Loan modification facts
- Loan modifications are not easy. A lot of homeowners go into a loan modification just looking to reduce their monthly mortgage payments, but it is not as easy as it may sound. You are likely looking at about two months worth of negotiating, stress, and hard work to get a deal done, so avoid a loan modification if you are a “casual” homeowner who is not immediately in trouble.
- Loan modifications are not free. You may get your mortgage payments reduced for an extended period of time, but it will take you a while to recover from the hefty fees that usually go with a loan modification. The attorney/ company that you deal with will usually take around 1% of the value of your mortgage in fees, which can certainly add up.
- Loan modifications are worth it in the end. If you are having legitimate trouble making your monthly mortgage payments, you are doing everything you can to keep your house, and you do not want to lose your home to foreclosure, then a loan modification is perfect for you.
Categories: Basic loan modification info