What is a Loan Modification?
What is a Loan Modification?
I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone you know.
A loan modification means simply that your current lender modifies or “changes” the terms of your existing loan in order to lower your monthly payments. This can be accomplished through a variety of ways such as reducing your current interest rate, extending the term of your loan, reducing your principal balance, or a combination of these factors. In the past, lenders would only modify your current mortgage if you were delinquent. Well, times have changed. Delinquency is no longer a factor. However, in the event of late payments lenders may forgive or postpone repayment of delinquent payments – sometimes without adding interest or penalties!
With the recent and ongoing credit crisis that has led to a weakening economy and a declining housing market, banks are very anxious to prevent more homeowners from going into foreclosure. Their rationale is fairly simple: if lenders reduce the homeowner’s payments today, the homeowner can remain in their home. This frees up additional lending capital rather than tying it up in a lengthy and expensive foreclosure process.
Who is a good candidate for a Loan Modification?
- Someone who has a mortgage with unfavorable terms that has become too much to afford
- Someone who owes more on their home than its current value
- Someone who is having financial difficulty due to a change in their job or financial situation
- Someone who is delinquent or is going to become delinquent on their current mortgage
- And many more
Posted in: Mortgage | Comments(13)
October 27th, 2008 at 11:28 am
I guess a key questions is if this can be done against the loan holder’s will and how someone can protect themselves against unfavorable loan modifications.
What are your thoughts in this area. Is it always the small print of the loan or is there something someone can do after the fact to prevent unfavorable loan modifications.
December 2nd, 2008 at 11:01 pm
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
December 4th, 2008 at 8:52 am
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
December 6th, 2008 at 2:07 am
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
December 27th, 2008 at 9:04 pm
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
January 7th, 2009 at 5:56 pm
loans assumable home in in loans home assumable
January 19th, 2009 at 11:19 pm
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
January 20th, 2009 at 7:35 am
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
January 24th, 2009 at 2:54 pm
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
January 27th, 2009 at 2:44 am
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
January 27th, 2009 at 7:17 pm
[...] What is a Loan Modification? What is a Loan Modification? I am sure that many of you have been hearing more and more about Loan Modifications, also known as Mortgage Modifications. I have been receiving many inquires about them. So let me share with you what a Loan Modification is and how it may apply to you or someone [...] [...]
February 21st, 2009 at 6:20 am
Hmm, interesting post. Wondering what site you did your researching through.
April 25th, 2009 at 10:53 pm
Very useful information . Thanks for sharing. many folks are in need of a loan modification lawyer or a real estate agent show specializes in short sales.