Can a mortgage modification stop my foreclosure?

Falling behind on your mortgage is never a good thing. The bank moves rather quickly to begin foreclosure proceedings. You are best off trying to find a way to avoid missing a payment and entering foreclosure. It is easier to deal with the issue before it becomes a problem as this shows your willingness to work with your lender to find a solution that will avoid having to take things through the Georgia courts.

One option you can check out is a mortgage loan modification, which according to Debt.org, is a change in the terms and conditions of your loan. Lenders used to offer these rather easily. They are not as easy to get now. However, it is still an option worth looking into.

Your overall goal with modification is to lower your monthly payment so it is affordable based on your current income. This is nice if you have lost income, seen a rise in expenses or had some other change that makes it very hard for you to pay the full payment each month.

There are several ways the lender can modify your loan to help lower the monthly payment. It could refinance your loan to get you a better interest rate, extend the term so you have longer to pay off the mortgage or convert your loan from a variable rate to a fixed rate. In addition, your lender could reduce the amount you owe by forgiving a portion or even put a hold on payments for a temporary period so you do not have monthly payments for a while.

Do note that a modification usually requires serious financial changes and a good relationship with your lender. This information is for education and is not legal advice.

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