For questions, email Chuck Plake, E.A. at Plake Tax Service cplake@plakenet.com.
A home loan modification changes your loan terms without refinancing for a new loan. It requires negotiations (discussions) between you and your lender. The terms of your loan are restructured to fit your current financial situation. Reasons to modify your loan are:
- To lower your interest rate,
- To reduce your high payment,
- To reduce your principal balance,
- To change your adjustable rate to a fixed rate,
- To increase your loan term,
- To assist you for missed payments, penalties and fees,
- To provide temporary assistance to skip or reduce mortgage payments
- To bring property tax and insurance payments current,
- To stop foreclosure on your home,
- To assist you with any type of financial hardship,
- To prevent you from being thrown out on the street,
- To get you out of a negative amortization loan, or
- Any combination of the above.
Due to today’s real estate market and the economy, all homeowners should ask their lender for a loan modification, whether they are facing foreclosure or not. You do NOT have to be behind on your payments to request a home loan modification.
Many homeowners get depressed and struggle to negotiate with a lender. The lender has certain guidelines they must follow, so a better term than ‘negotiate’ is ‘discuss’. Just as some people prepare their own taxes or represent themselves in small claims court, many homeowners are knowledgeable enough about real estate and mortgage lending to handle their own loan modification. Don’t be afraid to contact your lender. Doing so will save you big bucks. But be prepared.
Don't pay $1,000, $2,000 or $3,000 for something you can do. Do It Yourself!
Checkout the eBook and follow the guidelines: Loan Modification: Simple As 1-2-3.
