Deed in Lieu of Foreclosure – Can I Give My House Back to the Bank?
February 8, 2012 | 
Author Foreclosure rates are continuing to climb. Nevada and California have posted the highest foreclosures, based on per capita and total, respectively. Other statistics show that in Detroit, there is one foreclosure for every 51 households. Such a startling number is five times the national average. In times like these, many people resort to asking the obvious question: can I simply give my home back to the bank? Such a return is called a “Deed in Lieu of Foreclosure.” While it sounds like an excellent get-out-of-debt-free card, most banks have a tendency to say, “No give backs!”
If you do have equity in your house, it would be wise to list the property and go for the quick sale. Across the country, houses are being listed well below market price and many are not selling. Depending on your situation, you may have a “long winded” quick sale. This is the case for a California couple who listed their home $100,000 below appraisal price. They then lowered it three times to $200,000 below appraisal. Six months later, they are still waiting for their first bite.
Before you say all of your farewells to the neighborhood, look into a “Deed in Lieu Foreclosure.” And though a lender will most likely decline if the property is worth less than what is owed, it’s worth a shot.
In terms of the technicalities, there must be a total consideration equal to or exceeding the fair market value of the property being returned to the lender when any settlement agreement is entered into to. Again, most lenders are not interested in a property that is worth less than what is owed-or if more is owed on the property than the actual fair market value of it.
A “Deed in Lieu of Foreclosure” can be slightly beneficial on a credit report, depending on your point of view. The status of the loan will be closed and the “deed” will be identified. Compared to the credit score torpedo of a foreclosure, a “Deed in Lieu of Foreclosure” is less damaging than a foreclosure to credit reports.
One major upside to the whole process is that it will be over sooner than later. It will be done and dealt with and the foreclosure will be behind you. Your credit report will have fewer late payments listed. With all of this in mind, it will easier for you to bounce back from this trying experience.
If a foreclosure is all but inevitable, giving the house back to the bank is an idea that should definitely be considered. The house is practically out of your hands anyways; why not place yourself in a better position to recover emotionally and financially. The idea is to make the damage as minimal as possible.
Two Advantages Are:
1)You are released from some, if not all, of the debt of your defaulted loan.
2)You avoid the public scrutiny involving newspaper listings, legal notices posted on your front door for all to see, an intimidating court appearance and a formal sheriff eviction.
The Down Side Of Foreclosure
Giving your house back to the bank to effectively stop the foreclosure process is a means to an unfortunate end.
1099C Cancellation of Debt
Here is some fine print for you. If you borrow money from a lender for a home and you give that home back as a “Deed in lieu of a Foreclosure,” the lender may cancel some or all of your debt. If that occurs, you may have to claim that amount as income for tax purposes.
When you initially borrowed the money from the lender, you were obligated to claim the given amount as income because you agreed to pay that amount back. However, you are no longer contractually bound to repay the amount and the original loan sum is reportable as you are no longer making payments. The lender is also obligated to report the forgiven loan amount to both you and the IRS in what is called a 1099C form, or a Cancellation of Debt.
Here’s a straightforward illustration of a situation involving a 1099C. You borrow $15,000 from a lender and you default after paying $5,000. If your lender cannot collect the remaining $10,000 from you and it is cancelled, it becomes your taxable income.
There is an exception to every rule. Cancellation of debt income is not always taxable.
Debts forgiven due to bankruptcy are not considered taxable income to the financial circumstances.
Also, you cannot deduct the loss if from the foreclosure or sale or sale of your property you lose money.
A “Deed in Lieu of Foreclosure” will not save your home but it will help you move on and rebuild your life. It’s not the end of the world; rather, it’s both an end and a new beginning. And the “deed” is less damaging than a foreclosure to your credit report.
Deficiency Judgments After Foreclosure – Do Banks Really Sue For Them?
Homeowners facing foreclosure are often concerned that the auction of their property will not be the end of their financial and legal worries. The threat of a deficiency judgment being initiated by the lender after the sheriff sale is always being raised by foreclosure consultants, attorneys, and representatives of the bank trying to wring more money out of borrowers. But finding actual cases of deficiency judgments against the average homeowner can be extremely difficult.
