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Many mortgage lenders are offering a temporary forbearance, which enables borrowers to get a break from making their home loan payments for an agreed-upon period of time. This provides them an opportunity to get back on their feet financially. If the borrowers are able to make the reduced payment during the forbearance, then most lenders will agree to modify your home loan terms permanently. Restructuring you mortgage offers increased cash flow because your mortgage payment will be reduced. It may or may not have a negative impact on your credit report, depending upon what is negotiated by your attorney.
In most cases a mortgage note modification occurs in the later stages after 60 or 90 day late payments. And, a lot of people say that loan modification is a good last ditch option prior to foreclosure. But, you don't necessarily have to be late on your mortgage to do a loan modification. You could save yourself a lot of money by simply doing a loan modification on your existing mortgage loan. Home refinancing costs money because it requires an appraisal of your home and there are closing costs involved.
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