Benefits of a Loan Modification

The Benefits of a Loan Modification can be summed up in two words: Stop Foreclosure. A loan modification gives a distressed homeowner the chance to start fresh with the same lender by changing the terms of the current loan to an affordable and sustainable monthly payment. The goal is to keep the borrower in the home and avoid foreclosure, a costly process for banks. The housing market and our economy are reeling, in part due to the large number of foreclosures already on the market, with another 2 million foreclosures on the horizon. The government has even stepped in and is encouraging lenders to offer a Loan Modification as an option whenever possible.

The benefits of a loan modification can be substantial-if the borrower knows what to ask from their lender. The most beneficial loan modification is what that offers a long term solution in the form of low, fixed payments the homeowner can afford now and in the future.

The homeowner should be prepared to submit a complete and accurate Loan Modification application. This should include a financial statement, verification of income and assets, a loan modification hardship letter explaining why they deserve a loan modification and verification of the property's current market value.

The Benefits of a Loan Modification can include a reduction in the interest rate, a longer loan term and even forgiveness or reduction of some principle balance. Some or all of these options can be combined to result in a new low, affordable and sustainable payment for the homeowner.

If you would like more information about the benefits of a loan modification, The Complete Loan Modification Guide is an easy to read and easy to follow Guide that will give you the information you need to present a WINNING Loan Modification application to your lender. You will be provided with the necessary forms and detailed instructions on how to complete them properly. This is a low cost option that could possibly save you thousands of dollars.

Article Source: http://EzineArticles.com

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