How to STOP Foreclosure Even If You Are Behind on Your Mortgage – How Loan Modifications Can Help

If you are currently behind on your mortgage or know it will be a matter of time before you slip up on your mortgage and want to keep your home, a loan modification is an excellent way to help make your home affordable again. A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan which allows the loan to be reinstated and results in a lower payment the homeowner can afford. This is an excellent way to stop foreclosure for anyone who wants to keep their home and can’t afford their mortgage payments. Loan modifications also help protect homeowner’s credit scores because it enables them to make their payments on time with a payment they can afford.

Loan modifications are effective because they take all of your regular expenses into consideration on your over all budget to see what you can really afford. This is effective because your lender overlooked many of these expenses when they qualified you for your loan. They look at how much you spend on heating, electric, car insurance, life insurance, groceries, phone bills, and internet to make sure you can afford your current lifestyle, while keeping your homes.

Loan modifications are available to anyone who has suffered a financial hardship. A financial hardship can be defined as any type of event that would have caused a permanent or temporary decrease in income or unexpected bills. Things like divorce, death in the family, business failure, loss of job, medical illness, or even a decrease in pay. These are all factors that lenders look for when issuing loan modifications.

A loan modification is a great remedy available for those who tried to refinance, but were turned down by their lenders because they either owe more on the home then what it is currently worth, or have suffered from an economic hardship or medical condition. Loan mods are effective because they allow you to keep your home even if you can not afford your current monthly payments and can be tailor made to fit your budget. Loan modifications are the best way to stop foreclosure because they may allow you to defer the amount you are currently delinquent on and add that in to the loan.

Because there are so many advantages with loan modifications, there is a large number of people trying to take advantage of these special programs to get relief from their lenders. Many of the banks will even get money from the government when they modify your loan as part of the economic bailout. This is advantageous to the banks because it allows them to turn their nonperforming assets in to performing assets which allows them to keep operating.

If you would like to get a loan modification, there are plenty of companies offering to assist you, but you need to be careful who you are working with. You want to make sure that the firm assisting you in your loan modification is attorney backed and has an attorney available to assist you in your transaction and help answer any legal questions you might have. It is okay to pay a reputable firm an upfront fee to help you with a loan modification because of the extensive work required, as long as they have some sort of money back guarantee for nonperformance.

Due to the excessive amount of people in need and banks not properly staffed to assist with loan modifications, they tend to take a long time to process. That is why it is important to have an attorney based firm who can assist you when you are ordered to go to court for foreclosure proceedings. In many cases, just having a note from your modification company and their attorney will allow you more time to stay in your home while completing your loan modification.

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