In simple terms, this means that the terms of the loan have ended. Normally a happy time for a regular borrower that has reached the end of the loan and payoff their home. Isn’t this what we all are looking for? Called by some “the American dream”.

What most people don’t know is that a lender that has been dealing with a borrower behind on payments can also accelerate the loan to reach the point of maturity. And at this point the only options are to refinance or do a loan modification.

What most people also do not know is that in either options the monies that are due are added to the new or modified loan. We have found more times than not that our customers that decide to do either one have a sense of relief as “it is starting from scratch”. It is actually not. And at that point another consequence is that the borrower’s credit score has already been affected.

And the last thing that most people do not know is that over 50% of people that refinance or do loan modifications are in foreclosure within 3 to 6 months. The underlying personal financial needs usually do not change when the loan changes.

And once the loan matures the only option for a third party is to pay off the loan, which is very unlikely. So the property goes to foreclosure and everyone loses: the borrower, the lender and any other options to save the property.

Do not wait to get to this point. We have been there many times without being able to help someone that we could have easily helped a few months before.