Many homeowners facing foreclosure don’ know when their financial fortunes will change. They aren’t sure where to look for help to lower their mortgage payments, either. Mortgage modification companies can be helpful in these circumstances. The following will look into how these companies work so struggling property owners can keep their homes.
Pittsfield, MA -- (SBWIRE) -- 01/11/2013 -- Mortgage modification involves making changes to one’s original mortgage loan by reducing the interest rate, lengthening the term of the loan, or forgiving the principal of it. The first mortgage modification company a homeowner should ask about modifying his mortgage is his original lender. No lender wants to foreclose on a customer’s home; it’s expensive and seldom gives the lien holder all of its money back. That is why most banks and credit unions have in-house modification plans. There are a number of eligibility requirements to be approved for mortgage modification, some of which include having obtained the original mortgage on or before Jan. 1, 2009; the applicant must reside in the building he is seeking modification for; homeowners who are filing for bankruptcy or have done so in the recent past are not eligible; and the home must be a single-family residence.
One of the major purposes of hiring mortgage modification companies is to prevent deceitful con artists from scamming an individual. In past years, these dishonorable cretins have stolen an already troubled homeowner’s money by purporting to offer help with modifying a mortgage loan. Because homeowners facing foreclosure are desperate to keep their homes, they are often willing to pay high fees to a “legitimate” mortgage modification business. If the company is fraudulent, it will take the money then shut down its contact point (website, small office), taking the consumer’s money with it. This action leaves the property owner in even worse shape than he was prior to dealing with the fake mortgage modifying company and with little time to seek alternative methods of assistance. Signs that a business may not be legitimate include when they request excessive fees up front and then provide no service; if they demand credit card or other personal information without notifying one of his or her rights and responsibilities concerning the modification; and if they “absolutely guarantee” that one will receive the help one is asking for. Unfortunately, some homeowners simply will not qualify for a valid mortgage modification, so companies that guarantee it are not to be trusted.
Choosing a Mortgage Modification Company Online
A mortgage modification company provides a go-between for developing a reduced monthly mortgage payment. This person speaks to one’s original lien holder to work out a mutually acceptable monthly amount that makes it easier for the homeowner to remain in his home.
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