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Loan Modifications
A
mortgage modification is a change in one or more of the terms
of a mortgage, typically allowing a delinquent loan to be
reinstated to “current” status and resulting in
a new payment that a borrower can afford. The loan modification
may be permanent or for a limited time. The modification generally
changes the interest rate of a mortgage. In some instances,
the term of the mortgage may be lengthened which also can
help lower a monthly payment. Also, there is widely held belief
that the mortgage lenders also regularly reduce the principal
balances of mortgages. In reality, it is extremely rare that
this happens.
The
lenders have their own varying criteria for evaluating loan
modification requests. Despite the varying criteria, most
lenders require some sort of “hardship” (a reason
why the borrower needs the loan modified). Common reasons
for hardships for loan modifications include divorce, loss
of job, reduction in income, illness, death of a spouse, etc…
We
use loan modifications as a tool to stop foreclosure and get
our clients an affordable monthly payment. There are many
services that have recently sprung up to offer loan modification
services, however, there is a real difference between what
they might be offering and the services we provide. As an
established local law firm, we will advise you on all of your
available options and explain the pros and cons of each option.
Further, you will meet with and have your questions answered
by a licensed attorney, not an out-of-work loan officer.
Many
of the so-called professionals proclaiming their ability to
help borrowers with problem loans are either out-of-state
lawyers who are not licensed to practice in Nevada or out-of-work
mortgage officers. It is this group of mortgage officers who
are primarily responsible for fueling the current mortgage
crisis by putting homeowners in the risky loans in the first
place. In this time of personal crisis, do you want to rely
on the people who were driven by their greed to maximize their
own commissions at your expense, or do you want a law firm
with a history of helping homeowners get a handle on their
financial crises?
Further,
it seems that most of the persons offering loan modification
services have no real experience in loss mitigation and are
just selling the services of out-of-state companies. You never
will have the opportunity to personally consult with the person
who will represent you when negotiating with your lender(s).
These loan modification services will just follow their adopted
protocol for handling your file and not be able to review
your unique situation. |
