Mortgage loan modification is a request the borrower makes to help with his existing loan. It may be a request for a lower interest rate, a longer repayment scheme, or both. The government can also offer eligible borrowers a mortgage loan modification. Requesting for a mortgage loan modification can be done by a debt settlement company or a lawyer.
If your property is a possible candidate for foreclosure, applying for a mortgage loan modification can be a course of action and is favorable to the lender than having your property foreclosed or the debt charged off. A mortgage loan modification is a long-term solution to your financial woes than the shorter-term debt relief or forbearance.
There are government-sponsored mortgage loan modification programs currently available from Fannie Mae with their Flex Modification and the US Dept of Veterans Affairs mortgage delinquency counseling for military veterans. Traditional lenders also have their versions of mortgage loan modification programs.
Fannie Mae’s flex modification offers a lower interest rate and can extend the mortgage loan modification up to 480 months. It also reduces the principal and interest to up to 20%. For the VA program, the loan servicer can help you with a repayment plan, loan modification, repayment plan, among other assistance to help you get back up on your feet.
When applying for a mortgage loan modification, prepare your mortgage information and proof that you are going through a difficult financial situation. Make sure that you specify your predicament to give the lender a clearer picture of your current financial status. There will be different requirements and qualifications for every program, so better ask the loan officer for an updated list of what you need so that you can prepare it immediately.
If you have concerns about your mortgage and whatever mortgage-related needs you may have, contact us, and we’d do our best to assist you.