Are Loan Modification Programs a Good Alternative to Stop Foreclosure?

There are few things as stressful as having the threat of foreclosure looming over you. When you reach the point where you are facing possible foreclosure the negative reflection on your credit reports as a result of the delinquent payments ensure that most of the options to help you out of the financial hole you are in, such as refinancing or personal loans, are not available to you. In the last year there is a new option that could stop foreclosure proceedings dead in their tracks – literally. Once you apply for loan modification, in many cases the foreclosure process is stopped right away.

Mortgage loan modification is a process in which lenders will evaluate a homeowner's financial situation. If they have had the loan since prior to January 2008 and are at least three months behind in mortgage payments certain lenders have agreed to review cases and if approved your monthly mortgage payment can be significantly lowered significantly to roughly 31% of what your monthly income is. If you can prove to the lender that you will be able to maintain the newly modified mortgage payments and get your modification, all of the late fees and past due payments are wiped away and you can start over fresh.

So if you are in the unfortunate position of having to face foreclosure, do some research on the companies that are in your area. There are a number of loan modification companies cropping up to fill this need in the market and they will not all have your best interests at heart, so look around. Find a reputable company to work with and you be will soon able to relax again knowing that someone is not coming any moment now to throw you out of your home. The threat of foreclosure will be gone instantly and you will be well on your way to getting your mortgage back under control and be able to save your home.

Source by Hector Milla

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