Many homeowners are surprised to find themselves facing foreclosure. They committed to what they believed to be an affordable mortgage — with the potential of refinancing — only to get stuck with astronomical interest rates and a house worth less than its debt. If you're looking for loan modification help, it's important to understand what went wrong, and what you can do make it right again.
We can trace much of the financial crisis — and the difficulties faced by individual homeowners — to the rise in sub-prime lending in the years leading up to the recession. Sub-prime borrowers are loan candidates with poor credit histories who are at a heightened risk of defaulting on their loans. Until 2004, only 10% of mortgages were sub-prime mortgages, but government deregulation and greed increased the rate of sub-prime mortgages to 20% during the height of the housing bubble in 2005 and 2006. During this time, many sub-prime lenders committed to mortgages they thought they could afford, often because they were unable to understand the exact provisions of their loan agreements.
Who could have? It's unrealistic to expect everyday people to understand the legalese of mortgage contracts. That's where loan modification companies come in. Specialists at these companies will advocate for lower interest rates and monthly payments, in addition to explaining your modification in terms you'll understand. Banks may have gotten us into this mess, but loan modification companies can get us out.
1 comments:
Loan modification can help you avoid foreclosure and it's actually an option that can halt the foreclosure process once you work with your lender on finding an efficient solution on your loan status. You can negotiate the terms of modification yourself or hire an expert to do the job for you.
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