What is Mortgage Modification?
Falling behind on mortgage payments is more common than you might think. Many homeowners around the country fall behind each year and could be on their way to foreclosure without some sort of permanent assistance. If you find yourself in a similar situation, you may be eligible to modify your mortgage.
With mortgage modification, you and your mortgage company will reach an agreement to change the original terms of your mortgage, such as the payment amount, length of the loan, interest rate, and more. Typically when your mortgage is modified, you are able to reduce your monthly payment to a more affordable amount.
Modification may be an option if:
- You are not eligible for refinancing
- You are facing a long-term hardship
- You are either likely to fall behind on mortgage payments soon or are already behind
What are the benefits?
- It corrects your delinquent status with your mortgage company
- Can reduce monthly mortgage payment amount to a more affordable amount
- Less negative impact on your credit than a foreclosure
- Allows you to stay in your home and avoid foreclosure
How does it work?
Loan modification works by doing one or more of the following:
- Changing the mortgage loan type, whether it be going from and adjustable to a fixed rate, or vice-versa
- Extending the mortgage term
- Reducing the interest rate either temporarily or permanently
- Adding past-due amounts to the unpaid principal balance, which is then re-amortized over the new mortgage term
Be ready to explain your current hardship and why you are having trouble making your mortgage payment, as well as if the problem is short-term or long-term. Your mortgage company will need to understand the source of your problems in order to find the right solution for you.
Are you falling behind on your mortgage? The team of experienced attorneys here at the BCN Law Firm in Clermont are here to help. Contact us today at 855-LAW-2020 to schedule your complimentary consultation.
