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Sometimes the lender and the borrower have to negotiate outside the terms and conditions of the mortgage. In dire necessity, it is possible to make necessary modifications outside the original terms of the agreed contract between the lender and the borrower.
The Basic Facts Of Mortgage Modification Sometimes the lender and the borrower have to negotiate outside the terms and conditions of the mortgage. In dire necessity, it is possible to make necessary modifications outside the original terms of the agreed contract between the lender and the borrower. In the contract of mortgage, related to the borrower’s property, the lender and the borrower are technically mentioned as the mortgagor and the mortgagee respectively. The process of mortgage modification allows the mortgagee another scope to rethink the future of his mortgaged property. One may wonder how these modifications are done and what the possible types of modifications are. The mortgagor might agree to reduce the default amount, payable to him by the mortgagee, to a certain extent. He/she might negotiate with the mortgagee by reducing the rate of interest. The lender can do away with the floating rate and may opt for a fixed rate considering the borrower’s financial status. The mortgagor can make a further modification in the amount of penalties or late fees, if he/she wants to. These little modifications outside the original contract of mortgage prove beneficial for the borrower or the mortgagee. Mortgage modifications can also be made regarding of the loan term. There is a possibility for the mortgagor to extend the loan term for the benefit of the mortgagee. This type of mortgage modification allows the borrower some extra time to organize his/her finances. In dire financial crisis, an extended time limit gives the borrower another chance to rethink the whole financial tussle in a new light and take the right decision with the newly modified terms and conditions set by the mortgagor. Another type of mortgage modification is possible, if the mortgagor comes to an agreement that a percentage of the household income of the borrower would be considered as the substitution for the monthly payment, payable to the mortgager by the mortgagee. In certain cases, it is possible for both the mortgagor and the mortgagee to come up with a new mortgage forbearance programme after negotiating with each other. During these types of mortgage modifications, it is most important to see whether both the party agrees on each and every term being set outside the original mortgage contract. The modified terms should serve both the ends, though in most cases the mortgage modifications concern the borrower more than the lender. Various types of mortgage modification programmes come to operate depending on whether the borrower is current, or late, or in bankruptcy, or in default, or in foreclosure. Sometimes the lender himself/herself insists on a mortgage modification if he/she finds that little modifications in the terms and conditions might be beneficial for him/her. Mortgage Modification usually has a huge impact on the foreclosure sale of the mortgaged property of the borrower. At times, the mortgage modification programmes are structured by either the federal or the state government. However, any mortgage modification programme has to meet the criteria of both the parties keeping under consideration borrower’s property and his/her history of loan payment. To know more about Bankruptcy Maryland and to gain some insightful knowledge on Virginia foreclosure Help then visit our website. This content has been taken from http://ufrhomeservices.wordpress.com/2012/11/16/the- basic-facts-of-mortgage-modification/
"The Basic Facts Of Mortgage Modification"