Three Ways a Loan Modification Can Save Your Finances
It is far more common than you may think for homeowners to deal with a shift in finances or a loss of income and find themselves unable to make their regular mortgage payments. If you have found yourself in such a situation, it may seem natural to panic and assume the worst. In realty, however, there are a number of ways that you can address the situation and mitigate the consequences. One such option is hiring a Warrenville home loan modification attorney. Consider these three benefits.
You May Be Able to Extend Payment Terms
This is a common and effective way to combat a reduced income. If you have a 30-year mortgage and extend it to 40 years, you can substantially reduce your monthly payments. It can help homeowners avoid the detriments of a foreclosure, and it can buy some time for you to consider other options, too. If you think that this option may be appropriate for your situation, a Warrenville home loan modification attorney can help you pursue it with your lender.
Reduction of Interest Rate
Though this is typically a temporary action, it can greatly relieve the financial burden you are facing in paying your mortgage. Lenders will sometimes agree to reduce the interest rate on a mortgage temporarily if financial circumstances permit it. In rare cases, this loss of interest is simply forgiven, but more commonly, it is expected to be repaid when the home is sold or when the loan is more mature. This, nonetheless, is a viable option for some homeowners.
In many cases, the alternative to these options is default on your mortgage loan. Foreclosure can wreak havoc on your credit and your life, so it is best to contact a Warrenville home loan modification attorney and explore what other options may work for you and your situation. It is worth it to familiarize yourself with all available options.