Loan Modification Better Than Foreclosure!
For most of the people who are suffering from the drawbacks of mortgaging their house, foreclosure seems imminent. This usually happens in cases when the loan upon a property exceeds its real value. Therefore, foreclosure becomes necessary on part of the lender as he is the holder of the lien. However, there are other ways in which you can handle this issue. For some, short sale of their property can be one of the better options. It would completely ward off the loan from your history and you would not be liable to pay anything to the lender. However, this solution has its own set of pitfalls that may not suit most of the homeowners.
For the rest of the homeowners who find themselves stuck with the mortgage loans, there is one way in which they do not have to sell off their property, nor do they have to worry about a negative remark in their credit history. This option is that of loan modification. You have to make sure that you have paid all your previous loan installments on time. If this is taken care of, then your care becomes stronger and you are in a situation that may provide you a better bargain. In any case, the loan modification process can be carried out by any kind of debtor without hassles, so you must not worry too much about its success rate.
Talk To Your Lender For Loan Modification
Once you talk to the lender about your loan modification demand, you both can sit together in a meeting and discuss over the loan modification and the new terms. As soon as equilibrium is reached and both the parties are satisfied with the new loan terms, you will be able to issue a ‘null and void’ status to the previous agreement and make a completely new loan agreement with the terms of your choice. This is helpful to the people in many ways. You will be able to get the most out of your loan agreement and will also be avoiding foreclosure.
You will be able to retain the possession of your house or property and you would also not have to take a negative comment on your credit report. Simply modifying a few terms, like the change in the rate of interest, monthly capping of interest or the lengthening of the repayment period can work in your favor and you would still be able to manage your status quo without any hassles.