The pros and cons of loan modifications

There are several advantages to a loan modification that out weight its disadvantages. In a declining economy and real estate market, a loan modification has gained popularity and is the single most essential tool for stopping a foreclosure.

The stimulus package being advertised by the Obama administration is heavily influencing the mortgage industry in regulating loan modifications for distressed homeowners. Loan modifications are handled by service companies and do not require a new appraisal or closing costs.

Among the several reasons to apply for a loan modification, the main reason borrowers (homeowners) request for one is to generally avoid … Continue Reading

Overview: Loan Modification vs Refinance

There are several differences between a mortgage loan modification vs a mortgage home loan. These are used in different situations and are not synonymous with each other, although they both provide homeowners with financial relief. Refinance and Loan modification serve different sets of homeowners: Homeowners wanting monetary leverage and homeowners needing to save their home respectively.

Reasons for loan modifications and refinance

In the past year, mortgage loan modifications has become a large part of the real estate industry and often a term referenced with home foreclosures. So what is the big … Continue Reading