Avoiding Foreclosure With A Loan Modification
A loan modification is the best way to stay in your house, not to sell it and avoid foreclosure. This involves a lender modifying your payments so that you can afford to keep making them. The Loan modification could include lowering the interest rate so that the payment is lower, or even adjusting the principle balance on the loan.
For more legal information about avoiding foreclosure with a loan modification go to Law Summary of Foreclosure in Texas or to Texas Legislation Online.
Advantages and Disadvantages
The advantage of a loan modification is that it can make an un-affordable loan affordable.
The disadvantage of a loan modification is that, based on our observations, most of the time the homeowner pursues these, they are ultimately not approved, or almost certainly not approved in a way in which it is helpful enough for the homeowner to stay in the home. In other words, most of the time it does not work and the result is foreclosure.
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