While the housing crisis is now behind us, the reality is that foreclosure is still very common. Indeed looking down any street in this country, it is likely that you will come across quite a number of foreclosure signs. The reality is that people still struggle to pay their mortgages, particularly if they took these out before the crisis happened. It is no secret that financial institutions are the big role to play in the crisis itself. The result of this is that they are now taking responsibility and looking for ways to mitigate their own losses while protecting their customers at the same time. One way in which they achieve this is by agreeing to home loan modifications, something that’s the Golden State Financial Group specializes in.
Golden State Financial Group on Home Loan Modifications
Home loan modification can be provided to a bank customer who is finding it difficult to make their monthly mortgage payments. Once they have started to fall behind to the point of imminent foreclosure, or once they know that they will get to that point, they can renegotiate the terms of their mortgage agreement with their lender. Depending on the circumstances, it is possible for the loan to be changed so that foreclosure can be avoided. This can be done, for instance, by changing the adjustable interest rate or fixed-rate, by lowering the interest rate, by extending the period of the loan, and so on.
There are numerous benefits to agreeing to home loan modification for the lender. One of the biggest ones is that it means they do not have to start foreclosure proceedings, which are expensive for everybody involved. Additionally, it means that the bank does not lose any income overall. Also, the consumer can remain in their home, they can retain their loan, and your credit rating is not affected. It is a true win-win solution for everybody involved.
That being said, there are situations in which surrendering a home in foreclosure or attempting to sell it is actually the better option. This is why it is so important that anyone who finds themselves in financial difficulties and struggles to repay their mortgage should get in touch with a professional adviser like the Golden State Financial Group to review their available options.Not all the modifications are created equally. In fact, all of them are different from each other as they are designed to fit around your personal situation. Hence, unless you have a certain degree of financial know how, you need to speak to a professional. After all, your house and home is at stake.
Some people avoid applying for a home loan modification because they feel they are begging their lender and because they are ashamed of having ended up in this situation. However, the reality is also that it is likely to be not their fault that they are in the situation in the first place. Perhaps their lender agreed to give them an unaffordable loan in the first place. Perhaps they have had some sort of emergency that has placed them in financial hardship. The most important thing is to set your pride aside therefore and understand that a home loan modification benefits both you and the lender and is therefore usually worth applying for.
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