Fuller Jenkins attorneys may be able to help you keep your home more affordable by lowering your payments or adjusting the terms of your mortgage.  The Obama Administration has put into place several programs to help homeowners keep their payments affordable.  These programs rely on modifying the terms of your mortgage loan.  It might mean that your interest rate is lowered, or that the amount you owe is reduced or that your loan term is extended.  Any of these changes alone or in combination will result in your making a smaller monthly payment.

A loan modification is a permanent change to a loan contract agreed to by both the lender and the borrower.  The lender modifies an existing loan in an effort to help the homeowner in a time of documentable hardship.  The ultimate goal is to make the loan affordable for the long term.  Usually loan modifications come in the form of a rate reductions and fixing the interest rate for a certain period of time.  Until recently, loan modifications were only given to borrowers when they were behind on payments had documentable hardships such as loss of employment, serious illness or death in the family.

Times have changed and now borrowers are able to get loan modifications from lenders because rate adjustments have made the loans unaffordable. Starting the loan modification process earlier rather than later helps borrowers obtain the most favorable terms.

If you can afford your home but you just can’t afford the terms of your mortgage then a loan modification may very well be perfect for you.