How a Loan Modification Works and Why You Need an Attorney for It

A loan modification allows you to change the terms of your mortgage either temporarily or permanently in order to make payments more affordable. With the Home Affordable Modification Program (HAMP) being retired at the end of 2016, working with a Florida foreclosure defense attorney is almost a must to get the best terms for a loan modification, since a loan modification is also negotiated directly with the bank and not only through a government program designed to advocate for homeowners. Simply put, a foreclosure defense attorney can generally get you a much better deal than one you negotiate on your own, saving you much more than our fee in the long term.

What a Loan Modification Could Mean for You

Each loan modification is evaluated based on the homeowner’s situation. There is no one-size-fits-all. At a basic level, a loan modification can change either the interest on your mortgage, the length of your loan, or both. Some loan modifications will forbear some or all of the interest, either temporarily or permanently, in order to achieve affordable payments. Some will simply reduce payment amounts but extend the period of the loan. The goal of a loan modification is to make the payments affordable for the homeowner – but an attorney is prefered to wade through all the “legalese” to ensure that the homeowner is still getting a fair deal.

Eligibility for a loan modification

However, if you have not been making payments for a long period of time, you may not be eligible for a loan modification. A loan modification is generally considered in cases of temporary job loss or other changes to income which affect the applicant’s ability to pay. However, a loan modification is the typical first step that we’ll take unless payments have been missed for a very long period of time, as it usually presents the best outcomes for our clients. Other options are available if you are not eligible for one which we can discuss in our free initial consultation.

Why you need an attorney for a loan modification

The bank is always going to look out for its own interests before yours. We’ve had cases where a client has applied on their own for a loan modification, but still get sued for foreclosure because the loan modification hasn’t gone through yet. While you would think that this is an error that would be cleared up once they discover it, it isn’t. A legal complaint must be answered when filed, and the bank can’t simply “take it back”.

A foreclosure defense attorney will know which terms to look out for in a loan modification that could have negative effects on your future ability to pay, the attorney will be able to apply for it in a fraction of the time that you will, and they will be aware of how each bank approaches loan modifications and can use that knowledge to get you the best deal. More importantly, the bank takes the application more seriously when an attorney is involved, as they know the next step after a loan modification is further legal action.

Contact us today for a free consultation to see if a loan modification is the right answer for you and your family.

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