What is a loan modification agreement what is its

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10. What is a loan modification agreement ? What is its purpose?
Chapter 22 - The Residential Mortgage Market Answer: Loan Modifications Agreements are designed to assist troubled borrowers avoid foreclosure, remain in a home, and save the lender the costs of foreclosure and repossession. They may also result in additional fee income for the mortgage lender. Loan modifications usually add any missed loan payments to the remaining balance the borrower still owes on a home, and a new payment schedule is worked out. Many such agreements lower the required monthly mortgage payment somewhat by stretching out the maturity of the loan. Modification agreements have noticeably slowed foreclosures recently. 11. What are the advantages and disadvantages of home refinancings? Under what circumstances should a homeowner consider refinancing a home mortgage?

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