A home modification loan, which is also referred to as restructuring, mortgage modification and a workout plan, is when the borrower, who is currently facing a serious financial hardship finds it difficult to make their payments on their mortgage, and begins to work with lender in order to change the terms of the original mortgage loan. This may result in permanent or temporary changes to the established mortgage rate, the monthly payment or the term of the loan. The goal of this plan is to help the borrower decrease the amount they pay each month for the mortgage to only 31 percent of their gross income.
Home Loan Modification in Royal Palm Beach are available to anyone that has a high combination of mortgage debt in comparison to their income, or who is considered to be “underwater,” which means that the market value of their home is less than their mortgage balance. The program can also include any borrower that is at risk of defaulting.
In order to get a Home Loan Modification in Royal Palm Beach you should contact your lender and ask to speak to the mitigation department. You need to honestly convey the situation that you are facing. The lender will then assess the conditions and have you fill out certain forms and paperwork in order to determine whether or not you qualify.
Lenders are willing to provide loan modification due to the incentives that have been placed with them. Services will be given $1,000 for each of the eligible modifications that are made and another $1,000 each year for a period of three years for as long as the homeowner maintains consistent payments. Additionally, homeowners that opt to stay in the properties and are current on their mortgage payments will be provided with a monthly reduction of their balance in order to help and reduce the principal of their loan. The amount with be as much as $1,000 for a period of five years.
Keep in mind, that banks want you to stay in your home, rather than having your house go into foreclosure. The will lose much more with a foreclosure than a home loan modification.
