The Coronavirus & Your Mortgage: Why Now is the Time for a Mortgage Modification
The coronavirus pandemic has affected just more than the health of those infected by it. Over 36 million Americans have sought out unemployment from the coronavirus bringing their previous occupations to a standstill. Many of these individuals, possibly including you, have homes to pay a mortgage for. This is a difficult time for everyone, but worrying about your health, your income, and losing your home sounds like nearly too much to handle. Fortunately, you may be able to make a mortgage modification to alleviate some of your stress.
What Is a Mortgage Modification?
A mortgage modification, also referred to as a loan modification, is a change that is typically made when a person is struggling with financial hardship. This change is made to the previous terms of your mortgage. This circumstance involves a reduction in your interest rate, a different type of loan, or an extension of the length of time you have to repay your mortgage. These three different terms are often combined in a variety of ways. How they are combined depends on the situation you are in. The main objective of a mortgage modification is to reduce the payments you make each month to something more affordable.
It is easy to see why this is a helpful option, especially during this time with the coronavirus. With drastically lowered amounts of income coming in, the reduced costs and time a mortgage modification can give you can be used to your advantage.
How Do You Get a Mortgage Modification?
Before you apply for a mortgage modification, you should consider hiring an attorney. An attorney is a great asset. Our office can aid you when you have to do paperwork and gather documents along with preparing you to present the reasons why you are struggling financially, as well as the adjustments you would like for your modification.
To get a mortgage modification, you will have to explain to your bank why you cannot make your mortgage payments to your lender. You will also have to inform them of the adjustments you would like made to the mortgage. Your lender will most likely want to know the details of your financial situation, as well as a loss mitigation application.
Mortgage Modification Against Foreclosure
If you fail to pay your mortgage and receive a foreclosure notice, you do not have to panic. A mortgage modification can make the process of foreclosure much simpler. An extension on your payment terms means you will have more time to make back the money you owe on your mortgage. Additionally, the leniency on the amount of time you have to repay your mortgage will allow you to save up to pay back on any other debts you may have.
Concerned About Your Mortgage Payments?
During these difficult times, it is understandable that you may be worried about losing your home. A mortgage modification can really help, especially if currently unemployed. You can reduce the payments you need to make. Also, it can give you more time to make them.
Bartifay Law Offices has been handling mortgage loan modifications for over 20 years. We understand that this is a stressful time for you. Our knowledge of mortgage loan modifications can greatly help you. We strive to make the process as stress-free as possible for our clients. To find out more about mortgage modifications and our services, you can reach us at 412-824-4011. Consultations are Free!