In simplest terms, a loan modification restructures the terms of a loan without actually refinancing the property it secures. Investopia defines a loan modification as an agreement between the lender and the borrower which stipulates a long term relief from untenable loan terms. Modification of a loan applies to the terms governing the interest rate, the amount of the monthly payment, and in some cases also the length of the loan.
Skilled home modification legal specialists work on behalf of borrowers with their lenders to achieve the relief of a home loan modification via drastically reduced mortgage payments
What happens during a Loan Modification?
During a loan modification the terms of your mortgage are renegotiated to bring the interest rate down to a percentage that fits into your budget and the monthly payment no longer presents a severe strain on your ability to meet your other financial obligations.
Why don’t I simply ask my lender for a Loan Modification myself?
It would be great if borrowers and lenders had the ability to negotiate loan modifications, but the problem is two-fold: many lenders simply lack well trained loan officers who know how to negotiate and set up a loan modification in the first place; secondly, some lenders are more interested in recouping any potential losses up front via a foreclosure than they are in keeping a customer for a long period of time with the help of a renegotiated mortgage. In both cases it is the involvement of legal specialists that provide borrowers with the results they desire.
What is needed from me to get the process started?
Documents relating to your financial situation, income, and mortgage details help legal professionals to draft the papers your lender requires for a need based loan modification approval. Upon receipt, the terms of the mortgage are renegotiated to reflect a lower monthly payment. Best of all, the paperwork is handled in its entirety by the professionals in charge of negotiating the deal and you are not required to attend a closing or any such meeting.
How long is the Loan Modification process?
You will see relief in as little as two weeks or a couple of months if FHA guaranteed loans are involved. In the meantime, lenders are amenable to halting foreclosure proceedings and even the sale of a home! The added benefit of this process rests in the fact that you may be able to skip one mortgage payment and get back on your feet with your budget. Since the majority of reputable lenders prefer to have you remain a customer for life than selling off your home at a loss and thus not realizing the profit of the interest payments, the process is usually not delayed.
If you have any more questions, feel free to contact us at info@myforeclosureconsultant.com
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