loan mart

loan mart

A loan modification is not the same thing as a refinance. Getting a refinance is just like re-buying your home. You are refinancing your current loan into a completely new one. This requires a new home appraisal and is contingent upon your current level of equity. A loan modification takes one or more aspects of your current loan and changes it so that you are able to make the payments. It is your same loan, not a new one.

So how do you know if you should be researching loan modification? Well, if you are currently struggling to keep up with your mortgage payments and don't think you will qualify for a refinance then you are probably the ideal candidate. The keep thing banks will look at is the details of your current hardship and your potential ability to make your new payments. While it is in the best interest of the bank to keep you in your home, they also need to receive payment in order to stay afloat. It is a fine balance.