Loan Modification
YOU MAY QUALIFY FOR A LOAN MODIFICATION THAT CAN CHANGE THE TERMS OF YOUR LOAN, TO A PAYMENT YOU CAN AFFORD.
WHAT IS A LOAN MODIFICATION?
A Loan Modification is an agreement between a lender and a borrower to change the original terms of a loan in order to make payments more affordable. Modifications to a home loan may include one or several of the following changes: lower interest rate, a reduction in the principal balance, lower monthly payment, and the terms for repayment of the mortgage may be extended.
BENEFITS OF A LOAN MODIFICATION
There are many reasons that borrowers may want to consider a loan modification. For homeowners that want to remain in their homes without seriously damaging their credit, a loan modification make the most sense. A modification helps resolve the homeowner's financial situation so that he can afford the mortgage. It is intended to avoid a possible foreclosure and ensure that the homeowner can handle the new monthly payment on a long term basis.
HOW DO YOU QUALIFY FOR A LOAN MODIFICATION?
Any homeowner that has experienced a hardship that prevents the homeowner from fulfilling their monthly obligations may qualify. Every situation is unique, however, some of the generally accepted hardships include, loss of income, late on their mortgage, facing foreclosure, medical issues, divorce or separation, or anyone who has had any other form of legitimate financial hardship that can be proved may be eligible for a loan modification.
