subject: Mortgage Modification a Good Alternative Against Foreclosure [print this page] When you take on a mortgage loan to purchase a real estate property and create a home for you and your loved ones, you do so with the idea and focus that you will be able to pay back the mortgage loan in time so that you can enjoy a house free from mortgage debts on your golden years.
But sometimes life just does not work that way and there are factors, events and happenings that will prevent you from completing this part of your life in the manner and way that you planned or dreamed of. Naturally, these events are just milestones in the life path of a person and a family and should never be considered anything other than precisely that.
In consequence, the homeowner should take into consideration the alternatives that are at his or her disposal in terms of prevention and avoiding a foreclosure action against him or her, especially in those cases where the delinquency of the mortgage is not imputable to an action that he or she has committed.
Before falling prey of despair and extreme stress, take some time to consider your alternatives, make sure that the mortgage lending company is offering you indeed all that it can offer you in terms of assistance and guidance. Remember that when it comes to a foreclosure, you will lose your home but the mortgage lending company will also be losing money, so it is in the interest of both of you to come to an agreement.
One alternative, among the many that you have is mortgage modification; through this alternative you will be able to restructure your debt. This means that the whole amount of the debt will be negotiated again, though not quite the same as it was when you first got the mortgage loan, though in some way it is too similar.
A Mortgage modification means that the resulting amount of the debt will be divided and analyzed into a new period, which generally is a bigger period; if your previous loan was for 10 years, a mortgage modification can arrange that your remaining amount (regardless of the years left) will be rearranged into 20 years.
The advantage of this alternative is that your monthly payments will be smaller though there might be a slight increase on the interest rate to match the acquisitive power of the money in 20 years. Still, for a homeowner who is bouncing back from a chaotic and problematic financial situation, it might be a good solution.
It is highly recommendable that the homeowner does some additional research before leaping or jumping into this alternative; proper negotiation can be taken to reduce as much as possible the interests while the mortgage lending company might be inclined to raise them as much as possible. Raising the interests can be a violation of federal stipulations, so it is a good idea to have the assistance of a real estate lawyer or a real estate agent who is qualified and certified a mortgage modification agent.
There is a reputable number of these professionals in every state of the US, and having the number of one in which you can trust will prevent a lot of headaches for you and your family. Check with the Better Business Bureau and your local HUD representative for further information.
Mortgage Modification a Good Alternative Against Foreclosure
