What Is a Loan Modification?
There are several possible options when you’ve either fallen behind on your mortgage or your home is being foreclosed on. One of the best solutions is a loan modification.
Loan modifications rewrite your current mortgage to change its terms and make it more affordable for you. Unlike many other solutions, loan modification programs are permanent—they’re not a temporary decrease in payments, but long-term solutions that lower your monthly payments for good. This is accomplished through renegotiating your interest rate, forbearing part of the principal balance, or extending the loan term.
A loan modification is best for homeowners who have the ability to make mortgage payments, but can no longer afford the original monthly payment amount they had agreed to. If you’re unemployed, for example, your chances of getting a loan modification may be lower, as you’ll need to provide proof of income and bank statements in order to qualify.
How Can an Attorney Help With a Loan Modification?
While you can certainly navigate the loan modification process on your own, it often pays to hire an attorney. We recommend hiring a real estate attorney because:
We can help you understand your options. You may be set on an in-house loan modification, but there may be other programs that are better suited to your needs. We’ll go over all of the possible solutions to ensure that you choose the right one for your situation.
We’ll assist you with your application. The paperwork involved in getting a loan modification agreement can be complicated. We’ll tell you how to fill out the application and what supplemental information you need.
We’ll make sure your lender is complying with state and federal laws. It’s possible that your lender has violated state foreclosure laws, loss mitigation laws, or unfairly denied your loan modification request.
We negotiate the best possible terms for you. Attorneys negotiate for a living—it’s what we do and we’re good at it. We may be able to negotiate lower monthly payments than you could on your own working directly with your lender.
We make a difficult time easier. You’re under an immense financial and emotional burden when your house is at risk of foreclosure. Instead of bearing that burden yourself, let us help. If you’re tired of constant phone calls, letters in the mail, and worrying about your mortgage 24/7, hiring an attorney means we’ll be the ones dealing with your lender.
Learn More About Loan Modification
If you’re feeling overwhelmed and worried that late mortgage payments are putting your home at risk of foreclosure, it’s time to hire an experienced real estate attorney to help you with a loan modification. Contact us today at 512-505-0053 to schedule an appointment.