Trevor Sines  

The top six reasons a mortgage modification will work for you…

Let’s face it, the Michigan Mortgage market and Housing market has had some steep declines over the past year and a half to two years.  Along with several changes to lending guidelines, it has become almost impossible for most struggling homeowners to refinance out of their toxic mortgages.  Fortunately, struggling homeowners have a chance at getting their mortgage modified by their current lender.

A Mortgage modification is simply a modification to an existing loan made by the current lender in response to a borrower’s long-term inability to repay the loan.  Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term on the loan, a different type of loan or any combination of the three.

Some consumers confuse a loan modification with a forbearance agreement.  These are two separate types of agreements.  A loan modification is a long term permanent solution for borrowers that show an inability to repay the existing loan, where as, a forbearance agreement is short term relief for those suffering a temporary financial problem.

For More Information On Mortgage Modifications visit www.michiganmortgagemodification.com.

Trevor Sines

There are six top reasons that a loan modification will work for you.  If any of these apply to your current situation than you are a definite candidate for a mortgage modification.  The six top reasons are as follows;

1.        Inability to refinance due to loss of equity, owing more than your home is worth

2.        Inability to refinance due to lack of positive credit or late mortgage payments

3.        Rate currently adjusting or going to adjust

4.        Do you have a "Pick-A-Pay" or Minimum Payment Interest only Loan

5.        Suffered a Financial hardship (job loss, pay reduction, medical bills, divorce, etc)

6.        Currently Facing Foreclosure

WARNING!!!  Every mortgage broker and their brother are trying to do mortgage modifications.  Some of these professionals are diligent in the services they offer but some are not.  Most times, you only have one shot at making this work, so make sure you find a qualified professional that has a relationship with an attorney.

Also, beware of any professional that tries to collect money up front without the use of a Trust account unless it is an attorney’s retainer fee.  If the company you choose to work with does attempt to collect money up front in a different fashion than described above, they are operating illegally and will eventually be shut down by the government.