Is this an indication that banks are not pursuing deficiency judgments, or is it simply that these types of lawsuits are so rarely mentioned? Finding actual statistics relating to this type of lawsuit is difficult, and proving that they are rare can be even more trying, as it is nearly impossible to prove a negative. The absence of judgments against homeowners does not mean that they are never brought; after all, maybe every foreclosure victim defends the case and wins. Or these lawsuits are just rarely talked about. Or maybe former homeowners have deficiency judgments against them but, since they moved out of the house where paperwork was served, they are not even aware of it.
So finding evidence of deficiency judgments after foreclosure is not easy. Not for me, and seemingly not for other researchers online. Frank Llosa from FranklyRealty.com also wonders where these lawsuits are and comes to some of the same conclusions as we have, although he approaches it from the angle of banks bidding on properties at auction for the total amount due on the loan, thereby eliminating the possibility of a deficiency: “Why would they take over the property at $200,000 OVER what is it worth and let the previous owner be releaved [sic] from further obligations?”1
He suspects that the missing lawsuits may be an indication of the fact that foreclosing lenders, “figure it is a waste of time and effort for the banks to go after the homeowner since they are broke.” This is much the same seemingly reasonable solution that I have raised before; after all, why would a lender, who has been thus far unable to collect on a foreclosure judgment, spend more time and money pursuing deficiency judgments against former clients?
The Florida Asset Protection Blog also mentions the possibility of deficiency judgments in cases where a second mortgage is present, but admits no personal experience with such lawsuits: “I have not seen any case to date where a first or a second mortgage lender has sued the homeowner personally.” Same here, and these deficiency judgment laws, in the states and under the conditions in which they are allowed, have thus far proven to be unused weapons, similar in volume of enforcement to jaywalking violations.
Taking a look through actions in the local courthouse is also a bit of a wild goose chase, as there are far more foreclosures than deficiency judgments. In fact, there are no deficiency judgment cases that I could locate listed in my local court system. And this is in a state with a quick process and such lawsuits are allowed after the sheriff sale. Dozens of foreclosure cases, both open and closed, are listed, but no deficiency judgment cases involving the same defendants as the foreclosure cases in any of the listings I could find.
And online, instances of this type of lawsuit can most often be found in estate cases and auto loan repossessions, but not real estate foreclosures. Of course, this makes more sense, since someone who loses a car can still be served with lawsuit paperwork at a current address, car loan outlets have more access to local courts, and the small amount of an auto loan deficiency may be reasonably expected to be paid back.
Since it seems that deficiency judgments during foreclosure are quite rare, why are lenders not pursuing them right now? As has been discussed here before, it is usually just not worth the bank’s time to sue people who admittedly have little money. About.com states that, “In many cases, your lender will not go to the trouble. Legal action is expensive and time consuming, and people who just suffered a foreclosure often don’t have the assets or income needed to satisfy a deficiency judgment.” People with no job, assets, or not enough income may also be “judgment proof,” meaning that, even if the bank got the deficiency judgment, it could not be enforced or collected.
And when families are made homeless because of the actions of the bank, it may be difficult to get a legitimate judgment against people who can not be reasonably located to be served with court documents. Few former homeowners leave a forwarding address when the move out of a property before eviction, being completely aware of the fact that their lives would be much simpler without further correspondence from the mortgage company. Since the bank suing for the deficiency is obviously also responsible for the fact that the defendants may not have a current address, former homeowners later claiming the lawsuit was never properly served is not a difficult argument to make.
Also, an important point for homeowners to remember is that, if they put down less than 20% of the purchase price, they are probably paying Private Mortgage Insurance (PMI). Even though the homeowners themselves pay the PMI premium on a monthly basis, this kind of policy insures the bank against the default of the loan, and if an owner goes into foreclosure, the insurance will pay the bank the amount of the mortgage left unpaid. Therefore, if a mortgage is covered with PMI, the bank can collect the insurance on the policy they forced on the borrowers instead of seek a deficiency judgment. Citifinancial itself states that, “If you have Private mortgage insurance, a lender can use this money to offset any losses instead of getting a deficiency judgment.”
