Saving Your Home
About 70 percent of homeowners in America have a mortgage. That’s why when the financial crisis hit us it hit us big. President Obama plan to rescue the housing market is tailored on loan modifications. What the plan calls for is to lower the monthly mortgage payments to about 31 percent of the gross salary of homeowners. This we all hope will be enough to save our homes.
Loan modifications are the restructuring of loans to better terms. This can be in the form of lower interest, longer terms, a different loan or a combination of the three. Loan modification will benefit both borrower and lender. For the borrower it’s obvious. For the lender the cost of loan modification is usually cheaper that having a borrower default. It’s a win-win solution.