What are my options for a loan modification if I am facing foreclosure?

If you are facing foreclosure in Pennsylvania, your best option may be to pursue a loan modification. A loan modification is a change in the terms of your existing loan that is agreed upon by both the lender and borrower. This could include changing the length of the loan, reducing the interest rate, or forgiving part of the loan balance. In order to pursue a loan modification, you will need to contact your lender and explain your financial situation and the reasons you are having difficulty making payments. You will also need to provide documentation that demonstrates your financial hardship. There are also resources available to help you complete a loan modification. For example, the Pennsylvania Homeowner’s Emergency Mortgage Assistance Program (PHEMAP) provides counseling and financial assistance to homeowners who are facing foreclosure. The Pennsylvania Housing Finance Agency’s Foreclosure Prevention Hotline is another source of help for those facing foreclosure. If a loan modification is not successful, you may also want to consider other options such as a short sale or deed-in-lieu of foreclosure. A short sale involves selling your home for less than the amount you owe on the loan. A deed-in-lieu of foreclosure is when you voluntarily transfer ownership of your home back to the lender. Ultimately, loan modification is likely to be your best option for avoiding foreclosure in Pennsylvania. It is a good idea to contact your lender and a housing counseling agency for assistance.

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What are my options for a loan modification if I am facing foreclosure?

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