Help with a Loan Modification is not easily obtained on your own. For homeowners experiencing long-term difficulties in repaying their mortgage loan, Loan Modification is a great option.
A loan modification is a change in one or more of the terms of your agreement with your loan servicer. A modification restructures your loan to provide the home owner with a mortgage that they can afford. A modification may include one of the following:
- a change in the loan’s term for a longer period of time
- the reduction or forgiveness of the principal associated with the note
- a change in interest rate associated with the note, such as the lowering of the applicable interest rate
- or the conversion of an interest rate from an adjustable to a fixed interest rate.
If a loan modification is approved by the lender, a trial period of three months will take effect. This will verify that you are able to pay the new mortgage amount on time for the trial period
and if so, the lender will then give a permanent loan modification with almost the same amount as the trial period payments.
There are many types of modifications available to home owners. Eligibility will depend on the investor of your loan, how long it has been since you have paid the mortgage, and the overall financial situation of the home owner.
TheFederal Home Affordable Modification Program ("HAMP"), the most commonly referred to modification program was created in connection with the United States federal government's Making Home Affordable Program. HAMP has become the gold standard modification program and has served as a template for many modification programs that are not formerly associated with HAMP. However, not all lenders participate and it also depends on whether it is a Fannie Mae, Freddie Mac or FHA.
The application process for a loan modification can be very frustrating and confusing. It is not easy to do alone, and it may be in your best interest to obtain professional counsel. We will analyze your individual circumstances to better assist you in your decisions. Davis Law Center, LLC has the knowledge to help navigate through the eligibility requirements, gather the appropriate paperwork, and their experienced attorneys will guide you through this arduous process. Together, we will help you get the results you seek.
When you fail to make a mortgage payment within 30 days of the due date you are considered to have defaulted which means that you are now delinquent on your payments. After your payments fall 90 days behind, the mortgage company will most likely send a registered a letter to you called a Notice of Default (NOD). This letter puts you on notice that the bank has the option to refer your mortgage over to an attorney and start the formal foreclosure process.
Proceedings can then be initiated for the mortgagee to foreclose and take the home back. Therefore, the foreclosure process involves terminating your ownership and rights to the property, evicting you from the premises, and selling your property (usually at auction) to recuperate the money that was loaned.
At Davis Law Center, LLC we know that the possibility of losing your home can be scary and stressful. This is the home that you have worked very hard to keep for many years. You do not want to lose it. This is the home where you and your spouse and possibly your children have lived in and have made it special.
It may be difficult to see a way out—but don’t ignore the letters and phone calls! We will provide you with different options and strategies to help you negotiate with the bank to lower your interest rate and/or get a principal reduction through a Foreclosure Defense.
We can help at any stage of the foreclosure process. Some of these stages are as follows:
1) You may have received an “Intent to Foreclose” letter from your lender.
2) You may have received foreclosure paperwork from an attorney recently.
3) You may have received a foreclosure lawsuit a while ago.
4) Letter saying your house will be sold at auction soon.
The legal foreclosure defense attorneys at AHS are dedicated to help you save your home. Within foreclosure defense, there are a variety of different strategies — only with a licensed attorney can you be sure you’re getting the best possible defense. Don’t leave the protection of your home to chance, call Davis Law Center, LLC today for a free consultation.