How Does Loan Modification Work?
We will review the alternatives that will allow you to keep your home. The essential person to avoid foreclosure is you. Open and candid conversation with our loss mitigation specialists will help us to solve your mortgage default without going through with foreclosure. Generally, there are four options available to a homeowner in distress: • MODIFICATION: In some circumstances, an investor could be allowed to add the delinquent amount to your loan balance or temporarily reduce the interest rate, as well as the principal amount, to assist you in resolving the default and restoring your credit status. • FOREBEARANCE: A Forbearance Plan is a repayment agreement between you and your lender. Documentation supporting your monthly income and expenses is reviewed. A plan is developed, and then a written proposal provides for payment of one full monthly payment and a portion of the delinquent amount due on your account. The goal of the plan is to allow you to resolve your default over a period
Loan modification is modifying the terms of your existing mortgage without refinancing. It makes it possible for the loan to get reinstated so that the borrower is in a position to make payments every month. The main objective of loan modification is to prevent foreclosure. If you are finding it difficult to make payments every month and if you have missed a payment or 2, try modifying your loan. You have to send a loan modification request to your lender. The lender will review the status of your current debt account. If the lender finds that you have the ability to repay the loan according to a new payment schedule, your loan modification request is approved or else the lender will notify you that your loan application has been turned down.You may also need to modify other aspects of your mortgage loan, but before doing so you may be asking yourself how does a home equity loan work and how do I modify it? How does loan modification help you? The lenders help you by changing the loan
