For millions of homeowners being foreclosed each year, the only hope is loan modification. Under the federal "Making Home Affordable" program, anyone with a hardship and an underwater mortgage may apply for loan modification to reduce the monthly payments to 31 percent of gross income. It's not easy and lenders will not put a stop to foreclose proceedings or other recovery tactics while a loan modification application is being processed.
Do you have additional questions regarding loan modifcations? Our real estate attorneys are here to assist you throughout the process and answer any questions you may have. Contact a real estate lawyer near you today.
All legal aspects related to loan modification are listed below:
Homeowners have to fill in the paperwork and provide all the required documentation, such as bank statements and W-2 forms. The lender will assess it and respond back within 1-3 months with a completely new proposal that may have a lower rate, longer term, and lower monthly payments.
You may need legal representation to put together a faultless application and negotiate with the lender while dealing with foreclosure and other recovery actions. The most important requirement with a loan modification is get the interest rate reduced and convert it from an adjustable to a fixed rate. It may also be possible to get some of the delinquent amount written off or arrange for a payment moratorium to give you time to get back on your feet. This is easier if you have filed for a Chapter 13 bankruptcy protection.
Do you or does someone you know need legal information regarding loan modifications? Our real estate lawyers are here to help. Contact a real estate attorney in your area today for more information.
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