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?
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.
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