Paying off debt | Pay off debt

Welcome Guest

Search:

Paying off debt | Pay off debt » Loans » Loan Modification Plan For Stopping Foreclosure

Loan Modification Plan For Stopping Foreclosure

Print View
by: No more debt !
Total views: 380
Word Count: 487
Date: Thu, 4 Feb 2010 Time: 11:29 PM
0 comments

Facing the very difficult situation of a looming foreclosure is not something anyone would wish to face. However, foreclosures have become more common these days than anyone had ever imagined possible.

The disastrous economy has led to foreclosures reaching unheard of heights with then number of homes being foreclosed upon reaching into the millions. Worst of all, it is forecasted that two million more homes may face foreclosure in the near future. Due to such a crisis, legislation was passed promoting home loan modification plans which have the ability to help stop the onset of the bank's seizing one's home.

What is a loan modification plan?

Hector Milla Editor of the "Best Loan Modification Companies" website -- http://www.BestLoanModificationCompanies.com -- pointed out;

“…Essentially, it is a process where the borrower and the lender sit down at the negotiating table and work out new terms for the mortgage. Why would the lender be willing to do this? Basically, the law compels them to do so. However, the law is not intended to be completely unfair to the lender. There are certain criteria that must be met in order for the lender to agree to a loan modification plan. This prevents people who can legitimately pay their mortgage from taking clear advantage of a lender who provided a mortgage in good faith…”

The purpose of a loan modification is to make the monthly mortgage more affordable to the borrower. This way, the borrower will be able to stay on top of premium payments in a much easier manner. There are various ways this can be achieved. One common method involves lowering the monthly payment amount. Another means could be to lower the interest payment on the loan. (This combats the high interest rates of the subprime loans that have been issued over the years) In rare instances, a portion of the balance would be reduced. Now, some may think this swings the pendulum so far in the direction of the borrower that the process is completely unfair to the lender. This really is not the case.

“…If the lender does not receive the proper mortgage payment, the lender must foreclose on the property. This is not exactly a positive process for the lender since the costs of foreclosure are significant. In other words, it is probably a lot less expensive for the lender to enter into a loan modification agreement with the borrower. So, really, a loan modification plan can benefit both parties tremendously…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.BestLoanModificationCompanies.com

About the Author

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.


Rating: Not yet rated

Comments

No comments posted.

Add Comment

Your Name:


Your Email:


Comment

Enter the code shown

Visual CAPTCHA