Using Loan Modification to Stop Foreclosure

Facing threat of foreclosure?

If you believe you might be facing the threat of foreclosure then it's not too late to save your family's home. Mortgage holders who are more than 90 days in arrears on the mortgage repayments are able to apply for a loan modification that can help to stop foreclosure proceedings.

This means people suffering under financial hardship who are actively struggling to keep up with repayments may be able to apply for a loan modification that could potentially reduce your monthly payments, extend the term of your loan and even lower your interest rates.

What is Loan Modification?

A loan modification is a permanent change of the terms and conditions on your contractual mortgage agreement between you and your lender. When you originally applied for your mortgage, you agreed to specific terms and conditions that included the repayment amounts, the interest rates and how long the loan would run.

In the interest of helping you catch up your delinquent payments and get you back on track, your lender may be willing to modify your mortgage.

Why Would My Bank Offer Me a Loan Modification?

Regardless of all the negative talk on the news, banks don't actually like to foreclose on people's homes. Banks are in business to make a profit on the money they allowed you to borrow. They're not in business to sell real estate.

This means that they actually make more money by charging you interest for as long as possible rather than paying for the associated legal costs of trying to foreclose on a house that they'll then need to sell at a loss in order to get a portion of their own money back. ... click here to read the rest of the article titled "Using Loan Modification to Stop Foreclosure"