Often called a Loan Modification, a mortgage loan modification is the process of modifying your existing mortgage loan to make your payments more affordable. It’s actually very similar to a mortgage refinance but instead of finding a new mortgage, this adjustment modifies your current mortgage into something you can fit into your budget. A mortgage loan modification may be helpful if you are in a time of great financial distress, and can assist in long term financial difficulties. While it offers numerous benefits and can get you out of debt, there are reasons why a mortgage loan modification may or may not be right for you and your situation.
Why a Mortgage Loan Modification is Right for You
- Lower your monthly payments
- Lower your interest rate
- Fix your adjustable rate
- Reduce your loan balance
- Waive negatively accrued interest
- Grant extensions on payments
- Re-amortize loan to include past due payments
- Possibly save your home from foreclosure
Why a Mortgage Loan Modification is Not Right for You
- Possible credit score impact
- Additional costs for processing and legal fees
- Taxable debt forgiveness
- Lender might choose to sell rather than modify the loan
- Lender reluctance in modifying the loan
Dealing with lenders can be difficult for several reasons:
- You can get different answers from the different customer service representatives each time you contact your lender.
- Customer service representatives are not equipped with the necessary tools to be able to assist you.
- Lenders may not have all the correct paper work needed to legally process your modification or a foreclosure.
To be able to get the best Loan Modification, you need the proper legal assistance. At Croteau Real Estate Services we have a partner law firm well versed in real estate transaction, including mortgage loan modification laws. there are a lot of reasons to use an attorney skilled in Mortgage Loan Modifications including:
- An attorney skilled in Loan Modification Attorney will review your case from a legal perspective. The Attorney will know how to deal with your lender, and will help you prepare your application so it’s processed quickly. When the attorney presents your case, he will be armed with all the necessary documents & the correct negotiation techniques.
- An attorney can buy you more time. If you try to get a Loan Modification on your own it’s very possible that they will be transferring you from one department to another without making any progress. And if you already are in foreclosure, you can’t waste any more time. A Loan Modification Attorney can stop the foreclosure proceedings, giving you more time to recover while he concentrates on saving your home.
- Loan Modification Attorneys get the best results. Your lender will take your Loan Modification request more seriously when you have an Attorney on your side, because an Attorney uses legal information as leverage when negotiating.
- Getting a loan modification can be a less demanding process when you have a skilled attorney. When you hire a lawyer, the attorney client privilege is created and the lawyer has a fiduciary responsibility to perform his services in your best interest. This standard is much higher than the standard a normal loan modification company would have. Additionally, the expertise of the lawyer in dealing with the banks and the nuances of real estate law necessary to get you the best loan modification is paramount to ensure you achieve the lowest payment possible. Negotiations can become intense and a trained lawyer fighting for your cause is necessary.
What Qualifies me for a Mortgage Loan Modification?
The most common standards for qualifying include having missed a payment, having experienced a recent financial hardship or change, owning a property and not having filed for bankruptcy. You will need to be able to prove the financial hardship. Your lender may offer a temporary solution that only delays foreclosure. But remember, loan modification is supposed to be a long-term fix.
Croteau Real Estate Services, LLC is owned by the Roger P. Croteau Law Offices. Just talk with one of our real estate agents about setting up a free consultation with the legal staff. Our loan modification attorneys will not settle for unfair terms, and will keep negotiating until you get the mortgage assistance you deserve. Your lawyer will help you plan your appeal and persuade your lender that you can stay current once the loan is modified. They’ll also check your contract for RESPA and TILA violations committed by your lender, which can be made to work in your favor.
If a loan modification is not the right answer we can assist you in a short sale. That decision is up to you. Let us get you a free consultation with one of our attorneys, just click here to send us an email and we will contact you to help.
You have nothing to lose but your home!
