If you are struggling to make mortgage payments, you may be considering a loan modification as a means to avoid foreclosure. A loan modification makes it easier for borrowers to satisfy their obligation to their lender by lowering monthly payments. Payments are lowered by reducing the interest rate and extending the length of the loan. Loan modification does not lower the amount of the loan.
A loan modification will impact your credit rating, but far less than a foreclosure, deed-in-lieu (DIL) or short sale. The three big credit bureaus (Equifax, Experian and TransUnion) allow lenders to designate a loan modification as "partial payment" - a status that can lower your credit score by 50 or more points.
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Are you or someone you love facing foreclosure? As a Certified Distressed Property Expert (CDPE), I can offer hope and help. Call me today. 305.851.5910
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