Applying for a Loan Modification
When applying for a loan modification, or principal reduction, you can often save your home from foreclosure by reducing your mortgage payments during a time of financial hardship.
Unlike the forbearance process, which is typically temporary, a loan modification permanently alters your loan payment plan and is a longer-term solution if you do not think your finances will improve.
The changes to the repayment terms can lower your monthly payment and interest rate.
For example, your mortgage lender may:
- Add the missed payments to the existing loan balance.
- Change the interest rate, including making an adjustable rate into a fixed rate.
- Extend the number of years you have to repay the loan.
- Make a partial claim against your mortgage insurer if you have mortgage insurance.
If you qualify for a loan modification, your payment reduction may be achieved through any of several methods: a Principal Reduction Program, Second Lien Modification, and other types of Refinancing Programs.
During the loan modification process, your lender will usually postpone your auction sale date. However, depending on the stage you are within the foreclosure process, it could affect your lenders decision.
Working with lenders can be both intimidating and stressful, but we are here to help reduce that stress.
Without help, many homeowners feel that foreclosure is inevitable if they can’t lower their payments soon.
What Our Save Your Homes (SYH) Team Can Do for YOU:
- We explore all government loan assistance programs
- We help complete your loan modification paperwork, at No Cost to You
- We contact your lender and help you work through the intimidating process
- We help you gather the supporting documentation your lender will require
Our Save Your Homes team has been successful in helping many different homeowners get approval on their loan modifications, however, if your lender chooses to decline your modification, our team will then have to work with you to explore your other options (i.e. short sale) to avoid foreclosure.
** Services are completely FREE throughout the process! **
CAUTION! *Foreclosure allows the opportunity for lenders to come after any of your outstanding debts.*
So, please be proactive and. . .
PLEASE NOTE:
***Save Your Homes IS NOT AN EMPLOYER. Save Your Homes DOES NOT BUY HOUSES. It is not a governmental agency nor associated with any government agency. All information you provide is kept completely confidential. Your information will never be shared with anyone at anytime, including your lender, IRS or any collection company or agency. The purpose of this website is intended to provide you with general information only. Much of the content on this website comes from current information on state and local foreclosure agency websites. We are NOT lawyers or tax advisors. Nothing on this site should be taken as legal or tax advice for any individual case or situation.