Advantages and Disadvantages of a Loan Modification

by | Jun 4, 2015 | Bankruptcy Law

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Have you recently found yourself falling behind on your mortgage payments? If so, you know how overwhelming this type of situation can be. Unfortunately, right now there are thousands of Americans who have found themselves in the same situation. In an attempt to get out of this situation, many of them have considered programs that could help get rid of their high mortgage loans, such as loan modifications. If you’re unfamiliar with this type of program, you should know that it’s basically a change in the terms of your mortgage loan. However, it’s important to realize there are both advantages and disadvantages of this type of loan you need to consider before proceeding.

One advantage of a loan modification is that it can greatly reduce your monthly mortgage payments. This is because a modification can reduce your interstate rate or extend the number of years you have left to pay on your mortgage. Another advantage of a loan modification is that it can prevent you from having to file bankruptcy. In fact, after doing a loan modification, many people have found that it’s been easier for them to pay off other loans they had fallen behind on, as well.

As you can see, there are several advantages of a loan modification, but it’s not right for everyone. Therefore, it’s important to consider the disadvantages before modifying your mortgage loan. One disadvantage of a loan modification is that it can be a slow process. In fact, in many situations it can take four to six months to complete the modification. Keep in mind that having an attorney can often help expedite the process. Plus, if your home is currently in foreclosure, a loan modification won’t stop your lender from foreclosing on your home.

It can often be difficult to decide whether or not a mortgage loan modification is right for you. However, if you’re tired of being frustrated and worrying about how you’re going to pay your mortgage, it may be a great option for you. Therefore, if you’re ready to get started, you should contact Laura Margulies & Associates, LLC, today. This attorney has over 25 years of experience helping customers find solutions to their financial problems and would be happy to do the same for you. So, give her a call today and one of the associates will schedule your free consultation.