car modification
Car
modifications are loan modifications that help you better afford your
monthly payment. If the idea of a loan modification scares you, then
you'll be relieved to know that many people go through this process and
it helps them fix their credit and avoid repossession.
Car modifications involve
several steps. First, you have to be behind. Lenders don't negotiate
loan modifications with people who are making their payments on time. If
you're keeping up right now but you fear falling behind in the future,
and currently your credit is good, you might choose refinancing or loan
consolidation instead. Or if your car is worth more than you currently
owe on it, you could simply sell it to pay off your loan and purchase a
car that costs less with smaller payments.
But if you are falling behind
and you're having financial difficulties in keeping up with your car
payments, then you're the perfect candidate for car modifications. Your
credit doesn't matter because it's expected that when you're in a
hardship situation you're going to have credit problems. If you try to
refinance with poor credit, you either won't get the refinancing loan or
the interest rate will be higher than you expect making it not worth
your time or money to do so.
If you look for a car loan
modification, your lender will want to see proof that you really are in a
financial mess. If they can look at your financial records and see that
you have plenty of money for the car payment but you're squandering it
away, they're not going to want to grant the modification. They usually
have a limit as to how much extra money is left over each month after
all of your bills and living expenses.
If you have more than that amount left according to their calculations, you may not qualify.
So
before you look into a car loan modification, it's important to really
examine your finances and make sure you can't simply find the money for
the payment in the amount you already earn. The lender will be looking
at this information very carefully, so you want to anticipate that and
make sure you've left no stone unturned
