Mortgage Loan Modification Attorneys
Mortgage loan modification is increasingly becoming more popular. In today’s economic situation, many people are turning to their lending company hoping to refinance, find alternative home loans, falling behind in their mortgage payments, or facing foreclosure. Speaking to a real estate mortgage attorney will help you decide if a mortgage loan modification will help you lower your mortgage interest rate.
What is Mortgage Loan Modification
A mortgage loan modification is similar to a mortgage refinance loan with the only difference being that you modify your original loan instead of starting over with a new loan. A mortgage attorney can help you start the mortgage loan process for your home. The terms of the existing loan will be modified in order for you to lower your mortgage payments and change and lower mortgage interest rates.
The main reason a mortgage loan modification is the answer for many homeowners in today’s society is that in most cases the homeowner is in a financial hardship and cannot afford to make their mortgage payments, thus they are getting closer to facing foreclosure. For those in this situation, refinancing is not a possibility as it is like starting over with a new loan and it is almost impossible to find a home loan if your credit score is slipping due to being behind in your mortgage payments or other payments you may have at the time. Speaking to a mortgage loan modification attorney will help you determine if your home is eligible for a mortgage loan modification proceeding.
In the majority of cases, those that are behind one or two payments are eligible for mortgage loan modification even though they are not eligible for refinancing.
Eligibility For Mortgage Loan Modification
In order to be eligible for a mortgage loan modification you must have experienced a hardship or a change in your financial circumstances, own and live in the home as your primary residence, and have not filed for bankruptcy.
The only way to obtain a mortgage loan modification is through the lending company that holds your loan. This may be very difficult to learn as even if you went through a bank for your original loan, the bank could have sold your loan to another company, thus you will have to track down the company or group that has possession of your home loan. You can contact the bank to learn who is in possession of your home loan or contact the company that you send the mortgage payment to every month. With the help of a mortgage loan modification attorney the process of obtaining the information on your loan may be easier.
All states and even mortgage lenders have their own mortgage loan modification programs. The problem is that the majority of the individuals you will talk with on the phone or in person are not trained to handle your request for a mortgage loan modification.
How to Show Proof You Deserve a Mortgage Loan Modification
When you find the right person to discuss your mortgage loan modification you will need to show specific paperwork that will prove your financial hardship. The items you should take with you to the lending company include any proof of changes in your financial situation such as pay stubs, layoff notices, etc… as well as proof that you have tried to make your mortgage payments. Show the officer that you are willing to work with them and that you do not want to default on your home loan. You will also need to show them that once the modifications are made that you can pay your mortgage payments on time, such as income verification.
A mortgage attorney can help you with the specific details on your home loan and the modifications you would like to make.
As quoted from the US department of the treasury on March 4, 2009 publication Making Home Affordable Updated Detailed Program description.
“The Obama Administration’s Making Home Affordable Program”
“Focusing on Homeowners At Risk: Homeowners at risk, such as those suffering serious hardships, decreases in income, increases in expenses, payment “shock,” high combined mortgage debt compared to income, who are “underwater” (with a combined mortgage balance higher than the current market value of the house), or who show other indications of being at risk of default may be eligible for a loan modification. Eligibility for the program will sunset at the end of three years.”
“Reaching Homeowners Before They Have Missed Payments: Delinquency will not be a requirement for eligibility. Rather, because loan modifications are more likely to succeed if they are made before a borrower misses a payment, modifications for households at risk of imminent default despite being current on their mortgage payments are eligible to participate, in addition to those who have fallen behind.”
“Common Sense Restrictions: Only owner-occupied homes qualify; no home mortgages larger than the FHFA conforming limit of $729,750 will be eligible. This program will focus solely on supporting responsible homeowners willing to make payments to stay in their home – it will not aid speculators or house flippers.”
"Special Provisions for Families with High Total Debt Levels: Borrowers with high total debt qualify, but only if they agree to enter HUD-certified consumer debt counseling. Specifically, homeowners with total “back end” debt (which includes not only housing debt, but other debt including car loans and credit card debt) equal to 55% or more of their income will be required to agree to enter a HUD-certified counseling program as a condition for a modification."
Who Can Sue
In the majority of cases, if you are trying to work with the lending company for a mortgage loan modification and the company is not willing to work with you, then you may have grounds to sue with the help of a mortgage attorney.
Of course, there are different things that come into play, such as if you diligently tried to pay your mortgage payments, if you are a hardship case, and so on and so forth.
Avoiding foreclosure on your home is the ultimate goal with a mortgage loan modification. You should do everything you can possible do to avoid foreclosure including do not ignore the situation, it is not going away. You should contact the lending company immediately if you believe you are going to have a hard time paying your mortgage payments. Most individuals know when they are in trouble such as being laid off, the death of the main provider, illness, or other problems that have caused the financial hardships. These issues should be reported to your lending company, so you can work out a payment arrangement before you are so far behind on your payments you cannot catch up.
Know your rights by talking with an experienced mortgage attorney.He/she will be able to read over your loan documents, ensure that all is correct, and help you plan your lawsuit if needed.
Tips for Mortgage Loan Modification
When you visit the lending company to ask for a mortgage loan modification they will look at the nature of your hardship case and what is causing your financial situation. They will also look at your ability to pay, the amount that is owed on your loan, the equity you have in the property, your future financial situation, and what is better for them in the long run, foreclosing on your home or modifying your home loan.
There are now laws in place in most states across the nation, protecting the homeowner. In order to ensure your rights as a homeowner are upheld you should talk with a mortgage attorney that knows the laws in your state to protect your home and your credit. The lending company will only help so much, they are not in the business of helping you keep your home, but in collecting the money you owe them. The lending companies will always try to protect their losses and collect every dollar they can. A mortgage loan modification attorney will work for your and your rights as a home owner.