Loan Modification Plans
If you have fallen delinquent on your mortgage , consider the following foreclosure prevention options with your lender or loan servicing company. Whether your lender is Countrywide, CitiBank, WAMU or ABC Mortgage Company, the federal government made it clear that all lenders must attempt to negotiate a loan workout or mortgage modification before moving forward with foreclosure.
Modification Relief Options
Loan Workout: Your servicing company gives you a fixed amount of time to repay the amount you are behind by adding a portion of what is past due to your regular payment. This mortgage relief option may be recommended if you have fallen behind on a couple of mortgage payments.
Forbearance: Your mortgage payments are reduced or suspended for a period you and your servicer agree to. At the end of that time, you resume making your regular payments as well as a lump sum payment or additional partial payments for a number of months to bring the loan current. Forbearance may be an option if your income is reduced temporarily. Forbearance is not a good choice if you simply can’t afford your home any more.
Loan Modification: With a successful loan modification, all parties, you, the lender and the servicing company agree to permanently change one or more of the terms of the mortgage note in an effort to reduce your payments to a more affordable level for you. Mortgage modifications can include reducing the mortgage rate, extending the amortization schedule of the loan or simply adding the deficient mortgage balance that is outstanding to the loan balance. A loan modification also may involve a principal reduction on the outstanding balance you owe on your primary residence by forgiving and even forgetting a portion of the mortgage loan debt.
Reinstatement: With this option, the delinquent borrower pays the loan servicing company the entire past-due amount, in addition to any late fees or penalties, by a date you both agree to. In most cases, if this option was possible the borrower would not be months behind seeking mortgage relief.
Short Sale: Depending on the real estate market in your area, selling your home may provide the funds you need to pay off your current mortgage debt in full. Under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt may be excluded from income when calculating the federal taxes you owe, but it still must be reported on your federal tax return. A mortgage loan modification may be needed if your income decreased recently or your debt to income ratio roe simply because the home loan payment increased from an adjustable rate mortgage or negative amortization. Before requesting your lending company to modify your mortgage or provide forbearance, be prepared to show them that you are making a strong effort to get current on your mortgage deficiencies. Lead Modification companies and law firms can choose from internet, live transfer, direct mail and loan mod infomercial leads. Buy Loan Modification Leads online or Call us direct at call 877-788-8463.
