Legal Help When Buying and Selling Property

Home Loan Modification: Can An Attorney Help?

4 May 2022 by Louise Boyd

If you cannot keep up with your monthly mortgage payments, an option that may help is a home loan modification. A home loan modification helps better afford your mortgage payments by adjusting the terms of your loan. Although you do not necessarily need an attorney for this process, there are several benefits an attorney can offer to help make the process easier and more streamlined. Here is what you need to know:

What Is a Home Loan Modification?

A mortgage modification is a process in which one or multiple terms of your original mortgage is changed to make your payments lower. Some of the terms that can be changed include decreasing the interest rate, lengthening the life of your loan, placing missed payments into a balloon payment at the end of the loan life, or changing the rate to a fixed-rate loan instead of an adjustable rate loan.

How Do You Get a Home Loan Modification?

To apply, there are some requirements you must meet. You must be the person who is legally responsible for the mortgage. Your loan has to be in default or has the potential to go into default soon. You also must show proof of a hardship that caused your default. In addition, you have to prove that you have the income to make your new modified loan payment.

When you apply for the modification, you have to provide a summary of your current financial circumstances, copies of your pay stubs to show your income, bank statements, copies of your tax returns, and the estimated value of your property.

How Can an Attorney Help You?

You legally do not need an attorney to get a home loan modification. However, an attorney can help you through the process to provide you with peace of mind. An attorney will know the details of the home loan modification process, have input on the different loan companies and modification programs, and can help if your initial application for a modification is denied.

Your attorney will help you complete your application to prevent any possibility of mistakes in your documents. They also ensure the lender is adhering to the rules and laws of the modification and follow up quickly if there are any violations. If your modification is denied, your attorney can help you file an appeal and will help you submit a successful appeal. During the appeal process, your attorney can represent you and have arguments prepared to support your request. Look into loan modification law services for more information.

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