Permanent Modifications Gaining Some Steam

Posted on January 26, 2010 by admin

When numbers for the federal government’s Home Affordable Modification Program were being released near the end of last summer, backlash came quick. It has been originally reported that of 650,000 trial modifications, only 1,700 were made permanent. The program was … Continue reading →

Loan Modification Troubles Personified

The New York Times published an article over the weekend that does a great job of personifying the struggles homeowners go through with their lender when trying to get a loan modification. We’ve often talked to homeowners about the difficulties … Continue reading →

Loan Modifications Have Helped 20 Percent of Those Eligible…Are You Next?

According to the U.S. Treasury Department, more than 650,000 active trial loan modifications are in place through October of 2009. This number simply means that more than 650,000 people are taking advantage of the government’s incentives to modifying home loans. … Continue reading →

Loan Modification: A New Start for America

Now that we’ve all felt the brunt of the recession, it’s time to get back on our feet again. Throughout history, Americans have been resilient to financial hardships and have had a knack for bouncing back, and coming out even … 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.