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Loan Modification Can Stop the Foreclosure of Your Dream House

By July 18, 2022No Comments

Are you facing foreclosure of your dream home? While this isn’t ideal, don’t be concerned: you can take action to avoid this. You might have tried to work with the lender to avoid foreclosure, but now it is time to look at other options! Loan modification can help you get rid of the default notice. In fact, loan modification is one of the most effective ways to save your home from foreclosure. If you are not able to pay off your mortgage due to financial reasons or unforeseen circumstances, talk to legal experts at Vilt Law, P.C who will help you take action against them.

What Is Loan Modification?

Loan modification is a way of lowering the monthly payments on a loan. It is also known as a “loan workout.” Loan modifications can be done by the lender, or they can be negotiated between the borrower and the lender. There are many reasons why someone might want to lower their mortgage payments, such as unemployment or loss of income. When you lose your job, it’s hard to pay off your debt if you don’t have enough money coming in each month. If you fall behind on your mortgage payments and do not catch up quickly enough, then it can lead to foreclosure on your home or condo unit if you owe more than its worth in today’s market.

Why Is Loan Modification Used?

The purpose of a loan modification is to save your home from foreclosure and keep you from losing it. The lender wants to help you avoid foreclosure, so they may agree to make changes to your mortgage terms. If you are struggling financially, this could mean that your monthly payments will be reduced or even eliminated entirely until such time as you can get back on your feet financially and resume making full monthly payments at some point down the road. When you apply for a loan modification, you must prove that you have been unable to make all payments on time due to extenuating circumstances (such as unemployment). This means that if your income has decreased significantly due to economic factors beyond your control (such as lay-offs or loss of overtime hours), then you may qualify for a loan modification based on those factors alone—even if they aren’t permanent ones!

Who Uses Loan Modification?

Borrowers who have fallen behind on their mortgage payments can use a loan modification in order to avoid foreclosure and keep their home. Anyone who owes more on their home than what it’s worth can benefit from a loan modification. That includes homeowners who are unemployed or suffering from medical problems, as well as those who have lost their jobs and need time to find new ones. Lenders may offer a loan modification after reviewing your financial situation and deciding that you are likely able to pay back what you owe if given more time or lower interest rates on your mortgage payments.

Loan Modification Options

In Illinois, the time period for filing a foreclosure is generally 120 days from the date of the mortgage loan default. If you are facing foreclosure, speak with the experienced foreclosure attorney at Vilt Law, P.C to understand your rights and options. Taking a step ahead to prevent foreclosure is a possible option within a span of 30 days from the issue of the summon.

Millions of people are struggling to pay back their mortgage loans and need help in getting their interest rates lowered or their payments reduced. However, there are many options available to homeowners to help them get back on track and this blog will look at different options and solutions to help out. If you’re struggling too to make your monthly mortgage payments, you may be considering a loan modification.

1.   Refinancing

There are several loan modification options available to homeowners in Illinois. The most common option is to refinance your mortgage loan. This involves taking out a new loan with a lower interest rate and a longer repayment term. This can help to lower your monthly payments and make your mortgage more affordable.

2.   Modification of Existing Loans

The second option is to modify your existing mortgage loan. This can involve changing the interest rate, the repayment term, or the amount of the loan. This can help to make your mortgage more affordable and help you to avoid foreclosure.

3.   Shift to Fixed Rate Mortgage

One option you may have is to switch from an adjustable rate mortgage to a fixed rate mortgage. This can help to lower your monthly payments and make them more predictable. You will have an idea of the fixed sum of money you need to pay to the lender each month, making it more effective and efficient for you.

4.   Time Period Extension

Another option is to extend the term of your loan, which will lower your monthly payments. This can be a good option if you don’t want to sell your home or refinance your loan. Keep in mind that extending the term of your loan will increase the total amount you pay over the life of the loan.

If you are in this state, you should contact your lender to discuss your options. You may be able to work out a plan that will help you to keep your home and avoid foreclosure.

Vilt Law P.C. Is at Your Service

Foreclosure is a nightmare that you don’t want to experience. You will lose your dream house and the money invested in it and this can be a devastating blow to your finances. But there is a way out. If you are facing a foreclosure, take action now and talk to the legal experts at Vilt Law, P.C as they can help you with loan modification procedures so that you can avoid foreclosure of your sweet home.

As the economy has been volatile, property prices have fallen and many people have lost their homes. There are many people who are under financial stress because of the low income they get from their jobs, and this unfortunately may make it impossible to fulfill your dream of home ownership. If you are also in such a situation and facing foreclosure on your dream house then there is no need to worry as Vilt Law, P.C can help you with Loan Modification and can stop foreclosure of your house. Contact us today!