For many homeowners today, the thought of foreclosure is one of the scariest possibilities. Unfortunately, for many other homeowners that thought is already becoming a reality. A recent report from RealtyTrac reveals that foreclosures accounted for 26% of all U.S. home sales during the first quarter of 2012. This report – just released last week – is shocking for many.
Many homeowners are asking, how can I avoid being next? For banks, homeowners, and economists alike, this is the million-dollar question. While the RealtyTrac doesn’t shock anyone already in the know, it is an alarming wake up call for many homeowners who haven’t given much thought to the many foreclosures happening around the country.
Considering loan modification can be one of the best possible ways to eliminate your risk of foreclosure. With a simple loan modification you can renegotiate the terms of your loan with your mortgage provider. This option is different from refinancing, and can be the best alternative for many homeowners. You can get a better interest rate, lengthen the term of the loan, or reduce or eliminate various late penalties associated with your loan.
You may wish to talk about loan modification with your mortgage provider so that you don’t have to be in RealtyTrac’s next quarterly report! Many mortgage providers want to keep your mortgage. Negotiating can be a far better alternative to foreclosing for the bank, too. You aren’t the only one who wants to keep your home! It’s also easier and more profitable to the bank if you keep your home!