Life After A Loan Modification
Wednesday, December 11, 2013
So you’ve received a loan modification, and now what? Research suggests that homeowners would benefit greatly from working with a housing counselor after being granted a loan modification. An independent study by the Urban Institute found that counseled borrowers were 67 percent more likely to be current on their mortgage payments nine months after a modification than non-counseled borrowers. Part of a borrower’s success in keeping up with their monthly payments after a modification hinges on their ability to manage all of their expenses, including non-mortgage related finances. The housing counselors at the HOPE Hotline have helped more than 90,000 homeowners assess their entire financial picture after securing a modification, and develop a realistic budget and personalized debt reduction plan for all of their obligations. This type of assistance is called Post Modification Counseling and consists of a homeowner engaging with a housing coach over a period of 6 months to ensure their entire financial situation has been addressed. Our unbiased guidance is of the utmost importance in helping homeowners remain current on their modified loans, and better prepares borrowers for long-term financial success. So, what should you do after receiving a loan modification? Manage all of your finances. If you think you will struggle with your loan modification, call our HOPE Hotline at 888-995-HOPE (4673) for free guidance from our HUD-approved, professional housing counselors.