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Loan Modification – Enjoy a Lower, Affordable Monthly Mortgage Payment
By Dog Lover | September 1, 2009
We have a real problem in the housing sector, which affects thirty million people in the USA. Increasing numbers of people are losing their jobs, or having their salaries reduced. Increasingly people are, through no fault of their own, falling late with their car, credit cards or mortgage payments. These homeowners are in danger of defaulting on their mortgage and having their home go into foreclosure. But there is a solution, and many home-owners are not even aware of this solution: it’s known as loan modification – sometimes referred to as loan mod.
Mortgage loan modification does not involve refinancing, so there’s no credit check. It isn’t debt consolidation. It’s renegotiating the current loan to achieve a reduction in interest rate and, under special circumstances, a reduction in loan principal. And there is no extending the term of the loan. A new, reduced, payment amount is achieved which is affordable to the home owner. Loan modification is a real win-win situation for all parties. For the home owner it often means the difference between losing and keeping their property. To the banks, it could mean the difference between folding and staying solvent.
There’s no reason why home-owners can not arrange their own loan modification by contacting their bank’s loss mitigation department. But it seriously isn’t advisable – the banks usually only offer an insignificant decrease in interest, or no reduction at all. Much better to use the services of an established loan modification firm, which employs its own team of dedicated loan modification attorneys, who do nothing but negotiate with banks all day long and know how to accomplish a substantial lowering. Going it alone is similar to representing one self at a court of law – it’s seriously not recommended. A good mortgage loan modification company can attain a 30 – 50% lowering in interest rate without an extension to the length of time of the loan. It’s well worth whatever fee they charge to achieve this.
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