Loan Modification

Loan Modification Options

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Loan Modification Options - all options are based on financials and some of the options can be combines

1.      Straight Capitalization – this modification option takes the past due balance including delinquent interest and unpaid principal balance, attorney fees and additional costs are added together creating a modified balance which is re-amortized without changing the interest rate nor the term (amount of payments left on the loan). Monthly mortgage payments will increase and the plan is implemented based on finances and homeowner ability to pay.

2.      Term Extension – modification allows for the term (length) of the mortgage to be extended.  This type of modification will generally reduce the mortgage payment. The unpaid principal balance, delinquent interest, attorney fees and other fees are combined and re-amortized over the extended term.  The term can not extend longer than the mortgage was originally written.  A 30 year mortgage will not normally extended more than 30 years.