What is a Loan Modification
This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in choking adjustable rate mortgages and no way to refinance or get out from under, loan modifications have become nearly the only way out!.
The term is used when we work with your lender to modify your current mortgage and make your mortgage more affordable. A loan modification will change one or more of the following, your interest rate, balance of loan, delinquent fees owed, and term of loan. In the past this was only used when a borrower was delinquent but now it is being used before someone is delinquent. This is one of the best methods to help people avoid foreclosure.
Loan Modifications in the News:
September 3rd, 2008 Foreclosures linked to subprime fraud. An investigation of subprime mortgage practices reveals fraud proliferated around the nation. Many of the most egregious cases involved clearly predatory lending practices in which there was never any possibility that the borrowers could afford to pay off their loans.
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