Will your bank modify your home loan?
Foreclosure rates are at an all-time high in the US right now. Stories of houses being abandoned by their owners and turned back over to the bank are all too common. The funny thing is that the banks don't even want the houses back, as they aren't in the real estate business; they're in the business of banking. This is an important fact to keep in mind if you happen to be in a place where you can't afford to pay for your mortgage anymore. Whether you're in financial distress in general, unable to keep up with your adjustable rate mortgage or some other bind, there ARE programs out there that will help you restructure your current loan and allow you to keep your house and get your loan back in order.
Loss Mitigation, Loan Modification and Home Loan workout programs are three options you have. Many companies offer one or all of the programs just mentioned, but before signing up with any company, check them out first! Make sure they are reputable. Financial relief is possible with a successful program offered by the right company.
Let's say you have a home worth $340,000 and you have a $400,000 mortgage at 8%. If the home is foreclosed on, the bank has two options: auction it off, or re-list it. Either option could spell financial disaster for the bank, as doing so could add on another $60,000 in losses.
In this example, bank will lose at least $120,000 if a client decides to "walk away". Through modification and lowering interest rate to 5.25% on a 30yr fixed term, bank will make close to $400,000 in future interest payments. The result is a win-win for all parties involved.
It's best to work with an attorney to structure a loan modification, as their default rate is under 5%. Homeowners that go it on their own often default at least 50% of the time. Another perk is that banks prefer to work with attorneys.
More often than not, if an attorney structures a loan modification for you and it doesn't work out, their fee is refundable. You're likely to see incredible results from restructured loans! Loan principal reductions, interest rate reductions, extended payment terms and lower monthly payments are all feasible when you modify you loan.
We can give you a free consultation to see what can be done to best fix the financial fiasco you're dealing with. If you're having problems making your current mortgage payment or you're dealing with an adjustable rate mortgage that doesn't work for you anymore, give us a call at 1-888-282-1011 and get some more information about our loan modification program!
Loss Mitigation, Loan Modification and Home Loan workout programs are three options you have. Many companies offer one or all of the programs just mentioned, but before signing up with any company, check them out first! Make sure they are reputable. Financial relief is possible with a successful program offered by the right company.
Let's say you have a home worth $340,000 and you have a $400,000 mortgage at 8%. If the home is foreclosed on, the bank has two options: auction it off, or re-list it. Either option could spell financial disaster for the bank, as doing so could add on another $60,000 in losses.
In this example, bank will lose at least $120,000 if a client decides to "walk away". Through modification and lowering interest rate to 5.25% on a 30yr fixed term, bank will make close to $400,000 in future interest payments. The result is a win-win for all parties involved.
It's best to work with an attorney to structure a loan modification, as their default rate is under 5%. Homeowners that go it on their own often default at least 50% of the time. Another perk is that banks prefer to work with attorneys.
More often than not, if an attorney structures a loan modification for you and it doesn't work out, their fee is refundable. You're likely to see incredible results from restructured loans! Loan principal reductions, interest rate reductions, extended payment terms and lower monthly payments are all feasible when you modify you loan.
We can give you a free consultation to see what can be done to best fix the financial fiasco you're dealing with. If you're having problems making your current mortgage payment or you're dealing with an adjustable rate mortgage that doesn't work for you anymore, give us a call at 1-888-282-1011 and get some more information about our loan modification program!
About the Author:
Jon Ochs is the founder/CEO of NCA Credit Repair Inc., a nationally recognized and trusted Credit Repair Company.
posted by Credit Counseling at
3:33 AM
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