A Balloon Payment Modification is a form of Balloon Payment Assistance that allows you to split the balance due over payments in order to payoff the remaining balloon balance in an affordable manner.
Balloon Payment Modification Assistance is common and in some cases easier to obtain and qualify for than a standard Loan Modification on a higher balance.
Regardless of the remaining balance/balance of Balloon Payment these types of modification are easier to obtain due to the circumstances surrounding it. In many cases ( when its not too late ) a borrower is seeking assistance with an upcoming balloon payment that is not yet due and or late, These payments normally come due at the end of the loan term. Its in the mortgage servicers interest to split the balloon balance into payments and collect interest on the balance as payments are made. Rather than receiving one large payment and then considering the loan paid off. In many cases the servicer can gain thousands along on interest collected over time when splitting up the balloon payment.All these factors make a Balloon Payment Modification easier to obtain however they are anything but quick and easy so professional assistance is still recommended.
What is a Balloon Payment ?
A Balloon Payment is the repayment of the outstanding principal balance made at the end of the loan term. A balloon payment is a one time larger-than-usual mortgage payment , the balloon payment is the sum of loan balance not paid off during regular loan term.
What other Options besides a Balloon Payment Modification are there available to a borrower who cannot afford to make the large payment ?
- Short Term Re-payment Plan/Forbearance Plan
- Getting a Loan to pay entire Balloon Payment
- Refinance ( Only an Option if you have Equity )
- Sell Home and Satisfy Loans ( Only an Option if you have Equity )
How do I Apply for Balloon Payment Assistance thru a Loan Modification ?
For assistance or questions about Balloon Payment Assistance, Balloon Payment Loan Modification, Nationwide Foreclosure Prevention Assistance, Short Sales , Mortgage Settlements, Loan Modification and DIL or anything Mortgage/Real Estate related please contact us at (888)558-5856 and or fill out the form below.