Mortgage Loan Modification

Most people want to make their mortgage payments but sometimes circumstances happen beyond our control that cause people to be unable to fulfill these obligations. Unfortunately, foreclosure becomes a real possibility but may not be the only option. Contact your mortgage lender to discuss possibilities. You may be able to refinance or your lender may be willing to modify the existing loan in some way to help. Some may even be willing to forgive back payments or “recast” the loan to include missed payments and fees.  Additionally, the US Government has implemented the Making Home Affordable program which makes available to many the ability to refinance to current (or lower) market rates.  To learn more about this program, including eligibility and restrictions, go to the Making Home Affordable site.

Timing is very important! Don’t wait until you’ve missed payments and are in default to talk to your bank or to see if you’re eligible for the Making Home Affordable program. Do so when you anticipate a problem in the future. Be wary of third parties offering loan modifications and go directly to your lender first!  Check out this important message from the HOPE NOW alliance.

Remember, the time to consider these options is before your home has been foreclosed – you must act quickly! If you have any questions or need help understanding the options available to you, please don’t hesitate to contact us.

All articles about foreclosure on this blog relate to foreclosure in the State of Texas.  State laws determine how foreclosures will proceed and the laws may vary from state to state.  It is highly recommended that you consult with an attorney regarding the legal consequences of foreclosure as well as seek the advice of financial and tax professionals.  You can also talk to foreclosure avoidance counseling agencies approved by HUD completely free of charge.