Many homeowners have
fallen behind on their mortgage, and could soon be on the path to foreclosure
without permanent help. If this sounds like your situation, you may be eligible
to modify your mortgage. You may also qualify for the government’s Home Affordable Modification Program, which was
designed to help borrowers make their payments more affordable.
What is a Modification?
Under this option, you
reach an agreement between you and your mortgage company to change the original
terms of your mortgage—such as payment amount, length of loan, interest rate,
etc. In most cases, when your mortgage is modified, you can reduce your monthly
payment to a more affordable amount.
A modification may be an
option if:
- You are ineligible to refinance
- You are facing a long-term hardship
- You are several months behind on your mortgage payments
or likely to fall behind soon
What are the benefits?
- Resolve your delinquency status with your mortgage
company immediately
- May reduce your monthly mortgage payments to a more
affordable amount
- Change the original terms of your mortgage permanently,
giving you a new start
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
How does it work? A
modification involves one or more of the following:
- Changing the mortgage loan type (e.g., changing an
Adjustable Rate Mortgage to a Fixed-Rate Mortgage)
- Extending the term of the mortgage (e.g., from a
30-year term to a 40-year term)
- Reducing the interest rate either temporarily or
permanently
- Adding any past-due amounts, such as interest and
escrow, to the unpaid principal balance, which is then re-amortized over
the new term
Next steps
Gather your financial
information—Make sure you have your basic financial and loan information on
hand when you call your mortgage company. You’ll need:
- your mortgage statements, including information on a
second mortgage (if applicable);
- your other monthly debt payments (e.g., car or student
loans, credit card payments); and
- your income details (paystubs and income tax returns).
Explain your current
situation—Be ready to outline your current hardship and explain why you are
having trouble making your mortgage payment and if this is a short-term or
long-term problem. Your mortgage company will need to understand the reasons
why you are having difficulty in order to find the right solution for you.
Contact your mortgage company or a Fannie
Mae Mortgage Help Center—Tell them you are interested
in a Modification and you want to see if you qualify.
Is a West Sacramento Short Sale Right for Me?
To get a better idea of when
your West Sacramento home will be worth what you owe, log
in to www.shortsaleandloanmod.info for a free
estimate or call me today for a free no obligation consultation or for the
latest West Sacramento short sale information. Call me
today and sleep better tonight; you’ll be glad you did.
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