Tips For Mortgage Loan Modifications

Mortgage loan modifications are growing in popularity these days. The housing market and the overall economy have been going through many difficulties. Many people are experiencing problems trying to pay their mortgages. With adjustable rate-mortgages, homeowners are having difficulty being able to afford the higher payments as interest rates fluctuate. You may have been placed into a bad loan, like thousands of other Americans this past year, and are having difficulty trying to refinance.

The very first thing that you should do as a homeowner is find out if the mortgage on your property is entirely legal or not. If there are violations or if there is evidence of fraud, you may be able to get out of the mortgage with reasonably little hassle. To verify all this you should hire a legal expert on mortgage law. Attorneys will work to review all the documents that relate to your home loan. The goal here is to find any violations that may make you exempt from payment. That would mean you can forget about a mortgage loan modification altogether.

On your own, you can write out the history of the life of your loan. This way you can lay out all the charges and fees in the mortgage balance. That will help to pick out any possible violations and discrepancies in the home loan agreement between you and the lender. You or your attorney should try to compare the actual loan you have with the one that you expected to receive when you originally signed the contract. Make sure the terms are exactly the same, and nothing has been changed. Do your monthly payment amounts match the amounts that you were originally told you would have to pay? Are there any prepayment penalties, and if so, were you aware of these when the deal was first struck? These are some general things to look for.

If you find that no laws have been breached with your mortgage, then you can try to obtain a mortgage loan modification. Lenders will look at your current and future ability to pay, the amount owed, and the equity in the property. From there, they will decide if foreclosure or loan modification is better for them from a business standpoint. You really want to seek professional help in order to protect yourself and your home.
The chance for modifying your mortgage loan has also increased recently as Barack Obama has come up with a plan to help save the housing market. It is a $75 billion plan and sets up incentives for loan servicers to modify home loans, for example, by paying servicers $1,000 to modify a loan and $1,000 annually for up to three years if the modification is successful. There's also an extra $1,500 bonus for modifications made while borrowers are still current on their mortgages. Money is always a good motivator to make things happen, so let's hope that these new incentives result in more successful modifications.

Author: Tim Roberts





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