Bad News: Loan Modifications Can INCREASE Your Mortgage Payment!

“Loan Modification.”

To a struggling homeowner, those words are music to their ears.

…Or are they really? Sure, a loan modification sounds like a dream come true. Homeowners who are failing (or barely able) to make their monthly mortgage payments often assume that a loan modification may be the answer to their prayers – if only they can qualify.

Unfortunately, the well-covered-up truth is that, in many circumstances, loan modifications can actually INCREASE your monthly mortgage payments – not decrease them.

If you’re saying, “You can’t be serious!” you are definitely not alone. However, the sad reality is that loan modifications are simply not the answer for a lot of homeowners. Depending on your individual financial situation, your monthly payments may actually increase, even if your interest rate technically is going down.

How are lenders getting away with this when Americans are working so hard to keep their homes and the government is trying to put the pieces back together after the mortgage crisis?

As always, it all comes down to credit. When considering a loan modification, your lender will look at things like your income and any changes that have occurred since you first got the loan, as well as whether foreclosure proceedings have begun, whether you have other bad debt, and much more.

It may seem crazy to someone tossing and turning about money that a loan modification could actually make things harder, but it’s true.

That’s why it’s absolutely critical that you do your due diligence before going down a loan modification road. Speak to your financial adviser or lender, or give Leigh Brown a call.

Leigh Brown is your Charlotte and Concord real estate expert who has a proven track record of success in every economic scenario. She has built her business on her reputation for going to bat for her clients and fighting tooth and nail to make sure her clients are protected.

In other words, if you’re a homeowner in distress, pick up the phone right now and call Leigh Brown today to discuss your options. You are not alone!