Can A Mortgage Loan Modification Save My House From Foreclosure?

One of the major benefits of seeking a loan modification for your home mortgage is that it can rescue you from foreclosure. In addition, your credit score will remain intact. You should consult the services of a real estate attorney.

Obama’s Loan Modification Plan Can Help

The Obama administration has passed the Making Home Affordable plan to assist homeowners in their struggles against foreclosure. In fact, the primary objective of the program is to help borrowers avoid foreclosure by modifying their distressed loan.

In order to make sure that borrowers who are currently at risk of foreclosure have the opportunity to apply for a loan modification under the Home Affordable Modification Program (HAMP), participating loan servicers can not proceed with a foreclosure sale until the borrower has been evaluated for a HAMP loan modification and a trial modification offer has been made (if the homeowner is eligible).

The HAMP loan modification starts with a three-month trial period. If, during this trial period, you successfully make all of the required payments during and the income and expense information you provided is accurate, your servicer will execute a permanent modification agreement. A loan modification attorney will explain that the HAMP loan modification is an option to you if you are eligible for it.

But, what if during the trial period you are unable to make the required payments. Borrowers who cannot make the three payments by the end of the trial period, they are unfortunately not eligible for a loan modification under HAMP. However, you may still be eligible for other foreclosure prevention options that are offered by your lender.

Home Owners: Buyer Beware

No matter which road you take, don’t let the emotion of the situation cloud your judgement. Scam artists often target homeowners who are struggling to make their mortgage payments. The anxiety surrounding the situation makes consumers particularly vulnerable to scams. Some loan modification consultants will ask for upfront fees. However, it is illegal for foreclosure consultants to demand money before they give you a written contract or perform all of the services described in that signed contract.