Home ownership is a personal milestone for many people. It symbolizes financial success and stability that comes with being an adult. However, thanks to the financial crisis of a few years ago, many people lost their dream of home ownership and had to foreclose on their homes.
Home ownership is a personal milestone for many people. It symbolizes financial success and stability that comes with being an adult. However, thanks to the financial crisis of a few years ago, many people lost their dream of home ownership and had to foreclose on their homes. The economic situation is more stable now, but it has not improved as quickly as people would have hoped.
So, people who were doing their best to ride out the storm are finding themselves unable to continue toughing it out and are falling behind on their mortgages. Fortunately for those who are finding it financially difficult to keep up, there are options available to free up cash so that you don’t have to foreclose on your home.
Option #1: Find a Loan Modification Program to Help Refinance
One option is to refinance what’s left on your mortgage. By refinancing, you may be able to reduce your interest rate on the remainder of your loan. With a reduced interest rate you’ll find that the monthly mortgage payments will drop making it more affordable for the homeowner. This is a great way to lower you monthly payments so that you don’t default on your home loan.<p>
Option #2: Change the Term of Your Loan
If you can’t refinance your home loan then see if you can change the terms of the loan to avoid defaulting or foreclosure. Banks want to help you pay off your loan. Many times they can change the interest rate of the loan so that it can be lowered. They can change the principal amount of the loan to also have it lowered.
There are even loan modification programs that can change the monthly mortgage payment of a loan where it can fall within 31 percent of a homeowner’s debt to income ration. This way a homeowner can keep paying on the loan, but with a lower monthly payment that enables them to survive as well.
Option #3: Look at Federal Home Loan Modification Programs
Eligibility for a home modification loan program may differ from bank to bank. It’s important to check to see if you have the prerequisites to qualify for a loan modification beforehand. In cases where you do not qualify with your lender for their loan modification programs you can seek out a Federal home loan modification program instead.
These programs are federally backed and funded and help out both the home loan borrower who is delinquent in their home loan payments and those who might be in trouble in the future. This is a great alternative for those who are struggling now and who will be struggling in the future.
Find expert advice on loan modification program at Florida Mortgage Choice. They will help you find the most advantageous home loan modification program.
Published in: Personal Finance