Monday, March 30, 2009

Is it worth trying to Modify your Loan?

Loan modification allows homeowners to change the terms of a loan in order to help the borrower stay in the home and avoid foreclosure. So, from this point of view, of course it is worth trying to speak to your lender. What can you achieve: reduction of the interest rate; fixing the rate; extending the time for loan repayment; even decreasing principal and getting rid of the second mortgage altogether. This is all Great! But, you should also know that it will take a lot of time and effort, and patience on your part. Most likely, if your home value has decreased by more than 5%, you are not even eligible.... Talk to the lender. Do not waste time. And do not be late in payments. This is important.

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