Are There Any Other Options Besides Refinancing?

Published: 16th February 2010
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The simple answer is yes, and it's called loan modification. Loan modification is meant for struggling homeowners who do not qualify for refinancing. There are minor and significant differences between refinancing and loan modification. First, a mortgage modification is not a new loan; it is a reworking of the existing loan, so that the homeowner can afford it. That is done through various options. Most of the time the lender will lower the interest rate and extend the term of the loan, and sometimes the lender may offer the homeowner a grace period so that he or she can get their finances together. Similar to refinancing, mortgage modification is permanent.

Although loan modification and refinancing may sound similar and achieve the same goal of lower monthly payments, there are also other differences. Unlike refinancing, when applying for a mortgage modification, your credit score won't be checked. The lender has all of your information already, so the process involves less paperwork and hassle. This is beneficial to homeowners who over time have seen their credit score deteriorate.

On the other hand, when applying for a mortgage modification, you will have to submit a hardship letter along with your application. A hardship letter is supposed to explain your financial troubles, how you got into trouble, and how you plan to get out. This step is very important, and usually your loan modification hinges upon how good your hardship letter is.

Another important thing to consider is that not all homeowner qualify. Homeowners, who got in trouble due to the bad economy, will most likely be qualified. On the other homeowners who did not pay attention to their finances and have mountain of debt, will get rejected. Even though you might have a good case, no one can make the lender, modify your loan.

That is why you need to have all of the possible resources at your hand. One thing you should look into if you are serious about loan modification is 60 minute loan modification kit. It explains everything about you will need to know about loan modification and includes other valuable information like how to write a proper hardship letter, and important vocabulary to know. If you are serious about getting your loan modified you should check the kit out.

If you want to learn more about home loan mortgage modification and 60 minute loan modification visit homeloanmodificationfaq.com. The website has plenty of free resources that will help you to modify your mortgage. Click Here if you want to save your home from foreclosure.



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