Loan Modification Is A Hot Media Issue Too

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Many people talk about loan modification. Loan modification is a hot media issue too. If you have heard the term but do not know what it is all about, keep reading. It basically means that there is a renegotiation between the lender and the borrower on the terms of the contract, the mortgage. For many it means a new possibility to stay in their home, avoid foreclosure. The PROs of a loan modification to the borrower include: · Not having to move out · Lower mortgage payments · No foreclosure · Lower interest rate · An increase in the duration of the loan, even up to 40 years · A more fixed interest rate for at least a part of the duration The PROs of a loan modification to the lender include: · Not being stuck with a house that is not in use because of foreclosure but having a loan running that is beneficial to the lender · More loans are current and less accounts that are in default · They do not aspire to possess your home There are a few things you, as a home owner, have to consider when you are proceeding with a loan modification. · Sometimes lenders defer fees and amounts that were not paid to the end of the duration of the loan. Make sure you are aware of these responsibilities that will show up later on in the loan. After all these lenders are still trying to make a deal that is best for them (and that is normal, it is business) and if you want a deal that is good for you make sure you are aware of everything before you enter a deal. A deferred loan

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