Home foreclosure is a scary experience and trying to defend your home from the bank or lender is even worse. Cozmyk Law Offices helps many Ohio homeowners save their homes and successfully weather the foreclosure process.
It is important to know that there are many tools to use and loan modification is just one of them. As your experienced foreclosure and bankruptcy attorney, we are here to help you understand your rights, understand your legal options, and then fight for you so you can save your home. Below are some of the important things to know about loan modifications.
What to Know About Loan Modification
- Helps you to keep your home – When you modify your loan you continue to pay off the loan and when paid in full, you own your home. Other options may cause you to lose the home, such as a short sale.
- May lower the interest rate you pay – Loan modifications are a valuable tool for loans where the interest rate is not fixed. If the US government changes the interest rate for lenders, they often increase your house payment. That tactic was a problem during the 2008 housing crisis.
- May lower your monthly loan payment amount – If you renegotiate your loan, the amount you pay each month may drop. Loan modification helps you fit your house payment into changes within your budget and can work well when there is a hardship event, such as the loss of a job or a catastrophic event.
- Extends the number of years you pay on the loan – One way that a loan modification works is by extending the loan so that your monthly payments drop. You pay longer, but you are more capable of meeting lower house payments.
- Catches the Loan Up – One of the easier ways to bring your loan back into a current-paid status is to add the missed months of payments to the back of the loan. You still pay the same amount and your interest may remain the same, but instead of having to come up with a huge sum of money to catch the loan up, the lender adds those missed payments to the end of the loan.
Loan Modifications as a Tool
There are a variety of reasons why someone may become delayed in their home loan payments. Loan modification helps to address many of those issues, such as rising interest rates, rising home payments, etc. Home loan modification helps you keep your home rather than stall until the house is either sold through a short sale or taken by the bank through foreclosure.
Call Cozmyk Law Offices Today To Discuss Loan Modification Options
Cozmyk Law Offices serves the greater Ohio community with foreclosure and bankruptcy services. We help people save their homes. Find out what your rights are and how we can help you deal with your home loan lender. Call us today at (877) 570-4440 for more strategies to potentially save your home.