For people who are having problems keeping up with payments or trying to refinance their home for lower mortgage payments to avoid foreclosure, there is help on the way. A loan modification program helps those who are in default of 30 days or more, and those who cannot refinance due to decline in housing values and credit tightening.
The economy has turned borrowers who used to be able to pay their mortgages into potential foreclosure risks because of pay cuts, job losses, or rapid declines in appraised values on their homes.
Many homeowners owe more money on their home than it is actually worth. To make matters worse, a lot of these people can no longer afford their payments are forced to sell their homes below the appraised value just to get out from under the mortgage.
You don't have to be hassled by trying to understand what a loan modification is, as a trained loan modification specialist can help you by first starting with a free consultation to see what program is best for you.
Since you can only get one loan modification in the life of the loan, it is important that you handle it correctly. If you are more than one month behind on your loan, you qualify as a default borrower and the quicker you act, the better your chances of success.
What the modification program does is get the homeowner's mortgage payment, including interest, taxes, insurance and any other fees, reduced so that the payment is not more than 31% of the homeowner's gross monthly income. To do this the loan modification companies work with your lender to adjust the mortgage interest rate, the terms of the loan and the principal amount owed.
With interest rates as low as 2% per year and terms as long as 40 years, principal reductions come by a delay in a portion of the principal or by forgiveness of part of it. But the reduced principal amount cannot be lower than the value of the home.
Though lenders are encouraged to work with modification companies to adjust the loans, they are not required to do so. To increase lender participation, the government gives a lender incentive of $1,000 per year for up to 3 years if the borrowers remain in the program. Borrowers can also earn $1,000 per year in principal reduction for up to five years if they keep the payments current.
Even borrowers who are already in foreclosure may qualify for this program and borrowers who are in bankruptcy may actually be court ordered into loan modification.
There is fantastic opportunity for eligible borrowers in the loan modification programs. If you are in one of these, then you should seek a consultation with a professional who can help you into the program that is right for you.
The economy has turned borrowers who used to be able to pay their mortgages into potential foreclosure risks because of pay cuts, job losses, or rapid declines in appraised values on their homes.
Many homeowners owe more money on their home than it is actually worth. To make matters worse, a lot of these people can no longer afford their payments are forced to sell their homes below the appraised value just to get out from under the mortgage.
You don't have to be hassled by trying to understand what a loan modification is, as a trained loan modification specialist can help you by first starting with a free consultation to see what program is best for you.
Since you can only get one loan modification in the life of the loan, it is important that you handle it correctly. If you are more than one month behind on your loan, you qualify as a default borrower and the quicker you act, the better your chances of success.
What the modification program does is get the homeowner's mortgage payment, including interest, taxes, insurance and any other fees, reduced so that the payment is not more than 31% of the homeowner's gross monthly income. To do this the loan modification companies work with your lender to adjust the mortgage interest rate, the terms of the loan and the principal amount owed.
With interest rates as low as 2% per year and terms as long as 40 years, principal reductions come by a delay in a portion of the principal or by forgiveness of part of it. But the reduced principal amount cannot be lower than the value of the home.
Though lenders are encouraged to work with modification companies to adjust the loans, they are not required to do so. To increase lender participation, the government gives a lender incentive of $1,000 per year for up to 3 years if the borrowers remain in the program. Borrowers can also earn $1,000 per year in principal reduction for up to five years if they keep the payments current.
Even borrowers who are already in foreclosure may qualify for this program and borrowers who are in bankruptcy may actually be court ordered into loan modification.
There is fantastic opportunity for eligible borrowers in the loan modification programs. If you are in one of these, then you should seek a consultation with a professional who can help you into the program that is right for you.
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You can get help lowering your payments today through the use of a loan modification program. It's as easy as contacting http://www.modification.org/, for more information and assistance.
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