If refinancing is out of the question, then a loan modification may be the answer. Any changes made to your current mortgage agreement, such as rate, term, or maturity, may help relieve your current hardship. A loan modification may be done when you can not meet the obligations of your current mortgage agreement.
How does the Loan Modification Program work?
Adjustable rate loans may be converted to a fixed rate term.
Interest rates may be reduced.
The loan term may be extended, lowering the monthly mortgage payment.
In most cases, you do not have to bring your loan up to date before a loan modification. The loan modification will take the overdue amount and add this to your unpaid principal balance under the same mortgage loan.
There are many modification programs available through the federal government's Home Affordable Modification Programs and through MainSource Bank.
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