Mortgage Modification Lawyers that Save You From Foreclosure

• 6 Aug 2019
• Uncategorized

Hardships can hit us hard because they often come so unexpectedly. The thought of losing your home because of an out-of-the-blue financial crisis is usually too much to bear. There is often a remedy to keeping your home and being able to afford the payments during your time of crisis. What is the answer? Mortgage Modification can be a welcomed answer.

Making Your Mortgage Affordable

After the real estate recession in 2007, the United States government created two programs to help homeowners and banks in crisis. The programs are the Making Home Affordable (MHA) program and the Home Affordable Modification Program (HAMP). These programs have been modified and replaced since then, but there are still options available. Keep in mind the bank has an incentive to adjust your interest rate or even extend the term of your loan to 40 years, which will lower the payment under different programs. This modification of your mortgage gives you a lower monthly payment. It is a win-win situation.

Understanding Mortgage Modification

Mortgage modification is not to be confused with refinancing your home. Refinancing involves qualifying for a new mortgage with your credit score, debt to income ratio, and your current income. Once qualified, you will be entering into a new mortgage contract. Mortgage modification is changing the existing contract; the qualifications are different than if you refinance your home.

To qualify for a loan modification, here are some of the qualification factors:

Must be delinquent on your mortgage payments for at least 60 days or imminent default
Proof of hardship such as loss of a job, spouse, or disability or illness is the reason for not being able to pay your monthly payments.

Once the qualifications have been met, then it is up to the lender to see how they can modify the terms to help you during your time of need.

Some lenders or loan management companies have their unique programs in place. Some of the programs are shorter-term, and others offer long term help. The government also provides mortgage modification programs. These programs often expire and change names and provisions, so it is good to contact a mortgage modification attorney to help you find the best plan for your circumstances.

There are a few things to take note of before you modify your mortgage. The lender may put a note on your credit that your mortgage was altered and this could affect your credit score. But if you are already in default or headed there quickly, that can negatively impact your score too. Also, your mortgage term could be extended meaning that you will pay longer and more interest. So this is something to keep in mind. Most times, the immediate benefits outweigh the negative aspects of loan modification.

Take Away

You can contact your lender and see what options they are willing to offer you. Once you learn about the different options, then think about if that is the best route to go. Before you make your final decision, it would be the best course of action to get advice from Mortgage Modification Lawyers that specialize in these circumstances.

Hiring a Mortgage Modification Attorney is a very wise choice to protect your financial interests now and your future. Experienced lawyers know the most current government programs as well as the options available. They also send a signal to your lender that you are serious about keeping your home, and the lender may be more likely to give you better options.

If you have run into hardship and are about to lose your home, do not wait to call for help. Find out what your mortgage modifications are and get signed up now.