Goldspaces

Most homeowners will qualify for a loan modification or workout plan. President Obama’s office estimates that up to nine million homeowners could benefit from a loan modification or workout plan. Modifications are just as good for the mortgage lenders and banks as they are for homeowners. Lenders are able to turn bad defaulted loans into good performing loans.

A loan modification is a change or modification of any of the original terms found on your note. If you have an adjustable rate note you could get it modified to a fixed rate. If you have a fifteen year note you could modify it to a thirty year term cutting the payments by up to thirty percent or more. These are just a couple of common examples. The possibilities are endless as to what new terms can be negotiated with your lender.

How do I find out if I qualify for a loan modification? If you are struggling with your payments, have an adjustable rate mortgage or you will be struggling with payments within the next six months and you can afford to make reasonable ongoing reduced payments to your lender them you most likely qualify for a loan modification. The only way to be sure is to ask your lender in writing for a loan modification or loan workout plan.