Georgette’s Top 7 Loan Modification FAQ’S

A loan modification can seem confusing, but it’s well worth changing terms to a more suitable payment plan. The process involves working with the lender to figure out the options for changing the original contract to suit your financial situation. Unfortunately, most people wait until they are at-risk of losing their home to take action. Check out our frequently asked questions to understand more about modifying your home loan in a way that is beneficial to you.

-Why Would a Lender Even Consider Modifying My Original Loan?

Lenders want to work with you to help ensure that they are going to continue getting paid. Lower payments are logically more valuable than no payments at all, and that’s only one aspect of their potential losses. The value of the home could possibly be lower than the price you’re purchasing at due to changes in the housing market. They’re also looking at the cost to fix the home to re-list, attorney fees involved in foreclosing, and paying commission to a selling agent.

-Can My Accumulated Late Charges and Penalty Fees Be Included in the Loan Modification?

The lender may waive fees, negotiate a lower interest rate, extend contract terms, refinance the loan, or agree to add missed payments to the new agreement. There is no clear cut answer because every lender offers different solutions.

-Can I Qualify for a Modified Loan with a Low Credit Score?

Unlike the initial loan, modification doesn’t require a brand new application thatwould rely heavily on credit score. If you do happen to have a low score, it is beneficial to reach an agreement for easier payments rather than fall into missed payments, bankruptcy, or foreclosure.

-How Do I Find Out if I qualify for a Modification on My Loan?

Get in touch with the mortgage company that provided you with the loan to determine if you’re qualified for making changes to the original terms. Every situation is different and it’s ultimately up to the lender to decide if modification is the right solution.

-Can a Loan Modification Put a Stop to Foreclosure?

Yes. If you are still living in the home with a threat of foreclosure, it is important to act fast to work out an agreement with the lender. Experienced loan modification attorneys are the most valuable resource for quickly negotiating before it’s too late.

-Can I Qualify for a Loan Modification if I’m Not Behind On My Mortgage Payments?

Eligibility is not always determined by difficulty making payments or completely falling behind. If the lender is willing to change the terms while in good standing with the contract, it is smart to be proactive with the loan modification.

-Can I Do My Own Loan Modification or Should I Hire a Company?

While you may handle your own loan modification, an attorney is the first place you should turn for representation and advice in modifying the terms of your loan. Without their knowledge and expertise, it is easy to get confused or be taken advantage of by the lender. Hire an attorney to negotiate a modification that is suitable to your financial situation.

Every situation is different and should be evaluated by our experienced bankruptcy lawyers to find out your options. If you’re in the New York, New Jersey, Maryland or DC area, contact us today at 866-964-6529 to find out how Georgette Miller and Associates, P.C. can assist you.