The topic of home loan modification is a complex one so many homeowners who are undergoing the process of receiving a mortgage modification have questions or who want to avoid foreclosure. The following questions provide valuable information about some of the basic issues which come to the minds of homeowners regarding the mortgage modification process.
1. What is home loan modification?
Home loan modification is a process through which homeowners are able to renegotiate the terms of their loan with lenders in order to reduce interest rates, principal, or late fees. Modification of a mortgage may also include an extension of the term period or default into foreclosure.
2. Who can benefit from loan modification?
Mortgage modifications are generally given to those who are having trouble affording to make their mortgage payments under the terms of their current loan. By modifying a mortgage loan, homeowners can reduce their payments to an amount they can afford which, in turn, reduces the recurrence of late fees and penalties and, for some, results in the ability to pay off debt more quickly than under the original loan.
3. Do I need to hire a professional?
Many homeowners have no idea where to begin when considering mortgage modification so hiring an attorney or housing counselor to negotiate the process seems like the best way to go. This is a valuable option and a very costly one, but it is also possible for a homeowner to negotiate a home loan modification with his lender directly. In cases like this it is important for the homeowner to be prepared and to understand the process so that his lender does not take advantage of him.
4. Is government assistance available?
The Making Home Affordable program is a government-funded way to receive a modification without having to worry about the scams which have become so prevalent in the wake of the mortgage crisis. Homeowners who qualify for assistance through this program will have the opportunity to refinance their loan to make monthly payments more affordable and to avoid foreclosure.
If you are considering mortgage modification, you should really look into 60 minute home loan modification. It is a great resource that contains a lot of important information about the process of applying for a mortgage modification. It was created by a loan modification expert who has modified numerous home loans.
By Destiny Page