Loan Modification

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 ocassionally can be used before borrowers reach this stage.

A Fresh Start

Loan Modifications can helps borrowers change their note and get chance to start over.
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 typically 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.

Lenders Negotiate

When borrowers have financial difficulties and don’t have alternative financing options, lenders are open to negotiate. 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.

If you would like to see if we can help then click here to apply now.