A mortgage modification or a loan modification refers to the arrangement where a borrower requests – and gets approved – to reduce the mortgage payments.
If the borrower is going through financial hardship, such as losing a job or an increase in mortgage payments, a loan modification can bring the payments down to a more affordable level.
What is a Mortgage Modification?
A mortgage modification can mean several things, including a reduction in the term of the loan, the principal balance, or the interest rate. Most lenders use a combination of these factors to create a mortgage modification program.
This often results in a lower mortgage payment to the borrower (homeowner) and allows them to afford to keep the home.
If you are struggling to pay your mortgage payments or have failed to pay the last few payments, a mortgage modification might be a great option for you. It can reduce your monthly payment by lowering your principal balance, extending the repayment period, reducing your interest rate, or eliminating late fees.
Since a mortgage modification creates a permanent change to one or more conditions of your loan agreement, it can provide you with a long-term solution to your loan payment issues.
But it should be noted that getting a loan modification is not easy. Trying to obtain a mortgage modification on your own can be a harrowing process or it can fail altogether.
Consider talking to a competent attorney who has experience dealing with the banks and other lending institutions. It will not only increase your chances of getting approved, but will also help you get more favorable modification terms.
How Can A Mortgage Loan Modification Help You?
For a homeowner, there is nothing scarier than the risk of a pending foreclosure. One of the easiest ways to prevent foreclosure is by diligently working with your bank to modify your mortgage payments.
Remember, banks lend money so they can make a profit by collecting interest on the borrowed funds. They don’t want to own your home. And if they have to foreclose, it is highly likely that they will be forced to sell your property for far less money than is owed to them.
To avoid this significant potential loss, banks can be convinced to alter a few elements of your loan so you can afford the monthly payment easily. As you will get to keep your home, your lender will get to keep the profits (interest payments).
However, the entire process of getting a loan modification approved requires a lot of back-and-forth negotiations. Since banks have an army of attorneys to represent their interests, it is crucial that you also have an experienced loan modification law firm to represent you.
The mortgage loan modification requirements don’t include hiring a skilled attorney but having one by your side is the only way to ensure your lender gives you the best possible loan terms.
Hire The Top Loan Modification Law Firm In Florida And Reduce Your Mortgage Payments!
Patrick Cordero and his team of legal extraordinaires have successfully managed to reduce their clients’ loan payments by hundreds of thousands of dollars. At the Law Offices of Patrick L. Cordero, we know how to talk to lenders, negotiate with them, and convince them to approve a much better offer.
If your home is on the verge of getting foreclosed, don’t hesitate to call us at 305-445-4855 or drop us a message here. We have over 30 years of experience with bankruptcy. Get in touch with us today!