Benefits of Loan Modification

Posted on August 25, 2008. Filed under: Uncategorized | Tags: , , , , |

If you’ve fallen behind in your house payments and you are worried about a possible foreclosure – there may be an answer.

If you can currently make your regular payment, but you can’t catch up with the past-due amount – you might be able to negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance and then having this new amount will be re-amortized over a new period of time.

This type of an agreement is called a loan modification.

There are many reasons that you may want to look into loan modification – although this is not a process that you will want to consider for just any reason, it is one that offers some benefits if you find yourself in a dicey situation.

For many people, the process of loan modification never comes to mind. But on the other side of things, there are some people who have had to deal with this in order to get their life back on track.

So what are the benefits of loan modification? Here are three that you should keep in mind if you find yourself staring this scenario in the eye.

  1. If you have missed mortgage payments in the past, but are now back on track, loan modification can help you to keep things this way. Generally speaking, your lender will allow you to roll your missed payments into a modified loan. For this reason, you will be back on track with the ability to pay the money that you missed out on in the past.
  2. Simply put, loan modification can help you to keep your home if you are facing foreclosure. As you can imagine, this is one of the biggest benefits of this process. If you have found yourself with foreclosure closing in, loan modification could help you to escape just in time. This is not always the case, but you should at least look into loan modification if you think that it has the chance to help you out.
  3. Although the loan modification process is long and drawn out, if it is something that you need to do, it is not nearly as hard as you may think. You will have a lot of help along the way, and if you are willing to make it work, you will definitely want to consider moving through the many steps with speed and precision.

These are only three of the main benefits of loan modification and as you can imagine, there are many others that you will also come across if you are ever faced with this situation.

But remember, the loan modification process is not all fun and games. It would be much better on you and your home if you never have to consider looking into this process.

Even though there are companies out there that will help you negotiate your loan modification – you may be better off in the long run if you try to do it yourself. And in spite of what you might think – mortgage companies handle loan modification requests every day.

Just contact your mortgage company and explain your situation. You might be surprised at how helpful they can be.

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