Due to the present economic crisis many homeowners are taking the option of home loan mortgage modification with the intention of avoiding foreclosure of their houses. But people have some wrong impressions of the loan modification programs and about their qualifications. Such as it is a completely wrong idea that lenders prefer foreclosure than loan modification because the fact is lenders also try to avoid foreclosure as they face huge loss during the whole process. But in reality lenders restructure the existing home loan of the borrowers only after they get the assurance of the repayment of their installments on regular basis in future.
If the borrower is able to convince the lender that if his home loan is modified, he will be able to repay the loan installments regularly, then the lender is likely to approve the loan modification application of that borrower. Another myth that prevails in most of the homeowners’ mind is that in order to apply for the mortgage modification program it is necessary that they have made late payments of their mortgage modification. This is not exactly true because even if you feel that you are likely to face foreclosure in near future, you can apply for the mortgage modification program giving the genuine reason behind the financial crunch. So it doesn’t matter whether you are paying the installments regularly or have missed some of the payments or have repaid late, you can apply for loan modification in any case.
Home loan mortgage modification can be achieved from any lending company and it is not essential that you have to approach your lender and no one else. If you are serious and want to obtain loan modification for the betterment of your present financial situation, you can seek help of a financial advisor. You can get the list of non-profit counselors from the HUD of your area or you can look for other companies online too. The only thing is that you have to be careful and conscious while selecting the mortgage modification company and look for genuine and experienced one for the purpose so that you are saved from forgery.
You must not assume beforehand that applying for loan modification will affect your credit score because it depends upon your lender and the program you choose. However most of the loan modification programs do not have any effect on the borrower’s credit score.