A loan modification is a financial instrument available to homeowners used to help prevent foreclosure proceedings, cut mortgage payments in half, and help families get on track to their financial future.
To determine if you are a good candidate for a loan modification, please read the following:
- If you can no longer financially afford you loan modification payments, you would be a good candidate for a loan modification. The instrument is used to create a situation where a homeowner will be able to modify their loan terms so that they will be able to manageably pay their mortgage on-time, every month by reducing interest rates, extending terms, and reducing principal
- Loan modifications halt foreclosure proceedings until the process is complete, meaning if your home is currently being foreclosed, the loan modification will halt the proceedings giving you time to catch-up on payments, and for you to negotiate with your lender for a modification.
- Loan modifications are not the same as refinancing. A loan modification is much cheaper, easier to qualify for, and is designed to create a long-term solution for homeowners as opposed to having to refinancing your loan everytime interest rates adjust.
Banks Want To Give Out Loan Modifications
A common misconception is that homeowners have to take the first offer given by the bank. When in fact banks have it in their best interest to work with homeowners on loan modifications, because the alternative, foreclosure can cost the bank upwards of $50,000 per foreclosure. This gives the homeowner and the specialists at Wise Loan Modification a lot of negotiating power to fight for the best deal for our clients.
Below are more misconceptions about loan modifications:
- All of your past due payments, principal, interest, and late fees may be rolled into the loan modification giving your lender the about to recoup that money. Since the money is spread across a longer period, homeowners can continue to pay down the debt and save their homes as a result.
- A loan modification will protect your FICO score and allow you to avoid a bankruptcy on your credit profile which will have a negative impact for more than 7 years.
- Foreclosure is avoided when a homeowner opts for a loan modification, and banks do everything in their power to prevent foreclosure, because within that $50,000 loss is the bank’s struggle to try to resell the home at short-sale or find a new buyer, which takes up a lot of time and is very costly for your lender.
If You Qualify, Act Now!
Unfortunately, time is not on your side, so ACT NOW! It’s free to talk to us, and we’ll help you in any way we can, we just want to help people, and if you choose to work with us, God Bless, you and if not we’ll give you the best advice we can.
To get started, give us a call at (352) 514-5927 or use our contact form.