Loan Crisis
During these hard economic times, we continue to see people of all ages concerned about their legal rights and obligations. The stigma that was once associated with foreclosure and bankruptcy is quickly dissipating as the number of effected individuals continue to rise. It is important to understand your legal rights and options.
Everyone has been affected by the recent mortgage crises. Predatory lending has impacted individuals of all ages across our valley. We see cases of individuals everyday that have been affected and are either in danger of losing their homes or are so upside down in their homes they are fearful of having no way out. A loan modification may be the solution.
It is possible to modify your loan to make it more in line with the current market standards. The banks are typically willing to do this, because they do not want your house in foreclosure. Keeping you in your home saves them money. When asking for a loan modification, there are four areas we seek to modify. You can reduce your principal or total amount you owe on your mortgage to the current value of the property. Reduce the interest rate. Convert your loan to a fixed 30 year period. And lastly, you can request that any missed payments are forgiven or wrapped back into your loan.
While the process for requesting a loan modification is straight forward, it can be time consuming and frustrating. As more individuals request loan modifications, the requirements become more strict. You may spend hours on the phone trying to get to someone who can actually answer your questions. Then depending on whom you talk to, you can get a variety of answers. That is why it is beneficial to you to hire someone to negotiate on your behalf. Be wary, loan modification companies continue to pop up all over town. These companies advertise as “law firms” or “loan modification specialist” but are really a front for people trying to get your personal information and money.
When hiring a company to modify your loan on your behalf make sure that you actually meet an attorney. If you do not meet an attorney during the consultation, you are probably not dealing with a law office. Also, be cautious of companies who want to charge you additional money depending on the resolution they get you. This may be a way to manipulate you for more cash.
Please contact our office at 448-4962 for more information. Hiring someone to represent you is an important decision, having more information will help you decide what is best for you. Loan modifications are helpful but don’t allow yourself to be taken advantage of. This article is for informational purposes only and does not constitute legal advice or representation.