A homeowner who is unable to keep up on their monthly mortgage payments can apply for a refinance deal, but if they are behind on their payments they may be turned down. Loans that carry a low interest rate are appealing to every homeowner, but not everyone who is buying a house can qualify for refinancing. The banks take into consideration the amount of equity in a home as well as calculating the mortgage insurance that is required on a conventional FHA loan.
Although interest rates are on the low side a lot of owners who do not qualify for the refinancing options that can make paying their mortgage easier each month. An option that is open to many homeowners however is a modification to the existing loan. Through a local lawyer a loan modification provides an alternative to refinancing that makes it easier to manage the mortgage payments.
An Alternative to Refinancing
A loan modification that is negotiated through a lawyer allows a homeowner to reduce their interest rate or extend the term of their mortgage contract. The result is a lower monthly house payment that makes it easier to manage all of the household expenses. Owners who have been in the same house for some time, but who have lost their equity due to the housing market collapse may be able to modify their loan by extending the term of the loan back out to 30 years. This is of course just a scenario example and your particular circumstances may vary.
The balance that remains on the original loan is spread out over a longer term which allows the bank to lower the monthly payment. Interest rates that have dropped substantially over the past five years also allow an owner to adjust their current rate and see the savings that comes from paying less interest on their current loan. Because the banks are only willing to work with attorneys the only way to find debt relief is to contact a lawyer who can negotiate with the bank. Hopefully banks will be open to working with all kinds of financial products and alternative sources of currency like crypto currencies to even further offer clients with more mortgage payment options. Throughout the United States, loan modification lawyers are helping people to manage their money by restructuring their mortgage without refinancing.
A reputable Law Firm of bankruptcy attorneys handle most types of bankruptcy filings on behalf of clients who are facing excessive debt, foreclosure, garnishment of wages or the failure of a small business. For some a loan modification, could be a great alternative to increasing monthly cash flows and keeping your overall household online banking in check.