For people, who owe higher mortgage payments, a loan modification program comes as a blessing. In fact, individuals, who are on the brink of home foreclosures, can also relieve themselves from further misery by applying for a home loan modification program.
There may be credit ramifications during the foreclosure process.
The banks do not grant much mercy to those who do not pay their loans back. Especially when you are paying all of your other bills and leaving the mortgage out.
Typically a homeowner must fall behind on their mortgage and should expect adverse credit issues due to late mortgage payments. This may lower your FICO score by as much as one hundred points.
A reduction in your credit may jeopardize your chances of getting favorable credit rates in the future.
The good news is doing a loan modification will assist you in lowering your overall housing debt.
The objective of a loan modification is to lower your payments to be manageable and slowly put you in a position to increase your credit score by making your payments on time every month. Most loan modifications are fixed for a period of two to five years. This period of time is perfect amounts of time to get you caught up and reestablish your credit at the same time.
Loan modifications do not have a flaw that lasts for a longer period unlike credit counseling for consumers. In fact, a short sale can have a lasting blemish on your FICO score.
Save your home and prevent your credit from being destroyed. Avoid foreclosure and consult with your loan modification representative to help you get qualified for loan modification and discuss the pros and cons. Make sure that you properly research the loan modification company that you plan on working with. Some important documents to gather include, your last two years tax returns, w-2s for the last two years, recent bank statements, last two pay stubs, a hardship letter and a financial statement that lists all of your monthly expenses minus your monthly income.
There may be credit ramifications during the foreclosure process.
The banks do not grant much mercy to those who do not pay their loans back. Especially when you are paying all of your other bills and leaving the mortgage out.
Typically a homeowner must fall behind on their mortgage and should expect adverse credit issues due to late mortgage payments. This may lower your FICO score by as much as one hundred points.
A reduction in your credit may jeopardize your chances of getting favorable credit rates in the future.
The good news is doing a loan modification will assist you in lowering your overall housing debt.
The objective of a loan modification is to lower your payments to be manageable and slowly put you in a position to increase your credit score by making your payments on time every month. Most loan modifications are fixed for a period of two to five years. This period of time is perfect amounts of time to get you caught up and reestablish your credit at the same time.
Loan modifications do not have a flaw that lasts for a longer period unlike credit counseling for consumers. In fact, a short sale can have a lasting blemish on your FICO score.
Save your home and prevent your credit from being destroyed. Avoid foreclosure and consult with your loan modification representative to help you get qualified for loan modification and discuss the pros and cons. Make sure that you properly research the loan modification company that you plan on working with. Some important documents to gather include, your last two years tax returns, w-2s for the last two years, recent bank statements, last two pay stubs, a hardship letter and a financial statement that lists all of your monthly expenses minus your monthly income.
About the Author:
Modified Mortgage Solutions is an expert in loan modification processing, and an authority in loan modification processing questions.Please contact us with any questions.
