Foreclosure Solutions – Is it Possible the Loan Modification Process to Stop Foreclosure?

If you are behind on your instalment payments or if you are currently going through some financial troubles and expect to have trouble paying instalments, you may face the risk of foreclosure. While the possibility eviction is not something take likely, there is no need to panic. There are various solutions available to deal with the situation. One of the great options is a loan modification. So, let us take a look at how is it possible to use loan modification to stop foreclosure.
What is loan modification?
Loan modification is, put simply, modification of the initial terms under which the loan was granted. It differs from loan refinancing. In case of loan refinancing, a new loan is issued and a part of it wipes out all the previous loans. But in loan modification, the existing loan’s terms are adjusted to favour more feasible and affordable repayment. Loan modification is a matter of reaching a common ground between the borrower and the lender. Hence, it relies on your negotiation skills and how effectively are you are able to convey your financial hardship to the lender. In this regard, getting help from a loan modification firm like www.loanmoddepot.com will be of great help for you.
When is it feasible and what to expect?
This is a suitable option for you if you can demonstrate your financial hardship and are ineligible for refinancing. It is more feasible if the value of the asset mortgaged has reduced significantly or the average interest rates in the market have decreased significantly. A loan modification specialist will be able to help you get a grip on the situation.
You can expect modifications such as lowering instalment amount in exchange for a longer term, lowering of interest or lowering of the principal amount in accordance with your needs or changed market conditions.