Are Loans to Stop Foreclosure Better than Loan Modifications?

Author: Hector Milla

Author: Hector Milla

As the state of the economy continues to steadily decline, the amount of homeowners who are losing their homes to foreclosure is on the rise. If your family has been heavily affected by the decline in the economy, and you feel there is no way to avoid foreclosure, you are wrong. There is still hope. There are two types of loans that can help homeowners who are in your situation. The types of loans are loan modifications and loans to stop foreclosure. Hector Milla Editor of the "Best Mortgage Loan Modification" website -- http://www.BestMortgageLoanModification.net -- pointed out; A loan modification is when a bank agrees to revisit your initial loan contract, and make changes. The purpose of a loan modification is to substantially lower the monthly payment that is due. It may seem odd that banks are so willing to hand out loan modifications, but it truly works in their favor. A loan modification allows you to keep your home, which allows you to continue paying your loan off to the bank The bank only has one goal, to get their money back and to eventually make a profit off of you. If they allowed your home to foreclose, they would lose a large amount of money. It is far more profitable for the banks to work with you, rather than against you. Foreclosure prevention loans are given to homeowners who have recently lost their income, or can no longer afford to make the exorbitant monthly loan payments. A foreclosure prevention loan is when the bank agrees to suspend a homeowners monthly payments for a short amount of time, such as three to six months. The payment suspensions are given to allow the homeowner to get back on their feet and get a new stream of income, rather than default on their loan. Which of the two loan options is best for you? Well, the answer is dependent on what the near future holds. If you have a job offer lined up 8 weeks away that pays enough to comfortable cover your current monthly payments, a foreclosure prevention loan seems to be the appropriate choice. However, if you have received a substantial pay cut or have taken on a lower paying permanent job, a loan modification is in your best interest H. Milla added. Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.netAbout the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

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