A loan modification that reduces your mortgage payments by lowering your rate, reducing your entire principal or changing your loan terms may be the best way to stop Alabama home foreclosure.
If you need to stop an Alabama home foreclosure, loan modification may be your best option. A loan modification reduces your mortgage payments by lowering your rate, reducing your entire principal or changing your loan terms.
You may qualify for a loan modification for many reasons. Job loss, divorce, underemployment, illness or disability can all make it difficult to pay your mortgage payments. You may prevent foreclosure with an Alabama home loan modification directly from your lender or through the Making Home Affordable (MHA) Program.
The Home Affordable Modification Program (HAMP) is one part of MHA. You must be employed and able to afford a reduced mortgage payment to qualify. HAMP was recently expanded to include you even if you did not qualify previously. You may apply if:
- Your need a modification on a property that you rent to someone else
- Your debt-to-income ration is over 31 percent
- You had a HAMP trial plan previously but defaulted on the payments
- You had a HAMP permanent modification previously but defaulted on payments
Need to sell your home? Find a local real estate agent here.
The goal of this loan modification program is to reduce your payment to an affordable amount. A MHA housing counselor may suggest other foreclosure alternatives available through this federal program if a modification is not the best solution for you.
It is important to talk to your lender about internal programs for an Alabama home loan modification as well because it may have a quicker alternative. Because lenders have many foreclosed homes already, it is in their best interest to help you avoid foreclosure.
If your lender or a MHA housing counselor suggests you try to sell your home in pre-foreclosure because you do not qualify for a modification or you cannot afford reduced payments, find a real estate agent who specializes in these sales. Reply! can connect you with agents in your area who can help.