Tuesday, February 3, 2009
(Gambar) Birthday Party Danny & Teman Wanita
With the economy in a severe recession, more and more families are in danger of losing their homes to foreclosure. In fact, much of the reason why we're in such a deep recession is because of the housing market and all the foreclosures that are happening every single day. One possible solution to help people stay in their homes and to help the economy (along with the housing market) is loan modifications. Here is what you need to know about loan modifications.
The first thing you need to know about loan modifications is that they are a change in one or more of the terms of an existing mortgage. This change results in a drop in the monthly payment a homeowner is required to make. Thus the homeowner is able to stay in the home and the lender is able to continue to get paid back for the loan that was made.
Unfortunately not everyone qualifies for a loan modification. There are three main conditions that must be met in order for a homeowner to qualify. The homeowner must have proof of a hardship that is responsible for not being able to make a monthly payment, the homeowner has to prove that the new monthly payment will be able to be paid, and the home can't have enough equity to cover the total amount of the mortgage. Usually these are the three conditions that must be met.
The last thing you need to know about loan modifications is that they really are a win-win for both the homeowner and the lender. Obviously homeowners hate a foreclosure because they lose their home. But lenders hate foreclosures too. Rarely do lenders make money from a foreclosure. In fact, the money lost on foreclosures is one of the major reasons why banks are in so much trouble right now, and that's a major cause of the recession.
So a loan modification helps both the homeowner and the lender. So every effort should be made by both sides to make a loan modification so that affordable monthly payments can be arranged and then paid.
That's what you need to know about loan modifications. You now know what they are, how they work, how you qualify, and why the loan modification is good for both the homeowner and the lender. If you're behind on your mortgage payment and you fear that you might lose your home then you need to consider a loan modification.
Posted by sally at 7:40 PM