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What is a Loan Modification?
A Loan Modification is when a lender agrees to modify any or some of the terms of the mortgage, making it more affordable for you.
These changes may include:
1) Reducing or modifying the interest rate
2) Extending the term of the loan
2) Changing the monthly payments
4) Combining any of the above
A Loan Modification will give you a fresh start, bringing your mortgage up to date after capitalizing any delinquent interest, escrow, fees, and other costs based on investor guidelines.
Acting quickly should be your number one priority, as a Short Sale will need to develop a plan, document your current financial situation, and contact your lender to begin negotiations on your behalf in order to stop foreclosure and save your home.
Other solutions to avoid foreclosure and KEEP YOU IN YOUR HOME include:
Reinstatement: Occurs when the property owner pays off the amount in default to bring the loan payments current in order to stop the foreclosure process and return to the original terms of a loan. After identifying that a reinstatement is the best and most feasible foreclosure alternative, I Short Sale will work with you to determine how best to produce the funds.
Repayment Plan: This foreclosure option lets you repay part of your delinquency each month, in addition to your regular monthly payment. A repayment plan is the perfect option for someone that experienced momentary financial hardship, but is now back on their feet. I Short Sale will negotiate with your lender to spread the past-due amount over a specified period of time.
Forbearance: In order to stay in your home, a lender will agree to delay or reduce payments for a short period of time, with the understanding that another option will be used to bring your balance current. I Short Sale will negotiate to get you the time you need to determine the best solution for you and, in many cases, will succeed in combining a Forbearance Agreement with a Reinstatement or Repayment Plan.
A little-known alternative, once more commonly used in the real estate downturn of the early ’90s, is the “short sale,” which works like this: A homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, or both. Facing a situation in which the home value has fallen and cannot be sold for the amount of the mortgage owed, Short Sale Geeks works out a deal with the lender to sell the home for whatever the market will bear. If the amount of the sale is for less than the amount owed on the mortgage, the lender gets the proceeds and discharges the remaining debt.
(626) 606-5037 info@myhomeownerhotline.com
