Mortgage Modification

Mortgages last a long time and it is very common that unexpected life events happen that may change the ability for you to make your mortgage payments. That’s plenty fair, and many lenders understand that as well. Mortgage modification exists so that the uncertainty of life can be slightly accounted for. In order to enable an individual to continue to make payments, creditors can be willing to renegotiate your contract so that it is more accommodating for the debtor to complete. After all Some form of payment is better than none.

The 2008 Recession left in its wake The Home Affordable Modification Program (HAMP), and with it applying to modify home loans became much easier. Created to help struggling home owners in the U.S., it allowed for loans to be modified by offering a reduced mortgages by fixing interest rates, extending payment terms, and reducing interest rates completely. However, mortgage modification is not to be confused with refinancing a home. With refinancing, a home owner seeks to replace the loan completely and is a permanent change of contract, often times through a new creditor. Mortgage modification is handled under the same lenders and is a temporary fixture before normal mortgage payments can be resumed. Mortgage modifications are typically sought if refinancing cannot be achieved but it is still a viable alternative to those with bad credit.

Mortgage modification is a great way to find temporary asylum from high mortgage rates, and with it homeowners can be saved from the risk of foreclosure. According to Bradford Law Offices, PLLC, mortgage modification can even reduce the principal amount owed or waive some of the accrued interest. There are a lot of financial tactics out there that exist to assist people who struggle financially, such as HAMP, and it would be simply foolish not to utilize them whenever the need arises.