If you are facing foreclosure of your home, a loan modification may be the answer to your troubles. Before you modify a loan, it is important to understand the pros and cons, including:
Pros of Modifying a Mortgage Loan
· You can obtain a lower interest rate which can save you a significant amount of money by lowering your monthly payments.
· If you have an adjustable rate mortgage, you can negotiate to have a fixed interest rate. This typically saves you money because adjustments in the interest rate often results in your monthly payment increasing. Having a fixed interest rate also makes it easier for you to budget for the cost of your mortgage.
· When you modify your mortgage loan, it will stop any foreclosure proceedings and you are allowed to stay in your home. If you have late charges, they will typically be applied to the back of your loan which means you don’t have to be able to immediately pay them.
Cons of Modifying a Mortgage Loan
· You must be able to afford the modified loan amount. Otherwise, your home will be foreclosed upon anyway.
· If your home is underwater (you owe more on your loan than the house is worth), it can take years for it to increase in value.
· Some lenders make you sign away your legal rights under the original mortgage.
To learn more about modifying your mortgage loan and whether you meet the qualifications to obtain this type of assistance, contact our office to schedule an appointment. Having an experienced loan modification attorney by your side will significantly increase your chances of obtaining a successful result.
If you would like to make your home more affordable, now is the time to schedule a free initial consultation with a New Jersey loan modification lawyer at Levitt & Slafkes, P.C. Contact our attorneys online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation.