MORTGAGE MODIFICATION LOANS INFORMATION

Please see information on Mortgage Modification Loans below.

        

Mortgage Modification Loans

Below you can find basic information and the answers to your FAQs on Loan Modification.

What is a Loan Modification?

Modification loans are a change to the terms of your home loan. This change can be to one or more of your loan terms, and is permanent. The process is designed to reinstate your loan if you are delinquent on payments or be used as a precautionary method if you foresee difficulties on your loan payments in future.

Generally a loan modification involves changing your interest rate, lengthening your loan term, waiving your fees and a line drawn under past delinquent payments.

The modification is an agreement between the borrower and the lender. The aim is to give the borrower lower monthly payments and the lender a less costly solution than handing out a foreclosure.

Who Can Get a Loan Modification?

Loan modifications, which are supported by the US Department of Treasury, are for people who have a high mortgage debt or people who are at risk of default. So if you are facing financial hardship or even eviction from your property, a loan modification might be a sensible solution.

You don't even have to be in trouble now even people who foresee that they will fall behind on their mortgage can apply for a loan modification.

How Can I Get A Modification?

You cannot arrange a loan modification on your own. Generally you will need to contact your bank or mortgage lender and honestly tell them of your situation. In the majority of cases, lenders and banks look favorably on loan modifications, because they are less costly than arranging a default or foreclosure.

You can also seek legal advice from a lawyer (estate attorney) who can act as 'middleman' between you and the lender. Their professional experience can help to make the process easier. However, they may charge a fee for their service.

Is a Loan Modification like a Debt Consolidation?

No. A loan modification is not a debt consolidation or refinancing plan. A loan modification allows your existing loan to be updated / modified. For people who have been refused a traditional refinancing plan a loan modification is a great alternative.

Will the Lender Accept This?

Most likely, yes. Banks and lenders want to avoid foreclosures almost as much as you do, because they lose money in that process. A loan modification is a much more appealing alternative for them.

What is Foreclosure?

Foreclosure is what happens when a lender repossesses your property in other words, they are reclaiming the home on which you laid your mortgage and have been unable to meet payments. You are evicted and lose all possession or equity on the home. Each state has its own rules and legal timeframe for a foreclosure, but it is the one process that a homeowner will want to avoid.

What are the Advantages of Loan Modification?

There are plenty of advantages to a loan modification...

  • Give you the chance to ease your finances
  • Lower interest/monthly payments
  • Usually welcomed by lender
  • Better relationship with the lender
  • Avoid foreclosure

By getting a loan modification, you are able to avoid being kicked out of your home an agreement is reached between you and the lender leaving you to look forward to a better future.

What are the Disadvantages of Loan Modification?

The only disadvantages that a loan modification could be administration fees charged by legal teams / attorneys that you use to achieve an easier process. Also if you have waited too long to act on your late payments, you may have your application for a loan modification refused.

The best thing to do if you are in jeopardy is to act now. This could stop foreclosure and ease up your financial situation and allow you to keep your home!

        


Please Note: www.whichwaytopayusa.com is not authorised to give advice under provincial and federal regulations.

All of the Links, textural data, and image data is provided for informational purposes only.

Click here to view our Disclaimer

News Charts News and Charts

Serving For our Country is a fantastic honour , Military Loans are now available for you .
31 August 2018
Which Way To Pay
Allowing the People fighting on our front line something back. Military Loans
Read More >>
Looking for a card with no debt attached ? Pre paid card is the perfect answer to your question . This is now the way forward for spending .
30 August 2016
Which Way To Pay
Pre paid cards are being seen as the most sensible way of spending on a card , as no debt is occurred .
Read More >>
New Product Range: Secured Credit Cards
13 October 2015
Which Way To Pay
Check Out our latest new product range added to Which Way To Pay: Secured Credit Cards
Read More >>