Mortgage Loan Modifications

Loan modification is essentially a process of editing and reforming a current loan, which may provide relief during tough economic times.

Most people sign a contract with a loan for which they believe they will have no trouble paying over the duration of the contract. However, we never truly know what is going to happen in life. The current epidemic that has spread throughout the globe has made things extremely difficult for all sorts of people. Finances are being stretched tight and the economy has literally been closed for an undetermined period of time, which means people are not getting the money they need to pay their bills. There are tons of people in this situation who would benefit from loan modification. 

Modifying a loan may decrease payments each month, or simply make the terms of the loan more friendly towards a current hardship. If you are struggling to pay your loan, you should definitely consider seeking some relief through modifying your loan. This is especially true for veterans, as it is generally even easier to obtain VA mortgage modification. The last thing financial companies want to see is veterans losing their homes because of a tough economic situation, so there are programs out there that can help during these times.

Learn the Facts

Lots of people are under the false impression that they are locked into a loan once they sign the papers. The terms can always be changed and modified down the road, but it absolutely takes some action from the homeowner. If you think you need to modify your loan, the first thing you should do is to look for a local loan modifications service. Local loan modification services are companies that work with people to make modifications to their loans. They will take a look at the current loan and advise you on modifications that may be possible to make, which may relieve a financial burden that you are currently experiencing.

Keep in mind, if you don't pay your loan, it isn't a good situation for the lender as well. They are motivated to ensure you are able to continue paying, which means you have a very realistic shot at obtaining a modification to your loan. Loan modification can be accomplished by even the most green of beginners, based on the fact that the majority of the work is done by a loan modification company. You can simply tell them that you would like some help modifying your loan and they will work to see what they can accomplish. They will alert you of your options and walk you through the entire process, which is great for anyone that is thinking it may be too much trouble to accomplish. Here are some general facts to help you make the best decision when modifying your loan.

  • Reduce Interest Rates
  • Change Adjustable Interest Rates and Fixed Interest Rates
  • Reduce cap of adjustable Interest Rates or Stop Upward Adjustment
  • Reduction of Principle Balance
  • Lower Monthly Payments
  • Extend Terms or Existing Mortgage Loans
  • Temporary Interest Only Payments Plans
  • Avoid Foreclosures

Best Companies

Quicken loans is a well-known company that handles loan modifications for their customers. LendingTree and Carrington Mortgage Services are also reputable companies that can provide assistance with loan modification services. These would be the top 3 loan modification companies that you should consider contacting. However, it also pays great dividends to explore the various options that you may be able to find locally. It may be easier to get an appointment and talk to someone in person if you search for a local loan modifications service. However, most people are attempting to socially distance themselves during the current epidemic, so it might be worth your while to try to contact a company over the phone. Regardless of how you get your loan modification, it can relieve stress and financial concerns during a time when we all need some relief.