YourHomestart.com A+ BBB | Bank Loan Modification

What is a loan modification?

A Loan Modification is a permanent change in one or more of the terms of your loan. The purpose of a loan modification is to allow the borrower to meet the new bank loan modification terms, allowing them to prevent foreclosure. A bank loan modification is not a refinance; it is the restructuring of the loan terms. In other words, a loan modification is a contractual agreement between the Lender and the Borrower to provide long term relief from unaffordable loan terms. Bank loan modifications can lower your interest rate(s), monthly mortgage payment(s) and the principle balance (loan amount). Remember the cost of foreclosure to the Lender is higher than new bank loan modification terms; therefore, lenders are open to loan modifications to prevent foreclosure. A bank loan modification will cost less than a refinance and it's available to more people, even those that owe more than the value of their home, behind on mortgage payments and/or have poor credit, which become roadblocks for a refinance.

For more information on saving your home from foreclosure with an A+ BBB business you can trust, please visit www.yourhomestart.com