Loan modification can reduce the principle balance, eliminate the arrearage and/or lower the interest rate on your mortgage. However, obtaining a loan modification can be a very complicated and frustrating process.
We can determine what loan modification programs are available for you and handle the entire process from start to finish. A loan modification can result in a slight drop in credit score, but will result in a far less negative impact than a foreclosure, bankruptcy, or late payments.
Contact us today to find out if a loan modification is right for you.
Loan modification is a change made to the terms of an existing loan by the lender, involving a reduction in interest rate, extension of the length of repayment, a change in loan type, or any combination of the three. The most common application of a loan modification is with secured loans such as mortgages. They are typically granted to borrowers in financial crisis who are not able to repay the loan under its original terms.
Eligibility for Loan Modification
In order to qualify for a loan modification, borrowers must either be delinquent or facing imminent default, meaning there is a high probability of becoming delinquent. There are many reasons for imminent default, including the loss of a job, loss of a spouse, and disability or illness affecting the ability to repay your mortgage on the original loans terms.