A mortgage extension allows you to stay in your home and have a lower payment until you can get back on your feet.
Times are hard, and some families may be struggling to keep their homes.
What is a Mortgage Extension?
When homeowners are having difficulty making their mortgage payments, a mortgage extension can help. It allows the monthly mortgage payment to decrease so the individuals can make the payments easier.
How Do I Get One?
Generally, those individuals or families who are around 90 days past due for their payments can be considered for a loan modification. If you can demonstrate that you did not become delinquent on payments deliberately you may be considered. If you lost your job, or have high medical debt, this is termed good reason for a loan modification approval if you can show documentation.
Are There Any Downsides?
The downside to an extension will show up on the back end. Your current monthly mortgage payments will be approved to be lowered, but this will also mean you still owe the original amount on the loan. The difference will be tacked on to the end of your loan where you will eventually pay it off. It will cost you more money and interest in the long run, but will save you stress and inability to pay by having a lower monthly amount due each month that’s more comfortable.
What Are The Benefits of an Extension?
A mortgage extension is a useful way to become up to date on payments. It also allows you to eliminate any future late fees and with it the risk of losing your home due to inability to pay. You can have an adjusted monthly payment that you don’t stress about trying to make. Your loan becomes current and you are set on an easier path to keeping your home.
Are There Other Options If I’m Denied an Extension?
If for some reason or another you are not approved for a mortgage extension, you can try your luck in refinancing. Refinancing also allows you to adjust your loan for a lower house payment. You do not need to be in financial hardship to refinance.This process is more dependent on if your house has lost any value or not, but is still another helpful option if you are struggling to make your mortgage payment month to month.
Contact Bob Buys Houses
We hope you have enjoyed our information on mortgage extensions and that it’s useful. At Bob Buys Houses, we care about your family and your home, no matter what step of the process you are in. We buy houses in any condition in Salt Lake City, Utah, and the surrounding area. There are no commissions, fees, or obligations whatsoever. You can sell your house, and have cash in your hands in as little as 7 days. Give us a call at (801)-214-0092 for a free consultation. Contact us today!