September 11, 2008

Loan Modification


A loan modification is a permanent change in the terms of a mortgage note. Recently loan modifications have become more popular, because of rising foreclosures. It is less expensive for a bank to modify a loan than it is to foreclose.Generally when a loan is modified, the interest rate is lowered so that the payments are more affordable. In the case of foreclosure, the loan term can be extended, and the late payments can be added to the end of the loan.

The more problems that you have paying your mortgage, the more likely your lender will allow you to modify your mortgage.Recent studies have shown that a Loan Modification costs a lender 40% less than a foreclosure. Banks are in business to make money.

If they have to take your home, they lose the profit that they would have made on interest, and may lose several thousand dollars on the sale of your property.If you are in an adjustable loan or your payments are unaffordable, it is in your best interest to see if you qualify for a modification.

11 comments:

jig said...

hi, your site is good. i like your template it is very organized. do you have a post related to payday loan? thanks and good luck!

AndyCR7 said...

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Traffic Masters said...

O thanks for explaining. I can honestly say, I had no idea what that was before. Good site you got here, Great information on mortages and loans.


Jonathan Muller
http://mastersofseo.com

Red said...

This is very good information as I'm actually planning on buying my first home here in the next month or so!

Craig said...

@jig
thanks for the comment jigs, for now i got no post related to payday loans but ill inform you when i have content for regarding that

Craig said...

@andycr7
thank you for the compliment.

Craig said...

@ Jonathan Muller
Its my pleasure to help you, feel free to browse the site so that you can understand more about loan modification. Cheers.

Craig said...

@red
Glad to help red, looking forward that you'll have your new house.
Thanks for dropping by.

Fransiska Ike said...

You really have an interesting payday loan blog. Thanks for the useful information.

Craig said...

@fransiska
Your very welcome, were happy to help people in need.
For more information and if you do have some questions just contact us.

Rituraj Vyas said...

the post is really helpful and gives insight into the financial world. Also the language is very simple and easy to understand. Keep blogging such stuff.

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