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Archive for the ‘Loan Modification’ Category

What is Loan Modification?

Loan modification is one of most popular option for homeowners to prevent foreclosure. With loan modification, if you can’t afford your current mortgage, it may be possible to change certain terms of the loan to make it more affordable.

Example of a Loan Modification

For example, a loan modification can change the interest rate on your home loan or the time allowed for repayment of the loan. By modifying the terms of the loan, you can usually lower your monthly mortgage payments to an amount that works for you. Therefore, you will not miss your mortgage payments and will not be in foreclosure. If you are already behind on your mortgage payments, loan modification can help you catch up and therefore avoid being foreclosed on.

Loan Modification Programs

There are multiple loan modification programs available, including the federal government’s Home Affordable Modification Program. These loan modification programs offer different options for borrowers in different situations, but all are meant to help people keep their homes when facing a significant hardship. Banks and mortgage companies usually will work with homeowners to determine whether a loan modification or another solution may work for them.

Loan Modification Help

You can also get help from a loan modification expert below.

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On December 19, 2003, the Servicemembers Civil Relief Act (SCRA) was signed into law by the President of the United States. This section applies to military personnel and it can help them in case of foreclosure. The Federal Housing Administration has lot of information on this Servicemembers Civil Relief Act (SCRA). This law completely rewrites the Soldiers and Sailors Civil Relief Act of 1940, expanding many of the previous law's civil protections.

For example, if you or your spouse is on active military duty, you may qualify for a reduction in your mortgage interest rate. This will lower your house payments. That means, if you currently cannot afford to keep up with your mortgage payments and you will be facing foreclosure pretty soon, then this law can help lower your payments to an affordable level.

Who is eligible for the Servicemembers Civil Relief Act (SCRA)?

The law applies to active duty military personnel who had a home loan prior to enlistment or prior to being ordered to active duty. This includes members of the:

• Army
• Navy
• Marine Corps
• Air Force
• Coast Guard
• and more

Does this Servicemembers Civil Relief Act (SCRA) cover dependents?

In some cases, dependents of servicemembers are covered but not always.

Does the Servicemembers Civil Relief Act (SCRA) protect me against foreclosure?

Although the Servicemembers Civil Relief Act (SCRA) helps prevent foreclosure by lowering mortgage interest rates, it does not totally protect you against foreclosure. However, mortgage lenders cannot foreclose while you are on active duty or within 90 days after military service without court approval. If the mortgage lender can show that your ability to repay the mortgage debt was not affected by your military service, the court may allow them to proceed with the foreclosure process.

There are many ways to prevent foreclosure and loan modification is one way that has helped many homeowners. If you have a mortgage problem and  you are wondering if a home loan modification is the right option for you, then you can get a free, no obligation consultation to find out what exactly a loan modification is, how it can help you and if it is something that is right for your situation.

What is Loan Modification?

Loan modification allows homeowners and lenders to change the terms of a loan in order to help the borrower stay in the home and avoid foreclosure. It is important to note that a loan modification is not a new mortgage. A loan modification is the renegotiation of an existing loan.

With a loan modification, it's possible that a homeowner's:

• interest rate may be decreased
• interest rate may be changed from an adjustable to a fixed rate
• time the borrower has to pay the loan back can be lengthened
• loan principal may be decreased
• late fees may be waived
• second mortgage could be waived or wiped off of the books

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Can loan modification prevent foreclosure