Apr 7, 2021

Mortgage Foreclosures and Loan Modifications

There are millions of homeowners in the United States that have lost their jobs because of business closures and as a result, they have been unable to make mortgage payments.  Lenders have been prevented so far from foreclosing on those mortgages. The federal government may be extending until the end of the year the prohibition preventing lenders from foreclosing.  That is the good news.

Homeowners in trouble can seek loan modification from their lenders.  It is not an easy process and it takes 60 or more days, but it is possible to get done.  You can ask for a lower interest rate, lower payments, interest only on the loan or other modification that may make it possible to stay in your home. 

Mortgage companies have departments set up to assist with loan modifications.  Don't get frustrated.  Just hang in there and provide the information requested.   Even though the real estate market is hot right now, mortgage companies really do not want to foreclose on your home.  They know that to do so creates a non performing asset for them for some extended period of time.  They would rather work with you to extend your mortgage terms to allow you to stay in your home.  Be patient to make it happen.