Home loans take decades to repay, a situation that can stress out many homeowners. Stress can come all the more when you encounter hardships that cause you to fall behind on your mortgage payments. You may have lost a job, lost a spouse, became disabled, or are suffering from an illness that has kept you from paying your mortgage on your original loan terms.
In such circumstances, you may be afraid of losing your home, say, in Florida, where you probably have a beautiful location. Fortunately, one measure can help you retain your home and help you catch up on your mortgage payments. This involves the adjustment of the original terms of your housing loan in Fort Myers, and it’s called a loan modification.
What Is a Loan Modification?
Compared to refinancing, a loan modification keeps your original home loan, but it changes some of the terms of the loan for your benefit. Through a modification, you can extend the length of your loan. You can lower your interest rate or change from a variable rate to a fixed rate. Your lender will ultimately determine the terms of your modification.
Reap the Benefits
At the end of a loan modification, you will have lower monthly mortgage payments. You can then catch up on your payments and still keep your house. Your lender will even benefit from this since the lender will save resources. The foreclosure of your home, and any other home, can be costly, which lenders want to avoid.
Qualify for a Modification
To qualify for a loan modification, you need to be delinquent for 60 days. Alternatively, you must have a high probability of defaulting on your loan. Of course, the hardship that you have encountered will also factor into your qualifications.
Hire a Housing Counselor
For a better chance at a loan modification, you can hire a housing counselor. A housing counselor will act as your representative when you apply for a loan modification. Even if your application is denied, your counselor can make a counteroffer to your lender.
Research more on loan modifications if you feel you might need one. Loan modifications allow you to stay in the comfort of your home during the difficult times of your life.