| The Truth About Loan Modification |
| Articles - Mortgage |
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The number of homeowners that are unable to maintain their monthly mortgage payments continues to rise. Statistics indicate, 1 out of every 200 homes will be foreclosed on.
The number of homeowners that are unable to maintain their monthly mortgage payments continues to rise. Statistics indicate, 1 out of every 200 homes will be foreclosed on. Foreclosures are bad news for mortgage lenders as they are for homeowners. Contrary to what most people think, foreclosures are neither lucrative nor favorable for the lenders. Loan modification is the best choice for both the homeowner and bank to avoid unwanted foreclosure. A modified loan will allow the homeowner to maintain ownership of the home and the lender to receive its loan amount in full. One more key advantage of loan modification, is that it helps the homeowner keep their credit rating unblemished. A foreclosure can destroy a credit score in such a way that it might be extremely hard for the borrower to ever fully recover from the damage. Some people assume that it will cost them nothing to just surrender and step away from their home and let it go into foreclosure. In actuality, foreclosure will require money and will unfavorably affect your credit. Mortgage lenders prefer modification because it means that there is no loss for them at all. Additionally, the bank realizes that the homeowner will be able to maintain their monthly mortgage payments on time, since the loan was modified based on the homeowner's income and financial situation. Here are some general customary criteria for basic eligibility for loan modification: 1. The home must be owner occupied 2. Second mortgages do not qualify 3. You must show proof of income 4. Your current home loan must match 31% or more of your gross monthly income A loan modification can aid struggling homeowners that are trying to keep their home. It is the only true a win-win solution for the homeowner and the lender. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. To learn more information about loan modification services contact janian & associates for a free consultation. |