Many people who find they are falling behind on their mortgage payments cannot foresee when their financial circumstances will improve.
Many people who find they are falling behind on their mortgage payments cannot foresee when their financial circumstances will improve. Facing foreclosure is a difficult situation, and it calls for making some big decisions. If you are like most people, you will simply walk away from your home, allow the bank to take over and find other living arrangements. However, this is not your only option. Many home mortgage lenders are willing to work with consumer attorneys in completing a loan modification.
What is Mortgage Modification?
Loan modification may help you stay in your home if you can no longer afford the mortgage payments, but it takes an experienced negotiator to get the best deal or to get the modification accepted at all. The specific terms of your original loan can sometimes be modified if the lender believes that it will keep them from having to foreclose, and they will eventually recover the loan and the interest due.
Loan modification may include one or more aspects, depending on the deal reached with the lender. You may be able to get a lower interest rate, a different type of mortgage or the term of the loan may be extended to lower your monthly payments.
Qualifying for Mortgage Modification
Not every homeowner is qualified to go through the loan modification process. Eligibility requirements may vary by state, the specific property or the amount and type of mortgage. In addition, several other eligibility requirements have been released by the U.S. Department of the Treasury.
In order to qualify for mortgage modification, homeowners must meet the following conditions:
- New mortgages are not eligible. To qualify, mortgages must have originated before the end of 2008.
- The homeowner must occupy the home as his or her primary residence. This requirement will be verified with documentation from past property taxes. Homes that are purchased for investment purposes are not covered because the basic reason for loan modification is to keep homeowners living inside the home in question.
- The home must be a single-family residence no larger than four units in size. The units may be comprised of condos, duplexes or houses.
- The home cannot be condemned or vacant at the time of applying for mortgage modification.
- Homeowners who have filed bankruptcy or who are in the process of filing bankruptcy are not eligible for mortgage modification.
- The unpaid principal balance of single-unit, first-lien mortgages must not be more than $729,750. The maximum unpaid principal is higher for multiple-unit homes.
- Multiple loans cannot be modified simultaneously.
If you believe you meet the criteria for a mortgage modification, give us a call to discuss the details and to learn more about how mortgage modification can help you.
Protect against Mortgage Modification Scams
In the past several years, as the foreclosure rate in the United States skyrocketed, many people have begun to seek alternatives to losing their homes.
Protect against Mortgage Modification Scams
In the past several years, as the foreclosure rate in the United States skyrocketed, many people have begun to seek alternatives to losing their homes. One of the alternatives to foreclosure that has grown very popular is mortgage modification.
As it has become apparent that desperate homeowners are willing to pay steep fees to keep from foreclosing, many new companies have sprung up offering mortgage modification. The problem is that many of these companies are not legitimate. These unscrupulous companies take fees from homeowners and often leave them in a worse position than when they started and with no time left for any other options to avoid foreclosure.
Mortgage Modification Basics
Mortgage modification is a process that involves hiring a representative to negotiate on a homeowner's behalf with the current mortgage lien holder. The negotiations involve restructuring the existing mortgage in such a way that is mutually beneficial to the homeowner and the lender. As part of the modification, the interest rates can be lowered, adjustable mortgage can be turned into a fixed rate or principal may be deferred at low or zero interest. In addition, the repayment term may be modified to lower the monthly payments.
Mortgage modification helps to keep homeowners in their homes and it provides a means for lenders to avoid the unrecoverable costs of foreclosure. Not every homeowner or mortgage qualifies for loan modification, and legitimate mortgage modification companies will not take on clients that do not meet all of the requirements.
Mortgage Modification Attorneys
Mortgage modification scam companies operate by pushing a hard sell for mortgage modification onto homeowners facing foreclosure. This is usually accomplished through the mail or over the phone. For their services, the company's require payment of monthly fees that are usually made through automatic credit card charges. Unfortunately, the collection of fees is as far as the services extend. The scam companies then either do nothing or very little in the way of negotiating a modified mortgage.
Because of the infiltration of these scam companies into the mortgage modification market, we recommend that you first research any company offering mortgage modification services. One way to help reduce your risk is to work only with a licensed law firm experienced in mortgage modification. By choosing a law firm over a company made up primarily of telemarketers, you will experience several advantages, including being able to consult an attorney about your legal rights and the legal options available that can help you avoid foreclosure.
By contacting a nationally recognized law firm for your mortgage modification, you will not only acquire a team of legal experts working on your side, but you will have some peace of mind knowing that only your best interests are in mind.
