If you struggle month after month to make your mortgage payments on time and pay your other bills on top of that, then you are really having a financial hardship. You shouldn’t worry, and you should know that you are not alone in this. Literally millions of Americans are having trouble making their monthly mortgage payments. Some are walking away from their homes and looking for ways to save their credit, while others are struggling to work more, make more and make the monthly payments that the high interest rates are causing them to pay on their homes. It might be time for a home loan modification.
If you’ve tried to refinance your current loan, because you had an adjustable rate mortgage, or if you were turned down for a refinance because your home is no longer worth what you owe on it, then it’s an understatement to say you’re in a pickle. A home loan
modification can change all that.
In case you aren’t familiar with a home loan modification, it is basically a restructuring of your loan terms, to give you payments that you can afford to make. This may happen by lowering your interest rate, forgiving some of the principal or extending the term of your home loan. Often, depending on who is doing the modification of the loan, a couple of different options are exercised in an effort to work with the borrower to prevent foreclosure and continue making monthly payments.
The problem with home loan modifications is that you usually can only use this option if you are in default on your loan and in danger of having your home foreclosed on, which means once your lender sends you a default notice on your home loan, then you will have to work quickly to get a home loan modification to prevent foreclosure on your home and be able to stay there. With a home loan modification, it’s important to know that you will still be making mortgage payments, but they will be at a rate that you will be able to better afford.
If you owe back mortgage payments, you will also need to make payments on those, but many lenders are now willing to stretch the amounts of those payments out so that you can pay them over time. Another thing that lenders are doing is to tack the back mortgage payments to the end of your mortgage, which you will pay at the end of your loan. Many people are finding that by talking to their lenders and talking and talking, they are finally being a chance to get back on their financial feet and redeem themselves by making their payments on time again.
If you are facing foreclosure, you need to take measures to get a home loan modification and get your life back on track. Even if you are upside down on the value of your home, you can get your mortgage modified to fit your new budget without losing your home or refinancing.
