Getting a mortgage modification easily

There have been increasing foreclosures this year.It is mainly due to the recession.So if you are thinking that you are also going to end in such a case,then its time to think about a good solution.Basically there are three solutions to stop the foreclosures:

  1. mortgage forbearance
  2. refinance and the
  3. mortgage modification.

If you are thinking about which solution will be well suited to you,read below:

=>Lenders would always be reluctant to give the loan modification easily.But this is obvious – because no lender would want to reduce the interest rate.This is going to cause a loss of cash for them.Thus they would be looking forward to give a forbearance.People who want these solutions will get them without too much trouble.But its a different case with the other two solutions,

Who should get a forbearance?

People who feel that their financial condition is going to return normal in a few weeks or a few months can get this solution.But make sure that you are making the right decision.Unless you are very sure about your situation,do not get the forbearance – opt for other solutions instead.This is because you would be required to pay the mortgage payments again after a few months – there would be no reduction in interest rate.You should also pay the missed payments during the period of forbearance.

Is a refinance and a mortgage modification easy to obtain?

No.They are not given at a faster rate and the approval process is not going to be very easy.Only people who meet all the lender’s requirements will be selected for approval.Others need to look for other solutions.