What Is A Mortgage
Loan Modification?
A loan modification
is a restructured agreement between the borrower and mortgage lender
with revised terms and interest rates. Mortgage loan modifications
are long-term solutions for borrowers who are considering a
foreclosure or bankruptcy. Banks typically agree to modify a
mortgage note when they believe the borrower never has a chance
repay the current loan with their existing circumstances. Loan
modifications are primarily used as a tool to stop a looming
foreclosure.
A large number of
clients will find themselves using a Loan Modification Plan to stop
foreclosure. If you can currently make your regular payment, but you
can't catch up with the past-due amount, we will negotiate with your
lender to fold any past-due amounts, including interest and escrow,
into the unpaid principal balance. This new amount will be
re-amortized over a new period of time.
Or, if you are unable
to make payments at this rate, we will negotiate with your lender to
extend your loan for a longer period of time, modifying the loan
amount to a more affordable level.
In some cases if you
are upside down on your mortgage the bank may reduce how much you
owe on the the mortgage bringing your payments down and also your
interest rate to a more affordable term. Most lenders are offering
rates between 2% and 7.5% to get the mortgagee back on the right
track of home ownership.
A Loan Modification
will change your existing mortgage note and give you a fresh new
start in managing your home. Your account will be brought up to date
immediately.
What are the foreclosure alternatives for borrowers who are
having trouble making their payments? What actions should a borrower
take to pursue these alternatives?
There are several alternatives for a borrower that is having trouble
making payments. If you are having difficulty making your mortgage
payments, contact your lender immediately, to pursue options
available. Some of the alternatives available include:
Pre-Foreclosure Sale: "Listing your Property for Sale." If
you believe that you will continue to have difficulty making your
mortgage and real estate tax payments, and that your hardship or
reduced income is permanent, you may want to consider listing your
property for sale. Housing values in your area may have declined
which may result in an offer to purchase that is less than the total
debt due on the property. In some instances, Your lender may accept
less than the amount we are owed, but in order to be considered for
this option, you must submit a package of financial information
along with information about the proposed sale.
Call Us Today! We're Here To Help!
800-705-5442
*also visit us at
www.avoidforeclosure.pro
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