Effective Loan Modification Knowledge - Loan Modification Advice
Many people facing foreclosure and in dire financial circumstances have in-depth questions regarding loan modifications. At the Feldman Law Center, our skilled loan modification attorney team works hard to provide the best possible information to borrowers and others who are interested. Here are some answers to some of those questions.
Q: What makes a loan modification proposal acceptable to lenders?
A: Creditors and lenders are usually looking for certain criteria when considering loan modifications, and the property owner usually needs to show two main facts: an evident hardship and inability to keep making mortgage payments at the current rate; and a clearly demonstrated ability to continue paying the monthly mortgage payments at a new, reduced rate. A California loan modification attorney can be a great asset in compiling the necessary information for this process, because a skilled California loan modification attorney will have years of experience in compiling such information. You need to compile your last two years' financial information which includes pay stubs, tax returns, bills, loan information and more. You also need to write a hardship letter detailing your current financial situation and how a loan modification would improve your chances of staying in your home.
Q: Which is better, a refinancing or a loan modification?
A: To be honest, a loan modification and refinancing are two completely different things, and really there isn't a better option between these two. It's sort of like comparing apples and oranges.
If you refinance your mortgage, a completely new mortgage is created and the existing mortgage is paid off. With a loan modification, your existing home loan mortgage is restructured so that the monthly payments are more affordable. A California loan modification attorney can sit down with you, assess your situation and let you know if a loan modification is the right answer your current situation.
Q: How much does it cost to modify a loan?
A: The answer to this question will change from person to person and from situation to situation. The best way to get a definitive answer is to sit down for an initial consultation with a qualified, successful loan modification attorney and ask him or her exactly how much their services will cost and what the fees will be. The initial consultation will most likely be free and you may be able to make a payment schedule for other fees.
In the end, you should really be asking yourself how much it would cost you if you just allowed your home to go into foreclosure. Think about losing your home and the serious investment you've put into it. You not only lose the thousands of dollars a month it costs to pay your mortgage, but you also lose your place to live.
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