subject: What Not To Expect In A Loan Modification [print this page] While it is true that a loan modification can give a person a number of different benefits for handling one's mortgage loan the truth about this is that some things cannot be handled in a modification. Here is a look at a couple of things that a person should not expect to find or see when getting into a loan modification. A loan modification may not work with a principal reduction that involves having some of the principal that a person owes on the loan. The principal reduction will cause a person to have a much easier time with paying off a mortgage loan but this is something that is hardly ever given out in any loan modifications. There is always the possibility that a principal reduction can work. However, it is not going to be likely that a person will end up getting into a plan like this for having an easier time with paying off a loan. The only type of debt that can work with a loan modification will be something that relates to the mortgage loan itself. A person applying for a loan modification should not expect the modification to work for any type of debt outside of the debts that are used on one's home. This is regardless of where a person's other debts were received from in the past. Another part of a loan modification that should not be expected involves getting short term help before a modification can be agreed. It can take a good period of time for a person to get into a loan modification. The approval period will not involve the terms of a person's loan being temporarily changed before the modification can be made official. The foreclosure process involved can stop though. It is best to not expect the terms of the modification to change immediately for the short term before the modification can become official though. Also, multiple modifications cannot be handled in a loan modification. The use of a loan modification can help to get a person to work on one's first mortgage to the point where it can be easily paid off. However, the modification is going to work to where it can only be handled once in the life of the loan. There is no way how a second loan modification can be applied on the same loan. A loan modification can work for a completely separate loan. This is provided that the loan is independent from a loan that one had gotten modified in the past and is also for a different property. Anything that is linked to the original loan that had been modified in the past cannot be handled. These are all things that a person should think about when it comes to a loan modification. The use of a modification cannot work in the event that a person has already gotten a modification on a home. Also, no short term help can be easily received. A principal reduction cannot be guaranteed either.
What Not To Expect In A Loan Modification
By: melvillejackson
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