So many of the homeowners I talk to who are underwater are under the wrong impression about their options as well! Loan modification should be your first line of defense in saving your home and your credit.
Loan modifications are happening!!!!!
Usually you can get your mortgage modified to a new payment not exceeding 31% of your gross income! Get your calculator out and see what kind of payment that is for you and whether that will help or not.
This new payment can be derived in several ways and usually a combination of ways :
1) Interest reduction.
2) A silent second with payments based on the first.
3) Principle balance reductions.
The most common mortgage modification is a combination of the first two, usually you will see very little if any principle balance reduction, however, the new payment can be a real life saver.
There is a lot of speculation that principle balance reductions may be becoming easier to attain soon, however you can still apply for that at a later date even if you get a payment reduction right now.
I review modifications for free for my clients and I help them submit and prepare their packages as a form of community service. If you just need a bit of help I am happy to provide that, all I ask is that you keep me in mind if buying, selling or referring a realtor!
A win, win! – If you are underwater and need help, please don’t let your home and credit go down the drain without a fight – Contact me!
530-432-3333 / Teresa@GoldCountryRanches.com