What characteristics of a mortgage can be negotiated through a loan modification?
We are often asked this question, and thought maybe it was time to discuss what aspects and characteristics of your current mortgage are subject to change through a loan modification.
When considering doing a Loan Modification it is very important to understand what the lender is looking for in their decision to modify your loan. Loans that show the ability to repay based on the loans new terms are most likely to have the best results. So painting the right picture and knowing what changes will really affect your ability to repay the loan is extremely important to the lender. This part of the Modification can be tough on many as you will often be able to see where your finances went wrong. But that’s ok because the first step to recovery is understanding your mistakes. For others it was just the matter of a one time hardship that is now all but gone, leaving behind the past due monies owed to the lender.
The Loan modification is for the borrower who truly wants to remain in their home.
So assuming you want to keep your home, and fight to do so lets establish your ultimate goal of your loan Modification.
Based on information from the e-book Loan Modification Done Right by loan modification book store, Here are the main characteristics of your loan that can be modified.
1- Lowering your Current Rate.
2- Fixing in an Adjustable Rate adjustable.
3- Making your Mortgage current on past due amounts.
4- Lowering your mortgage balance (principle balance reduction)
5- Deferring your mortgage payments(getting a break)
6- Extending the amortization Period (years of loan)
7- Waive fees and penalties.
8- Convert to a Interest only Payment (tough to do)
9- Stopping Foreclosure Proceedings
So now that you understand what the banks will modify on your current mortgage, get out there and Get your Loan modified!!!!
