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Follow on Google News | The Early Stages of Foreclosure: Loan Modification Can HelpThe clock starts running when the homeowner’s mortgage payment becomes 16 days late. At this time the bank will attempt to contact the homeowner and try to find a way to get current on the payment.
By: Dustin Rohde Repayment plan. The bank will offer to spread the amount of the 1st missed payment over the following two or three. This can give the homeowner a little room to maneuver in, allowing them to catch up with the payments, especially if they were late to begin with due to a large unexpected bill or expense. Sometimes, people just miss a payment or two because a car broke down, or there was an emergency. Banks know these things happen. Home loan modification. This is a more extreme solution for the homeowners who can’t afford and can’t meet the requirements of a repayment plan. A home loan modification is when the bank changes the loan’s terms to make it more affordable to the homeowner. The modification may include one or more of the following: A lower interest rate A change in rate from variable to fixed An extension of the duration of the mortgage A lowering of the actual principal When negotiating with the bank for a home loan modification it can be a good idea to consult a loan modification specialist. If a home loan modification doesn’t work, the bank may allow the homeowner to perform what is called a short sale. The is when the bank allows the homeowner to sell the house for less then the amount owed, accepts the money from the sale, and waives the remainder of the amount owed. A bank will do this because it stands to lose more owning a house it may not be able to sell right away. To learn more about home loan modification visit Legal Loan Bailout. # # # A Loan Modification is a permanent change in one or more of the terms of your loan, gives you a fresh start, and results in a payment that you can afford. The sole purpose of a loan modification is to enable the borrower to meet the terms of the new loan for the foreseeable future. Legal Loan Bailout's attorney partners will analyze your current situation and provide a workable plan that is acceptable to both you and your lender. End
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