Buying a home is a major purchase, and residents in Pennsylvania may not consider the negative events in life that could impact their dream to own a home. But the unfortunate reality is that financial problems could occur. Whether it is due to a job loss, health issues or a reduction in income, this could significantly impact and individual or family's ability to make timely mortgage payments. Additionally, a homeowner could be faced with the possibility of foreclosure, but they do not want to file for bankruptcy just yet. Are there other options an individual could take to get back on track and keep their home?
Mortgage loon modification may a viable answer for some homeowners struggling to make full or timely mortgage payments. Why would you want to modify your mortgage? The main reason is to alleviate the financial pressure caused by the situation. The goal is to get back on track and not create additional financial hardship. Therefore, initiating this process could be the solution homeowners are looking for.
What is the process to modify a mortgage? This process involves the homeowner and their lender reaching an agreement regarding the terms of the mortgage contract. Mortgage modification is a type of loss mitigation and a means to avoid foreclosure of the house. And once a lender and a homeowner reach an agreement, a homeowner could obtain a new contract that will make mortgage payments more manageable for the homeowner.
How can a mortgage loan be modified? There are various ways to modify a mortgage. One way is to lower the interest rate of the loan. Another involves an extension of the term of the loan. Other common ways to modify a mortgage includes reducing the amount of the principal paid in each payment, temporarily suspending or reducing loan payments or adding missed payments to the loan balance.
No matter what way you seek to modify your mortgage loan, modification can be a real and reliable method to address financial problems. While it might not be a mechanism that offers a fresh financial start, like bankruptcy does, it does provide a route towards reduced or eliminated financial hardships.
Source: FindLaw, "Mortgage Modification," accessed June 4, 2017