What Is A Mortgage Modification and How Can A Lawyer Help?
Are you having trouble paying your mortgage payments? If so, you need to know that you might have one or more options for avoiding a foreclosure action. Our Parkville mortgage modification attorneys can help you apply for a mortgage modification that can save your home from foreclosure. What is a Mortgage Modification? A mortgage modification is different from a forbearance agreement. A forbearance agreement suspends your mortgage payments for a brief time, allowing you to overcome a financial crisis that prevents you from making your mortgage payments. The forbearance agreement does not change the terms of the loan, but it simply extends the loan by allowing you to skip a few mortgage payments. However, a mortgage modification changes the terms of the loan, including the length of the loan. By changing the terms of the mortgage note, your lender makes the mortgage payments more affordable so that you can keep your home. The mortgage lender may agree to modify one or more of the mortgage terms including:
- Lowering the interest rate
- Extend the term of the loan
- Convert a variable interest rate into an affordable fixed interest rate
- Forbear some of the principal balance owed on the mortgage note