You probably know that if you miss a mortgage payment, your mortgage will enter into default. If your mortgage is in default, then this can lead to foreclosure. But what does mortgage default mean, and how will it affect you?
If your mortgage is in default, then yes, this can lead to foreclosure and losing your home. However, before it gets to that point, there can be both late fees and default fees that can be added on to your account. These two fees combined can add hundreds or even thousands of dollars on to your account, depending on how long it takes before your account is current. Your account being in default will also affect your credit negatively. Additionally, the more you owe on your account in fees, the longer it will take for your account to be current.
If your mortgage is currently in default and you are facing hundreds or even thousands of dollars in fees, or you are facing foreclosure and the possibility of losing your home, a mortgage modification may be able to help you get current on your mortgage. A mortgage modification is a change in your current agreement that modifies one or more terms of your mortgage. For example, all of the late and default fees can be added on to the principal of the loan, so you can become current without paying a large sum of money upfront.
The Mortgage Modification Center
If your mortgage is currently in default, and want to see if a mortgage modification can help you, please reach out to the Mortgage Modification Center at (401) 467-7998. The Mortgage Modification Center, led by Attorney John S. Simonian, has helped numerous families modify their mortgages and stay in their homes throughout Rhode Island. Contact Attorney Simonian for your free initial consultation.