Monday, June 5, 2017
How Much Does It Cost To Modify My Mortgage?
If you are having a hard time paying your bills and looking for solutions, you have to be careful to pick one that does not land you in more debt. Many debt consolidation companies charge a fee to negotiate with your lenders, but have subpar success rates. The end result is that you are out of your hard earned cash and still behind on your payments. This means your lenders are still calling, or maybe even suing you for collection of past due balances. Rather than opt for things that get you nowhere, let a qualified debt management attorney help you make the right choice.
A choice that helps most debtors is to have their mortgage loan modified. A mortgage modification is a process whereby your mortgage terms are changed, most notably the interest rate is lowered. Once the rate is lowered, the payments go down and it becomes easier for the homeowner to make timely payments. One of the most frequently asked questions about modifying mortgages is how much the process costs, here is what you can expect in that regard:
• A modification is like taking out a new mortgage loan, which most times requires an appraisal to be performed. However, when your lender modifies their own mortgage, they do not require an appraisal. So, you do not have to pay this fee during a modification.
• Most mortgage loans are accompanied by closing costs, which can add up quickly. But with a modification you are able to roll these costs into the new mortgage rather than pay them out of pocket.
• Your lender may have fees associated with the process, but most times these fees can also be included in the modified mortgage.
• When your mortgage loan was initially taken out, you had to pay at least a prorated part for homeowner’s insurance and property taxes. These costs are due when a mortgage is modified, but once again can be included in the new mortgage loan so you do not have to bring these funds to the table when the loan is closed.
The bottom line is that you can get out of a mortgage modification process without paying any out of pocket expenses. But if you do have to pay fees and/or costs, they can be kept to a minimum if you strike the right deal. Let us help.
For more information about debt and what to do if you have more debts than you can pay, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.