Now, investors and second home owners who have substantial assets may be at higher risk of being sued than first homeowners. But this is a very recent 2008 development. Robert Levin from Fannie Mae, announcing changes in the first quarter of 2008, stated that, “We are pursuing deficiency judgment against investors and second home borrowers.” Will this be the case in all second home or investment home foreclosures by Fannie Mae? Only time will tell, but there is still little evidence that any deficiency judgments have been pursued thus far, and the nationalization of the mortgage giants will probably change this plan.
In fact, with the nationalization of the banking system and the Government Sponsored Enterprises, it is highly unlikely that any borrower whose loan that is taken over by the government will be subject to a deficiency judgment lawsuit. Instead, the politicians, in order to soften the backlash against the $700 billion bank bailout and to reassure constituents, will push much harder for loan balance writedowns, interest rate adjustments, and other loan modifications to make mortgage more affordable for borrowers.
So, it seems that deficiency judgments have been and will remain quite rare in the mortgage industry. Having extenuating circumstances (lots of land, numerous liquid assets, clear evidence of mortgage fraud) may put certain owners in danger, but the vast majority who took out loans and then faced an economic hardship will continue to have little to worry about from their bank after losing a home. There are just too many problems, from serving the lawsuit, to collecting on it, to bad PR, for the banks to think it is worth the extra bother.
Posted in Bankhome Loans Articles | 
Tags: Deficiency, Foreclosure, Judgments, Really | 
No Comments »
Buying A Home After Bankruptcy – Get A Mortgage Loan After Bankruptcy
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.
After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.
If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.
There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:
1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.
2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.
3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.
Mortgage loans after bankruptcy are getting to be much easier to obtain these days. If you would like to see a list of our preferred bad credit mortgage lenders, visit this page: After
Bankruptcy Mortgage Lenders.
Foreclosure Hardship Letter – Sample For Bank Loss Mitigation Department
A foreclosure hardship letter is an integral part of Loan Modification or Short Sale package. When homeowners are facing foreclosure, these documents are submitted to the Loss Mitigation Department of the mortgage lender. Loan modifications are offered to homeowners who have the financial ability to become current on delinquent payments. Short sales are offered to homeowners who do not have the financial means to pay their mortgage payments. Lenders who accept short sales offers agree to accept less than is owed on the mortgage note.
For most people, the foreclosure hardship letter is the most difficult aspect of loan modification or short sale procedures. It can be excruciatingly painful to express on paper the circumstances which caused the homeowner to fall behind on their mortgage payments. Many people are intimidated by the hardship letter. They don’t know what to say or how to format the letter so it is easy to read and understand.
Keep in mind, foreclosures and short sales are handled by the Loss Mitigation Department of your lender. Employees of this department are referred to as Loss Mitigators. Before you can submit a loan modification or short sale package, you must receive approval from the Loss Mitigator assigned to your account.
More than likely, you will have ample opportunities to personally speak to the Loss Mitigator handling your account. These individuals deal with homeowners in financial distress on a daily basis. Take advantage of building a relationship with your assigned mitigator and ask questions to help you better understand what your mitigator expects. Loss mitigators can make or break your deal, so always treat them with respect and provide them the information they request.
Your foreclosure hardship letter will be read by your personal loss mitigator. Realize these individuals receive dozens of hardship letters daily. Therefore, it is crucial to keep your letter short and to the point, while covering pertinent facts.
When composing your hardship letter you can either write it by hand or type it. If your handwriting is illegible, it is best to type the letter or have someone else write it for you. The foreclosure hardship letter is one of the most crucial elements of your loan modification or short sale package, so take every precaution to ensure the Loss Mitigator can easily read and understand it.
Real estate experts recommend using a business format for the foreclosure hardship letter. This involves placing your name, address, city, zip and phone number at the top of the page. Leave two spaces, then write the name of your loss mitigator, name of your mortgage lender, along with their mailing address. The next line should include the current date. Place your loan number underneath the date. The body of the letter should be between four and six paragraphs. Close the letter by signing and printing your name.
The following is an example of the foreclosure hardship letter. You can make adjustments to the text depending on if you are seeking a loan modification or short sale arrangement.
