Questions to Ask Your Loan Modification Lawyer
There are multiple types of loans. Loans for cars, student loans, small business loans, etc. The one that people need the most help with is a home loan. Mortgage payment default is not uncommon.
Unfortunately, homeowners still feel shame when they default on their mortgage and often wait until it’s too late to make things right.
It is best to take action quickly before things worsen. Generally, the longer you wait, the less flexibility you will have when negotiating mortgage terms.
How Can a Loan Modification Help Me?
In simple terms, when a borrower falls behind on payments, a loan modification helps to permanently restructure the loan terms so that the individual can successfully fulfill their financial obligations to the lender. While any loan can be modified, secured loans like mortgages are the most common.
The loan modification law services can help you get back on track in several ways. To be eligible for a loan modification program, you do not have to be completely in default on your loan. If properly handled, the lender may agree to various things, including:
1. Principal Reduction
With the support of a loan modification attorney, you may be able to persuade the lender to eliminate some of your debt. This is the ideal situation. Lenders are generally unwilling to reduce loan principal.
Still, you may have a fighting chance if you have a skilled loan modification attorney who can successfully negotiate on your behalf. If you manage to pull this off, remember to check with your financial advisor.
2. Lower Your Interest Rate
A lender may agree to lower your home loan’s interest rate, reducing your monthly payments and providing immediate relief. However, before agreeing to this arrangement, read the fine print. Some lenders will only reduce the interest rate for a limited time. Planning to be ready when the payments rise again will be critical.
3. Delay or Postpone Payments
Delaying or postponing payments is an excellent option for people between jobs or who had hard times, such as hiring a personal injury lawyer for a medical emergency.
This type of modification, also known as a ‘forbearance agreement,’ allows the borrower to skip a few loan payments. Remember that you will have to make up some of these missed payments at some point.
Questions to ask
The situations differ for each home loan and individual. Given the possibility of foreclosure, it is recommended that you contact a loan modification attorney to learn how they can assist you.
During the screening process, be sure to ask them these questions:
How Much Loan Modification Experience Do You Have?
Any attorney or law firm that claims to specialize in loan modifications or foreclosure law should be able to answer this question, but it is worth asking anyway.
Your home is likely to be the most expensive investment you’ll ever make. Hire a loan modification attorney who will fight for you, your family, and your home to achieve the best possible outcome.
How Are You Different from Other Firms
This is an opportunity to hear their pitch. Allow the foreclosure attorney to explain why they are best suited to represent you.
How Long Will the Process Take?
Mortgage lenders can be shady. They may prolong the negotiation process to run down the clock and foreclose on you. This is unusual. An experienced loan modification attorney will make sure that this does not happen. They can help you buy more time and postpone foreclosure until an agreement is reached.
