Saving Your KY Home From the Chopping Block. Can a Mortgage Modification Help?


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It has been since around 2009 that there was positive news about the Kentucky real estate market, when it was reported that the number of foreclosures went down by 20%. However, since then there has been a gradual rise in the number of foreclosures with lenders sustaining huge losses, due to the inability of mortgagors to repay their loans.  The struggling homeowners in Kentucky, as in other states, are in need of information concerning programs they might find helpful in order to avoid losing their homes through foreclosure. Like most states, the unemployment rate in Kentucky is rising and this could be the year when the state will experience the largest number of foreclosures. What is the way out for the many cash-strapped homeowners wishing to retain their dream homes? Read on for some answers.

Preventing the worst case scenario in Kentucky

Although the present forecast in the state of Kentucky is pretty negative you need not lose hope, as there are thousands of homeowners who are going through the same situation. Even though you’ve missed one or more mortgage payments, you still have fairly good chance to avoid the risk of losing your home to a foreclosure. One of the most popular ways of avoiding a foreclosure is through a loan modification. However, this is not a foreclosure alternative that is meant for everyone.

Loan modification as a viable alternative to a Kentucky foreclosure

A loan modification is an agreement between you and your lender where the lender examines your present financial condition and relaxes the terms and conditions of your current mortgage so you are able to make the modified monthly payment and thereby reduce the likelihood of foreclosure. But does that mean that anyone and everyone who is struggling with their mortgage payment can get help through a loan modification? Certainly not! This is a special program that is designed to assist those homeowners who are going through severe financial hardship and are eager to get back on track with their mortgage loan.

A hardship might be unexpected financial circumstances, unavoidable personal conditions, a job loss, divorce, prolonged illness or a major surgery. If you have enough evidence in support of any of the aforementioned circumstances, you may qualify for a loan modification. Nevertheless you will also have to resolve to the lender about making timely payments and not missing any further payments after the loan is modified for you. If you continue making late payments after getting your home loan modified, this will hurt your credit score. Through a loan modification, the mortgage lender will restructure the loan by changing the term and/or interest rate and thereby lower the monthly payment.

Points to consider if you’re hiring a Kentucky loan modification lawyer

In case, you’re not confident about your negotiation skills and you’ve hired a lawyer, here are some important points you need to consider.

  • ·        When the bank agrees to modify your home loan, the result will be a change in many of the underlying features of the loan and the end result will be a lower and affordable mortgage payment.
  • ·        If you can’t qualify for a refinance mortgage loan, you automatically become a good candidate for a mortgage.
  • ·        Don’t believe in any promises from the Kentucky loan modification attorneys, as no one can guarantee the amount of dollars that you may save through modification.

So, if you’re struggling to make monthly mortgage payments in Kentucky and you’re spending sleepless nights wondering about losing your home to foreclosure, you may be able to negotiate with your lender about a prospective loan modification. Get your loan modified, make timely payments and keep living in your current home with less stress.



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