The American Dream or the American Dilemma
May 2nd, 2009 categories: Loan Modification
The American Dream has always been to own a home. As homeowners try to find a way to keep their home out of foreclosure the American Dream has turned into the American Dilemma.
Homeowner who wish to keep their homes out of Foreclosure must decide which Loss Mitigation plan will work for them.
- Repayment Plan- allows the homeowner to get current by making regular mortgage payments plus the amount in arrears usually spread out over a period of less than six months.
- Forebearance Plan – is also a payment plan that may reduce or suspend the owner’s paymennts for a period generally no more than 12 months.
- Loan Modification- involves modifying the mortgage, such as by changing the interest rate or terms of the mortgage, capitalizing arrears by adding them to the mortgage, and reducing the principal balance of the mortgage.
