We have a real problem looming, which affects thirty million home-owners in the USA. More and more homeowners are losing their jobs, or having their salaries reduced. Increasingly homeowners are falling behind with their car, mortgage or credit cards repayments. These home owners are in danger of defaulting on their mortgage and seeing their home go into foreclosure. But there is an answer, and many homeowners aren’t even aware of this as an option: it’s referred to as loan modification – sometimes known as loan mod.
Loan modification does not entail re-financing, so there is no credit check. It is not debt consolidation. What it is, is renegotiating the current loan to achieve a reduction in interest rate and, under certain conditions, a lowering in loan principal. And it doesn’t involve increasing the term of the loan. A new, reduced, payment is achieved which is sustainable to the home-owner. Loan modification is a real win-win solution for all concerned parties. To the home-owner it often means the difference between keeping or losing their home. To the banks, it can mean no less than the difference between remaining afloat or going under.
There’s no reason why home-owners can’t arrange their own mortgage loan modification by contacting the loss mitigation dept at their bank. But it is not recommended – the banks will often offer only a small reduction in interst rate, or no reduction at all. Much better to employ the services of a reputable loan modification firm, which employs its own team of loan modification lawyers, who do nothing other than negotiate with banks all day every day and know how to accomplish a telling lowering. Going it alone is like representing oneself in a court of law – seriously not recommended. A reputable mortgage loan modification company can negotiate a 30% to 50% reduction in interest without increasing the length of time of the mortgage loan. It’s well worth the fee they may charge to achieve this.
