If you come to find that you are unable to make your mortgage payment as scheduled, you'll want to learn more about your options.
For example, you may be able to sell your home as a means of escaping trouble before it becomes too serious. If you want to stay put, however, it could be time to learn more about a mortgage modification.
There are many benefits of a mortgage modification, including the following:
- Ability to stay in your home, as opposed to selling or losing the property to foreclosure
- Extended payment terms, with the idea of lowering your monthly payment
- Interest rate reduction, which also reduces your monthly payment
- Opportunity to free up money to put toward other debt
With so many benefits of a mortgage modification, it's easy to see why many homeowners (those in a dire financial situation) are interested in moving forward.
If this makes sense for you, consult with your lender about how to best move forward. There is no guarantee that your request for a modification will be approved, but there's nothing wrong with learning more, asking questions and seeing where things end up.
In the end, the only thing that matters is that you find a way to remain in your home and improve your financial situation. It's not always easy to go through the mortgage modification process, but once you're on the right track, everything will come together. At that point, you'll realize that you're in better position to deal with your mortgage debt in the months and years to follow.
Source: MortgageLoan.com, "Mortgage Loan Modification Benefits & Pro's," accessed Dec. 04, 2017