Troubled times for home loan debtors
These are troubled times as far as homeowners and their debts are concerned. Good for the banks and lending institutes, because many debtors are defaulting, resulting into a resale of their homes, which in turn fetch a decent profit for banks. Bad for debtors since they end up losing their most prized possession – their home. Loan modification facilities can offer an alternative for the debtors to “save” their situation and still pay off their dues – simultaneously. There are options available for individuals who owe money in the form of debts to banks, and who don’t have enough funds to redeem their dues.

Loan modification process
Unlike home mortgage refinancing Loan modification process is aggregating all your existing loans into a single major loan having it’s own terms and conditions and a monthly pay off schedule. The major advantage of a loan modification process is that you end up dealing with one loan rather than keep track of several loans. You also have one monthly payment plan to redeem your loan, so it’s easier to take care of paying your outstanding loan dues. And it’s also easier to pay your monthly dues – you can select your monthly plan or have one drafted out that caters to your monthly cash inflow or income. The advantages are many.

Knowing the advantages of a particular process leads to the next obvious question – what’s the process involved? It’s easier to understand the exact working and the following points explain it:

Availing loan modification
Loan modification facilities are made available by mortgage brokers and banks, as the primary loan modification credit lenders. However, private companies and firms also deal with home loan modification facilities. The net is the best place to find such lenders, since all major creditors have their own portals – and those who don’t should be well avoided since they might not be “up to the mark” – a web site presence is most essential for all business since it provides “legitimacy” to their financial existence. The other options include going through news papers and financial periodicals where many loan modification companies advertise themselves.

Loan modification is the most effective way to avoid foreclosure for homeowners if they are lacking behind in their mortgage payments and experiencing financial difficulties. In this situation they have two option either they can go for home mortgage refinancing or for mortgage loan modification.   To put it simply, loan modification is a permanent change in one or more conditions associated with the terms and conditions of a mortgagor’s loan. This makes the payment of monthly dues easier. The repayment schedule becomes more “affordable” and easier for the mortgagor who might be already facing financial difficulties. Usually the changes involved in a mortgage loan modification are:

• Reduction in the rate of interest
• Increase in the length of the  term of loan
• A different type of loan
• Or any combination of the  above three

Many homeowners are resorting to loan modification because they find it difficult, and at times impossible to pay their mortgages.  The debtors are starting to “educate” themselves on the loan modification procedure, and many individuals now realize that availing loan modification facilities through a loan modification company can be a very easy process and its also save your thousands of dollars as it comes at lower interest rate rather than mortgage refinance rates . The company’s debt experts have the capability to negotiate the mortgage loan modifications issues successfully on your behalf, with your bank and eventually save your house. Individuals think that in order to “qualify” for this option, they need to be on the verge of foreclosure, or they need to “default” on their mortgage payments for some while. This is not true. You can avail mortgage loan modification benefits even if you have a good repayment record and still feel the modification can work out in your favor and you can save some money. If your business sales have started dropping, or you’re faced with a big decline in your income, it’s possible to negotiate the “terms” of your loan with the lender and improve upon your financial conditions without refinancing mortgage.

New government plans have given lenders more incentives to go in for mortgage modification, however, the best option for you might still be a successful “negotiation” process and restructure your existing loan. Benefiting from the loan modification process can be advantageous and help you save your “home”, however it’s important that you get the best rates for your credit, beneficial terms and conditions for paying your outstanding dues, and restructuring of your payment schedule. So make sure you get the best modification possible - the one that makes your life stress free. Same time you can also avail the services of no closing cost refinance, but its bit difficult than loan modification.