Bob and Jane Smith
123 Any Street
Your City, State 12345
Tom Jones
USA Lender
123 Anywhere Avenue, Suite A
Anytown, State 12345
Current Date
RE: Your Loan Number (include either Loan Modification or Short Sale)
Dear Mr. Jones,
We are contacting you today to request a (loan modification or short sale) for our property located at (insert address, city, state). We appreciate the opportunity to explain the circumstances which have caused us to fall behind 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.
The reason we have become delinquent in our mortgage payments is (explain the reason here). At this time we do not have enough income to pay our regular monthly mortgage payment. We are concerned that we are falling further behind and will not be able to pay what is owed. We have every intention of paying what is owed, but at this time do not know how to accomplish this. Therefore, we are turning to you for 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 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.
Respectfully yours,
Print name of Borrower(s)
Signature of Borrower(s)
Loan #
Address
Phone
email address (if applicable)
It is imperative to send the foreclosure hardship letter via certified mail with a return receipt requested. This will ensure you have proof you sent the letter. The return receipt must be signed by someone at the lending institution and the signature card will be returned to you in the mail.
Posted in Bankhome Loans Articles | Tags: Department, Foreclosure, Hardship, Letter, Mitigation, Sample | No Comments »
How to Get a $5000 Personal Loan From a Bank
People want to secure loans for many reasons. Home improvements, schooling, the list can go on and on. There are things that you need to know when you set out to get a $5000 personal loan from a bank.
Banks are out there to make money. They want to turn over a profit like any other business. This can prove to be a bad thing for some people that are looking to borrow money from them. They can make it a very unnerving ordeal to say the least. The credit report that they run on you is one of the most important things that can be done that will deem whether or not you will get the loan you want.
Your employment is also of huge importance to a bank as they want to make sure that the risk they are taking on lending the money to you is low. Unemployed people do not get loans generally. The banks cannot see how the money will be paid back to them. So if you are in this situation I suggest you try a different route than a bank as this will be time that you and the bank both waste.
Other debts that you have are another thing that a bank will look into before they will give you a $5000 personal loan. There are guidelines that they are made to follow and the amount of debt load that you have has to fall within them to be able to qualify for the money. This is also another way that the bank can see if you can afford the payments that you will have to make to repay the amount that you borrow from them.
Many banks want collateral from anyone that borrows money from them. Anything that may be of value can be used as collateral. Cars, antiques, are just a few things that can be used in this manner. This provides the bank with a bit of security that you will pay them back.
Sample Hardship Letter For Mortgage Modification
Date
Your Name
Your address:
Your Bank’s Name
Loan number: 123456789
To Whom It May Concern:
This letter explains the difficult situation which caused me to fall behind on my mortgage payments. I would like to be considered for a loan modification to decrease my payments, fix my interest rate at a lower rate, and recapitalize or forgive the delinquent payments in order to get me caught up and prevent future delinquency. My main goal is to keep my home for the long term.
I work for (employer) as a (job title). (If more than one borrower, include this information for each co-signer/borrower.) I (we) hit hard times recently and fell behind on my (our) payments because (explain your reason here). Since that time, (give the reason hardship is over or improving). My (our) income is now (stabilized, improving, et cetera).
Despite my (our) recent hardship, it is my (our) full intention to pay what I (we) owe. Now that things are (improving, stabilized, et cetera), I (we) would appreciate your consideration to lower my (our) payments, help us get caught back up, and fix the interest rate so that I (we) can afford to stay in my (our) home for the long term.
I (We) really hope you will work with me (us) on this. Please help me (us) come up with a solution quickly to resolve the current delinquencies and prevent problems down the road.
Sincerely,
(Your Signature)
(Your Name)
Additional Thoughts on Hardship Letters
Writing a good hardship letter is possibly the single most important factor in whether a loan modification application gets approved or not. State your case by answering the following questions:
What kind of modification would you (or the borrower, if you’re a third party loan mod consultant) like?
Why did you (they) fall behind?
Why is your (their) situation is stabilized or better now?
Remember to keep the tone fairly positive, which can be difficult given the nature of the subject you’re writing about. Make it seem as though you are a solid borrower who simply happened to hit a bump in the road, and that a modification will be just the thing to make everything right again.
