Get A Loan Modification

The best way to get help with your mortgage if you are struggling to meet repayments is to set about modifying your loan with your lender. If interest rates are lower than your original agreement, then you can take some of the stress off by re-fixing the loan on the new lower interest rate. Other modifications that lower repayments include extending the loan term or moving to interest-only options.

Eligibility to modify a mortgage agreement usually depends upon various requirements, such as that borrowers will not or have not filed for bankruptcy, the house is the borrower’s only residence, that the value of the property has not dipped too far below the amount owed, the mortgage is not considered a ‘jumbo mortgage’ (until recently, above $417’000 – check with your lender for their definition) and that the mortgage was initiated prior to January 1st 2008.

The amount of help you require with the modification process is deemed by your situation. If you have never missed a payment, but you know that you will soon find it difficult to keep up to date, you could approach your lender and begin modifying your mortgage yourself.

If the situation is not so pleasant for you and you have already missed one or more repayments and are facing foreclosure or eviction, the modification process will be more difficult for you. In this case, the vulnerability of your situation would make it advisable to use a loan modification attorney. A credible attorney will not charge you until the modification documents have been submitted.

Also, if your mortgage is with a predatory lender, it would be advisable to use an attorney. These companies are only interested in making money and are not interested in what is best for you. An attorney will know where the line is and how to hold them on it.

This entry was posted on Tuesday, April 7th, 2009 at 9:30 pm and is filed under Home Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.