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What Happens When Your Mortgage Modification Resets? | Fridays with Fred
As of September, many of those loan modifications are due to reset and it's up to homeowners to contact their lenders immediately
What Happens When Your Loan Mod Resets?
Between 2009 and 2012 millions of homeowners in California and across the United States took advantage of loan modifications for their home loans through programs like HARP & HAMP.
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The average homeowner modified their home loan and was able to arrange a low mortgage interest rate for between 3 and 5 years. As of September 2014 though, many of those loan modifications are due to reset and it’s up to homeowners to contact their lenders immediately and consider doing the following.
Renegotiate With Your Lender
If your mortgage loan modification is due to reset within the next 3 months it’s possible to renegotiate your mortgage loan now to a low mortgage interest rate so you can keep your mortgage payment low once your loan modification expires.
Find out what's happening in Mission Viejofor free with the latest updates from Patch.
Seek Out Principal Reduction
Your lender may offer you principal reduction as a means to lower your monthly mortgage payment but in order to qualify you must be able to commit to paying your mortgage payments on time including the remaining principal and loan balance which is left on your home.
Sell Your Home
Over the last couple of years you may have gained some equity in your home and now may be a good time for you to sell your home while mortgage interest rates remain low and demand for homes is still high across Orange County.
Consider Short Sale
Let’s say you’ve considered each of the options in this article and none of them are doable for you right now, that’s okay. The last solution we have for you is to consider short selling your home.
Why Short Sale?
A short sale means you will be able to get out from under your underwater mortgage, be relieved of that stress, and your lender will be able to turnaround your home quicker rather than having your home go through foreclosure and sit on the market for months or even one year before it sells. With a Short Sale, you may even receive some tax relief as well.
Contact Us
To learn more about which option is the best for you or to view the latest homes for sale across Orange County contact Fred Sed & Associates today by calling us at (949) 272-0125.