Keep the letter succinct. Long, excuse-filled letters can end up getting skimmed or ignored by the bank’s loss MIT department. Keep it to one page. If the letter extends into multiple pages, go back and edit all but the most important facts. Don’t get too emotional in tone either. If you’re a loan modification consultant (i.e. mortgage broker, attorney, realtor, et cetera), keep the voice in first person for the borrower (i.e. I, me, and we), and always have your client sign it personally. A handwritten hardship letter can seem more personal, as it can seem less likely to have come from a third party or a template (even if it did).
Posted in Bankhome Loans Articles | Tags: Hardship, Letter, Modification, Mortgage, Sample | No Comments »
Assistance With a Wells Fargo Home Loan Modification
Thanks to the new home bailout programs from the Government, modifying a home loan with Wells Fargo is now easier for struggling homeowners. This government bailout will give millions of homeowners a chance to reduce their home interest rates and get into a new, lower monthly mortgage payment. Do you know how to apply?
If you have already attempted to modify your home loan with Wells Fargo and have been denied, or are still awaiting a reply, you should reapply using Obama’s “Making Home Affordable” plan. A lot of homeowners can take advantage of this plan and would have a chance at receiving:
- Interest rates reduced to as low as 2%
- Mortgage length extended for up to a 40 year period
- Portions of the principal balance may be deferred
These options may be combined in order for the homeowners monthly mortgage payment to not exceed 31% of their gross monthly income, which is what Obama’s plan calls for. A lot of homeowners pay 50% or more of their income towards their home every month. Another benefit is that a Wells Fargo home loan modification using the Government bailout plan offers all the traditional refinance and modification options, without the negotiation or added fees and hassle. The best thing you can do to help yourself is make sure that your mortgage modification applications are all filled out completely and in full.
It should also be remembered that there is no costs associated with this home refinance stimulus plan and also that free mortgage and debt counseling is available from the HUD website. These professional mortgage and debt counselors will assist you in filling your paper work and applying for the correct type of loan modification or refinance package that is right for you. They will increase your chances of being approved due to their experience and professional knowledge.
If getting a home mortgage modification from Wells Fargo make sure you do some basic research and come prepared. It is not hard to get all your paperwork lined up and corrected in order to streamline the modification process, and increase your chances of being approved. Look into modifying your Wells Fargo home loan today and see how much potential savings there is to be had.
Real Estate Investing – Foreclosures
Real Estate Investing in Foreclosures has increased with a meteoric rate all across the world and especially in America. The growth of this phenomenon in this part of the world is largely owed to the investor’s search for good bargains in the realty market.
With the soaring mortgage rates witnessed in the current times, more and more number of homeowners are finding it difficult, to keep up with their mortgage expenses. What is more terrible is the fact that no mortgage firm will offer them refinancing naturally, due to precarious credit standings. Hence, the foreclosures have shoot up in numbers. Real estate investing in foreclosures is considered as an enormous opportunity for investors.
Opportunities to the investors investing in foreclosures are perhaps incredible. This is because foreclosure is done when the owner of the house fails to abide by the agreement amongst the borrower and lender, namely a mortgage. The borrower defaults the payment against the property borrowed. Hence, foreclosure is carried out wherein the banks or the secured creditors repossess and sell the house at a foreclosure sale / auction.
Any homeowner surrounded with the situation of foreclosure, becomes more receptive to the investor buying the home in order to get rescued from the inevitable. The real estate investor investing in foreclosures can either take the responsibility to make the payments, or just purchase the house at a cost that covers the owed amount of mortgage.
In reality, the owner of the home stands to loose the equity and the down payment in the property, but still the owner can secure the credit rating as well as get the opportunity to buy a new home after the finances are cleared up.
Real estate investing in foreclosures is a good avenue for the investor, but it also carries some amount of risk, and generally includes substantial investment of cash. Most foreclosed properties demand for repairs since, if someone is not able to compensate for the mortgage for several months, it is obviously not expected from such person to keep the house in good condition. Hence, the investment is more in terms of both money and time to get the house back for selling in market.
