If you, like many other Americans, are struggling to make your mortgage payments each month you may want to consider trying to get a loan modification. Here is some basic information about loan modifications to help you get started.
A loan modification occurs when the lending bank changes the terms of your existing loan to make the payments more affordable. This is to the benefit of the bank and the home owner, as the bank does not want to foreclose and lose money. Sometimes the changes made to the loan are only temporary to help you get through a rough spot but they can be permanent as well. Either way it is a good option for creating a more manageable mortgage payment for you and your family.
A modification can be made by refinancing the existing loan. The bank can allow you to skip mortgage payments; they then add the payments to the end of your loan. In some cases the bank will reduce the total amount of your loan, forgiving principal. They are able to reduce your interest rate or even extend the length of the loan. No matter which option is chosen you will want to be sure it helps you now as well as in the long term.
Under the governments Making Homes Affordable Modification program your new mortgage payment should not be higher than thirty one percent of your monthly income pre-tax. To calculate this you will need to take your mortgage payment and divide it by your total monthly income. If you pay twelve hundred per month and your income is four thousand per month your ratio would be thirty percent. This would be within the acceptable range for acquiring a loan modification.
If you a looking to modify your mortgage check out USA Debt Solutions at http://www.usadebtsolutions.org or call them at (888)610-3017.