has passed the requisite crash test, you will find some are still much safer when compared with others; when shopping for your car seats you should look for top-class quality and safety levels.

~ The Child Must Fit Appropriately in the Car Seat

Always give consideration to an infant’s height, weight, and age when deciding on a seat. These seats will all have varying weight and size constraints. A good parent is expected to ensure that the infant’s length and weight match the limitations of the seat the baby will be occupying.

Parents must, like it or not, accept the undeniable fact that personal injury and – at extreme – death of babies is often in fact related to their car seat and its set up. Flawed installation of car seats and using unsuitable seats with regard to the age category and / or the size of the infant is usually the top cause of injuries in auto crash incidents. This is the major reason the above tutorial has to be thought of when you are picking newborn baby car seats.

How Do You Sue Your Lender for Illegal Car Repossession?

If you are unable to repay the car loan within the scheduled period of time, there is every possibility that your lender will repossess the car, according to the terms of agreement between the lender and the car purchaser. If you purchase a car on credit, it is vital to remember that he holds back the right to repossess the car at any point of time if the loan is not paid within the stipulated period of time. Even in the agreement paper that you have signed, it is vital that you should add a separate section that may highlight the exact date and the methods that he should follow to repossess car. On your part, it is important that you should first find out the details of the agreement with the purpose of determining if at all, your lender has violated your rights as a car purchaser while repossessing your car at any point of time.

Unfair repossession occurs when the lender breaks the agreement with the car purchaser and it occurs in multiple ways. For instance, if you cannot make the full payment or if he accepts partial payment, then this type of situation implies that there has been a slight modification of the agreement. In fact, they should provide notice to you and then he should wait for a specific period of time before he actually takes possession of your car once again.

You also have specific rights that you can use in order to deal with unfair repossession of a car. If you think that you are a victim of this type of issue, it is advisable that you should take the help of a proficient lawyer in order to file a lawsuit against your cunning lender. The article will highlight on a few important tips that you should follow to sue him in the best possible way.

If your car is taken away from you in an unfair way, the first tip that you should follow is to write down your demand letter as soon as possible. In fact, in maximum cases, you need to send this important letter to him before you actually file the lawsuit on a particular day.

The next step is to add the demand of a certain amount of money in the letter that you wish to take from the lender in order to cover up the damage that you have sustained due to wrongful repossession of your car. All you have to do is to set up a particular deadline within which you want to get back your car and within that time you also want to get money as your compensation.

Your objective is to ask for a petition form from a court clerk. Generally a court clerk keeps standard forms that can be used by the individuals for diverse legal purposes. There are a few court clerks who keep court books that also include special sample petition forms.

You should prepare your petition in the best possible way and you should also include relevant facts that are associated with your fake auto repossession. You should not forget to request for damages in your petition. It is vital that you should mention the minimum amount of money that you wish to get as your compensation in the petition, but it is advisable that you should not mention the exact amount of money that you wish to acquire from the lender.

Track Day Checklist! How To Prepare for Your First Track Day

Install the Best Racing Tires and Brakes

Tires and brakes are two of the most important components on your car for daily driving, and they’re even more important when ripping around the race track. Without proper tires, you’ll never get traction in the corners, and without the right brakes, you’ll have trouble slowing down and entering corners. All of this will lead to slower lap times and premature wear of the components, requiring replacement. Running stock tires and brakes is fine for the beginning, but any serious competitor should bring upgraded brakes and tires as the stock ones won’t last long!

The best racing tires depend solely on the car. Common tires are Dunlop Direzza’s and Hankook Ventus R-S3’s. As for brakes, a high quality, temperature resistant brake pad and rotor, such as Hawk Pads and Girodisc rotors for the best mix of life and stopping power!

Get an Alignment

Most expensive does not always equate to the best suspension for racing. Coilovers are not always the save-all solution for suspension when it comes to speeding around the track. Truth be told, most coilovers are not suited for racing applications and may actually hurt your time, not to mention your wallet. Even then, most coilovers that are not properly set up that lack proper supporting components are worse than your factory suspension.

The best modification you can make for the money is an all around, factory spec alignment. Making sure everything is just the way the manufacturer intended it to be is guaranteed to make you faster in the corners. If you take the car to an alignment shop, they can check for things that may be worn or wearing out, that may become a casualty at the track. Things like bad wheel bearings, leaking ball joints, and movement in the tie rods can make a car handle badly, and very dangerous to drive on the track.

For most, OEM wheel bearings, tie rods, and ball joints will be sufficient enough. For the weekend warrior, however, performance components may be needed. If you’re looking to beef up your suspension, manufacturers like Moog, Whiteline, and Tein are known for providing durable, long lasting suspension components with a proven track record.

Remove any Unnecessary Interior Weight

Cars today come with a ton of bells and whistles. While these accommodations are nice for your commute to work or long trips with the family, they add pointless weight to the car that just isn’t needed on the track. You can cut some serious time off your laps by removing these items and keeping them at home!

Start by removing simple things like the spare tire in the trunk, floor mats in the cabin, and extra stuff in the glovebox. Even air fresheners and CD’s on the visor add up and slow you down. From there, you can start the process of taking off more weight, which may not be as easy. The rear and passenger seats, cabin carpeting, air conditioner core, and interior panelling all add up to some considerable weight. While not exactly ideal items to remove from a daily driver, these items will cut a bunch of time off your lap!

