Getting an approval for a loan is hard and needs a lot of effort, but defaulting it can happen easily and it usually happens when you do not expect it. Least expected happenings are divorce, sickness, loss of job, or sudden death of a family member involved in the payment of the loan. Because of these unfortunate events, many people fail to pay their monthly rates. When people default their loan, the bank has no choice but to get their mortgaged properties in order to recover the amount invested in the loan.
People who fail to pay their loans will experience a decrease in their credit score, resulting to being referred to as someone with bad credit in the records of lenders and banks. People with bad credit have a hard time getting approved for loans because banks are afraid that they wouldn’t be able to pay. Furthermore, they wouldn’t get an approval for a zero down payment loan anymore. Even the banks are affected when people default.
Foreclosed properties are hard to sell, especially during recession when the real estate market is suffering a lack of investors. Many people are not interested to purchase foreclosed homes because they would rather get a new one through a loan or mortgage. This awful situation presents problems on both sides of the contract that is why the government thought of a solution. The loan modification program took effect on February 18, 2009, which aims to reduce the number of foreclosed homes in Vermont.
Because of the new law, defaulting is not the only option anymore. Instead of choosing not to pay their loans and finding another mortgage, the debtors can just ask the bank for a modification on the initial terms of the contract. You must gather as much information as you can before you apply for a loan modification. You can do your own research on the internet, books, or through people with experience to be able to get good deals.
A number of lawyers in Vermont have experience in this field. They would negotiate and use their skills in order to get the best deals for their clients. There may be different types of modifications that can be done on your contract which will be decided by the lender. The length of the mortgage can be changed, wherein you would pay lower rates but for a longer time period. Before signing anything, check the details first and make sure that it suits your capacity and needs. Of course, you wouldn’t want to be back in a similar situation.
Many homes in Vermont were rescued from the foreclosure process since the new law was implemented. The continued cooperation between the lender and the debtor brought about advantages to both parties.
121 Park Ave.
Citizens Bank – Castleton
643 Main Street
Citizens Bank – Colchester VT
73 Prim Road Suite 7
4 Main Street
301 Railroad Street
St. Johnsbury, VT
Mansfield Mortgage Professionals
57 River Road
Essex Junction, VT
School Street and Main Street
Route 7 and 5112 Shelburne Road
South Barre, VT
12 Main Street
Vermont Legal Aid
Attention homeowners: If you think you have been a victim of a scam, or approached by a scammer, report it to the Loan Modification Scam Prevention Network now! Your complaint could provide vital information that will help put loan modification scammers out of business.
Call 1-888-995-HOPE (With your permission, the complaint will automatically be shared with federal, state and local law enforcement)
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