In this economy, there are more and more people who are struggling to make ends meet. A loan modification can help improve your financial situation. A loan modification is granted by your mortgage lender and the investor who owns your loan.
What does a loan modification do?
Every situation is different. However, there are a few things that a loan modification can do:
- Change your loan from an adjustable rate to a fixed rate mortgage
- Lower your monthly payment
- Lower your interest rate
- Take past due amounts and add it to the principal balance, so you do not have to come up with it now
How do I know if I qualify?
There are many different types of loan modifications. There is the federal program, HAMP, and MHA. There are internal modification programs with every lender. Almost every lender has the same process for beginning the application for a loan modification. That process includes filling out financial information forms and providing them with financial documents such as your taxes and pay stubs. If you do not qualify for the federal program, that does not mean that you will not get a loan modification at all. Once it is determined that you do not qualify for a federal modification, most lenders will attempt to qualify you for an internal modification.
Do I need to hire an attorney?
No, you do not need to hire an attorney for this process. You can contact your lender and start the process on your own. However, over 50% of our clients are homeowners who tried to modify their loans on their own and were unsuccessful. While there are NO guarantees that hiring an attorney will help you, our experience and knowledge of the loan modification process is an asset to you. We know the laws and regulations that are part of the programs that are offered.
Further, at the initial consultation, we may determine that you will not qualify for a loan modification and there may be other options for you, including Bankruptcy, Short Sale or Deed-in-Lieu of Foreclosure. Applying for a loan modification will not help you if there is no chance that your lender will grant it. Saving your home and your financial future is our priority.
Attorneys will help you proceed in the best route possible.