Loan Modification To Stop Foreclosure
How is the current US economy crisis effecting you? Are you a part of the expected 9 million people who will lose their home to foreclosure by 2012? If you currently are struggling to make your monthly mortgage payment, you clearly are not alone. It is imperative to educate yourself and learn what options you have if you are presently in foreclosure or if foreclosure is imminent.
A loan modification is an agreement between a lender (bank) and a borrower (you) to change the terms of a mortgage loan in order to make the payments more suitable to the borrowers financial position. It is also known as a loan workout.
The specific terms of the loan that can be changed include reducing the interest rate, changing from an adjustable interest rate to a fixed interest rate, extending the term of the loan and also reducing the principle balance. Given these changes to a loan, you can clearly see why a loan modification is beneficial to you.
You can likely qualify for a loan modification if you are facing a financial hardship and/or you can no longer afford your monthly payments. Your loan must have originated before January of 2009 and your loan must be less than $729,000.
Please be aware the loan modification process is confusing. Negotiations center on what is best for the bank, not you. Also, the bank is represented to ensure their best interests, why shouldn’t you be? Because of this, we recommend you seek out a professional loan modification company to get you the best terms. One that is reputable and experienced. The cost of having an expert represent you can be recouped by the money saved in getting you into a better mortgage.
A loan modification can save your home and your credit. This is a lot at stake so always proceed with caution. Educate yourself.