The Network has a documented record of success in matching owners with professionals that utilize all options and strategies. Our mission to do all that can be done to help you accomplish your desired outcome. Stop a sale, defend a foreclosure, find a way to work it out with the bank, short sell or bankruptcy as a last resort. Our team looks at each file as a long term process, and advocates credit repair and rebuilding from day one. You CAN apply for a mortgage with our mortgage partners one day out of foreclosure or short sale. So preemptive work is always in the works if that is the direction you want to go in.



 


If you've lost work because of the coronavirus outbreak and fall behind on loan payments, loan modification could help you avoid default.



 

Loan modifications are most common for secured loans, such as mortgages, but you may also be able to modify other types of loans. That could include personal loans or student loans.
 

A loan modification can relieve some of the financial pressure you feel by lowering your monthly payments and stopping collection activity.
 

But loan modifications are not foolproof. They could increase the cost of your loan and add derogatory remarks to your credit report.
 

That doesn't mean you should avoid a loan modification. But before you jump at the chance, consider all the angles.

 

What Are the Benefits of a Loan Modification?
 

Loan modification can change one or more of the terms of your loan to provide relief if you are financially stressed by the coronavirus pandemic or otherwise. Modifications can include:
 

    Reducing your interest rate
    Changing a variable interest rate to a fixed one
    Extending the term length


The extended loan term compensates the lender for the reduced interest rate or payment. So your 30-year mortgage might become a 40-year one, Broeker says.
 

But in exchange you'll get:
 

A reduced payment. If you can reduce your monthly payment, it could be just the relief you need to pull through tough times.
 

A chance to keep your home. Banks prefer to avoid foreclosure because it's an expensive process. The best outcome for the homeowner and the bank is a loan modification to make continued payments possible.