options for keeping your home
Traditional Modification
Once you assess your finances and calculate your equity, you are ready to consider the options available for dealing with your problem. A traditional loan modification is a written agreement between the homeowner and lender. How does it help you if you’ve fallen behind on payments or expect to fall behind very soon?
- It makes it possible for you to take out a second mortgage.
- It changes one or more terms of your mortgage to make your payments more affordable and sustainable.
- It waives the mortgage payments you have missed.
“B” is the answer. Under this option, your rate of interest may be reduced, the mortgage term may be extended, the type of mortgage may change (such as from an adjustable rate to one that’s fixed), or the delinquent payments may be capitalized or added to the mortgage balance in some hardship cases.