What is a Loan Modification?
A Loan Modification is the act of making favorable changes to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the principal balance, interest rate or an extension of the length of the term of the loan. In some cases a different type of loan or any combination of the three.
Why would a lender perform a loan modification?
A lender may be open to the idea of a loan modification because the cost of doing so is less than the cost of default or foreclosure. Although your mortgage company would never admit it, after all they are debt collectors by trade and debt collectors are not interested in doing anything that would prevent them from maximizing the return on the debt owed them by their creditors.
Lenders do not want your home or the hassles and costs associated with foreclosure. It costs a lender more to foreclose and then sell your home on the open market than it would to perform a loan modification and help you stay in the home. Remember, they are in the business of lending money, not owning real estate.
What is a Loan Modification Agreement?
A loan modification agreement is different from a forbearance agreement. A forebearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan.
How do I qualify for a loan modification?
Negotiating with the bank for a loan modification of your home loan can be an overwhelming process for many homeowners. That is why retaining the services of an experienced loan modification attorney is of extreme importance.
How do I know if a loan modification is right for me?
Talk to a loan modification attorney licensed to work in your state. The consultation is FREE and there is no obligation to hear how a loan modification can save your home and mortgage without refinancing and without losing your home. Don't be the next victimof foreclosure. Call us andhear what you can do to help yourself NOWby clicking here or call us at 1-800-243-5705.
Morrison Law Center, PLLC is a law firm. In contrast, "attorney based" or "attorney-backed" loan modification companies are not. As such, when you discuss the details of your mortgage with an "attorney-based" or "attorney-backed" company, there is no attorney-client privilege. Any conversation you have with a non-law firm loan modification company is likely discoverable by a state or federal agency and not protected by attorney-client privilege and therefore not confidential. Prosecuting agencies are becoming more aggressive recently in bringing prosecutions for mortgage fraud based on overly optimistic or inflated representations regarding income or monetary reserves at the time of qualifying for the loan. Therefore, if you are concerned that statements you made on your mortgage loan application could be construed as false or misleading, and you are at risk for foreclosure, please contact Morrison Law Center, PLLC immediately.
Do not discuss this issue with anyone other than a licensed attorney.
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