Question by glsartiste: What is the advantage to restructuring a mortgage as opposed to refinancing?
Best answer:
Answer by sassy2
Restructuring should come at no cost to you. Not another credit check, which is good if your circumstances have changed.
Refinancing should guarantee you a better rate.
What do you think? Answer below!
In many cases, an attorney will contact your lender and get them to delay the foreclosure process without filing bankruptcy. Such a scenario allows an attorney the opportunity to negotiate a “win win” resolution for both sides. Foreclosure is generally a very costly option for lenders. In certain instances, a modification of the existing loan is a good solution. Depending on circumstances, a deed in lieu, also known as “cash for keys” or “walk away” may be the right solution to keep a foreclosure off your credit report. There are many possible solutions to resolve a situation where a homeowner is either behind on payments or likely to fall behind in the near future. Such possible solutions include a modification or restructuring of the terms of your current loan to lower your mortgage payments, a recapitalization and principal balance reduction, a rescission of your current loan (up to three years) or a lawsuit against the mortgage company for predatory lending violations if determined to be appropriate after a proper loan document audit.
There are many other possible resolutions as well. An attorney will assist you to determine which possible option is best for you.