What Can Be Negotiated in a Home Loan Modification?

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It's no surprise that home loan payments have increased substantially over the years. Lenders have been modifying loans for years. We hear more about loan modification as a result of the financial crisis. Taking action immediately will help you avoid foreclosure and save your home.

Loan modification involves negotiating the loan with the lender in order to help make it more affordable for the homeowner. In order to qualify you must be going through a hardship. Additionally you must be able to prove that hardship.

Essentially a loan modification can lower and lock the interest rate to prevent increases. If you have an adjustable rate mortgage (ARM) you could have it changed to a fixed rate mortgage (FRM). You will ultimately be able to cut down you mortgage payments and save money.

The term of the loan could be extended allowing late fees to be re-applied into the mortgage.

This is a way for the lender to get you caught up on the loan. This is another way that you can save money on a mortgage.

The duration of the loan could be lengthened in order to allow for lower payments over an extended period of time. If you do qualify, you can save money and save your home as well.

Your mortgage can be modified to allow you to stay in your home. Lenders are dealing with enough foreclosures on the books. Its more advantageous for the lender to work out a loan with the homeowner. This way the lender gets their money back and you keep your home.

Has your mortgage terms changed and set you and your family up to the risk of foreclosure? It is possible to save yourself with a home loan modification? This involves negotiating the terms of your loan with your lender in order for you to be able to stay in your home.

Source: http://business-negotiation.blogspot.com/2012/07/what-can-be-negotiated-in-home-loan.html

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