About Loan Modifications. Learn about Loan Modifications a Late Mortgage Solution
Yogi understand this very well and that is why we offer mortgage loan modification services to help you adjust with time. There was a period when mortgages were written based on the prevailing lending structure of the time, and more importantly, they were based on the assumption that you, the borrower, would have a stable and even growing source of income throughout the time you pay back your loan. The terms of lending has changed dramatically in recent years. Furthermore, it is noted that many borrowers, who found their incomes to have been unexpectedly reduced or shut off completely, need an effective solution for late or missed mortgage payments.
The addition of changing economic conditions to the loss of income has placed many people in jeopardy of defaulting on mortgages. Providing Free Consultations since 1999, Credit Yogi can help you handle the situation without the possibility of losing your house, especially since the lending institutions are also affected by these factors. We can help you learn how to renegotiate a loan rather than simply have it default.
This renegotiation is termed as “home loan modification”. At Credit Yogi, we provide mortgage loan modification help to teach you about loan modification programs by providing a FREE no obligation phone consultation where a consultant will explain what you can do step by step. Our Toll Free Consultation Line is answered by a live agent and available 24/7/365.
What is a loan modification program?
Programs for mortgage loan modification help works on your existing mortgage rather than trying to generate a new mortgage. Loan modification can incorporate one or more of the three techniques stated below to reduce current payments on the mortgage.
- You should not confuse mortgage loan modification services with refinancing. Basically, refinancing is just another way of reselling your house to yourself. It will require you to pay off fees and sales taxes.
- Principle reduction. Your lender may reconsider seeing that the original amount borrowed on the property does not accurately reflect the current value of the home. This consideration can be made when you have become upside-down in equity, meaning the property value is lower than the amount owed on the principle.
- Extend the term of the loan. When time is added to the term of the loan, it can easily result in lower mortgage payments.
What is a loan modification program?
Home loan modification programs works on the existing mortgage rather than trying to generate a new mortgage. Loan modification can encompass one or more of three techniques to reduce current payments on the mortgage.
- An interest rate reduction. Your mortgage holder may be willing to lower the rate of interest particularly if you were issued an unusually high rate compared to current mortgage rates.
- Principle reduction. Your lender may be willing to realize that the original amount borrowed on the property does not accurately reflect the current value of the home. This is a consideration when you have become upside down in equity, with a lower property value versus what is still owed on the principle.
- Extend the term of the loan. Adding time to the term of the loan can easily result in lower mortgage payments.
A mortgage loan modification program offers other benefits as well, depending on the circumstances of the borrower. For example, late fees might be waived by the lender if they have been assessed. Even if these late fees are not waived, they can be added to the principal of the loan so that they become part of the long term settlement rather than a sum of cash that must be produced up front.
If you see yourself in a situation that has gotten to the point of foreclosure proceedings, try initiating a loan modification effort that may be enough to delay foreclosure proceedings. In this case, you can immediately retain a company that provides loan modification services.
Free Loan Modification Services Consultation
Where to seek help
While it is completely okay to attempt a loan modification program by dealing directly with the bank, we do suggest you to research your options before you make your decision. Credit Yogi can point you towards a professional that specializes in and knows all of the details about loan modifications with specific lenders. Our database has over 160,000 Financial and Legal Professionals licensed in over 30,000 zip codes. Lending services are notorious for stonewalling individuals who think they can go through the process without any professional help. With Credit Yogi, there is never any obligation to hire. A true professional also knows all the secrets and good deals that may prove to be of great help to you. This information is rarely, if ever, provided to individuals. Granted, the loan modification service will charge a fee. However, this fee will more than pay for itself in the savings that are recovered in the long term from the mortgage modification. You may even find loan modification services that will add their own fee into monthly payments to relieve the short term cash obligations for you.
When the mortgage starts to become too much to handle, consider home mortgage loan modification. The sooner you act, the more effective the process will be.
If you would like to request a free no obligation consultation with a mortgage loan modification professional, click here.