What are the typical results of a loan modification and why would you want one?   The answer is that results vary by lender.  In most cases, when a homeowner contacts their lender directly, the homeowner has no idea what options are available.  You must ask the lender what options they offer.  Listed below are the typical results:

• Reduced mortage payment
• 3-12 months without a mortgage payment
• Reduced interest rate
• Reduced principle balance(loan balance)
• Paying principle and interest instead of jsut interest
• Fixed interest rates

The above are just some of the things that can occur.  Depending on the lender they may agree to one of these or all of them  they also may not offer all of the options stated above.

Because of the mortgage meltdown and the lending credit crunch, a loan modification may be a borrower’s only chance at reducing their mortgage payment and saving their home, rate of success, however, will often hinge on how well the case is presented to the bank or lender and the skill, knowledge, and experience of the person doing the negotiations.

The idea is to keep you in your home with a comfortable monthly payment that you can show on paper that you can afford to make.

This entry was posted on Friday, March 20th, 2009 at 1:53 am and is filed under Loan Modification. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.