Loan Modification Companies and How They Can Help You

It didn’t take me long after my divorce to realize that I was in trouble when it came to keeping up my mortgage payments.  They were just too high, and my single income just was not going to be enough to keep them up.  I had a good job, but it was just not enough.  Still, my children had gone through enough, and I didn’t want them to lose their home.  I decided to start looking for solutions, and the term ‘loan modifications’ kept popping up.  To be honest, I didn’t really even know what it meant, but I am certainly glad that I found out, because it allowed us to stay in our home.  If you are in a situation where your home is in jeopardy, I hope this helps get you on the path to finding help with loan modification.

• What is a Loan Modification?
• What is an Affordable Home Modification Program?
• Can a Loan Modification Help Avoid Foreclosure?

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What is a Loan Modification?

A loan modification is a system by which someone who is upside down on their mortgage, and paying over 31% of their total gross income, can get help from the government to get their current mortgage modified to potentially reduce their interest rates, their principal, and extend the loan term to reduce the amount of your monthly payments, helping prevent further credit damage and it allowing you to remain in your home.

What Are Affordable Home Modification Programs?

An affordable home modification program, commonly called HAMP, is a governmentally subsidized program.  It helps struggling home owners and the real estate industry to conduct a mutually beneficial modification of currently existing home mortgages. 

Can a Loan Modification Help Avoid Foreclosure?

The answer to this is a resounding YES.  Modification companies beginning a Loan Modification procedure can suspend foreclosure activity pending approval.  Approval for HAMP halts foreclosure proceedings, prevents further damage to your credit rating, and helps keep you and your family in your home with payments you can afford.

Home loan modifications are not a refinance.  Your existing mortgage terms are adjusted to be more affordable rather than getting a new loan.  It benefits you, because you are able to manage your payments and remain in your home.  It benefits lenders, because they are not faced with the expense of a foreclosure in a depressed real estate market, where they are likely to get less out of a sale than what was owed on the home at the time of the foreclosure.  So, it is a win-win situation for everyone concerned.  If you are in a situation like I was, why wait? Take advantage of the easy online tools to get the ball rolling and find the help that you need. Try starting at credit-yogi.com which will provide very useful help.

Stop High Payments and Foreclosure with Loan Modification Assistance

I am a victim of corporate downsizing and poor planning on my own part.  In spite of that, I was able to find a way to keep my home from going into foreclosure using a mortgage loan modification program, and you can too!  It wasn’t that I was living above my means, but I just had not been able to save enough to tide me over when the layoff came.  I was struggling just to keep the minimum paid on my credit cards, car note, and regular bills, and my house was close to foreclosure.  Fortunately, I learned that to make the payments on my home, affordable modification of my loan was the answer.

Here are some points to help you understand home modification loans:

·         What is a Loan Modification?

·         How is a Loan Modification Different From Refinancing, Short Sales, or Bankruptcies?

·         Are There Different Types of Loan Modifications?

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What is a Mortgage Loan Modification?

It is a process where rather than getting a new loan, the existing loan is adjusted (or modified) by one, or a combination of, 3 ways.  It can offer a reduction of the principle and interest, or extend the term of the mortgage, which reduces your monthly payment amount.

How is a Loan Modification Different from Refinancing, Short Sales, or Bankruptcies?

Refinancing is getting a new loan to pay off your current loan to allow you to remain in your home. Though it often results in lower payments, it is highly dependent on home equity, current market value, and other variables.  Short sales hurt your credit (though not as badly as a foreclosure) and you lose your home.  Bankruptcies damage your credit, and depending on the type of bankruptcy, you could lose your home.

Are There Different Types of Modification Assistance?

Yes, there are HAMP (Home Affordable Modification Program) a government subsidized program, and also loan modifications through independent lenders.  Credit-Yogi.com is a thorough site that you can refer to. This site offers free advice and consultations to inform you of your legal rights.

Help with loan modification is a solution that can help you save your home from foreclosure and prevent damage to your credit rating.  It is important that you act quickly when you begin having problems staying current on your mortgage payments, but thanks to the easy process and helpful online tools, everything you need is available here.

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