Home Loan Modifications
A loan modification is a permanent change in the terms of a loan. It allows the loan to be reinstated, and ultimately results in a payment that the borrower can afford.
If you are in the process of applying for a home loan modification, or you are facing a foreclosure, there is a lot that the mortgage companies do not tell you. For instance, applying for a loan modification does not stop a foreclosure.
Although you might be attempting to obtain a home loan modification, the foreclosure department may be preparing a foreclosure at the same time.
Does Being Behind on Mortgage Payments Help a Loan Modification?
One common mistruth stipulated by mortgage companies about home loan modifications is that a borrower must be behind on their mortgage in order to be considered for a loan modification. This is both false and misleading.
In fact, in many cases, being behind on your mortgage can actually disqualify you from certain federally funded mortgage relief programs. For more information on this topic, visit: www.makinghomeaffordable.gov.
When you do start to fall behind on your mortgage payments, the mortgage company will begin to consider going forward with foreclosure. This does not matter whether you are in the home loan modification application process or not.
Seek Legal Help in Foreclosure and Loan Modification
There are ways to deal with these situations and arrive at a positive solution. Our highly experienced Michigan bankruptcy lawyers can help you save your home and avoid foreclosure.
Contact us online or call today at (734) 397-4540 for your free legal consultation.