Loan modification refers to the restructuring of an existing loan. A mortgage is made up of Principal, Interest Rate, and Term - all of which can be modified outside of the original contract that was originally entered into. A bank will generally consider modifying a loan that is behind on payments if they are able to recoup more by doing so than if they foreclose on the property. Another important component to consider is the ability of the homeowner to make ongoing payments if the mortgage payment is reduced.
Bank and government lending policies change daily, and this is also true of the modification programs being offered by lenders. The government has several programs in place to help homeowners retain ownership. Bloom / Van Omen & Associates, the official real estate partner of Scottsdale.com, can share these programs with you and provide guidance.
A loan modification is an alternative to foreclosure or a short sale. The main question you need to answer is: Do you want to stay in your home for years to come. If you do, and have stable income and meet basic financial ratios, you may be able to keep your home and lower your payments through a modification.
Free loan modification assistance:
Speak with the experienced agents at Bloom / Van Omen & Associates who can answer your questions.
We'll review your property value and financial criteria to help guide your decision.
We'll help you understand the process and how to move forward.
