You worked hard to save enough for a down payment on your Maryland home. However, life happens. Circumstances change, from losing your job to medical issues and more. If you are falling behind on the mortgage payments that used to be affordable, you may wonder if there are alternatives to foreclosure. At the Law Offices of Richard B. Rosenblatt, PC, our experienced team helps clients obtain reasonable modifications that help save their homes.
Nerd Wallet reports that a loan modification differs from refinancing. It changes the terms of the original loan instead of replacing it with a new mortgage. For struggling homeowners, it may result in lower monthly payments. Many lenders prefer this option as foreclosures are costly. Depending on your circumstances, the modification in payment amount may last for a specific amount of time or the entire life of the loan.
Many servicers and lenders offer foreclosure prevention programs. The key to getting the modification is asking about the options before you become delinquent. Although these programs can help you keep your home, some repercussions could deter you from choosing this option.
If financial hardship is a basis for the modification, there may be a negative impact to your credit score. Depending on the program, extending the length of the mortgage is possible. This may result in costing you more interest in the long run. If you are a homeowner deciding between foreclosure and a short sale, a mortgage modification may buy you some breathing room. Visit our webpage for more information on this topic.