What is Loan Modification? It’s an inexpensive way to stay away from foreclosure (no appraisal fees, surveys…).
Loan modification differs from refinancing (which requires you to have equity). With loan modification you negotiate new terms for your existing loan … with your current lender … modifying it.
Because of the current freeze on foreclosures, there is an opportunity now for many homeowners not only to tred water but to negotiate some sort of loan modification with their financial institutions/lenders. Homeowners concerned about foreclosure are in a better position now to negotiate workable loan terms because of the current mortgage debacle.
If you are looking for a loan modification, you’ll have to justify the circumstances for needing a loan modification on your existing loan: hardship, transfer, loss of income, unemployment, cut in salary … If you are several months behind in your payments, or are unable to cover your payments because your interest rate has changed you may be able to work out new terms. Unlike a bank refinance, a loan modification does not require you to have good credit, and the costs for doing a loan modification are fairly minimal because there is no appraisal needed and because the paperwork is fairly simple and straightforward.
By lowering the interest rate, lenders enable property owners to get current on their overdue payments… avoiding foreclosure. By re-negotiating mortgage terms… and accepting lower loan payments…. lenders at least have a chance to recoup a portion of their loan. The process known as LOAN MODIFICATION can be a rather lengthy process, taking months and months. But it may well keep you from foreclosure.
While we do not list property for lease that is in financial difficulty, we can help answer your questions. Anytime you are in the market to buy or sell property please don’t hesitate to contact Vicki and Alexandra Restivo. We look forward to assisting you in any way we can! 305-793-1365 or 305-632-0164