Super Fitness Health BlogMortgage Loan Modification – Save Your Home from Foreclosure
We have a real crisis in the housing market, affecting 30 million home owners in America. Increasing numbers of home owners are losing their jobs, or having their salaries reduced. Increasing numbers of home-owners are falling in arrears with their mortgage, credit cards or car payments. These people are in danger of defaulting on their mortgage loan and having their home go into foreclosure. But there is an answer, and many home-owners are not even aware of this as an option: it’s known as loan modification – sometimes referred to as loan mod.
Mortgage loan modification does not entail refinancing, so there is no credit check. It doesn’t entail debt consolidation. It’s renegotiating the existing loan to affect a lowering in interest rate and, under certain conditions, a reduction in loan principal. And it doesn’t involve extending the term of the loan. A new, reduced, monthly payment is arrived at which is sustainable to the home-owner. Loan modification is a true win win for all parties concerned. For the homeowner it often means the difference between losing and keeping their house. For the banks, it can signify the difference between remaining afloat or going under.
There’s no reason why home-owners can not arrange their own loan modification by contacting the loss mitigation dept at their bank. But it seriously isn’t advisable – the banks will usually only offer a very slight lowering in interst rate, or no reduction at all. It’s far better to use the services of an experienced loan modification firm, which employs its own team of loan modification lawyers, who do nothing but talk with banks all day long and know how to accomplish a substantial lowering. Doing it oneself is akin to representing yourself at a court of law – it is seriously not recommended. A reputable mortgage loan modification firm can achieve 30% to 50% reductions in interest rate without increasing the length of time of the loan. It’s well worth whatever fee they may charge to achieve this.
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