Loan Modification Terms & Condition
Loan Modification is a process of opting to change the prevailing terms and conditions of a loan. It is an option available to the borrower with the consensus of a lender.
Modification of the terms and conditions of a loan is a finance option available to the borrower on his prevailing loan deal. Certain situations arise where is becomes rather necessary to go for a change in the existing set of terms and conditions of the loan option availed.
The nature of loan may be a secured or unsecured loan, home loans, business loans, bad credit loans, personal loans. You name the loan and you have this option, except those where in a prima facie condition talks about no change in the terms and conditions of the loan.
Normally the request for a change in the terms and condition of loan is made by the borrower. And a move by the lender cannot be ruled out. Where there is a substantial fall in the interest rates or when the existing repayment amount cannot be met due job loss or where the loan tenure is reduced or increased, it calls for a change in the terms and conditions based on which the loan was for originally offered to the borrower.
Loan Modification Terms And Conditions
Every time there is a request for change in the terms and conditions of the loan the request is normally reviewed by the lender in order in ensure it is in the interest of everyone concerned.
Loan modification terms and conditions need not necessarily mean opting to continue the loan options but for certain modifications, it could even amount to the call off the loan and claiming the collateral security offered by the borrower.
Whenever a loan modification is called for, it could mean a change in the amount of loan; the amount repaid every month, the rate of interest on which the loan is offered. Where the monthly installments are revised for the benefit of the borrower it would help them in more than one way. No negative credit scores, no loan defaulting, time to cope up with the troubled times and reduced cost of loan.
The lender will always have a check about the repayment ability of the borrower, before proceeding with the intended loan modification terms and conditions confirming that the borrower has the ability to meet with the modified terms and conditions of the lender.