Often times, a person that owns a home they can no longer afford will likely have seen this problem coming for some time. A brief financial bump in the road may not result in long-term consequences for paying a person’s mortgage. Typically, these things are slow in coming, but the observant homeowner will understand that there could potentially be an issue on the horizon. There are several things a homeowner can do to be prepared for a time when they can’t afford their mortgage. One of the most beneficial options is mortgage modification.
Modification may seem a little like refinancing, but it is different as the actual terms of a current mortgage are changed to make repaying the mortgage more affordable and to avoid the hassle of foreclosure. Most lenders prefer modifications as opposed to foreclosure. Foreclosing on a home means that the home is going to be the responsibility of the bank, something that lenders and banks typically don’t want.
Most lenders have some sort of modification program in place. Larger lenders may have various plans in place so if a person feels that they can no longer afford their mortgage and it’s more than just a short-term cash flow issue, they should contact the lender that owns or services their mortgage. There is also a program called HAMP which stands for home affordable modification program. This program is supported by the federal government. A homeowner can check to see if they qualify for this program.
Modifying a mortgage may sound simple, but sometimes lenders are unwilling to work with homeowners, even if the homeowner meets all the criteria for a mortgage modification program. In these instances, it might be a good idea to speak with a debt relief attorney. Sometimes, these attorneys can recommend different modification programs or they may be able to take legal action against a lender or even the federal government if they have denied modification programs without just cause.
People don’t like to face the thought of losing their home and with the various options available, there’s no reason for this to happen. Whether you’re looking for a modification program or you feel that you have been needlessly excluded from an existing program, speaking with an attorney that can be found at a website like Chriscarouthers.com is a good first step in fighting for and staying in your home.
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