When Is It Time To Obtain Either A Mortgage Refinance Or Mortgage Modification?

Do you feel as though you're currently drowning because of mortgage payments you are unable to make

? Is mortgage foreclosure looming at your doorstep? Even if you're not currently in default, do you feel as though it is likely that you will default on your mortgage payments soon? If so, you are encouraged to look into obtaining either a mortgage refinance or mortgage modification as quickly as possible.

Many people want to know what the meaning of the term "mortgage refinance" actually means. This is simply a situation in which an individual takes out one mortgage on his or her home in an effort to obtain more manageable mortgage payments by obtaining another mortgage. The purpose, of course, is to enable them to both increase a sagging credit score and to pay off the existing obligation on their home.

Customarily, these modifications occur when market-conditions are favorable toward the borrower. Thus, individuals pursue a new mortgage that is at a lower interest rate. When an individual obtains either a mortgage refinance or mortgage modification, that individual is very likely to accomplish, among other things, the following: (1) decreased monthly mortgage payments; (2) retire the current mortgage loan at a much faster rate; and (3) the individual is now able to tap into their home's equity, resulting in more money in their pockets.

Numerous individuals are walking around today with bad credit. Very often, these individuals miss out on an opportunity to obtain a mortgage refinance for fear that they will be unable to qualify due to that bad credit. If only these individuals understood the reality of the situation, they would understand that bad credit could be restored in a relatively short period of time if they were to obtain mortgage modification. Frequently, this topic is grossly misunderstood. Individuals must realize the value of following a structured plan via a mortgage modification system tailored to meet the individual's needs.

Are you one of those individuals facing foreclosure? If so, you're likely to feel helpless. It is important to remember that the entity that loaned money on your home is certainly displeased with the prospect of foreclosure on your home. It should be readily apparent that any financial institution would be much happier receiving a steady flow of monthly payments than having to deal with a foreclosure on that property. Fortunately, many of these financial institutions have implemented financial assistance programs specifically for those individuals facing foreclosure and "bad credit" ramifications resulting therefrom.

Keep in mind, the mortgage refinance is simply a process whereby the borrower obtains a new loan, one in which the borrower obtains financing at a rate that will enable them to satisfy the previous loan. It is patently clear that this is preferable to a foreclosure. The positive result of this, of course, is that the borrower is able to pay off the existing mortgage in a much more manageable fashion.

Are you able to renegotiate your current mortgage? In almost all instances, the answer is, "Yes." Even in situations in which individuals currently have adjustable-rate mortgages, those individuals are often able to obtain mortgage modifications that enable them to make smaller monthly payments on that mortgage. When this occurs, obviously the individual has a much better monthly cash-flow. Additionally, there are numerous tax-advantages resulting from this strategy.

by: Dr. Tom Rhudy.

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