| Save your home with a Loan Modification Program |
| Articles - Mortgage |
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Right now the country is seeing record high foreclosure rates. People across the nation are literally walking away from their homes and letting them go back to the bank. The important thing to realize here is that the banks do not want the homes back. Banks are not in the real estate business, they are in the banking business. Why is this important? If you are in a situation where your mortgage payments are too high due to a financial difficulty, an adjustable rate mortgage, or other reason, there are programs available to re-negotiate the terms of your existing loan to allow for you to stay in your home and get back on top of your home loan.
Right now the country is seeing record high foreclosure rates. People across the nation are literally walking away from their homes and letting them go back to the bank. The important thing to realize here is that the banks do not want the homes back. Banks are not in the real estate business, they are in the banking business. Why is this important? If you are in a situation where your mortgage payments are too high due to a financial difficulty, an adjustable rate mortgage, or other reason, there are programs available to re-negotiate the terms of your existing loan to allow for you to stay in your home and get back on top of your home loan. Loan Modification, Loss Mitigation and Home Loan workout programs are some options to consider. If you enroll in any of the aforementioned programs, you should be cautious about the company you work with. Make sure they're reputable! A good company can make the programs incredibly successful in offering you financial relief. Here is a practical example of this type of program in action: Borrower owes $400,000 at 8% and the home is worth $340,000. After foreclosing, bank must re-list the property or sell at auction. Either method can end up costing an additional $60,000 or more in losses. Going off the example above, the bank will wind up losing at least $120,000. However, if the bank were to accept a modified loan and lowering the interest rate to a 30 year fixed term loan at 5.25%, the bank will net nearly $400,000 in future interest payments. It's a definite win/win situation! Homeowners can occasionally be successful at working out loan modifications on their own, however default rates with attorney-backed modifications are 5% or less. Self-help modifications are defaulting at over 50%. This is why banks prefer to work with attorneys. Another perk to a loan modification is that if an attorney works out a loan for you and it doesn't work out, your program cost is most often refundable. Amazing results are possible with restructured loans! You could wind up seeing lower monthly payments, loan principal reductions, interest rate reductions, extended payment terms and more! We'd be happy to give you some more information about our loan modification program, so give us a call! We can be reached at 1-888-282-1011. If you're in a financial bind or just need a way out of your adjustable rate mortgage, let us see what we can do to help you! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. This article was written by Daniel R. Michaelson, a 20-year authority in the real estate industry. Daniel has been helping consumers through his endorsed home loan modification. |