How does a Loan Modification Work?
A loan modification is the act of making favorable changes to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the principal balance, interest rate or an extension of the length of the term of the loan. In some cases a different type of loan or any combination of the three.
Lenders do not want your home or the hassles and costs associated with foreclosure.
A lender may be open to modifying a loan because the cost of doing so is less than the cost of default or foreclosure. Remember, they are in the business of lending money, not owning real estate.
A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan.
Negotiating with the bank for a modification of your home loan can be an overwhelming process for many homeowners. That is why retaining the services of an experienced Loan Modification Firm is of extreme importance.
A loan modification can eliminate late fees, reduce your mortgage payment and put you back on a path to stress free home ownership.
A consultation with a loan modification attorney should be FREE . To hear how you can save your home and mortgage with out refinancing and without losing your home. Call The Loan Modification Network at 800-437-2185 or click here. Don't be the next victim at least hear what you can do to help yourself.
