Loan Mendon Mortgage

Posted onNovember 16, 2011 - 11:49 pm by Admin | 0 Comments

The current buzz phrase for assisting homeowners with these problems is loan modification. In simple terms, a loan modification changes an existing mortgage in a way to make it more affordable to the homeowner and keep a home from going into foreclosure. Loan modifications are actually complex changes to complex legal documents.

Beware of Lenders Offering Loan Modifications

Many lenders are offering unsolicited loan modifications to their current customers. The lenders have several incentives to do this. The foreclosure process for lenders is expensive and time consuming. Lenders need to pay attorneys for foreclosure work along with court and service fees. During the foreclosure process the lender is receiving no income and spending money on a process that may take a year or more.

Ultimately a foreclosed house is sold at an auction and in current market conditions likely to bring in less money from the sale than the value of the loan. With those considerations, modifying a loan so that the current home owner can afford it provides the lender with immediate current income and the long-term prospect of realizing the mortgage’s full value eventually.


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