Loan Modification (or Forbearance)
Forbearance is another name for a Loan Modification.
Loan Modification from your bank can keep you in your house.
You won't have to sell it and the foreclosure is stopped or
sometimes only postponed.
Modification is a
negotiation between the bank that holds the mortgage and
behind in their mortgage payments. A third party can do
these negotiations with the bank and sometimes the homeowner
A Loan Modification is modifying or changing one or more
terms of your loan.
It could/would change your monthly payments to your bank by
reducing the interest of the loan, extending the time to pay
your loan back (changing 30 years to 35 or 40) or even
reducing the loan balance. Changing any one of these
can lower the monthly payment.
The bank will ask a lot of questions
about the homeowners income and expenses to
come up with a new monthly payment that is favorable to the bank and
homeowner, and falls in line with the bank programs.
This will keep the homeowner in the house, on the
deed, and able to start making payments at a new rate the
homeowner can afford.
It is only a solution if all parties
are happy. It is critical for an investor like Practical
Housing Solutions to know the financial situation of the
homeowner to make a deal like this successful if they are
doing the negotiations..
HAMP - A Government Program
With the new
government programs for loan modification, each program is a
little different. The bank and your negotiation
company, like Practical Housing Solutions, will need your
debt and monthly income figures.
There is no cost
for this service when you use Practical Housing Solutions.
There is a
pre-qualification process that the homeowner must go through to
determine if a Loan Modification will work.
As the homeowner, do not pay money up front to any negotiation company. You also want to be sure they “pre-qualified”
you (ask questions about your loan, monthly income and
monthly debt) to determine if the process will work.
Practical Housing Solutions will have to give this
information to the bank. The bank has the final word
if you qualify for their program.
Eliminate your fear. Call us or
Sign up now with Practical Housing Solutions to get your
house sold through our Hybrid Short Sale Process or keep you
your home with a Loan Modification!
Call us now! 513-604-7774