What Makes Loan Modification The Best Tool?
Why is Loan modification The Best Tool? It is one of the essential tools for saving your home from foreclosure, and is the best option – if you qualify. It will give you the best outcome above all other options– chapter 13 and chapter 7 bankruptcy being the other options. A loan modification allows you to begin a repayment plan, without the baggage that bankruptcies can carry.
Loan Modification As Your Go-To Choice
Loan modification allows you to roll all of your missed payments into future payments; your loan is re-amortized. The adjusted loan is based upon your missed payments and principal balance combined, and usually has a lower interest rate with a term of 30 to 40 years, which results in a lower monthly payment.
I’ve Decided I Want To Apply For A Loan Modification, What Should I Do Next?
If you want to apply for a loan modification to save your home from foreclosure, you should first find out if you qualify for one. There are certain criteria you must meet, regarding your income and expenses, to qualify for the loan modification. To find out if you qualify, read our post: Do I Qualify For A Home Loan Modification?