Wednesday, July 26, 2017
Three Ways Mortgage Modifications Stop Foreclosures
A foreclosure is the bank’s way of taking possession of your home when you fail to make the required payments. The process is stressful not only because you are struggling financially, but because losing your home can take an emotional and physical toll on you and your family. If you are forced out of your home by a foreclosure, you still need shelter. So not only will you need to leave a place where you feel secure, you will also have to find a new place to live. This creates emotional discomfort, and also requires you to undertake the physical act of moving. If you are facing a foreclosure, the time to act is now if you want to try and save your home.
A good place to start is to ask for a modification of your mortgage. Here are three ways a mortgage modification can potentially stop a foreclosure:
• If your home is currently in foreclosure and you ask for your loan to be reviewed for a modification, the lender is not allowed to proceed with the foreclosure until that review has been made. This is referred to as the prohibition against dual tracking, and it is not permissible.
• If you are successful in obtaining a modification, you will be allowed to resume payment at the new amount, per the modified loan terms. When you resume payments and remain current on the new loan, a foreclosure is not an available remedy to the lender because you are not delinquent.
• A modification request gives you the chance to explain your financial situation to your lender. During this time, while negotiating ways to make your mortgage work again, your lender will not be initiating a foreclosure. So if a foreclosure has not been started yet, asking for a modification is one way to prevent that process from ever beginning.
We have all heard how important it is to keep in contact with your creditors when you are having a hard time making payments. This is because when you show a willingness to work with your lenders, they are more likely to reciprocate that same willingness. But, if you stick your head in the sand and hope your financial troubles disappear, you may wind up the defendant in a foreclosure or other collection matter. Let us help prevent action being taken against you, by being proactive and working on your behalf for loan terms that meet your needs.
For more information about mortgage modifications and foreclosures, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.