Loan modification or mortgage modification is a carried out when a borrower is facing some sort of financial hardship and needs to alter the terms and conditions in the loan conditions in order to avoid foreclosure. In these circumstances, the borrower and lender have to work together to vary the terms and conditions of the loan in such a manner that the mortgage payment become affordable to the borrower.
The loan modification or the workout plan, as it is also called, may be a temporary change or may include some permanent alterations to the mortgage rate, the term and most importantly, the monthly payment amount.
The loan modification program was first rolled out under President Obama’s tenure in 2009. The program is known as the Making Home Affordable Program and consists of two parts: the Home Affordable Modification Program, also known as HAMP and the Home Affordable Refinance Program, usually known as HARP.
As is evident from the names themselves, the Home Affordable Modification Program or HAMP is designed to reduce payouts for struggling homeowners by altering some conditions in the original loan terms. The Home Affordable Refinance Program or HARP is used to refinance loans.
Under the conditions of the HAMP, the lender is required to lower interest rates in such a way that borrowers do not have to pay more than 36 percent of their total income. Additionally the principal owed on the mortgage is also brought down, with the Treasury sharing in some part of the principal payments. This loan modification is generally carried out as trial for a period of three months. If the borrowers are seen to be able to make the payments over the three months, the new terms of the mortgage are applied for a period of three years.
If you are looking for loan modification assistance in Maryland, you will have to contact one of the reputed lawyer forms in the state for advice. There are a number of reputable firms that can help you with the loan modification. Some of the firms even have specialized loan or mortgage modification lawyers who can help you work out an arrangement with your lenders so that you can work out a comfortable working arrangement so that you now pay a monthly interest that you can afford.
What the Maryland loan mortgage lawyers can help you understand is that you have the power to negotiate with your bank. What a lot of people are not aware of is that once you have a lawyer on your side, foreclosing a home may actually be an expensive proposition and that making some arrangements to alter the loan may in fact work out to everyone’s advantage. It is important that you go to a reputed loan modification lawyer so that you can avoid the various loan modification scams that are floating around.
If you are facing foreclosure in Maryland, take the help of Mortgage modification lawyers to save your home.
To know more about Loan Modification assistance Maryland and to gain some insightful knowledge on Virginia foreclosure Help then do visit our website.
This article has been taken from http://www.ideamarketers.com/?articleid=3413401&CFID=207837694&CFTOKEN=51110320
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Contact Name : Camron White
Company Name : United Financial Resources
Contact Phone : 240-654-5000
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Address : 10411 Motor City Dr., Bethesda, MD 20817, USA
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United Financial Resources provides help with foreclosure Help, Bankruptcy, Loan Modification assistance and refinance, stop foreclosure, Home loan modification, Mortgage loan modification in Virginia, Maryland.