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Sunday, 16 March 2014

Why It Is Important To Consult A Home Loan Modification Groton CT Expert

By Gwen Lowe


Borrowing a mortgage is one way in which you can buy your property and start living with freedom without being harassed by the landlords. Owning a home allows you avoid living under the strict rules set by property owners and paying for rent. If you cannot figure out what you need to do in order to succeed in getting your mortgage modified, you can consult home loan modification Groton CT experts to help you out in this problem.

However, not everyone can qualify for this services even those with hardships and unable to repay their mortgage. This is one reason why you have heard of foreclosure and short sale of real estate properties, which people had obtained through mortgage credit facilities. When you want to get the terms of the credit facility modified, you have to get the process right from start otherwise, you may be denied the chance, making it more frustrating and daunting for you.

You may obtain a loan modification if you are ineligible to refinancing. A refinance option can also allow a borrower to have better terms of repayment but some may fail to be eligible for refinancing thus given the option of modifying their loans. Similarly, if you have long-term hardships, which are affecting your ability to repay a mortgage, you could also qualify for the new program.

In the situation that you are several months behind in repaying your mortgage, or you foresee a situation, which may plunge you to falling behind in mortgage repayment soon, you could still be eligible for the modified program. There are many benefits of modifying your mortgage. The benefits include the ability to resolve your delinquency status and be able to start repaying your credit facility.

Such financial hardships may be caused by things like prolonged illnesses, divorce, temporary unemployment, disability, or death of a spouse. The borrowers may also be required to write as well as sign a hardship letter, which explains their situation. The modification is intended to create a payment mode that is affordable for the borrower, or collect all or as much amount of the loan as possible so that the lender does not suffer losses from the credit facility.

Lenders emphasize that if a borrower can afford to repay the debt, they he or she should pay. On the other hand, if borrowers cannot afford to repay, a program is developed to give them a chance to pay back over a long term. Under the new modified program, the agreement changes the original terms of the credit facility including the principal amount, the length of payment, and the interest rates.

With a fixed rate mortgage, it gives you the chance to be able to repay a certain amount of monthly payments, which do not change over the period. You know what you are required to pay every month and therefore, you do not expect to have a different amount. In other circumstances, the lenders may consider extending the term or period of repaying your amount.

The mortgage may be extended to a term of 40 years in order to spread the amount that is due to be repaid over a longer period, something that lowers the monthly payment. Alternatively, the interest rates may be reduced permanently or temporary. In most cases, the modified program allows the borrower to reduce the monthly payment to an affordable amount that can be paid comfortably.




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