In Kansas, consumers acquire a mortgage loan to buy a home. However, under certain circumstances the home becomes unaffordable. These circumstances equate to job loss or a reduction in pay. They may also include predatory lending practices. The following FAQs answer vital concerns about Debt Help in Topeka KS for these loans.
Why Do Lenders Allow Loan Modifications?
They allow loan modification as a strategy to secure payment for the entire debt. A lender that utilizes the foreclosure process loses money ultimately. Since they are in business to make money, a foreclosure presents greater risks than modifying the loan. At least through the modification, they have a higher chance of securing the full balance.
Does a Loan Modification Require a Certain Credit Score?
No, consumers aren’t required to achieve a certain credit score to acquire a loan modification. It isn’t the same as refinancing the property. It offers an adjustment to make the loan more affordable for the consumer. All outstanding balances are placed at the end of the mortgage. This strategy allows the consumer to become current on their loan payments.
Is Loan Modification Possible During a Bankruptcy?
No, in most cases, a loan modification isn’t possible once the bankruptcy claim is filed. However, an attorney has the option to request a modification prior to submitting the claim to the court. The consumer achieves better interest rates and lower payments if they acquire the modification before bankruptcy.
Can Consumers Acquire Loan Modification for a Second Home?
Loan modifications are used for a primary home not a second property. The process is used for property owners who want to prevent the loss of their home. However, if the consumer proves that they live in the properties for the same duration throughout the year, they may acquire this opportunity. However, neither property can remain vacant for any period longer than sixty days.
What is the Waiting Period for a Loan Modification?
A loan modification requires a waiting period of up to ninety days. The duration allows an attorney to assess the contract more thoroughly. It also allows them to work with the lender and achieves a lower payment.
In Kansas, consumers acquire protection for their primary home through new federal laws. These opportunities prevent lenders from taking advantage of consumers. Any consumer who needs Debt Help in Topeka KS contacts Business Name.
