Loan Modification Foreclosure

Normally, people will think that this mortgage modification program is another scheme which banks conjure up so that they can get more money from their customers who are already struggling. But in reality, this mortgage modification program is one way which can help both the client and the bank. It is in fact, a Win-Win situation.

While the person facing a foreclosure can be able to save his home, the bank also saves money for going through with a foreclosure. This is because they no longer have to hire another person to collect money from you or to spend money fixing the house and putting it up for sale. In addition, the banks are giving you another opportunity where you can pay your existing mortgage in a more reasonable and practical manner, thus it is eliminating a complete loss on the part of your lender.

If a borrower has poor credit, they are not necessarily exempt from loan modification, but they should get a consultation or get in touch with their lender. Also if a borrower has or has not made any late payments on their mortgage affects different lenders in certain ways. While some lenders will not accept a loan modification agreement with a borrower who has not been late on their mortgage payments, others will. Some lenders take a late mortgage payment as a definite sign that the homeowner is having a hard time affording their mortgage, and without that they will not even consider a homeowner to be under financial hardship.