If you are behind on your house payments and facing foreclosure, you should learn about loan modification and loan workout options. Either of these can stop the foreclosure process and help get you back on track with your current lender. Retention options are workout plans that can help you keep your property. A loan modification is one type of loan workout option. Other loan workouts include:
Special Forbearance/Forbearance Agreement: a written agreement to reduce or suspend your monthly payments for a pre-determined length of time to give you time to recover from your hardship
Repayment Plan: the lender agrees to accept a portion of your past due amount which is added to your regular monthly payment for a pre-determined period of time. This is designed to bring your account current over a period of time and avoid initiation of foreclosure.
Stipulation agreement: Once the foreclosure action has begun, you enter into an agreement with your lender whereby the foreclosure is suspended when you agree to pay a portion of the arrears each month along with your regular payment for a pre determined period of time. These plans are designed to bring your account current over time. The foreclosure action would be cancelled if the plan were successfully completed.
Loan Modification: A program in which a portion of the arrears may be added to the remaining principle balance, may also involve a reduction in your interest rate, a longer term and sometimes principle forgiveness or reduction. The goal is to arrive at a sustainable and affordable monthly payment so the homeowner can keep making payments.
Claim Advance: FHA loans or conventional loans with private mortgage insurance allow for the arrears to be cured by advances made by the insurer of your loan. The funds advanced by the insurer are used to bring your account current immediately. You may be required to sign a promissory note to repay the insurer.
A Loan Modification or loan workout can offer these benfits to a homeowner:
- Stop foreclosure
- Defer missed payments, fees and penalties
- Lower your interest rate, reduce principle or lengthen your loan term
One very good source of information about loan workouts and loan modifications is The Complete Loan Modification Guide handbook. This is a low cost, easy to read and easy to follow guide that will teach you the 7 Steps to a Successful Loan Modification as well as invaluable negotiating tips to use with your lender. You will also be provided the necessary loan modification forms along with detailed instructions on how to complete them. IMPORTANT-Give yourself a fighting chance to stop foreclosure, modify your loan into affordable payments and save your home. Tens of thousands of homeowners have successfully modifed their loan and saved their home - YOU CAN TOO! Get informed and get going! Order and download The Complete Loan Modification Guide today.
To learn more about loan workouts and loan modifications, please visit us at:
http://www.myloanmodificationcenter.com
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