Allentown Home Buyer Shares If You Can Sell Your House After a Loan Modification

With multiple years of helping Allentown homeowners find stress-free home selling solutions, Homerun Home Solutions isn’t new to answering questions. After all, selling a home is far from straightforward.

After breaking down the process of selling a house with a quitclaim deed, the company had no problem answering one more question: Can you sell your house after a loan modification?

What Is a Loan Modification?

A loan modification refers to the process of having a lender alter the original terms of a homeowner’s mortgage. The lender could do this by:

• Lowering the loan’s interest rate

• Reducing the principal

• Extending the loan’s term

• Including the missed payments as part of the balance

Modifying a home loan can go a long way in offering homeowners a bit of relief, especially when they are going through financial difficulty.

Selling Your House After a Loan Modification

As helpful as loan modifications are, sometimes, the financial situation a homeowner finds themselves in could be more dire. In such a case, selling the home might be the only way out. There’s just one issue to address. Can you sell your house after a loan modification?

According to Homerun Home Solutions, yes, selling a home with a modified mortgage is possible. However, the company says that homeowners should keep a few things in mind.

Home Equity

When selling a house after a loan modification, the first thing to consider is whether the house has enough equity to cover not just the loan, but the selling costs as well. Will the sale make a profit, or will they need extra funds for closing?

Mortgage Payoff Balance

If the lender added missing payments to the balance, the payoff balance could be a lot higher. This could greatly reduce or even eliminate home equity.

Deferred Balances

The company advises homeowners to go over the loan modification agreement and check the fine print. For instance, if the agreement included deferred balances, a homeowner will need to clear them at closing.

Learn More About Loan Modification and Selling a House

Can you sell your house after a loan modification? The short answer is yes, homeowners can sell their homes even after modifying their mortgage. However, they must approach the process fully prepared and first understand how a loan modification affects home sales.

Homerun Home Solutions is more than just a cash home buying company. It is a reliable answer for local homeowners looking for quick, stress-free home selling solutions.

Whether selling a house in forbearance, pre-foreclosure, or modification, they are the company to turn to for a simple conclusion. Learn more at (484) 246-4894.

Contact Information:

Homerun Home Solutions

1874 Catasauqua Rd
Allentown, PA 18109
United States

Jason Reynolds
https://homerunhomesolutions.com