Mortgage lenders use loss mitigation methods to reduce their potential losses and mortgage modification is one of the methods used. Contrary to what many people think, mortgage lenders do not want a borrower's house. Instead, mortgage lenders want their mortgages paid. Unfortunately, bad things such as serious illness, loss of job, etc. happen and some people find it difficult to pay their mortgage payments. Obviously, when a mortgage lender is not paid, the lender begins to look for ways to get paid, even if it means foreclosure.
But again, contrary to what many people think, mortgage lenders would rather save a mortgage loan than go through the foreclosure process. Foreclosure can be expensive because, in addition to court costs and attorney fees, the mortgage lender has to take care of the property and find a buyer. The lender may have to hold onto the house for a long time or reduce the price to an amount less than what it is owed. In other words, the lender can suffer a loss on the sale of a house.
To save a mortgage, lenders can work with borrowers. To be honest, not all mortgage lenders are willing to work with or help borrowers. But the lender who are willing to try to save a mortgage loan may consider mortgage modification. Mortgage modification is nothing more that modifying or changing the terms of a mortgage loan. If both the mortgage lender and the borrower agree, they can modify: the interest rate; the duration of the repayment time; the property which secures the mortgage; any other terms to which the parties agree.
Reducing the interest rate will obviously reduce the monthly payments unless the length of time to pay the loan is shortened. A 6% loan for 30 years is less per month than a 7% loan for 30 years if the same amount is borrowed in both cases. However, the monthly payments on a 6% loan for 15 years is more than the monthly payments on a 7% loan for 30 years when the same amount is borrowed in both cases.. By the same token, extending the length of time to pay a loan will reduce monthly payments as long as the interest charge is not increased. The monthly payment for a 6% loan for 30 years is less than a 6% loan for 15 years.
Once again, help is available, its easy, and its available from the comfort of that recliner that you are lounging in. By clicking here, you are giving yourself a recipe for success, and you wont even have to do the cooking. It will just be up to you to sit back and enjoy the best decision that you have ever made. Its time to start that next chapter of your life, and make it the best one yet.
But again, contrary to what many people think, mortgage lenders would rather save a mortgage loan than go through the foreclosure process. Foreclosure can be expensive because, in addition to court costs and attorney fees, the mortgage lender has to take care of the property and find a buyer. The lender may have to hold onto the house for a long time or reduce the price to an amount less than what it is owed. In other words, the lender can suffer a loss on the sale of a house.
To save a mortgage, lenders can work with borrowers. To be honest, not all mortgage lenders are willing to work with or help borrowers. But the lender who are willing to try to save a mortgage loan may consider mortgage modification. Mortgage modification is nothing more that modifying or changing the terms of a mortgage loan. If both the mortgage lender and the borrower agree, they can modify: the interest rate; the duration of the repayment time; the property which secures the mortgage; any other terms to which the parties agree.
Reducing the interest rate will obviously reduce the monthly payments unless the length of time to pay the loan is shortened. A 6% loan for 30 years is less per month than a 7% loan for 30 years if the same amount is borrowed in both cases. However, the monthly payments on a 6% loan for 15 years is more than the monthly payments on a 7% loan for 30 years when the same amount is borrowed in both cases.. By the same token, extending the length of time to pay a loan will reduce monthly payments as long as the interest charge is not increased. The monthly payment for a 6% loan for 30 years is less than a 6% loan for 15 years.
Once again, help is available, its easy, and its available from the comfort of that recliner that you are lounging in. By clicking here, you are giving yourself a recipe for success, and you wont even have to do the cooking. It will just be up to you to sit back and enjoy the best decision that you have ever made. Its time to start that next chapter of your life, and make it the best one yet.
0 comments:
Post a Comment