A Loan Modification is the process of modifying ones mortgage payment through the means of negitiating between the home buyer and mortgage lender.
Pasquale Longordo, who serves as an operating officer with Modify Loan Experts, adds that “providing the client with an honest assessment of their financial situation is the first step towards a successful mortgage modification; the second step is working with an attorney who understands the idea of negotiating.
There are many types of mortgage modifications, each having advantages for all situations. A home loan modification can benefit ones mortgage in the following ways:-
· Reduction of loan interest rate
· Change adjustable rate to a fixed rate
· Reduction of penalties, such as late fees
· Expanding the term of the loan
· Prorating monthly payments based off of household income
· Reduction principal balance
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