What Is Loan Modification?

May 13, 2009 - PRLog -- Loan modification is a process in which the lender agrees to modify or restructure any or some of the terms and conditions attached with the existing mortgage or any credit facility, the changes which may typically include extending the term of the loan, changing the monthly payments, or even changing the interest rate associated with the mortgage. Simply a Loan Modification is a specific change in one or more of the terms or conditions of an existing loan (any type of loan) which allows the existing loan to be “reinstated” or “redrafted” so as to result in a lower monthly payment which the borrower can afford to pay, and redeem the loan over a period of time.

Advantages of loan modification
•   All or a certain portion of the “outstanding” principal amount and its interest, the late fees, and even associated costs can be rolled into the loan modification. Since the credit repayment is spread over a long period, it does not pose a problem to the borrower and even helps to save some money at the month end.
•   Modified mortgages may use a “step rate” approach or even an “extended term” methodology to facilitate the repayment of monthly dues and even the past dues of defaulted payments.
•   It’s possible to avoid foreclosure and bankruptcy issues even though banks routinely foreclose on properties and sell the homes to other buyers for a fraction of a price.
•   A modified loan helps to protect the credit ratings and even improve upon the existing ratings of the borrower.

Availing a loan modification program can be very confusing for many debtors. If you’re planning for loan modification facilities, chances are you would be consulting your creditor regarding the loan workout. Ideally the objective for availing a loan modification program is to avoid finance related issues such as foreclosures and bankruptcy. It’s important to do some “homework” and prepare yourself for the program before actually availing it. For that you need to get as much information as possible and later prepare your case in the best possible manner to get qualified for the loan modification program. Refinanceitt.com can help you deal with your credit issues and financial problems.

“refinanceitt.com – a company that will aid you in solving your credit related problems, and provide “cutting edge” solutions for your finance and credit related issues. Buy what you require, at the time you “need” it the most, and avail credit to pay for it – work out everything as per your needs and requirements. A highly effective “loan modification” program that actually works for you!”

Contact details
Refinanceitt Team
E-mail:  info@refinanceitt.com
Website Link: http://www.refinanceitt.com/

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Refinanceitt.com – a company that will aid you in solving your credit related problems, and provide “cutting edge” solutions for your finance and credit related issues.