Mortgage Loan Modification – How to Avoid Foreclosing on Your Home
We have a real crisis looming, affecting thirty million homeowners in the USA. Increasing numbers of people are losing their jobs, or having their salaries reduced. More and more home owners are, through no fault of their own, falling late with their mortgage, credit card or car payments. These homeowners are in real danger of defaulting on their mortgage and having their house suffer foreclosure. But there is an answer, and many home owners aren’t even aware of this solution: it’s known as loan modification – sometimes referred to as loan mod.
Loan modification doesn’t entail re-financing, so there’s no credit check needed. It is not debt consolidation. It is renegotiating the existing loan to affect a lessening in interest rate and, under certain circumstances, a reduction in loan principal. And it does not involve extending the term of the loan. A new, lower, payment amount is arrived at which is sustainable to the homeowner. Loan modification is a true win-win for all parties. For the home owner it can mean the difference between losing and keeping their home. To the banks, it could mean no less than the difference between staying afloat or sinking.
There’s no reason why people can’t arrange their own loan modification by contacting their bank’s loss mitigation dept. But it is not advisable – the banks usually only offer a small decrease in interest, or no reduction at all. Far better to engage the services of an established loan modification firm, which uses its own team of loan modification attorneys, who do nothing other than negotiate with banks all day every day and have the knowledge and experience to achieve a substantial lowering. Doing it alone is similar to representing one self at a court of law – seriously not recommended. A reputable mortgage loan modification company can negotiate a 30 – 50% lowering in interest without an extension to the length of the loan. It’s well worth whatever fee they charge to accomplish this.
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