If you are having trouble making your monthly mortgage payments, you may want to consider seeking a mortgage modification. There are several modification options that mortgage companies can offer, each of which can help you to get caught up and arrange payments that are more affordable going forward. When first looking into this option, many people become overwhelmed with all the information. To get started, take some time to learn the following five important ‘introductory’ facts about mortgage modifications, and then contact Ray Garcia for help.
Only Available for Delinquent Mortgages
Mortgage modification programs are only available for those who are significantly behind on their monthly payments. In most cases, you’ll need to be at least 60 days delinquent in order to qualify for a true modification. If you’re not this far behind, you may have some options available through your mortgage company, so make sure to talk to them about how they can help you to get caught up as easily as possible.
There May be Trial Periods
Many modification programs require that you start out with a trial period, which will typically last three months. During this period, you must make each modified payment on time in order to qualify to make the modifications permanent. If possible, it is best to make your monthly payments as early as possible to avoid any issues moving forward.
Must be an Owner-Occupied Home
Mortgage modifications are only available for owner-occupied properties, so you can’t modify a mortgage on a home that you are renting out. If you live in your home and want to avoid foreclosure, however, this is an excellent route to consider.
Mortgage Companies are Incentivized to Modify
People often wonder why their mortgage company would modify their mortgage, and become suspicious about their motivations. The fact is, mortgage companies typically get incentivized by the government for modifying mortgages and helping homeowners stay in their homes. In addition, whenever possible, a mortgage company wants to help keep people in their homes so they can continue making their monthly payments long into the future.
Your Long-Term Costs Might Not Go Down
A mortgage modification is designed to help make your monthly payments more affordable. This can be done by extending the length of your mortgage, reducing the interest rate, or adding a balloon payment at the end. While having a lower monthly payment is a good thing, it is important to be aware that over the course of your mortgage, you may not actually be saving money.
While a mortgage modification can be confusing, complicated, and time consuming, they are an excellent option for many people. If you’ve fallen behind on your mortgage and want to stay in your home, modifications are certainly worth the effort. For knowledgeable answers to your real estate law questions, contact the Law Office of Ray Garcia, P.A. today.
Law Office of Ray Garcia, P.A.
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