We Buy Louisiana HousesThere is a solution to foreclosure that might be acceptable to both borrower and lender. Loan modifications reorder an original loan contract to ease the monthly payments, allowing the borrower to continue to pay off the mortgage.

Sell Your House Fast – Baton Rouge LA: A modified loan provides a way to keep your mortgage and reconstruct it to reflect a lower monthly mortgage payment that will be easier for you to keep up with. If you are having a tough time paying your monthly payments, but do have a steady income and wish to stay in your home, you can try to modify your loan.

The lender, when a borrower fails to make 3 payments in a row, will notify the borrower that the foreclosure will begin soon if the homeowner cannot pay the required amount to catch up. The amount that must be paid is beyond the 3 months mortgage payments they are behind. 

The lenders are not always going to offer this to their customers. You may need to approach them with your idea that if your loan was rearranged you would be able to continue to pay it. The advantage to the lender is that there is a better probability that you will finish paying off the loan instead of defaulting on it. When a customer defaults on a loan, there is a very extensive process that the lender must go through to regain custody of the house in question.

The lender, when a borrower fails to make 3 payments in a row, will notify the borrower that the foreclosure will begin soon if the homeowner cannot pay the required amount to catch up. The amount that must be paid is beyond the 3 months mortgage payments they are behind. There are also fees that are due in addition, making it very hard for someone who is already struggling to keep up.

If the borrower is not able to pay the amount in arrears, the foreclosure will begin. The lender must take the borrower to court in many states. There will then be a filing in court as a matter of public record. There will be an auction or a sale conducted by the lender to sell the house. They often don’t get close to what is owed on the mortgage, so this is where they might consider an alternative like modification instead.

  • You may need to approach them with your idea that if your loan was rearranged you would be able to continue to pay it.
  • They often don’t get close to what is owed on the mortgage, so this is where they might consider an alternative like modification instead.
  • Get your paperwork in order, take in your income and expenses statements and anything else that might be relevant.

Where a solution can be found that is acceptable to both lender and borrower, a foreclosure can be avoided. This is not an option with many lenders, but it doesn’t hurt to ask. Get your paperwork in order, take in your income and expenses statements and anything else that might be relevant. Take the information and a letter of request to your banker to see if they are interested. Do this early on, before you are behind in payments. It might be a solution that they are willing to accept.

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