Who Is a Loan Modification Lawyer?
A loan modification lawyer is a lawyer who helps you complete a loan modification application and advises on a loan modification. They are knowledgeable in loan modification and can help you explore your options in loan modification.
You can change your loan repayment terms when you are drowning in debt. It does not erase your loans but can help you to manage your finances better. Some of these strategies include loan modification and debt consolidation.
How Mortgage Loan Modification Works
Debt consolidation lets you take a loan to repay all your loans and so you have only one lender to pay back. This helps you manage your debt with ease. Talking to a loan modification attorney could help you explore options in debt consolidation.
A loan modification is a loss mitigation strategy through a change of terms in making your mortgage payments. It makes it convenient for you to pay your loan by reducing the monthly payments to something you can afford. It could also protect you from foreclosure.
A loan modification can increase the payment period, reduce the interest rate, or reduce the amount owed. When loan modification is presented as an option, consider the short-term and the long-term financial implications. For instance, consider how much your monthly payments will be.
It is essential to determine the ideal loan modification for your needs. If you are presented with a loan modification that still doesn’t help ease your financial situation, consider talking to a loan modification attorney.
Repaying a mortgage can be extremely difficult if you do not have a plan that works for you. In some cases, you could be facing foreclosure. Talk to a foreclosure attorney to avoid foreclosure.
Can You Negotiate a Loan Modification Offer?
A modification could change the loan’s principal, interest rate, and other loan terms. However, the lender needs to consent to a loan modification, meaning you will need to negotiate with them.
When facing foreclosure, you might be tempted to ignore calls or communication from the lender. However, this does not help when foreclosure is imminent. Instead, it only infuriates the lender, which can complicate any negotiations you seek.
Constant communication with the lender could help you negotiate a loan modification that makes the mortgage payments manageable. For example, the lender could agree to a forbearance, suspending payments for a while. Forbearance is ideal if you are going through temporary unemployment.
Lenders are increasingly willing to negotiate a mortgage loan modification. Unfortunately, foreclosure is not convenient for them either.
You should cite evidence outlining why you cannot make monthly mortgage payments. You could write a financial hardship letter, including dates you made payments, even if they are partial payments. You could also explain the events that led you to financial difficulties, such as loss of income.
A mortgage modification attorney could help you negotiate loan modification during a mortgage crisis. In addition, they will help you explore options and offer advice when dealing with the mortgage company.
Can a Loan Modification Be Forgiven?
Loan modification can only be forgiven in a loan modification program. Loan modification could see the lender agree to forbearance, suspending loan repayments for some time. They could also change your interest rate or allow you to repay your loan over an extended period.
The mortgage lender could also cancel a part of your mortgage debt. However, you will need to negotiate with them. Consider talking to a mortgage modification attorney to help navigate the loan modification process.
Your mortgage lender could agree to a short sale during loan modification. It involves selling your property for less than the mortgage and channeling the proceeds to the lender. Consequently, the lender could waive the difference.
Such an agreement could save you from the lengthy foreclosure process. It also helps you keep the matter private because foreclosure proceedings are often in the public domain.
A foreclosure attorney can help you explore available options. They will also discuss alternatives to foreclosure, including a short sale, loan modifications, and flexible repayment plans.
Is it Hard to Get Approved For a Loan Modification?
Mortgage loan modifications are suitable for the borrower and the lender. It is convenient for the bank for you to keep making monthly payments instead of foreclosing on your home and having to sell it to recover the amount owed.
However, it is still a complex process for the borrower because the lender dictates the terms of the loan modification. Banks are also unwilling to negotiate with borrowers with a high debt-to-income ratio. Lastly, most lenders will only discuss loan modification when it is too late and foreclosure proceedings have started.
Contact loan modification lawyers if the lender is unwilling to negotiate with you. They will help you explore other options. For instance, they could help you explore options given by the federal government that encourages lenders to agree to a loan modification.
You could explore bankruptcy if you cannot negotiate terms with your lender. A bankruptcy court could end the foreclosure process and allow you to catch up on past payments. Talk to a bankruptcy lawyer to find the option at your disposal.
How Can a Loan Modification Lawyer Help?
You need to engage your lender in the loan modification process because they dictate loan modification terms. You should prove financial difficulty through supporting documents and a financial hardship letter.
If you are in some financial difficulty requiring loan modification, consider talking to a loan modification lawyer. They will help you know your options in terms of loan modifications. They will be your best companion in getting a loan modification that helps you.
There are attorneys specifically trained to handle complex financial situations. They are knowledgeable and competent in ensuring clients get good loan modification terms.
Why Choose Us?
Financial institutions may not always have your best interest in mortgage modification. They constantly seek what is more convenient for them. For instance, they can choose to discuss loan modification, but this is to avoid going through the tedious foreclosure process and having to sell your property.
In most cases, they dictate the terms unless they are court-ordered. Talking to a loan modification attorney can help you get a better deal in a mortgage modification process.
Our lawyers have experience helping clients going through financial hardship and have problems repaying their mortgage loans. They are keen to listen to your needs and will discuss options available to you based on your situation.
Cherney Law Firm values the attorney-client relationship and offers legal advice so you know what you agree to in a loan modification process.
FAQs
How Does Loan Modification Work?
A loan modification changes the original terms of your contract with the lender. For example, it could change your repayment period, interest rate, or the principal owed.
Does Loan Modification Hurt My Credit?
A loan modification could hurt your credit but has better outcomes on foreclosure and bankruptcy.
What Counts as Debt Modification?
The abandonment of previous terms of debt for newer ones qualifies as a debt modification. It could also be extinguishing a previous debt for a new one.