With the increasing number of foreclosure in the market, many banks or financial institutions are interested to work with various loan or HAMP modification
to stop foreclosure. Each lender follows different policies and, therefore, hey will first ask you to know why you are getting failed to pay your mortgage payments.
However, to stop foreclosure
you need to hire an experienced professional or attorney who deals with loan modification policies. Basically, banks like financial institutions use three options of HAMP modification for modifying loans. Let’s have a look at these three options-
Three options of HAMP modification
1. Reduce interest rates:
An interest rate reduction is the most useful and common method used by banks for modifying mortgage loans. The interest rate can be reduced up to 2%, and it will continue up to five years. After that period, the interest rate will increase by one percent until it reaches the target.
2. Extending the term of loan:
This point itself explains its purpose and therefore, no further explanation is required. Instead of paying off the loan in 30 years, you will now get 40 years with lower interest rate.
3. Principle write down:
This option proves really beneficial for those individuals who have purchased their homes at the peak of appraisals. But, for having equity in your home, you are most likely to up-side-down. As a result of this, you will be unable to refinance your home due to lower monthly payment. This principle write down option will help you to calculate the payment with a new type of principle balance. If you wish to get more detail information about these options, you can check out this link https://www.loanmoddepot.com/
Therefore, when you want to stop foreclosure of your home or any of your property, take the help of an expert attorney who will help you understanding these options in a detailed way so that you get the best out of it.