When looking at mortgage repayments, it is important to remember there are options available, whether facing foreclosure, behind on payments or looking for a lower monthly repayment. Research is imperative.
In basic terms, a loan modification, or mortgage modification in particular, is agreeing to a new mortgage with new terms on the same home. The old mortgage will be null and void and replaced with the modified mortgage. Modifications are useful as they can give more financial freedom to the homeowner, by providing lower interest rates or lower monthly repayments. For those in financial trouble, this can be a great help. As with selecting the best mortgage provider in the beginning, it is important to select the right company for a loan modification.
Who can provide a loan modification?
There are a number of options to consider:
- The company who already holds the mortgage can help, although may not always offer the best outcome for the homeowner themselves.
- There are companies who specialise in loan modification, and can assist and guide the homeowner through the process of modification, and ensure all the paperwork is correct. A loan modification company is often a great solution for homeowners, as they are familiar with the process and reduce the risk of the application being rejected due to mistakes. There are also companies who deal with particular federal programmes such as HAMP to help homeowners.
- In many cases, it is also useful to be in contact with a mortgage attorney. They are further help to understand the process and ensure things run smoothly.
The most important thing to remember is this: Mortgage companies do not want to take property from homeowners, they would rather the mortgage was paid effectively and both parties are satisfied with the outcome.