Advice & Help

Home Loan Modifications

This has quickly become the best option for homeowners facing foreclosure. Although it is not the only option for homeowners trying to avoid foreclosure, it is an option that can save your home while putting you in a mortgage you can afford. So, how does a loan modification work and who is eligible for it. Here are some guidelines to help better understand your options.

The most common loan modifications lower the interest rate, reduce the principal balance, ‘fix’ the adjustable interest rate, forgiveness of payment default & fees, extend the life of the loan, forbearance or any combination thereof.

A loan modification is most helpful to those who cannot refinance because they owe more than the property is worth or they can’t afford the monthly payment. Getting approved for this by your lender or servicer can help stop the foreclosure process. Usually this approval comes with stipulations, but at least it will offer an extended period of time to allow you to get your life back in order without any penalties. There is no credit check or appraisal required to complete this process.

A proficient third party will usually get a more favorable, fast and effective modification agreement than your mortgage lender or servicer will offer you directly. Obtaining help and proper advice from a loan modification company will also help to preserve your credit rating. If you are already behind in your payments, this may help stop ultimately help you avoid foreclosure.

It is important that if you foresee a problem coming that you act before it hits you between the eyes. You DO NOT have to be behind on your payments for a modification to make sense. If any of the situations mentioned above apply to you, you may want to consider this option.

A loan modification needs to perform for both parties; your lender/servicer and you. Your lender/servicer does not want your home because they are not in the real estate business and therefore they are usually willing to work out a plan which has to benefit both sides. Also, they may not want to accept your partial payment and may still threaten foreclosure if you are late and in default.

A loan modification may not work for you for various reasons in which case there are other options which may better fit your situation.

About the Author:
Tony McPherson, is the Jamaican co-owner of Loan Modification & Mortgage Services, LLC that offers a FREE CONSULTATION and also a GUARANTEE that if they are unable to get your loan modified, then there will be no modification fee.  He can be contacted at at 888.442.1117 or via email at  or you may visit their website.

About the author