Get a Second Chance with Home Loan Modification

A Home Loan Modification Program is a way for homeowners who are on the brink of default to restructure their current mortgage and stay in their home. This is an option for homeowners whose monthly payments have skyrocketed into unmanageable debt that they will never be able to pay off under their current terms. This usually happens when a homeowner takes on an adjustable rate mortgage and is unprepared for the steep change in their monthly bill once the interest rate adjusts. There are four typical modification options under this program:

 An extension of the life of the loan – in other words, extending your loan by 5 or 10 years. This will reduce your monthly payment because it is spread out over a longer period of time.
 A change in the interest rate – if you have had a good payment history with the lender up until now or if you now have a better credit score than you did when you first applied for your mortgage, then this may be a good option for you.
 A completely different type of loan – for example, converting your adjustable rate mortgage into a fixed rate mortgage.
 Combining two or more of the above methods.






A Home Loan Modification Program is not something to be entered into lightly. You should only look into this option if you are sure that you can continue to make your monthly mortgage payment at the reduced rate; otherwise, you are just stringing the lender along until you inevitably default. If you have found yourself under a crippling monthly mortgage payment because of a sudden and sharp rise in your interest rate, this is a lifesaver and a way for you to keep the investment that you call ‘home’.

ABOUT THE AUTHOR
Julie Bonner, an expert in Home Loan Modification Program, serving the San Diego, CA area.

Get a Second Chance with Home Loan Modification / Author: Julie Bonner