UpdatedNov 17, 2010
- 2 min read
- A refinance or loan modification could help you regain financial stability.
Behind in Your Mortgage Payments?
Avoiding foreclosure is something thousands of Americans across the country are trying to do. Two options consumers unable to make their mortgage payments may consider are a loan modification or a refinance. While a successful loan modification or a refinance could bring about regained stability, failure in obtaining either usually leads to losing a home. Let’s have a look at some things to consider:
- Facts First: Are you just behind or are you unable to make payments at their current rates? Would missing a payment help? Basically, ask yourself what would help to get you back on your feet. Bringing these ideas to the table will certainly help both you and your loan counselor make some initial decisions.
- Know What to Expect: Don’t overestimate what you think you might be able to get from a modification or refinance. Certainly, there have been loan modifications where a portion of the loan principle was forgiven, but that is not always the case.
- Choose Options that Work: Forbearance, an agreement with the lender to postpone mortgage payments for a given period, can allow you to catch up financially while delaying the foreclosure process. A repayment plan can help you if you simply got behind for a few months and are looking to get back on track. There are many options for modifying your mortgage or refinancing to a lower rate to make it easier. Knowing which options will work best for you is important if you want to stay in your home.
- Dealing with Personal Debt: Don’t overlook other debts when trying to get a loan modified or applying for a refinance. Over spending may be a big part of the reason you are in the situation you are in. If you want your loan modification or refinance to be successful, be prepared to make other changes in your financial outlook.