For the extreme racer, you may even consider getting some lightweight carbon fiber body panels. These will replace heavy items such as the factory spoiler, bumpers, hood, and side skirts, all while making the car look more race-car! Careful though, while carbon fiber may be light, it isn’t for everyone. Carbon fiber can crack and be a costly item to replace.

Check All Fluids and Replace Worn Belts

The engine is what makes the car go, so it makes sense for it to be in good health. Checking it’s vitals for low fluid and topping off with quality oil and coolant where necessary is the best method of being proactive regarding potential failure. It’s also a good idea to take a look at the accessory belts and replace any that look worn. Nothing is more frustrating than having to call it a day because of something like a snapped belt. If you’re behind schedule on a full tune up, go ahead and complete it with the best tune up components for your platform before you head off to the track. You’ll want everything in tip-top shape for ripping cones or taking corners, and the best way to ensure everything is ready is a good basic tune up.

Many tracks also have rules regarding fluid leaks, so inspect your engine bay for any potential leaks that may compromise the quality of the track surface. Some tracks may even decline your safety inspection if they see any potentially harmful areas for leaks. Lastly, make sure your positive battery terminal has a cover.

Get Your Gear Ready

Almost all track events require you have proper, approved safety equipment. These can range from full flame-proof suits to just a simple helmet. Verify the safety rules at the event you’re attending and plan accordingly. If no flame-suit is required, it’s in your best interest to wear a long sleeve shirt, long pants, and closed-toe shoes. No sandals, no basketball shorts, and no tank tops! The helmet is important, as it must be a Snell approved helmet for auto racing. Sorry, but the foam bike helmet you picked up at Walmart will not cut it here, and you’ll be asked to leave.

Another good idea is to install some gauges to monitor your car while you have it performing at it’s highest. Things can go wrong in the blink of an eye, leading to unsafe driving conditions for others. It’s a good idea to have the appropriate monitoring devices in your car working at their utmost highest potential to ensure nothing catastrophic happens, and can be prevented before they occur.

Are You Ready?

Having a car in perfect race form is one thing, but being able to drive it is another. Are you physically and mentally ready to get behind the wheel and drive? It sounds easier than it really is, and the best way to prepare for a race it to take care of yourself. Dont go out and party the night before. Make sure you’re well hydrated and nourished. Don’t skip meals or eat fast food, as it will only lead to fatigue. You want to be alert and ready for everything the moment your tires meet the pavement.

Electronic Documents, Top Reasons to Switch From a Paper-Heavy Company

Business is a world of constant motion. It is a world in which its participants are required to adapt and work in various situations and environments in rapid motions. A single document or file delivered in an accurate and timely manner could very well differentiate the fine line between failure and success. Thus, speed becomes a genuine concern.

Electronic Documentation provides relief from the hectic schedules and appointments by allowing its users to aptly complete tasks such as gathering patient information and securing contracts. Aside from these convenient functions, this document system has much more to offer.

1. No More Paper

Perhaps the most prominent benefit of Electronic or Digital Documentation in general is the ability to become paperless. Electronic documenting eliminates any need for paper, clip boards, file storages, and fax machines. By cutting down on these factors, a company that uses this software system will see a large amount of monetary assets being saved. Companies will no longer have to create purchase orders for paper, ink, storages and fax machine maintenance. Furthermore, by going paperless, the environment will benefit as well.

2. Data Management

Amongst the other advantages bestowed, this document management system presents convenient functions pertaining to data. Information can be auto-populated from a pre-existing Customer Relationship Management (abbreviated CRM) System to speed up registration processes. Completed forms are then stored into the database that is handled by the provider and can be accessed anywhere using a unique URL with any device. In addition, databases are typically backed up, providing the user with a safety net in case of disaster.

3. Simple Modifications

Every now and then, documents require modifications. These modifications can range from a simple information update to a complete overhaul of the document. With Electronic Documentation, users are able to edit their documents with ease. Documents can be pulled up in the system and then modified to the user’s liking. Moreover, any changes made and saved will immediately appear to all users of the document, providing with the ability for instant updates.

4. Ease of Access

The convenience provided by Electronic Documentation is unprecedented in the fact that these forms can be viewed on almost any device. In addition, the user is capable of viewing these documents anywhere, provided there is an existing internet connection. With such utility offered, employees and business workers are able to send and receive documents whenever needed. Regardless of the situation, users will almost always have the ability to transfer and distribute documents on the fly. These forms are also viewable on any web browser, eliminating any need to download additional software such as Adobe Acrobat.

5. Great Mobility

As was stated before, the convenience offered is substantial. Aside from allowing employees to access documents when necessary, Electronic Documents will also allow potential customers and partners ease of access as well. Users can present contracts and documents to their customers and obtain a signature right then and there. This sort of convenience will, not only appeal to the employee, but to the customer as well.

6. Additional Benefits

Other benefits presented by this type of document management is automated messaging. This function allows the user to instantly send the client a copy of the form or contract that was completed. Another benefit is the integration with a camera, whether on a phone or tablet. Users are able to take pictures and upload or store them into the database.


The era of technology is ever-changing. It has grown and advanced, showing little to no signs of slowing down. Electronic Documenting is the product of such advancement and only aims to make life and work all the more convenient. With this software system, businesses will find an increase in employee productivity as well as efficiency.