Which Is In Your Best Interests?
Are you facing foreclosure? It is scary, and many homeowners scramble to find out their choices during such an uncertain time. You need a roof over your head, and financial disasters like that can cause turmoil. There is help available, and two solutions people often consider are short sales and home loan modifications. The latter is the preferred solution because put merely; you get to stay in your home.
You don’t want to lose your home. If there is nothing you can do, then a short sale before foreclosure might be the best option. If you’re haven’t yet checked into mortgage loan modification options, however, you’re not going to know that there is nothing you can do. There are so many ways in which home loan modifications are working out for homeowners nationwide. You have to reach out for help to see what’s available.
One of the benefits of a home loan modification is that homeowners can sometimes qualify for extended payment terms. For sure, you would instead be looking at shortening your mortgage. Keeping your home sure beats losing your home. Extended payment terms make the monthly amount of your mortgage smaller, making your home more affordable. If you were to qualify for that type of modification, perhaps the payments would be in the ballpark of your budget.
In a situation like the one described above, the mortgage company also benefits because they make more interest off of the loan over the extended period. Some of the modification arrangements don’t benefit the mortgage company quite as much. Some home loan modifications are part of government programs. That being said, it’s important to understand that the mortgage company isn’t always going to be on your side regarding making certain agreements. Check out the San Diego Short Realtor – Ruhl Team Short Sale.
You want to be realistic, persistent and work towards the best possible solution for both sides so that you can stay in your home. Now that we have that out of the way, one other answer is to get the interest rate on your loan lowered. While this might not benefit the mortgage company as much as an extended payment period, it is still a workable solution. You will want to talk things over with the right person to see if this is an option in regards to your mortgage.
As you consider whether a home loan modification is right for you, it’s also essential to no the disadvantages or the drawbacks. Some of them are quite clear, yet are outweighed by the potential benefits in some instances. For example, an extended mortgage payment plan from 30 to 40 years keeps you in your home, but you’re going to significantly more money over the life of the loan.
Again, it pays to be realistic and make wise decisions as a homeowner. If you were to not seek out home modification, would foreclosure or a short sale be the only choice? If so, perhaps an amendment would be in your best interests.