No, it's not the latest taebo-pilates-zumba routine. But if you're weighed down by foreclosure, a loan workout may be just what the debt doctor ordered to help put your loan back on track.
A loan workout is plan of how to restructure debt in the face of foreclosure. It is also called loan modification or mortgage modification. In loan workouts, the home owner sits down with the lender to discuss modification of terms to the loan in order to make monthly payment minimums and sidestep foreclosure. The parties must mutually agree on modified loan terms for the loan workout to be successful.
What does the lender look for?
The lender will examine why the homeowner is unable to pay the loan and the likelihood that he or she will be able to pay if the terms are modified. Specifically, the lender will look at factors including:
In what ways can a loan be modified?
Contact your lender to learn more about whether a loan workout or loan modification might be a good alternative for you and your specific circumstances.