subject: Could Mortgage Modification Be Right For You [print this page] Could Mortgage Modification Be Right For You
In today's difficult financial times your mortgage payment is no longer an automatic check you right every month. We are all worried. Home values have continued to drop making it no longer the value it once was. Many of us have watched the equity go down almost monthly, we are even in over our heads. The value has sunk so low we now owe more than the house is worth. With the unemployment rate hovering around 10% many of us just can not make the payments. People are looking for solutions to reduce their monthly payments.
This kind of help has so many names it will make your head spin. We have mortgage modification plans, loan modification plans, debt restructuring, and even plans to modify your home loan. As confusing as it might seem all of these plans have the same effect on your payment, that is to make it less than what you are paying currently. Simple right?
If you could reduce your payment by $300, $400, or more a month this would go a long way allowing you to stay in your present home. Needing help in reducing your monthly payment so you can prevent foreclosure proceedings is not uncommon. The Obama Administration has enacted laws forcing banks to assist you modifying the terms of your mortgage.
Making Homes Affordable Plan put into effect by the current Administration in early 2009. The act simply says "as a homeowner behind in your payments your lending institution has been mandated to assist you in reducing your monthly payments."
A. The majority of interest for your loan is paid in the front end of your loan. As time goes by you will pay less and less each year in interest. By negotiating a lower interest rate with your bank will reduce the interest paid each month there by substantially reducing your monthly payment. As you are aware I'm sure interest rates are lower than ever before in history. This is a win/win situation for you and your lending institution.
B. The United States Treasury has a program called "paying down" what you actually owe for your home. By reducing the total debt amount owed will reduce interest paid and both reductions will go along way in reducing your monthly out go.
C. Once you have negotiated and both agreed to the new terms, you will be set up on a temporary plan for 3 months. Having successfully made your payments when they are due, the terms will be accepted for five years.
Mortgage modification is away for you and your family to stay in your home and the bank does not have to go through the foreclosure process saving them $1,000's.
Each institution has different stipulations and forms they require but this is a solution that works for both of you. There are 1,000 's of people in the same situation as you by no fault of their own. The negative stigma just does not exist in today's difficult times.
You are not out there all by yourself, even though you might think you are. Mortgage loan modification is just about knowing your rights and knowing how to present the facts.
Isn't it time you consult a loan modification expert? Let's do it today.
