Prevent Foreclosures

Posts Tagged ‘loan modification prevent foreclosure’

Question: With all the help available to prevent foreclosure, how can I take advantage?

My mortgage rate is fixed and I have no trouble making my payment but is there something I can take advantage of to make my mortgage terms even better.

Answer: Probably not unless you start missing payments or are heading towards a financial hardship. The best you might be able to do now with your current loan is call the bank and ask them what programs they could offer if you were expecting to start missing payments.

But anything they do to "help" you would probably do more to help the bank later on. If you can put off making some payments now, you might just end up having to pay back more later on as interest accrues.

There's very little chance they will modify the terms of the loan to make it more affordable for you. If you're on top of the payments, then they aren't in danger of losing money on the loan right now.

If you want a lower rate, you might be better off trying to get a refinance. That would help your credit, as well, by paying off one large mortgage loan with no late payments. But trying to work with your current lender just to get a lower rate or payments might result in unintended consequences that cost you more down the road.

Hope that helps. Good luck.

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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