There are many routes to take when facing a foreclosure. Maybe your income changed from job loss or you had some unexpected expenses come up.
Depending on your situation, loan modification may be your best mortgage foreclosure defense.
What is a Loan Modification?
In short, a loan modification is an alternate, and permanent agreement that you and your lender come to that changes the terms of your loan to make it more affordable. It may change the length of your loan, your interest rate or even your principle balance.
Loan Modification Programs
There are many loan modification programs, which you may or may not qualify for depending on your individual situation. Your legal consultant will know which will best fit your circumstances. There is hope in stopping your foreclosure through loan modification because there are many programs out there.
What do I need to provide for consideration?
Please be sure to provide proof of income that your legal representative can use in your application (such as recent pay stubs, bank statements, tax returns, personal budget, etc.) Anything you can provide will help your representative to ensure they are finding the right program and modification for you.
What about companies that specialize in Loan Modification?
Many loan modification companies are scams. They may tell you that they will help negotiate terms but many are not familiar with the requirements financial institutions have for borrowers to qualify for loan modification. For this kind of interaction, you will need a legal representative, not a company, to ensure it’s done right.
What’s next?
Considering a loan modification can be intimidating and you may have a lot of questions. If you are considering a loan modification and would like to talk to a professional about your options, please contact us.
