The Top 10 Questions about Loan Modification

If you are one of the tens of thousands of Americans who are facing hard times financially and are not able to pay the mortgage on your home anymore, the loan-modification plan may just be the thing you are looking for. Lenders are showing greater flexibility in altering the terms of the mortgage payments and believe it or not they would rather have you keep your home and receive monthly payments than confiscate it under foreclosure at a time when the real estate market is facing an all-time low.

There are many questions that may be going through your mind regarding loan modification. This article will try to answer the most common questions homeowners have regarding the plan.

1. What is a Loan Modification: Loan modification is the reinstatement of a loan by the lending agency by changing the terms and conditions of a loan making it possible for the homeowner to make regular monthly payments on his mortgage.
2. To hire or not hire a loan modification expert: This is up to you. If you feel you can take the stress and anxiety of an approaching foreclosure and you have the time to prepare all the necessary documents needed to apply for a loan-modification, sure, go right ahead. But if not, then you surely need an expert in the area to help you when filing for one. Remember that you only get one chance to apply for a loan modification so you can't afford to make any mistakes. Agents or lawyers can be quite pricey but there are some real estate brokers who are offering the service free of cost.
3. Does a loan modification help in avoiding a foreclosure: Of course! A loan modification is your best shot at avoiding a foreclosure on your home. The bank or your mortgage lender looks at your circumstances and decides whether you deserve a second chance or not. The Obama government is now offering remuneration to lenders who grant loan-modification. This coupled with the fact that it's more profitable for lenders to let you keep your house then to foreclose it, has increased the chances of homeowners getting approved for a loan modification and saving their homes from foreclosure.
4. Am I eligible for a modification on my loan if I am not behind on my payments: Getting approved for a loan modification if you are not delinquent is possible but the success ratio is not very encouraging.
5. How can the newly introduced government plans aid me in acquiring a loan modification: As mentioned above, the government has assigned a massive $75 billion to back lending companies that provide a loan-modification to their customers. This incentive has made banks and mortgage companies more receptive to the idea of loan workouts.
6. Does the lender have the right to add late charges to the loan-modification: As per the rules of HUD, the accumulated late charges have to be relinquished by the lender when considering a loan work out for a client. This, however, varies based on the kind of loan that is under consideration.
7. What is the criteria that qualifies me for a loan modification - Loan Modification Live Transfers: A loan work out is usually awarded on the basis of hardships faced by the homeowner like losing a job or the death of a spouse, an alteration in the loan terms, and/or the capacity for paying the mortgage by a client.
8. What sort of a hardship situation is guaranteed to get me a loan modification: The one hardship most people are facing these days is loss or relocation of jobs. And this is one of the most acceptable bases for allocating a modified loan.
9. Is it possible that missed payments be added to the new loan modification: The answer is ‘yes’ It is very possible that your past arrears are added to your new loan and are spaced out in a manner in which the loan is made current.
10. How does modifying my loan affect my credit history: A loan modification is great for your credit report as the lender reports your current payments as on time as opposed to past due hence raising your credit score.

These are the top 10 most asked questions regarding loan modification. Just remember, an expert and qualified modification agent can make the difference between nailing it and losing it so tread with care. Buy loan modification live leads now!

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