Behind on Mortgage Payments? Don’t Wait. Do Something About It.

Posted on July 9, 2010 by admin

Many people miss one mortgage payment and shrug it off as a one-time thing. The next month predictably rolls around and nothing changes. Now, it’s two missed payments. And it only gets worse from there. Soon enough, the letters and … Continue reading →

Will I Qualify for Mortgage Loan Modification?

Qualifying for a mortgage loan modification is a bit of a process. It can take four months, maybe two, perhaps even 12 in extreme cases. Each case is treated differently and your own ability to qualify comes down to the … Continue reading →

What is Mortgage Loan Modification?

A mortgage loan modification is a permanent change in one or more of the terms of your loan creating a brand new contract between you and your lender. We will work with the lender to create a new contract that … Continue reading →

Typical Story Personifies Homeowner Frustrations with Banks

An article at Market Watch today details one homeowner’s frustration with the loan modification process. In an email to Market Watch, this homeowner details the process he’s undergone over many months. The roller coaster has included false information, approved loan … Continue reading →

Mortgage Loan Modification Overview

With the initial shock of the housing market collapse behind us, millions of people continue to face the threat of foreclosure. Projects continue to show more trouble in the years ahead.

Mortgage loan modification continues to be a prominent solution to the problem of failing loans.

What it Can Do For You

By starting the process to modify your loan, you are giving yourself the opportunity to start fresh. Solutions will vary based on your own personal situation, but a number of outcomes are possible.

  • Permanent reduced monthly payment. Your loan could end up being modified to the point you pay less every month for the rest of its life. Usually, this is accomplished with a drop and stabilization of the interest rate.
  • Temporary payment reduction. Depending on if your hardship is temporary, the bank may grant a forbearance and allow you to make smaller payments until your hardship is resolved.

    Mortgage Loan Modification Overview

    A helping hand never hurts when it comes to getting qualified for a mortgage loan modification.

  • Bring the loan current. The bank may decide you can make payments at the current amount, but need some relief in the form of missed payments that have piled up. The entire past due amount can be moved to the back of the loan and your loan will be considered in good standing. Often, this is done in concurrence with a monthly payment reduction.
  • Principal reduction. Consider this the holy grail of loan modification. It barely seems to exist but in some cases, people have achieved a principal reduction resulting in a mortgage loan modification that forgives a certain unpaid portion of your outstanding loan.
  • Other program. There are other options and you can read about them on this site. Sometimes, a loan modification just isn’t going to happen, but something like a short sale could still be viable.

How to Get Started

Feel free to browse this site for information. The best way to get moving on your loan modification, though, is to contact a professional and gather advice on what to do next. A qualified individual can steer you toward a program that fits your needs and will give you the best possible outcome going forward.