Matters related to money are such that you can never be sure of what the future might hold for you. This is one of the reasons why many individuals opt for loan modification. However, there are various myths associated with loan modification. Below are some of the most prevalent misconceptions about loan modification –
Income of the debtor is the only consideration for loan modification – A lot of people are of the view that your income will be considered by the bank. However, it is the total income of the household, including the income of the spouse, as well as, other adults that would be considered by the bank.
Loan modification reduces the principal amount of the loan – This is highly unlikely as lenders will try to only adjust your loan in such a manner that you do not become delinquent. You might get reduced interest rates and deferred payments on some part of the loan but there is no reduction in the principal amount of the loan.
You can qualify for loan modification only if you are behind the payments – This is not true as even if you are making the monthly payments, you can qualify for loan modification as well.
There are various myths associated with matters related to finance. Contact your financial advisors today to get a clearer picture.