Are You Falling Behind On Your Mortgage - Loan Modification Can Help
If you have missed a mortgage payment or if you are more than 60 days past due
, you may be heading for troublesome waters and even a possible foreclosure. The delay in making the payment will reflect badly on your credit score rendering you ineligible for refinancing. In such a situation home loan modification may be the only way to save your house.
Today most lending institutions are not keen on foreclosure simply because they have to spend on the foreclosure proceedings and there are no buyers in the market. So essentially even after foreclosing the house they cannot recover their dues. On the other hand a mortgage modification is a 'win-win' solution for both the lender and the borrower. The lending institution can be reasonably sure that they will be able to recover most of their principle amount after granting the home loan modification and the borrower can be sure that the monthly mortgage payment will be more affordable.
When you request your bank to grant you a mortgage modification you are essentially stating that you are in financial trouble and so you will not be able to meet the monthly mortgage payments unless the amount is brought down to a more affordable level.
You will have to submit a home loan modification hardship letter along with other documents that will help the bank to confirm the veracity of your claims. If the bank feels that yours is a genuine case they may grant you a mortgage modification. There are two ways in which you could reduce the monthly payment either by bringing down the interest rate or by increasing the tenure of the loan. In certain cases the bank may also agree to write off a certain amount from the principle. Share:
A mortgage modification is a far more suitable option as compared to refinancing because it can be done at no extra cost and your credit score does not play a determining role in the home loan modification process. Not only will you be able to retain your home through a mortgage modification but you will also be able to cash in on the benefits of a rising real estate market in the future.
If you are considering mortgage modification, you should really look into 60 minute home loan modification. It is a great resource that contains a lot of important information about the process of applying for a mortgage modification. It was created by a loan modification expert who has modified numerous home loans. The kit included a professional hardship letter outline, and one on one support in case you have any questions. It is a must have for homeowners.