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EZ Press Release -- August 13, 2010 In the most recent couple of years, more people across the United States have found themselves in similar situations. The amount that they owe on their mortgage is higher than what their home is valued at. It all started when the banks were giving out loans to individuals at a rate that has never been seen before. Many of these loans had violations in them that would eventually make it impossible for the borrower to pay it off, but the banks didn’t seem too concerned. After some time, the economy started to falter and it didn’t look so bright. The banks were trying to bring in the money from their loans but because so many people lost their jobs or experienced wage cuts, the home owners were defaulting instead. The housing market fell fast and hard, one home affecting the value of its neighbor and there was a huge chain reaction. Soon all across the United States, families were feeling the effects of mortgages that they could no longer pay on homes that were no longer worth what was written in their agreement.
People today are still fighting to keep their heads above water with their mortgages and if you are one of them there might be a solution just for you. Along with all of the defaults on loans, there was a solution that wasn’t used nearly as much as it is today, and that is the loan modification. This is when the borrower requests a change in the agreement made with the bank. Usually the terms are changed so that the monthly payment is smaller and the length of the terms is extended. The agreement depends on the lender and how well the borrower can negotiate which is why borrowers often turn to loan modification companies. These professionals help people all the time to obtain good loan modifications that they can afford.
You might wonder why lenders would ever agree to modify a loan, but the answer at this point is simple. The banks have already foreclosed on so many homes that they are overstocked. They can’t sell many of the homes because Americans aren’t on the market for new homes as of yet. For the homes that are sold, which are few, they are receiving very low prices at auction for them. They are losing money every day on these homes and that is no including all the money that they have to spend on their own lawyers, real estate agents, and other hired help just to get them through the foreclosure process. It is costing them millions of dollars and more.
A loan modification can prevent a foreclosure on a home and can bring financial stability once again. It is a long term commitment on the parts of the home owner and the lender that makes the future of both parties involved a much happier one. It is a solution that loan modification experts help with everyday to prevent these foreclosures and it is important that if you are at risk of foreclosure, that you take action to stop foreclosure from happening to you.