What is a Modification of Mortgage With My Mortgage Lender?

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If you are experiencing difficulty making your mortgage payments due to financial hardship resulting in long-term inability to pay your mortgage, there are options available to you that you need to act on immediately in order to avoid foreclosure.

A modification of your mortgage is one option that may be available to you depending on your situation and how many mortgage payments you have missed. What is a Modification of a Mortgage? A Modification to your Mortgage is a change made to the terms of your existing mortgage loan by your lender as a result of your long-term inability to repay your mortgage loan debt.

A Modification of a Mortgage is generally used when a mortgage borrower is not in a position to adhere to the original terms agreed with their mortgage lender, however, a Modification of Mortgage can also be used to pay off your mortgage in lesser time by making higher payments.

If you are struggling and have fallen behind on your monthly mortgage payments and cannot keep up with your monthly payments, foreclosure will be inevitable. Fortunately your lender may provide you with the option of a modifications of mortgage to prevent foreclosure through a settlement procedure in the case of a potential foreclosure.

Not everyone will qualify for a modification of mortgage. It’s not so easy to convince the bank that your mortgage agreement should be modified from it’s original terms. Additionally, you will have to provide proof that you will be able to make all future mortgage payments on the newly modified mortgage loan before your lender will attempt to help you. 

You are much more likely to be approved for a modification of mortgage if you work with an experienced modification of mortgage attorney or modification of mortgage advisor who can present your case professionally to your lender. Our Company, GVC Property Solutions, has experienced attorneys and Real Estate Consultants who can help you with a modification of mortgage. 

If you are in default with your mortgage payments, some of the common modifications that can be made to your mortgage agreement are:

  • The monthly payments and the loan period can be adjusted to reflect changes in your financial situation
  • The interest can be modified from an adjustable rate to a fixed rate
  • Penalties can be waived

In some cases, your mortgage lender may allow you to suspend your payments for a period of time. Such a measure is aimed at giving you time to resolve your financial difficulties and the payments are resumed at a later time at an agreed upon date. Once you start paying your lender again, you may ask for an extension of the re-payment period or make larger re-payments so that the mortgage can be brought back on schedule.

What is the Purpose of Modification of Mortgage? The purpose is to bring your monthly mortgage payment down to a level that you can pay consistently, help you avoid foreclosure and help you protect your credit from being further damaged from late mortgage payments.

It is possible to work with your lender and arrange for a modification of mortgage on your own, however, it may be in your best interest to contact a loan modification attorney or financial counselor who can help protect your interests and obtain the best possible outcome in regards to the changes that you should seek in your current mortgage agreement terms with your lender.

Most lenders would rather negotiate a modification of mortgage with you than foreclosing on the property, however, not all lenders will immediately agree to a mortgage loan modification and you will have to convince your lender through credible evidence that you will be able to adhere to the modified terms.

Our real estate investment company GVCPS, can help you with counseling in regards to your modification of mortgage. Our goal is to provide you with valuable information if you are trying to obtain a mortgage modification or if you need to stop foreclosure. If you are eligible for a mortgage modification, the modification will make it easier for you to manage your mortgage payments and pay your payments on time to avoid foreclosure. We can  help you with a mortgage loan modification and we can verify if there can be any changes made with your lender in relation to the original terms of your mortgage loan.

Your lender will be the one who ultimately determines what assistance, if any, to offer you through mortgage modification. In most cases, a lender will attempt to modify your mortgage to lower your interest rate, sometimes all the way to 0%, in order to bring your payment in line with what you can afford. Lenders have tests for determining what you can afford in terms of house payments. In general, your mortgage payment will not exceed 36% of your gross income in order to be considered affordable. If this isn’t enough to bring your payments in line with your income or the property is worth significantly less that the balance of the loan, the lender, through modification of mortgage, may forgive a portion of your principle balance. A lender can also extend the term of your loan to decrease your monthly payment or waive any accumulated fees.

The process of Modifying a Mortgage is somewhat lengthy. In most cases, a modification of mortgage will take between two and three months. This is partly due to the fact that many people are attempting to work through the same process as you. While you are going through the modification of mortgage process, you will not be expected to make monthly mortgage payments until it is complete. This will give you some additional time to get your financial affairs in order before having to make mortgage payments again.

Mortgage Problems and Solutions. We Take Over Mortgage Payments in Vancouver BC. Contact Us

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If you find yourself facing financial difficulties, as a result of job loss, family income reduction, or other reasons, it can be an overwhelming experience leaving you feeling uncomfortable and unsure of what to do.

“I can’t pay my Mortgage, What Should I Do?” If you are struggling to pay your mortgage payments each month or if you can’t pay your mortgage payments at all, there are steps that you can take that may help you to avoid foreclosure and get your current financial situation back on track.

Our Company, GVC Property Solutions Inc., is a well established Real Estate Investment Company that provides professional solutions to people who are experiencing difficulty making their mortgage payments each month and want to avoid foreclosure, people who are experiencing difficulty selling their property through traditional methods and people who require relief from their property situation for any reason regardless of your situation and condition of the property in any location of Vancouver, BC, the Lower Mainland, BC, and the Fraser Valley, BC.

If you are facing mortgage problems, contact us for Free Consultation to discuss your mortgage problems and solutions that are available to you in your individual situation. 

Listed below are steps that you can take to help clarify your financial situation before you decide what steps to take to find an alternate solution to foreclosure.

Clarify Your Financial Picture: Mortgage Problem and Solution

Prepare a detailed list of your financial obligations including any credit cards, loans, household bills with the amounts owing and their due dates. Be sure to include information about your current income, savings accounts, investments, and any other assets.

Create A Budget: Mortgage Problem and Solution

Creating a budget is a good opportunity to get your finances back in order. A budget needs to be realistic and based on your current circumstances. After you have prepared your budget outline, you will likely see areas where you can cut back with your spending. Start with expenses that are easy to reduce and try cutting them back by half.

Track Your Spending: Mortgage Problem and Solution

If you can’t see where to reduce your spending, try tracking your expenses for a few weeks to get a better handle on your spending habits. Track expenses that you’re not sure about. For example, if you shop at all-inclusive grocery stores, if you buy groceries and new patio furniture all at the grocery store, track what you spend in that store. You might be surprised how much you buy in addition to your groceries. In addition, track how much you spend on buying coffee and food on the go. Every dollar you spend counts. 

Stay Informed: Mortgage Problem and Solution

The more information you have at your disposal on managing your finances, the easier it will be to make the right decisions about solving your mortgage payment difficulties and getting the help you need to get your mortgage payments back on track.

We Can Help. We Specialize in Mortgage Problems and Solutions     

Our Company has been providing professional solutions for 25 years to people who are experiencing difficulty paying their mortgage payments each month, people who are experiencing difficulty selling their property through traditional methods and people who require relief from their property situation for any reason. 

We can buy your house, townhome or condo if you require an immediate or flexible sale or if you need relief in regards to your mortgage payments or property situation in general. We can usually offer you the market value of your property regardless of your situation and regardless of the age or condition of the property. We are not realtors and we do not charge any real estate commissions when we buy your house, townhome or condo.

We understand the stress and hassles that you face when you are in a difficult real estate situation. We don’t know how many months you’ve been trying to sell or have been looking for a solution to your situation. Don’t procrastinate. Don’t let your property situation become a liability or a burden. Contact us to discuss your situation in more detail and what solutions we can provide. We have handled hundreds of purchase situations and have helped many people facilitate a non-stressful real estate transaction.