False Beliefs About Loan Modifications

by: www.BadCREDITResources.com

Are you having trouble catching up with your loan payments?

If yes, why not try speaking with your lender to request for modification of your repayment terms.

There are many false beliefs circulating among consumers regarding loan modification which could be preventing you from making a positive move.

My Credit Rating is Too Low to Qualify for Modification

Speak with your lender to let them know why you are unable to submit your payments on time and that you are doing your best to stay true to your obligations.

It’s better to declare bankruptcy than to seek loan modification

A record of bankruptcy is a very derogatory remark and will remain in your credit report for 7 years. You should do all possible options before considering the possibility of filing for bankruptcy.

Lending companies do not offer loan modification

This belief can’t be farther from the truth. In fact, many lenders will prefer to help a borrower by modifying the loan terms rather than push through with the foreclosure process.

You should only seek loan modification when facing

foreclosure If you are experiencing financial crisis or if you encountered an unfortunate situation such as a sudden loss of job, a decrease in your earnings, sickness, injury, divorce, etc.), you should immediately speak with your lender and request for modification of your loan’s terms.

Loan Modification will damage your credit rating

As you continue to submit your loan payments on time, you can improve your credit score within a few months after modification has been made.

Once a foreclosure notice has been sent, there is no other solution

If you have received a notice of foreclosure from your lending company, seek out to negotiate for a loan modification right away.

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