You may have been hearing more and more about this and with good reason. As millions of homeowners have become saddled with adjustable rate mortgages and no longer have the ability to refinance into a new loan, there may be only one solution for these stressed borrowers: loan modification. What does it mean? It is when the lender of the note modifies the existing mortgage to make it more reasonable, the interest rate, term, balance, late fee maybe modified by the lender. Until recently this was only done for delinquent borrowers, however with such extraordinary circumstances it will now be used before borrowers reach this stage. This is often the right choice for borrowers looking to avoid foreclosure.
A Fresh Start
Loan Modification helps borrowers change their note and have a chance to start over as accounts are brought to date right away.
By modifying your loan you change your interest rate and payments to change to a fixed rate that will be more practical for borrowers. You won’t have to pay new closing costs and fees, but if you refinance you will be responsible for the normal closing costs, taxes and fees.
When borrowers have financial difficulties and don’t have alternative financing options, lenders are open to negotiate. We will demonstrate to lenders why it is in their interest to work out a new arrangement with you. Lenders will often be willing to reduce the interest rate, monthly payment amounts and / or loan term to allow you to avoid foreclosure.
Do Lenders want to Foreclose on my house?
No! It is very common for lenders to lose money on foreclosures. This is worse if they are forced to claim ownership of a property. In areas hit hardest by foreclosures, lenders lose even more. This is good news for you since lenders and their investors do not want to lose on your loan.
But unfortunately you are often just a number in their spreadsheet. While you can negotiate on your own behalf often times you may hear that there is nothing you can do to modify your loan, however this isn’t always true. By using our expertise we can often help turn no into yes