A mortgage restructure is the process of modifying the terms of a mortgage loan in order to make
it more affordable for the borrower. This can include extending the loan term, lowering the
interest rate, or converting an adjustable-rate mortgage to a fixed-rate mortgage.
There are several reasons why a borrower may want to restructure their mortgage. For example,
a borrower who is experiencing financial difficulties may be struggling to make their monthly
mortgage payments. By restructuring the mortgage, the borrower may be able to reduce their
monthly payments and make it more manageable to stay current on the loan.
Another reason a borrower may want to restructure their mortgage is if they have an
adjustable-rate mortgage (ARM) and are worried about interest rates going up in the future. By
converting the ARM to a fixed-rate mortgage, the borrower can lock in a lower interest rate and
have more predictable monthly payments.
A mortgage restructure can also be beneficial for a borrower who wants to pay off their mortgage
faster. By extending the loan term, the borrower can reduce their monthly payments and use the
extra cash to pay down other debts or save for retirement.
To apply for a mortgage restructure, a borrower will typically need to provide financial
information to their lender, such as proof of income and assets, as well as a current mortgage
statement. The lender will then review the information and determine whether the borrower
qualifies for a restructure. Foreclosure International Group can assist you in preparing the
It’s important to note that a mortgage restructure may have a negative impact on a borrower’s
credit score. However, the benefit of being able to stay current on the mortgage and avoid default
or foreclosure may be worth the short-term credit hit.
Additionally, a mortgage restructure can also be done as a loan modification program, in case of
an individual or general economic crisis, which can be initiated by the government or by the
lender themselves, with the goal of providing relief to the homeowner.
It’s advisable for borrowers to consult with one of FIG’s loan modification specialists before
applying for a mortgage restructure to understand the pros and cons and how it would affect their