Mortgage Loan Modification – Don’t Lose Your Home to Foreclosure

Posted by Editor

March 31, 2009

Sponsors

We have a terrible problem in the housing market, affecting thirty million homeowners in America. More and more people are losing their jobs, or having their salaries reduced. Increasing numbers of home owners are, through no fault of their own, falling in arrears with their car, credit cards or mortgage payments. These home owners are in real danger of defaulting on their mortgage loan and having their house suffer foreclosure. But there is an answer, and many home-owners are not even aware of this as an option: loan modification - sometimes known as loan mod.

Mortgage loan modification doesn't entail refinancing, so there's no credit check required. It is not debt consolidation. What it is, is renegotiating the existing loan to achieve a reduction in interest rate and, under special conditions, a lowering in loan principal as well. And there is no increasing the term of the loan. A new, reduced, payment is achieved which is sustainable to the home owner. Loan modification is a true win-win for all parties concerned. To the homeowner it often means the difference between losing and keeping their house. For the banks, it can mean the difference between remaining afloat or going under.

There is no reason why home-owners can not arrange their own mortgage loan modification by contacting their bank's loss mitigation department. But it seriously isn't advisable - the banks usually only offer a slight reduction in interest, or no reduction at all. Far better to use the services of an established loan modification firm, which uses its own team of dedicated loan modification lawyers, who do nothing other than negotiate with banks all day long and know how to attain a substantial lowering. Going it oneself is akin to representing oneself at a court of law - seriously unadvisable. A good mortgage loan modification firm can negotiate 30 - 50% reductions in the interest rate without an increase in the length of the loan. It is well worth whatever fee they may charge to accomplish this.

Commercial Mortgages

Share and Enjoy: