A loan modification program can be complicated and confusing for first-time homeowners or homeowners who are feeling overwhelmed. However, change may be your only hope of saving your house and making ends meet. Knowing how to navigate the rough waters of program approval isn’t something you learn easily — this is where a loan modification attorney can help.
Mortgage modification is really just a fancy name for “repeat” your loan. You and your lender simply sit down, take a second look at your situation, and consider how to adjust your home loan to fit your current finances. Of course, if it’s just you and your lender, all the expertise in the room is on their side of the table. An attorney well-versed in loan modification law can assist you significantly and provide a strong presence on your side of the table during the negotiation.
A mortgage modification is an option that allows you to fundamentally change your home loan. If you started with a $130,000 home, put down a $15,000 down payment, and financed the remaining $115,000, you’re like many other homeowners. If you’ve now paid off your loan balance to $100,000, but home values in your area have plummeted and your home is now worth just $90,000, then you’re still in the same boat as many other homeowners.
This rapidly increasing trend of “reverse loans” is why the Obama administration passed legislation allowing banks to modify home loans on an unprecedented scale. Funded amounts of capital used to be set in stone and a few missed payments meant foreclosure.
Now even principal amounts due can be renegotiated with the lender – when faced with a home foreclosure and taking a big loss when selling it at auction, many lenders are willing to take the smaller loss by taking a part of the principal amount waived. Government support for these types of policies provides lenders with an incentive to work with homeowners to resume lending.
Of course, so many people are trying to qualify for a loan modification that it can be difficult to get your voice heard. A lawyer can be invaluable; helps you draft your hardship letter, gather your paperwork, and decode all the legal jargon that accompanies a binding transaction. Your solicitor can watch over you during the negotiations so you get the best possible deal – one that lets you keep your house and keep up with your bills!
Once your mortgage modification is complete, you will be expected to abide by it, so it’s important that you have terms that you can live with and can afford. Having someone trained in loan modification best practices can make all the difference. Additionally, it helps to simply have someone by your side who is willing to fight for your best interests and saves you from being pushed into a bad agreement just because the papers you are asked for don’t “understand” all legal jargon. Sign.
A loan modification program can save your home, all you need is a knowledgeable attorney to guide you through the process and ensure you get what you deserve.