Types of Loan Modification

If you have difficulty keeping up with loan payments then a loan modification may be the answer.  Many lenders agree that loan modification is one of the best ways to help borrowers avoid defaulting on their loans. Daniel Keil can help determine if loan modification is right for you.  Depending on your lender, you may be eligible for a—

• Miami Citi Financial loan modification
• Miami Countrywide loan modification
• Miami EMC loan modification
• Miami FHA loan modification
• Miami Chase loan modification

You may even be eligble for a Miami construction loan modification

A loan modification works by adjusting the terms of the loan agreement to better suit the borrower’s situation. Two of the main options include extending the term of the loan and lowering the interest rate.  However, many different types of loan modification programs exist.  Some of these include:

• Interest Rate Reduction:  A reduced rate loan modification lowers the interest rate according to the individual needs and circumstances of the borrower. 

• Extension of the Term:  A term extension loan modification increases the number of years the borrower has to payoff the loan.  If the loan was originally for 10 years, a term extension to 30 years would reduce monthly payments significantly.

• Interest Rate Freeze:  With an adjustable-rate mortgage a loan modification can freeze the current interest rate to avoid approaching rate increases.

• Balance Reduction:  Reduces the total amount, or balance, of the loan.

• Step Interest Rate:  A step interest rate modification temporarily lowers the interest rate then increases it each year thereafter until it reaches an agreed upon fixed rate.  This type of loan modification is good for people experiencing short-term financial hardship.

• Capitalization:  This gives the borrower a fresh start by making him current on his loan.  All past due payments and delinquent charges are added to the balance of the loan and a new monthly payment is calculated.  Because the new monthly payment will be slightly higher, this option is good for those who went through a difficult period but are now back on track financially.

With so many types of loan modification available it is important to speak with an experienced attorney who can assess your situation.  The Law Office of Daniel M. Keil, P.A. will work hard to find the best solution for you.  Call today for a free consultation.