|Posted by martinez on April 27, 2012 at 6:05 AM|
With the rise in the number of monthly debt obligations and the bruised job market in the US, most of the homeowners are struggling with their monthly mortgage payments. The Obama administration is extending its home mortgage assistance program in order to extend help to all those struggling homeowners who don’t qualify for home mortgage modification. As the nation’s housing market is tumbling, you need to take immediate steps to get on the right track so that you don’t end up losing your home to a forced foreclosure. The Obama Administration is not only giving the struggling homeowners an option to breathe a sigh of relief, but it is also helping the nation’s real estate market to boost itself. If you’re not aware of the home mortgage modification benefits, read on.
You can forestall a foreclosure: The biggest benefit of modifying your home loan is that you can avoid a foreclosure. Since the home loan is a secured loan that pledges your home as collateral, the moment you start defaulting on the loan amount, you’ll lose your home to a foreclosure. No bank or financial institution enjoys foreclosing a house as they lose a large amount while carrying out the entire process. Therefore, you should get help from the process mortgage modification if you want to forestall a foreclosure.
You can change the interest rates: The interest rate that you pay on the mortgage loan is usually the most probable reason for mortgage defaults. If you’ve fallen back on your monthly mortgage payments due to sky-high rates that your mortgage lender is charging you, you may get your loan modified and the interest rate lowered. With lower interest rates, you can even revise the monthly payments and thereby save a considerable amount of money in a month.
You can change the term of the loan: You may have taken out a 15 year term mortgage loan as you thought that you can make the payments on time. If you are presently going through a credit crunch and you feel that you can’t make the payments on time, you should speak with your mortgage lender and make sure that you extend the term to a 30 year loan so that you can lower the monthly payments and thereby repay without falling back on all the other monthly debt obligations.
When you feel that you can’t make the monthly installments on your home loan, negotiate with your mortgage lender. Draft a mortgage modification hardship letter stating the reason for not being able to make the payments on time and close the deal. Just ensure that you make the payments on time after your loan is modified so that you don’t hurt your credit score.