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Need a Loan Modification For Your Huntsville AL Real Estate?

By: Huntsville Real Estate Expert Mike Manosky On June 15, 2012

Loan modifications are changes to your loan agreement.  Ideally, they make your payments more affordable, and you don’t have to default on your loan.  In reality, they require a great deal of paperwork, time, and patience—and then your request may be denied.  If retaining your Huntsville AL real estate is important to you, however, then the effort can indeed be worth it.  Instructions for applying for a modification can be found online.

Types of modifications vary according to your circumstances, and the lender should offer what is best for you. Possible options for the mortgage on your Huntsville AL real estate include refinancing, temporarily skipping payments, forgiving part of the principal, reducing the interest rate, and extending the term of the loan.  To see how changes in the interest rate, term, and principal amount can affect your monthly payment, click here.

Recent announcements regarding mortgage modifications highlight their importance as an option for struggling  owners of Huntsville AL real estate.  Depending on your situation, you may be eligible for help from the federal government’s Home Affordable Unemployment Program.  Under this program, your mortgage payments may be reduced to 31 percent of your income or suspended altogether for 12 months or more.  A similar government undertaking is the Home Affordable Modification Program (HAMP) which has been expanded to include rental property.  Other changes in that program include a befit for the military.  Starting June 1, military homeowners and other families who are displaced by a job-related move may still qualify as owner-occupants, which means that they may still qualify for a HAMP mortgage modification.

Although it may initially appear that a loan modification of some sort is the answer to your financial woes, experts advise that you proceed with caution before making a final decision.  Do your research in terms of cost and duration.  “You should not be paying more than 31 percent of your monthly income on a mortgage,” says Todd Mark, vice president of education at Consumer Credit Counseling Service of Greater Dallas. “If the answer is, ‘I’m still short,’ then that’s a modification somebody shouldn’t get into.”  And, adds Greg McBride, senior financial analyst at Bankrate.com, “Many so-called permanent modifications offer lower payments that begin to step up after five years. What assurance do you have that you’ll be able to afford a higher payment five years from now?”

 

Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special.  In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville.

Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future – Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family’s move.

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