Itau, Bradesco Bet $14 Billion on Brazil Mortgage Market
A modification is very similar to a traditional refinance and ultimately can accomplish the same thing. The difference being those that have their loans modified are unable to qualify for a refinance because of a number of things including a low credit score, missed payments, or the home is close to being sold on the steps of the courthouse. The modification request is an attempt by the homeowner to tackle any outstanding past due payments, as well as request a lower, more affordable monthly payment moving forward. There are no closing costs as in a refinance, and there is no closing as when you bought the property. Once the modification details are hammered out by the lender, they will send you paperwork to sign and send back. VERY IMPORTANT TO NOTE, when you send the paperwork back, this only guarantees you a 3-month trial period of the new terms and/or payment. You must make your payments on time with no problems for the 3 months before the terms become permanent. If you miss a usda direct financing payment or are late making your payment within the trial period, all bets are off; the mortgage goes right back to the status it was before and you are then again at risk of losing your home.
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Itau Unibanco Holding SA and Banco Bradesco SA increased their home-loan portfolios by 32 percent each in the second quarter from a year earlier to 32.4 billion reais ($13.6 billion). Thats more than double what they had forecast for growth of all types of credit this year. The two Sao Paulo-based banks did this while the average mortgage rate fell to 11.94 percent in June from 12.91 percent in January, according to Brazils central bank.
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