What is a loan modification? How long do they take? Are they guaranteed? These are the questions I intend to answer. As I am sure of it, most homeowner's are familiar with the current mortgage crisis that has struck the United States. Those very same people have families, or count on the property for rental income. Whatever the case may be, if you are unable to pay your mortgage due to life's unexpected twists and turns; a loan modification may be able to help you keep your home. First things first, what is a loan modification?
Loan modification – negotiations with your servicer/lender in the areas of and not limited to: reduced monthly payment, reduced monthly interest-rate, recapitalization of arrears and having your loan brought current; thus avoiding foreclosure.
The core requirement of achieving a modification is knowledge of the lender's guidelines. Who should you trust when it comes to a loan modification? There are dozens of loan modification or “mod shops” as they call themselves. However in order to protect yourself from being preyed upon by opportunists, always use a law firm. A law firm which specializes in modifications will be able to achieve a loan modification more successfully than a traditional modification company. It also ensures that clients of the law firm receive their due diligence since an actual lawyer's license is on the line. When it comes down to loan modifications you can expect a completely different type of business. A law firm will have properly filed documentation, as well as in-house lawyers that provide legal counsel to their firm. But back to how long they take:
How long do they take? - Because lenders are so extremely back logged due to the mortgage crisis the usual time line for a loan modification is above 60 days. There are exceptions however as how long your modification takes is correlated to the number of days you are delinquent. In order to get the best estimate contact a loan modification law firm.
The most important goal of a homeowner in distress is to make the next few decisions in their lives as “correctly” as possible. In choosing a loan modification company make sure the company is run by an actual Lawyer. The Feldman Law Center, for example is a law firm that specializes in loan modifications. When dealing with an actual law firm you will gain the legal knowledge that comes with operating a law firm. In addition, the foreclosure process is a legal process; and therefore trusting a law firm is the smartest move you could make.
Sitting back and hoping that the government will step in with a mortgage bailout in our current environment is not a wise choice. By looking into a law firm that specializes in loan modifications you are taking your first step towards getting a successful loan modification. My last piece of advice would be to contact your local modification law firm as soon as you feel you can no longer afford your home. A good company should have a proven track record, lawyer(s) in-house and experience in working with a wide variety of servicers/lenders. By being proactive you decrease your chances of being foreclosed upon and avoid losing your home. Thank you very much for joining me in this brief loan modification summary. For more information please call us at (800) 588-0425 or visit www.feldmanlawcenter.com
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