Mortgage Loan Modification – How to Avoid Foreclosing on Your Home
We have a terrible problem in the housing market, affecting 30 million home-owners in the USA. More and more people are losing their jobs, or having their salaries reduced. Increasing numbers of homeowners are, through no fault of their own, falling in arrears with their car, credit cards or mortgage payments. These homeowners are in imminent danger of defaulting on their mortgage loan and having their home go into foreclosure. But there is a solution, and many home owners are not even aware of this as an option: loan modification – sometimes referred to as loan mod.
Mortgage loan modification doesn’t entail refinancing, so there is no credit check needed. It isn’t debt consolidation. It is renegotiating the existing loan to achieve a reduction in interest rate and, under special circumstances, a lowering in loan principal. And there is no increasing the term of the loan. A new, reduced, monthly payment is arrived at which is affordable to the homeowner. Loan modification is a true win-win situation for all parties. For the home owner it often means the difference between keeping or losing their home. For the banks, it could signify the difference between staying afloat or sinking.
There is no reason why home-owners can not arrange their own loan modification by contacting the loss mitigation department at their bank. But it seriously isn’t recommended – the banks will often offer only a slight reduction in interst rate, or no reduction at all. Much better to engage the services of an experienced loan modification firm, which has its own team of loan modification lawyers, who do nothing but meet with banks all day long and know how to accomplish a substantial lowering. Doing it alone is akin to representing yourself at a court of law – it’s seriously not recommended. A reputable mortgage loan modification company can achieve a 30% to 50% reduction in interest without extending the length of time of the loan. It’s well worth whatever fee they may charge to achieve this.
This entry was posted on Tuesday, January 27th, 2009 at 6:08 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.