Homeowners across the country face the threat of foreclosure on their homes, whether they’ve owned their home for decades or bought it in the last two years. In this economic climate, and with the job market virtually in shambles, desperate homeowners everywhere who are pressured to make their mortgage payments are looking for viable alternatives to being essentially homeless. Here in North Carolina, loan modifications are one of the ways people try to save their homes.
Why are so many consumers looking for loan modifications? Simply put, they are seeking to renegotiate the terms of your mortgage to make it more affordable in your current financial circumstances. The primary breadwinners in many North Carolina families suddenly find themselves unemployed or employed at a lower income level than had previously supported their monthly mortgage payment, among other expenses. As a result, not only are breadwinners struggling to make their mortgage payments, but also to meet basic needs for themselves and their children. Suddenly, the things we’ve taken for granted for so long — food, clothing, daycare/school expenses, and keeping the lights on — are top of mind.
North Carolina homeowners who need help easing the burden of a mortgage so they can start living within their means again can seek help from loan modification programs. This is a classic case where new circumstances require a new approach. These programs, once the borrower is approved, will reduce their mortgage payments to no more than 31% of the borrower’s monthly income. Keep in mind, however, that loan modification criteria vary widely among individual lenders, which can make it difficult for consumers to know where to turn once they start having trouble paying their mortgages. Some servicers prefer that homeowners contact them before they fall behind, while others are willing to consider a modification only after they’ve missed one or more payments.
Getting a loan modification requires a lot of patience and tenacity. There is such a high volume of requests that the decision-making process is often slow at best. It can take a long time for a modification to be approved because investors must determine whether modifying the terms of a mortgage will result in less loss than refusing to make concessions to the owner or simply letting the property go into foreclosure. Depending on your personal situation, for example if you have multiple mortgages on your home, matters may be further delayed due to complications. In such cases, North Carolina homeowners would do well to contact an attorney who specializes in North Carolina consumer law so they can get their questions answered, outline their options, and receive guidance in navigating long and complicated process.
Despite the headaches that can accompany any type of debt relief program, North Carolina homeowners are gradually regaining the peace of mind that there are ways by which they can save their homes and get back on their feet. for themselves. There is help… and there is hope.