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Bio Statement Payday Loans Online Direct Lenders Only Why Lenders Prefer Mortgage Modificationsdirect lender cash advances

The loan modification process is not a new concept and has been around for quite some time, yet lately it has become something of a hero for lenders and borrowers alike. This process is suggested as an option in a number of existing loan scenarios. When the restructuring of the terms of a loan make sense to the lender to cut their losses or to keep a loan-as opposed to losing that instalment loans online no credit check to an uncollectible status or from paying off completely-a loan modification is a step in the right direction.

Traditional modifications typically involve changing the original terms of the loan note that was agreed to earlier between the lender and the borrower. In changing the terms of the note, the lender is able to effectively change the payment, which is usually the reason for even considering a mortgage loan modification.

Why would a lender want to consider modifying a direct lender cash advances when they have a legal and binding note in place? Well, in today's environment, many lenders are faced with borrowers who are truly unable to continue making the payments already in place and are looking at default as a very real option. At this point, a lender needs to look at the very real chance that the loan in place, as it currently sits, is worth nothing if defaulted by a borrower. But if they can re-work the terms to an amount that a borrower can realistically maintain, then they keep a loan on the books as a performing asset and have a much higher likelihood of a complete payback of the full amount outstanding.

The usefulness of this is evident on both sides of the loan. The lender keeps loans out of the bad compare payday loans online category and the borrower has an opportunity to stay out of credit hell and possibly worse, bankruptcy.

At this point in our economic life, lenders have more than their fair share of bad loans; additionally, taking back an asset is not an attractive option as it takes a lot to liquidate that asset to pay back a portion of the amount outstanding. To a borrower, this is just a way to remain in good standing with a lender but on more acceptable terms.

The pros of this process more than outweigh the cons. As mentioned earlier, the biggest pro is that the lien stays intact and in good standing with the likelihood of being paid back in full much better than if they had not modified the loan. For the borrower, this allows them the chance to work on keeping a good credit rating in check and hopefully avoid a worst case scenario, which would preclude them from borrowing for future needs any time soon. Bottom line is, a mortgage modification is an old trick that has been given new life recently as a way to keep a loan in good standing on both sides of the table.

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