Are you one of the millions of Americans struggling with your mortgage payments? Perhaps you are also paying off medical bills, are going through a divorce, or recently lost your job. There’s a wide variety of reasons why monthly mortgage payments can easily turn into an immensely daunting and stressful financial nightmare. Fortunately, there are several mortgage relief options that can help you avoid defaulting on your mortgage and losing your home. One of these is through mortgage loan modification.
Understanding How Mortgage Loan Modification Works
A mortgage loan modification can permanently or temporarily help you avoid losing your home through one or all of the following:
- Modify the length of your mortgage loan
- Lower your mortgage loan’s principal balance
- Convert your adjustable-rate mortgage to a fixed-rate mortgage
- Roll your late fees into your principal balance
- Lower your mortgage loan’s interest rate
Take note that a mortgage loan modification will not replace or erase your existing mortgage. It can only change or modify the original terms of your mortgage.
If you have a Freddie Mac or Fannie Mae-owned mortgage loan, you may qualify for the flex modification, which will let you extend the length of your mortgage loan or lower its interest rate. With this modification option, you will still owe the same amount, but your monthly payments will be lower.
Depending on your situation, if you’re already in forbearance, you can opt to modify your mortgage loan after the expiration of the forbearance if you still can’t keep up with your monthly payments. If you have a government-backed mortgage, you may qualify for forbearance for one year.
However, keep in mind that your lender may not offer mortgage loan modification. This applies even to loans covered by the CARES Act forbearance provisions. Reach out to your lender to ask about your options and learn more about your mortgage loan terms.
Is Mortgage Loan Modification Right For Me?
The main purpose of having your mortgage loan modified is to make changes to your loan that will let you avoid missing your monthly payments and, ultimately, losing your home. A modification can be particularly beneficial if you are in the middle of a financial crisis without an end date in sight. On the other hand, if you are going through a temporary financial crisis, like a job loss or a sudden injury, you can also consider temporary options, such as refinancing, forbearance, or bankruptcy.
It’s also crucial to note that as with all mortgage relief options, a loan modification comes with specific benefits and drawbacks, so make sure to talk to a South Carolina mortgage loan modifications attorney to determine whether it’s right for you.
Discuss Your Case With Our Seasoned South Carolina Mortgage Loan Modifications Attorney
Mortgage loan modification can be a viable option to avoid losing your home, but it is not the only option. Whether or not you qualify for a mortgage loan modification, our South Carolina mortgage loan modifications attorney can help you figure out the best solution that will fit your specific needs. Arrange your case evaluation with the South Carolina mortgage loan modifications attorney at Reed Law Firm by calling our office or reaching us online.
