Finance


Loan Modifications

Facing financial hardship? Found out if restructuring your home loan makes sense for you.

What is a Loan Modification and Who Qualifies?

A loan modification, sometimes also called a mortgage modification, a workout plan or loan restructuring, is when a borrower works with their lender to change the terms of their loan.

The goal of a workout plan or loan restructure is to reduce the monthly mortgage payments to the lender. This can be accomplished buy temporary or permanent changes in the mortgage interest rate or by changing the term of the loan.

Who Qualifies Under the new Home Affordable Modification Plan

Answer these five questions to find out if you are eligible:
  1. Is your home your primary residence?
  2. Is the amount you owe on your first mortgage equal to or less than $729,750?
  3. Are you having trouble paying your mortgage?
  4. Did you get your current mortgage before Jan. 1, 2009?
  5. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowners association dues, if applicable) more than 31 percent of your current gross income?
If you answered “yes” to all the above questions you may be eligible for this program.

Please contact a local Help-U-Sell Office now to learn more.