A mortgage loan is a loan wherein the borrower has to pay a specific amount of loan with an interest on this home by keeping a part of his house as security. So your house is actually your loan security. There are many mortgage and loan modification lawyers who are approached by people who are having troubles getting their monthly mortgage payments cleared.
Understanding what mortgage modification is.
The simple concept behind this is loan adjustment. The terms and conditions of your current mortgage loan are altered and changed to suit your financial worries. This can mean a reduced interest rate, or a change in the principal amount, or a longer repayment period, or reducing your monthly mortgage payment by half. All of these are aimed at releasing the burden on the borrower and helping him deal with his financial crises in a better manner.
Lawyer’s purview of the mortgage modification program.
A couple of years ago, president Barack Obama came up with the Federal Home Affordable Loan Modification Program, whose goal was to financially assist the millions of home owners who were having a difficult time clearing their loans and were facing foreclosures when recession was at its peak. From the horse’s mouth, this is what mortgage adjustment of this new program means from the lawyer’s perspective.
- Low amount of the penalties in terms of fees.
- A lower mortgage interest rate which can go to as low as 2%
- Reduction in the principal amount.
- Extension of the repayment period.
- A combination of a few or all of the above mortgage adjustment strategies.
Mortgage lenders have also found it in their best interest to provide this kind of mortgage adjustment program to their borrowers. This has come from the enlightenment that a timely payment of a mortgage adjusted loan is much better than the proceeds made from the sales of a foreclosed home.
So anyone who has been having the monster of foreclosure lurking above their heads, or who have been facing financial difficulties for their loans can approach attorneys. These attorneys can help you get through your loan modification program by providing their expert guidance.
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