If you’re struggling with the current terms of your loan, you may have heard someone suggest a loan modification. This option allows for the change to a loan’s terms without terminating the loan. It also generally allows the consumer to allow to continue to keep the property or any other item that the loan was taken out to cover the cost of, making it a great choice for things like mortgages and more.
How is this different than refinancing? When you refinance something, you replace your current loan with a brand new one. When you modify a loan, you keep the same loan and loan provider, but secure new terms that work better for your financial situation. This may be temporary and the loan terms may revert to their original outline after a short time, or it may be permanent through the life of the loan.
Regardless of the terms of your loan modification, the end goal is always to make repaying your debt more manageable – and to make keeping the property you’re paying for in your possession.
One of the biggest benefits of utilizing loan modification for a mortgage you are struggling to pay is that it can drastically alter the payments due each month. For those who are wondering how they’re going to continue to make ends meet, this can be life-changing.
How do you qualify for this kind of assistance? Typically, you’ll have to already be looking at some financial trouble first. Some qualifying factors for a loan modification include being at least 60 days behind on your mortgage payments or in what is known as “imminent default”, which means you are very likely to soon be behind on your payments.
Most lenders also require that you provide some kind of proof of recently-incurred hardship. Some examples include the loss of a spouse or other provider, the loss of a job, a disability or illness. Anything that is impacting your ability to work, make enough money to cover your expenses, or otherwise meet your financial obligations can be a qualifier for a loan modification.
When you’re facing financial trouble, you don’t want to put your time and energy into anything but a solution that works. That’s why so many people don’t investigate loan modification in Florida – they don’t know if they would qualify and they’re afraid to work with a professional who can’t guide them through it properly.
Put your full faith in the experienced, compassionate professionals at the Van Horn Law Group. Our expertise allows us to efficiently guide you through the process of modifying your loan to meet your needs – not modifying your life to meet its terms.
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