There are several options available for people who are facing foreclosure, including loan modification. This is where you negotiate with your lender to modify some of the terms of your mortgage so that your payments are more affordable.
With loan modification, you can negotiate a lower interest rate, a longer mortgage term, a reduced balance or other terms of the mortgage. If you are in an adjustable rate mortgage, you might be able to negotiate a reasonable, fixed rate mortgage. If you have a large escrow shortage, it is possible to add this to the mortgage balance.
Some modifications include forgiving some of the past due interest payments and re-writing a whole new mortgage, with a new beginning balance, new 30 year term, and a fixed interest rate with a lower monthly payment. You might be required to make a lump sum payment, in advance, to defray some of the lenders loss, and then you get to start fresh with a new, affordable mortgage, thus, saving your home from foreclosure.
If you are current in your payments, but are anticipating financial difficulty in the future, you may be able to apply for loan modification. Your lender will require a financial statement be filled out, detailing your situation. You will have to show hardship by keeping your current mortgage terms, yet also show the ability to pay if certain modifications were made.
This can be a difficult process for the distressed homeowner to do. It becomes even more difficult if you are already in foreclosure. Lenders will tell you it is not their policy to offer modification during foreclosure. This is not true; in some situations, lenders have been known to offer loan modification, even after the sheriff sale.
A foreclosure consultant is experienced with talking to lenders and negotiating loan modification. If you are facing foreclosure, or already in foreclosure, talk to our consultant to see if loan modification is an option for you.
Alan Faitel is a foreclosure specialist with a passion for helping homeowners in financial distress. Contact Alan for a consultation at 248-363-0100 or email afaitel@yahoo.com
Visit http://www.oaklandmichiganhomes for a list of services Alan offers to homeowners and real estate investors.
We buy homes using private funds so there is no need to wait for bank approvals. If you need to sell your home and close quickly we can complete the transaction within just a few days.
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