The Benefits Of Loan Modification
With no end to the economic crisis in sight, the problem of foreclosure is gainingepidemic proportions with the number of home owners who cannot keep up with their mortgage payments increasing each day, mortgage modification is turning into an increasingly popular option. Home loan modification is quiet simply a permanent agreement between the lender and the borrower that helps the borrower to retain the house through adjustments in the monthly mortgage payments.
Now there are several advantages associated with a loan modification like a lower interest rate, partial deferment of the payment, the potential to reduce the principle balance of the mortgage and also the possibility to extend the loan life up to 40 years.
If you do secure a home loan modification your foreclosure will be put on hold for 30 days while the lender and you try to work out the terms of the mortgage modification. The program has been made possible by the joint partnership of the government and lending institutions like Bank of America, Chase Home Finance, Countrywide, Citi mortgage, Wells Fargo and Countrywide.
The primary benefit of the home loan modification program is of course the fact that you get to retain your home while making your mortgage payments more affordable. Also if you secure a mortgage modification you will have the ability to sell your home and make some money once the real estate market rebounds.
Also by opting for home loan modification you will be able to stop the endless harassment from loan collecting agents and legal hassles.
There are two ways to secure a mortgage modification you can either talk to your lender directly or you could take the help of a firm that deals in the procurement of home loan modifications. This firm will negotiate the terms of the mortgage modification on your behalf but they can be quite expensive. On the other hand negotiating with your lender on your own for a home loan modification will not only be cheaper but it will also increase your chances of securing the mortgage modification.
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.
by: David Pit