A real estate investor desiring to take up the risk has two good options to get the best bargain. First is to seek for the home owners on the verge of losing their property. Since, such individuals more often than not negotiate on the investor’s term. This enables the investor to buy the property at a decreased price.
Second alternative suggests visiting the foreclosure home auctions. This alternative is perhaps not suitable for the 1st time investors in foreclosed property. It requires lot of experience and knowledge in the real estate trends to do so. One major consideration of going this way is that the investor will not be able to scrutinize the property but will require paying instantly. However, since banks abide by the state and federal laws, there is a lower risk of scamming the investor at the time of foreclosure home auction.
Chase Loan Modification Process
Homeowners having difficulty making their loan payments may be able to get the help they need by learning about the Chase loan modification process. Borrowers who are facing financial hardship and are facing payment default need to find out about the alternatives available to them to avoid foreclosure. Here are some of your options:
Repayment Plan: If you have a temporary reduction in your income or a temporary financial hardship, Chase may offer you a repayment plan to bring your loan current. This plan will allow you to make up the missed payments by paying a portion of the past due amount each month in addition to your normal payment.
FHA Loan-Partial Claim: A loan is issued by the FHA insurance fund to pay the past due amount and bring your loan current. You sign a promissory note for the delinquent amount, however no interest or payments on due on this loan until the home is sold or refinanced. Your payments must be at least 4 months in arrears but no more than 12 months behind.
Chase loan modification: Borrowers who have experienced a financial hardship due to reduction in income, medical expenses, death in family, or a legitimate increase in expenses may qualify for a loan modification.
The Chase loan modification process requires the homeowner to submit an application for loan modification that includes certain documentation that will be reviewed before a loan workout option is recommended. The bank needs to have a good understanding of your current financial situation. Below is a list of some of the information required by Chase:
Hardship Letter outlining the events which have caused the difficulty
Financial Statement
Pay check stubs, W2, tax returns
Bank statements
It is important that the loan modification forms are completed accurately and correctly by the homeowner so that they will have a better chance of qualify for assistance. a clear understanding of what is required by the lender during the loan modification process can make the difference between an approval or denial. A successful loan modification results in a lower, affordable and sustainable monthly payment for the homeowner. A loan modification my include one or more of the following options to arrive at a new affordable monthly payment:
Interest rate reduction
Longer loan term ie: 40 years
Principle forgiveness to restore lost equity
IMPORTANT-Don’t wait until it’s too late to ask for help. The Chase modification process takes some time, so borrowers facing payment default should start now to learn as much as they can about loan modifications. Not all borrowers will qualify, so it is important to learn about the guidelines for acceptance before beginning the loan modification process. Even the most deserving homeowner will be declined if the paperwork is not completed properly. Now is the time to get educated and be prepared to save your home with a loan modification.
ICICI Bank Home Loan Interest Rate 2010 and Application Requirements
ICICI Bank is the largest private sector bank in India and it offers home loans for the applicants. It has introduced some home loan products like “Maxmoney Home Loans“, “Smart Fix Loans” etc. I will give more details on the same products.
ICICI Maxmoney Home Loans:
Higher Loan amount eligibility i.e. 30% higher than current eligibility.
Lower Initial Installment.
Installment amount gets stepped up.
The bank offers fixed rates or floating interest rates or the mix of both. The normal rate for housing loans is 12.75%. But it may vary according to the loan amount and the loan repayment period.
ICICI Smartfix Home Loans:
This product has the benefit of both the fixed interest rates as well as floating interest rates. For the first three years the applicant will have fixed interest rates and from the fourth year he has to bear the prevailing floating interest rates.
ICICI Bank Home Improvement Loans:
This loan is offered for the renovation of the old homes. The amount sanctioned is up to 50 lakhs and the time period of repayment may vary up to 15 years.
The sanctioned amount covers 70% of the total cost involved for home improvement.
The rates is similar to that of housing loans with the normal rates of 12.75%. You have to check the latest rates from the bank.
Application Requirements:
The minimum age of the applicant should be 21 years.
The applicant should be a salary holder or self employed with regular income. He should submit a proof for his regular income.
The applicant should be a Indian. If he is an NRI, then he should be a salary holder.