What happens if I can't afford the payments for a loan modification?

If you can’t afford to make your payments for a loan modification in Utah, you may still have options available to you. Depending on the type of loan you have there may be forbearance, deferment, or repayment plans available to you. Forbearance is when you work with your lender to create a plan to pause your payments for a specified period of time. During this period of time, you will not be charged late fees or interest on the unpaid payments. After the forbearance period ends, you and your lender will need to create a new payment plan to cover the remaining balance of the loan. Deferment is a similar option but instead of just postponing payments, you will not have to make payments until you are able to pay off your loan. During the deferment period, you will not be charged any late fees or interest on the unpaid payments. Repayment plans are also available through loan modification programs. This type of plan allows you to extend the repayment period of your loan, lower your monthly payments, or even reduce the overall amount of your loan. This option may be available to you if you can prove financial hardship to the lender. It is important to understand the consequences of not making your payments, so it is best to talk to a foreclosure defense lawyer to find out what options are available to you in Utah. A lawyer will be able to help you understand your options and help you evaluate the best path forward.

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What happens if I can't afford the payments for a loan modification?

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