Modify your mortgage using a loan modification.
Home loan modifications can help you get back on track with your mortgage payments. A modification can change your payment schedules, eliminate fees and penalties, and it can help make your monthly mortgage payments more manageable. There are options available for low-income families and homeowners with poor credit too. Learn more on modifying a home loan / mortgage below.
Who provides modifications?
There are many professional companies and government organizations that will handle the process of loan modification for you. They know all of the inside secrets to financing and lending, which will always allow them to get better deals from your mortgage lender or bank. They work with your lender to set up a payment schedule, eliminate late fees, and get your mortgage back on track so that it is current and affordable for you once again.
You probably won’t be able to find these deals and ways to get mortgage help on your own, which is why these companies exist and are out there to help you. Loan modification can lower your interest rate, defer payments, eliminate late fees and penalties, prevent a foreclosure, split up payments, and even cut the amount that you owe by changing the parameters of your mortgage loan.
How does a loan modification work?
The process of mortgage modification is different than a refinancing your loan. You are not getting a new loan, so your current credit score, even if it is low or if you have poor credit, doesn’t affect your eligibility for a loan modification either. If you are behind on your current mortgage bills and if you are even facing foreclosure, you’re a great candidate for this type of mortgage assistance.
Modification advisors are experts at working with your lender to change the details of your mortgage payment and to provide you with affordable alternatives to your old payment. They want to prevent and stop foreclosures, and ensure you keep your home. When you work with the loan modification process, you are not receiving a new loan, but you are simply changing the way that you pay your original loan. Many lenders are even more willing to offer low interest modifications.
Yes, you may think that you can just contact your mortgage company and try to figure out some ways to save your home, lower your payment, or stop a foreclosure all on your own. However, the truth is that you won’t get nearly as many options, and have a smaller chance of success, if you do this. The lender will always look at you as a consumer and do the best to give you a deal that favors you the least.
If you can get any deal. The lender thinks that you’re not as informed about the details of loan modification as a professional would be. By having an experienced professional or counselor who is knowledgeable about your options and the process handle the mortgage modification process for you, you’ll end up with better payment options, less fees (if any), and a more affordable way to pay for your home. you do not need to give up on your dream of home ownership without checking into loan modification to see if your home can be saved.
What about government loan modification programs
The federal government has created several different assistance programs that can provide people with loan modifications. Thee main ones include below
The Hardest Hit Fund was created to provide additional options to residents of those states that have the highest unemployment rates, most significant job losses, and that have higher unemployment. This program is only available in certain parts of the country. Borrowers can qualify for zero interest rate loans that do not need to be repaid, so these can be thought of as grants. Click here to read more on Hardest Hit mortgage fund.
Looking for the old HASP - Homeowner Affordability and Stability Plan? View the HASP closure updates here.
If your mortgage balance in underwater, which means the amount of your home loans exceeds the current property value of your home, then the federal government has three options for you.
Learn about a federal government program, Hope for Homeowners, that is offered through the Federal Housing Authority (FHA). It will help hundreds of thousands of lower income homeowners pay or refinance their mortgages (including subprime). Some forms of help may even be available if the value of your home has significantly declined and if your loan is “underwater”. Continue with Hope for Homeowners.
What are the next steps? Find the top questions to ask a loan modification company or law firm to ensure they can help you. The bottom line is if you are struggling with your mortgage, strongly consider a modification.
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