To approve a loan, a lender will assess your past and present finances. But future financial hardships can make it difficult to pay off a loan, especially a mortgage. If you’re struggling to make mortgage payments, the contract can be modified to adjust the loan’s repayment terms. Loan modification lawyers can assist in restructuring your contract to avoid going into default or having your home foreclosed on.
An attorney specializing in loan modification:
Explains Your Legal Rights
A borrower has rights even if they’re having difficulty keeping up with mortgage payments. But loan modification lawyers have knowledge of options you might not know about. These can include reducing the loan’s interest rate, converting from a variable to a fixed interest rate, or extending the term of the loan. In some cases, part of the principal balance may be forgiven. Your attorney can help make an informed decision that helps you get on the right financial track.
Represents Your Best Interests
Lenders don’t always go by the rules. Your lawyer can determine if that’s the case and force them to comply with current regulations. Sometimes, a lending company may seem open to loan modification but pursue the foreclosure process at the same time (dual-tracking). However, your lawyer will represent your best interests and make sure your lender is compliant.
Can Stop the Foreclosure Process
If you’re already experiencing hardship, losing your home is the last thing you need. Borrowers who are in default or otherwise having difficulty paying a loan often cannot convince a lender to stop foreclosure proceedings. An attorney has the power to file an order, showing the lender there’s cause to halt the process. They can also help you file for bankruptcy, which would put an automatic stay on foreclosure and all other collections actions. This allows you to stay in your home while a resolution is in progress.
Is Always Attentive
It’s often hard to get a loan service provider on the phone. Many clients also complain about their slow response times. Indeed, there are times when numerous borrowers are impacted by economic and financial hardships and lending companies are busy taking calls. Or, some are just not that attentive by nature. A lawyer, on the other hand, will always take your calls and provide the attention you need to find a resolution.
Can Help You Apply for Loan Modification
An attorney can help you complete all the application paperwork. However, that doesn’t guarantee the lender will play by the book. But it certainly helps to have someone ensure you include the right information and don’t make any mistakes.
If the lender denies your loan modification request, your lawyer can help you appeal their decision. You can hire a legal professional after this happens or work with them from the beginning, as your attorney may already have built strong supporting arguments. And, if the lender has violated any rules, a lawyer can use this to your advantage.
Knows What the Lender Is Looking For
Lenders aren’t always clear with borrowers when they need to change their contracts. Loan modification lawyers aren’t only effective in managing written communications with lenders. They know all the fine details they’re looking for. These include your housing expense ratio (pre-tax income to housing expenses), debt-to-income ratio, loan-to-value ratio, loan payment history, and your credit score. Your attorney will also know the type of evidence of financial hardship that needs to be shown, such as documents related to a job loss, divorce, the death of a spouse, or medical issue.
Is Familiar with the Loan Modification Process
Loan modification can be complicated, especially if it involves the court system. Skilled attorneys will negotiate with a lender on your behalf. Your attorney can help apply for a mortgage servicer’s loan modification program or options available with government-backed mortgage loans. Under the Streamlined Modification Initiative, homeowners with a Fannie Mae- or Freddie Mac-backed mortgage that’s more than 90 days delinquent should receive a loan modification offer. Your attorney can help understand all your rights and options at this stage.
Call OakTree Law Today
OakTree Law’s loan modification lawyers can help weigh every option when you’re having difficulty making mortgage payments. They can avoid foreclosure, wage garnishment, and other collection actions. We also have numerous resources available, including what you should ask a loan modification attorney and the goals they can achieve. To get started, request your free evaluation online or call 888-348-2609 today.