Loan modification may be an option for homeowners who are delinquent in mortgage payments or who are having trouble making payments and face delinquency soon. If you meet the qualifying criteria, your monthly payments may be reduced with lowered interest and possibly an extended term of the loan. Loan modification very rarely reduces the mortgage amount, even if your home is currently worth less than that amount owed.
Most borrowers who qualify for loan modification in Utah are already delinquent in payments, thus presenting a more compelling motivation for the lender to renegotiate the loan terms. One of the factors the lender will look at is the reason for your inability to make the current mortgage payments, such as loss of a job, health issue, etc. Other factors for qualification include the amount owed, the borrower’s equity in the property, and the ability to pay the renegotiated payments.
The lender is going to take the option that best serves its interests. Will they be best served by working out a modified loan or foreclosing on the property? If you have income and the ability to pay, lenders will usually be willing to negotiate. If your ability to pay is questionable, a short sale on the property may be the best choice. If you think you may qualify for a loan modification in Utah, contact us for a free consultation so we can review your situation.