How Far Behind Do I Have To Be To Modify my Mortgage?

Mortgage loan modifications are generally requested by homeowners who are struggling to make their payments. In most cases the borrower is several months behind on their house payments and needs relief in the form of a lower payment. Enter the modification process. The process includes rewriting the loan to a lower interest rate, which necessarily lowers the monthly payment. But not all borrowers are severely delinquent on their mortgage payments, and may even have maintained their loan in a current status. This group of homeowners may still want to modify their mortgages though, and wonder if this type of loan is available in their circumstances.

You do not have to be any certain number of months behind on your mortgage payment to receive a mortgage modification. Here are some examples of how a modification can help you even if you are not behind on your mortgage:

•         The interest rate will be lowered, and so will your monthly payments as a result. Even people who are current on their payments can benefit from a lower payment. Lower payments allow borrowers to save more money each month, or to pay off other debts faster.

•         A major expense may have arisen that makes it difficult to keep paying your house payment on top of the unexpected expense. This is most commonly seen when a homeowner has experienced a major medical set back or a reduction in salary. A modification can help get the borrower through a temporary financial hardship in these cases.

If you are able to keep making your payments, that could be better for you. Sometimes people are told they can only modify their mortgage if they are behind. But that is just not true and the consequences can be severe if you deliberately stop paying. When you fall behind on your mortgage your lender has the option to foreclose, and that can put you in the position of needing to modify rather than doing it to alleviate a temporary financial crisis. Every situation is different, which is why you need personalized advice. We have seen all sorts of fact patterns, and can help you get the relief you need no matter the set of facts. Call today.

If you have questions about mortgage modifications, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.