The term “Loan Modification” explains an extension in repayment terms, period and process executed by the lender (bank, private lender & other lending authorities) against the insecurity or doubts about the borrower’s failing to repay the loan. FHA (Federal Housing Administration) makes the repayment of lenders secure against the threats of borrower’s default. The borrowers have to pay for the mortgage insurance by getting FHA loans andthis insurance protects the lending agenciesfrom the losses by defaulting of borrowers. Only the registered and authorized loan modification company can give extension in home mortgages.
Loan Modification Authority:
It is often questioned who has theactual authority to modify home loans. A loan modification firmis the right company or authority that executes the loan modification process. Fundamentally, there are several similarities and the differences between aloan modification and FHA are on the grounds of the terms, policies, repayment ways and the amounts granted for the mortgage.
FHA as a Hope for Homeowners:
In fact, theHOPE for homeowners program is very famous in the USA for the average income earners as well as others to get mortgage loans for constructing and renovating their homes. FHA makes the mortgage insurance possible for the borrowers, and the lenders get complete security of repaying their mortgages from the borrowers in case of their inability to repay the debts. Definitely, a loan modification expert can help you in taking loans and getting the benefits from the FHA program.
When you make a comparison between the loan modification service and FHA home mortgage, you will know several important aspects. Initially, loan modification is available when you apply for a home loan from a lender against some securities or bank credit history. On the other hand, the FHA loan is totally different that helps people get loans for theirhomes but against the mortgage insurance which is payable by the borrowers. This mortgage insurance keeps the lenders tension-free because FHA provides them complete security for the granted debts to borrowers and it will repay their mortgage by the insurance.