What is a Loan 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
- 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
- Adding any past-due amounts, such as interest and escrow, to the unpaid principal balance, which is then reamortized over the new term
Take action
Contact us via the information below:
Jack H Tsai
BRE# 01759949
Phone: (408)799-5979
E-mail: jackhtsai@gmail.com
Kevin Lin
BRE# 02091737
Phone: (408)568-6093
E-mail: linkevin369@gmail.com
