Extend Your Loan Term
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Extend Your Loan Term
If you are struggling to keep up with your mortgage payments and you are facing foreclosure, a loan modification can help you keep your home with more affordable payments. Restructuring your mortgage with a loan extension will reduce your monthly mortgage payments to give you breathing room and payments you can afford for many years to come.
Understanding Loan Modifications
When you are having trouble making your mortgage payments, you have a few options available to save your home. One option is filing for Chapter 13 bankruptcy to stop foreclosure and even catch up on behind loan payments. Another option is applying for a loan modification. Your lender may be willing to modify or restructure your mortgage if you have a financial hardship such as reduced income, disability, or a medical situation.
A loan modification involves the lender restructuring the loan terms because the borrower cannot afford to repay under the existing terms. Loans may be modified in many ways, including an interest rate reduction, loan term extension, a new loan type, principal forgiveness, or a combination of these options.
What is a Loan Term Extension?
A term extension is one type of payment reduction modification that a lender may offer to help you keep your home and avoid foreclosure. Loan extensions are among the most common loan modifications because they are the least costly to investors.
The longer you have had the loan, the more an extension of the term can lower your payments. If your loan was originally a 30-year mortgage and it’s just a few years old, your payment may not be reduced much. A 15-year loan that is a few years old and extended to a 30-year loan, on the other hand, will dramatically reduce your payments.
While it may be disappointing to extend a loan with 10 years remaining to a 30-50-year-mortgage, it can help you save your home by giving you monthly payments you can afford. If you are reluctant to extend your term, keep in mind you can make additional principal payments whenever you can afford to do so to pay down your balance and reduce the term again. In the meantime, you will enjoy greater leeway with a lower monthly payment if your financial situation does not approve.
Contact a Loan Modification Lawyer in Las Vegas
You can negotiate a loan modification on your own or work with an attorney to protect your interests. An attorney can help you compare your various options, including whether loan modification or Chapter 13 bankruptcy is the best option. Contact Las Vegas BK for a free consultation with an experienced Nevada bankruptcy and loan modification attorney to discuss your case.