For those overwhelmed by debt, facing the foreclosure of their home is their worst nightmare. When people are threatened with foreclosure they assume there is nothing they can do, however, there may be a solution to be found in loan modification.
What is a Loan Modification?
A loan modification is a change to the original terms of your mortgage loan. Loan modifications are often confused with refinancing, and cannot be used to pay off your current mortgage loan.
Loan modifications can also only be gained through your current lender because they must approve the new terms, which is why having an experienced team of attorneys on your side can help negotiate the best terms.
How Loan Modifications Can Save Your Home
Loan modifications can change the terms of your loan. If you have trouble making your monthly payments, your term can be extended to provide more time to pay and a reduced amount.
Loan modifications can also reduce your current interest rate. This can be done when the current interest rate is lower than the rate under your original mortgage loan, and lower your payment.
Your loan structure also may be subject to change. Your loan may be modified from an adjustable interest rate to a fixed rate. This option is most desirable for those who live on a fixed income and would benefit from predictable payments.
All of these changes that can be applied to your loan can save your home by giving you more time to make your payments and possibly even lowering your rates and payments.
Contact California Bankruptcy Team Today
Having the constant pressure of finances bearing down on your life can be paralyzing. We understand the intricacies of foreclosures and creditors, and are prepared to provide compassionate and personalized services to help you find financial independence.