A loan modification is a solution for individuals who have missed at least three mortgage payments and wish to continue residing in their residence. If continuing to live in their home is not feasible, a loan modification would not be the most suitable option, unless they intended to lease it to someone else. If their aim is to remain in the home, there are two choices available. One is the complete reinstatement of the loan, which entails catching up on all of the missed payments, in addition to any accrued charges like the initiation of legal proceedings and legal representative’s fees. If a lump sum payment for the entire amount is not possible, then the preferred option is a loan modification. It eliminates the need for a substantial down payment and allows individuals to simply resume making mortgage payments once it has been negotiated.
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