Aug 30 2009
Modify Your Loan
3. Loan Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan modifications may be the only way to assist struggling borrowers. This term is used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made at the “discretion” of your lender. In the past this was only used when a borrower was delinquent but now we will see it being used before someone is delinquent. This will be the hottest term and the best way to help people avoid foreclosure.
Clearly a modification, especially one in which the principal is lowered, is the goal of 99 percent of all homeowners facing foreclosure, but getting one isn’t always as easy as it sounds. Sure, the HAMP plan instituted by the Federal government provides for payments to not exceed 31 percent of a borrower’s monthly salary and locks in the interest rate at 5 percent, but that doesn’t mean that the foreclosure process will stop long enough for you to negotiate one. Learn how to slow the foreclosure process to a halt at www.ForeclosureDefenseSecrets.com.
