Thursday, April 27, 2017
Can I Modify My Mortgage Without Any Equity In My Home?
One of the things that you can do when you are behind on your house payments is work with your lender to get a lower payment. You can do this by asking for a modification of your mortgage, which will get you a lower interest rate. When your interest rate is lowered, so is your payment. A lower payment makes it easier for you to stay current on your house payments, and this can alleviate a lot of your financial burden if you are struggling to make ends meet.
The idea of modifying a mortgage can easily be confused with refinancing, but the two are not the same. A refinance is a good idea if you have equity in your house that you want to take out, so you can pay down other bills that are at a higher rate than your mortgage loan. So what about a modification? Do you have to have any equity in your home to get a mortgage loan modification? Fortunately, the answer is no. There is no requirement that you have equity in your house in order to get the mortgage modified. Here are some of the things you will have to do though:
• Fill out an application. Even though a modification can be done by your current lender who should have your data on file, you will still have to fill out an application and provide information about your income and debts.
• Provide proof of income.
• Do some follow up with your lender to check on the progress of your application.
A successful mortgage modification will lower your payments, so you can get back on track with your loan. In some cases the modification may be on a trial basis at first, and once you have made a few months’ worth of payments pursuant to the modified terms the loan will be permanently modified. If you are thinking about applying for a mortgage modification, let us help. The process can be complicated and time consuming, but we have experience with the application and follow up and can take on these tasks for you.
For more information about what to expect when you seek a mortgage loan modification, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.