Rhode Island is a great state, so it is no wonder that many homeowners choose to purchase a home in Rhode Island. However, sometimes a homeowner has difficulty making the mortgage payments on time.
There are many reasons why a homeowner could be having trouble paying the mortgage. Their income may have decreased due to unemployment, underemployment, or missed work due to illness of themselves or someone else in their family. The household expenses may have increased, such as through the birth of a child or addition of another dependent. There could have been a death of one of the primary income earners. The income of the household may have changed due to divorce. Whatever the case may be, the homeowner could be struggling to make the mortgage payment that they were able to make before.
If this happens, the homeowner may miss one or more payments. The mortgage may enter into default, and after a certain amount of time, the mortgage company may begin to initiate foreclosure proceedings. At the end of the foreclosure, the homeowners must leave, and the mortgage company may sell or auction off the house. Obviously, being forced to leave your home is extremely disrupting to the entire family, and can cause a lot of stress during an already stressful time.
A mortgage modification is a great way to avoid foreclosure. During a mortgage modification, the current mortgage company will typically agree to change some terms of the original mortgage, so that the monthly payments are more affordable. For example, the type of mortgage can be changed, the interest rate could be changed, or the amount of time that the loan has to be paid back in can change. Additionally, the company can add the current outstanding amounts to the principal amount of the loan, allowing the homeowners to become current on their mortgage by paying the arrearage over time. Whichever way the mortgage company agrees to modify the loan, the end result is that the homeowners may be able to avoid foreclosure and stay in their home.
The Mortgage Modification Center
If you are struggling to make your mortgage payments, or you are currently behind, a mortgage modification may help. The highly-trained staff at the Mortgage Modification Center may be reached at (401) 467-7998 for a free consultation and evaluation of your options.
Attorney John S. Simonian is a Rhode Island and Massachusetts lawyer who specializes in bankruptcy law and mortgage modifications. Click here to learn more about Attorney Simonian.