Loan Modification Help Center ? Frequently Asked Questions

Written by admin on March 25th, 2011

As loan modifications have become more popular, it’s more important than ever to properly inform the public as to what the various elements surrounding loan modifications.

Q: Is a loan modification right for me?

A: A loan modification can be right for any homeowner who has a steady source of income and who is facing a serious financial challenge.

Q: Do I qualify for a loan modification?

A: Obviously it depends upon your situation.  If you contact a California loan modification attorney today, you could get more information to help you make an informed decision about your financial future.

Q: Do I need to be in default or late on my mortgage loan to get a loan modification?

A: No, loan modification standards have changed of late, and loan modifications can be negotiated for properties in default as well as current on their payments.

Q: What is forbearance?

A: Forbearance is a voluntary postponement of the foreclosure process by a lender.  A lender will refrain from foreclosure if some sort of negotiation can satisfy any overdue payments.  In most instances, unless a loan modification attorney is brought in, there is no change to the mortgage.  Forbearance is not the same as a mortgage loan modification.

Q: How are loan modifications negotiated?

A: Successful loan modifications are negotiated usually by qualified attorneys assisted by experts in various fields and other facilitators.  In this situation, a loan modification attorney will represent a homeowner in negotiating with the lender.  The loan modification attorney will attempt to convince the lender or bank that if the loan is modified the homeowner will be able to make payments and stay in the home.  Sometimes expert witnesses are used to make the case.

Q: Can I negotiate my own loan modification if I am a homeowner?

A: Yes you can.  However, without the knowledge of the industry, the law and how banks operate, you would be at a serious disadvantage.  A loan modification attorney with a qualified, experienced background understands the terminology, the history and how banks negotiate.  While you may never have negotiated a loan modification before, an experienced loan modification attorney may have negotiated hundreds, if not thousands of loan modifications successfully.

Q: What are the advantages of using a loan modification attorney?

A: There are actually quite a few benefits.  They usually get a quicker, positive response from lenders as they have the law on their side.  They also have experience dealing with the mountains of paperwork, the complex process and lenders who will do their best to negotiate a deal that benefits them and not you.

Q: What makes a loan modification acceptable to lenders?

A: In the end, your lender wants to make sure they are getting their money.  For a loan modification to be acceptable, the property owner needs to show two main facts: an obvious hardship and inability to keep making mortgage payments at the current rate; and the ability to continue paying the mortgage if payments are reduced.

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