Since the beginning of the financial downturn, many homeowners have been left struggling to repay their mortgages. High levels of job losses, pay cuts and ever rising costs of living have ensured that stories of homeowners fighting foreclosure are now commonplace in the media. For many, financial uncertainty and instability can be a stressful and isolating process. It is important for those considering a loan modification to remember that they are not alone.
Loan modification companies or attorneys should be the first port of call for homeowners who are in financial difficulty. They can provide invaluable help, advice and support. People from all backgrounds and financial positions are currently contacting these companies and attorneys to help with loan modification.
Most will fall into the following categories:
- People who are at immediate risk of losing their home due to foreclosure. These are homeowners who have stopped paying their mortgage for a variety of reasons and their lender has already started the process of foreclosing their home. These people need the urgent help a loan modification company can provide.
- Those who are behind with their repayments. Often, when a homeowner find themselves a month or two behind with their payments, they are penalized with late charges and this makes it more difficult to repay the missed payments. These are the people who could potentially end up in foreclosure so would benefit from taking action now.
- Those who need lower interest rates. Many homeowners are paying a higher interest rate, often as a result of agreeing to an adjustable rate mortgage when the rates were low and are now facing steep rises in interest.
- Those who want reduced monthly repayments. Despite being current with their payments, they may be just scraping by.