Home Loan Modifications - Misconceptions

Some misconceptions on home loan modifications are that the loan has to be delinquent, you have to be in foreclosure, or you have to be in or close to bankruptcy. These situations aren't true. You can negotiate a home loan modification at anytime. It just depends on your current situation whether the modifications will be approved by the lender.

If you are currently in foreclosure or have received a letter of default from the lender; then I do strongly suggest that you make the decision on using a professional company. Lenders will only negotiate with you on attaching the delinquent balance to the end of the contract or lowering your interest rate a percent or two; is this going to help with your current situation? Professional companies are going to start with what will assist the client the most; they are going to start with the lowest interest rate and work upwards. This is what you want to see, not lower your interest rate just one or two percent or attaching your balance to the end of the contract!

Most clients are in a contract where the interest rate is going to adjust to a fixed rate, which means the monthly payment is going to increase. If your current contract is an adjustable rate or an interest only payment; now is the best time to modify your home loan. When your interest rate adjusts then your monthly payment is going to increase. If you do the modification now, your payment will not increase to where you can't afford the monthly payment, keeping you from going into foreclosure or bankruptcy.

If you are finding yourself in one or any of these contracts, then make a strong decision on going through the process with a professional company. They will negotiate with the lender on the best option for you keeping you from going into foreclosure. With your payment not increasing, you will be more comfortable on making your monthly payment.

With my experience in assisting client with home loan modification, these are the misconceptions that I'm being asked regularly. Please visit http://www.stoppedforeclosures.com or call 800-578-8595 if you need assistance on the process of a home loan modification. We are determined to keep you in your home and saving you from foreclosure.