A loan modification is a restructuring of an existing mortgage loan. Most homeowners are unaware that a loan modification can prevent foreclosure and save their home if they don’t qualify for refinance. This may also preserve their credit. Loan modifications are granted to individuals that can demonstrate a current hardship, such as job loss or serious illness, that may hinder them from being able to keep up with their current payment. Homeowners should understand, however , that loan modifications are on a case by case basis. On the individual basis as well as the lender level, each lender have their own guidelines for loan modifications and every situation is different.
Firstly, you’ll need to have an interview with a lender or a loan modification consultant. Then, there will come a financial statement breaking down the list of finances. Once this financial statement is finished, then the homeowner will need to develop a package that includes this information along with a hardship letter, supporting documentation such as tax returns, bank statements and pay stubs. This is then to be sent to their lender. From this, the lender may be able to determine new terms for the loan. This may take up to 60 days.
As the typical terms will normally be more affordable for the home owner, and the lender gets to collect its interest payments in and won’t have to go through the hassle of foreclosure, mortgage modifications are becoming increasingly popular. Either way, it generally goes that neither side truly wants a foreclosure to occur. When foreclosures are prevented homes are retained along with the value of the neighborhood and the lender maintains a profit.
There are many deviant “companies” out there, and it would be in your best interest to make sure that you are dealing with a reputable source. The Law Offices of Anderson and Ferrin are well versed in Loan Modifications and various forms of Bankruptcy Law. Call today to speak directly to a Lawyer who can guide you through the mortgage modification process.
Loan Modification Attorneys in Orlando, Florida.
Call Orlando Loan Modification Lawyers today for a Free Consultation at 407-412-7041