What if I want to keep my house?

 Posted on December 30, 2011 in Foreclosure

There are many who do not want to leave their home even if they are underwater, meaning the amount owed on the mortgage is greater than the value of the home and property. One option for borrowers who really want to keep their house is a loan modification. A loan modification is when the bank alters the terms of a mortgage to reduce amount of the monthly payment. If the bank will give borrowers a better interest rate it may matter less that the house is underwater, especially if the home has unique characteristics or sentimental value. Sometimes borrowers are also able to obtain a reduction in principle through the loan modification process. It is not unusual to obtain 2% interest rate and extended terms of 40 years to help make mortgages more affordable.

Although anyone may apply for a loan modification, it is recommended that you consult a foreclosure defense attorney if a loan modification is a desirable option. Again, beware of “loan modification specialists” or other entities who will submit a modification application for a fee. Some of these are scams.