subject: Mortgage Woes - How You Can Put A Stop To Them [print this page] "Mortgage modification is simply the process of changing the terms of an existing mortgage to make it more affordable. People apply for this process if they are already behind with their payments and if they are incapable of paying the remaining amount because of their financial situation.
For those who are in the same circumstance, call your loan provider and explain your situation to them. They can help you solve your problem. Solutions like reduction of the interest rate or the principal amount will be suggested to you. The term of the loan can also be lengthened. However, only those loans secured before January 1, 2009 are qualified for this program. For one to be able to apply and qualify for this program, he needs to submit all the necessary documents.
The interests of both the loan providers and the mortgagees are protected by this program because it is designed to avoid confusion. This came about when the number of candidates for foreclosure in the US drastically increased in number. It is to be carried out in collaboration with banks, credit unions, and loan providers. A standard procedure has been drafted for these entities to use granting modification.
Your current situation is important when applying for this program. You have to decide which terms you want modified to make the loan generally more affordable for you. Your loan provider will provide you with all your options since you are not expected to be familiar with these terms. However, your eligibility will still be assessed before you can have the modification.
Loan modification terms and procedures are also provided in order for people to follow certain guidelines. This is because the government wants to assure that the program will be carried out uniformly. It includes empowering service providers to set a standard for borrowers as well as parameters for helping the applicants. Lenders and borrowers alike enjoy rewards by the government. This way, everyone shall cooperate accordingly with the plan. Lenders and consumers are protected against fraudulent schemes that people do in order to manipulate the program and defraud the government.
Today, those who are not aware about this program will tend to lose hope when they encounter problems regarding their mortgage. To prevent qualified borrowers from losing their homes, this modification program was developed to carry out this goal.
by: Greg Pierce.
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