A loan modification program can be complicated and confusing for first time homeowners or any home owners who find themselves in over their heads. However, a modification may be your only hope to save your house and make ends meet. Knowing how to navigate the rough waters of getting approved for the program isn't something you just pick up - which is where a loan modification attorney can help.
Loan modification is really just a fancy name for 'redoing' your loan. You and your lender simply sit down, take a second look at your situation, and figure out a way to adapt your home loan to your current finances. Of course, if it's just you and your lender, all the expertise in the room is on their side of the table. An attorney versed in loan modification law can help you considerably and provide a strong presence on your side of the table during negotiation.
A loan modification is an option that allows you to basically get a 'do-over' on your home loan. If you started out with a house worth $130,000, made a $15,000 down payment and financed the remaining $115,000, you are like a lot of other homeowners. If you have now paid your loan balance down to $100,000, but the home values in your area have nosedived and your home is now only worth $90,000, well, you are still in the same boat as a lot of other homeowners.
This rapidly increasing trend of 'upside down loans' is why the Obama Administration has passed acts enabling banks to modify home loans in unprecedented numbers. Formerly, principal amounts financed were written in stone, and a few missed payments meant foreclosure.
Now even principal amounts due on loans can be renegotiated with the lender - when faced with having to foreclose on a home and take a large loss selling it at auction, many lenders are willing to accept the smaller loss of forgiving part of the principal. Government backing for this type of action provides incentive for lenders to work with homeowners to reinstate loans.
Of course, so many people are attempting to qualify for loan modification that it can be hard to make yourself heard. An attorney can be invaluable; helping you draft your hardship letter, gather your documentation and decipher all the legalese that comes along with any binding transaction. You lawyer can look out for you during negotiations so you get the best deal possible - one that lets you keep your house and keep up with your bills!
Once your loan modification is complete, you will be expected to abide by it, so it is vital that you end up with terms you can live with and afford. Having someone trained in loan modification best practices can make all the difference. In addition, it helps to simply have someone on your side, willing to fight for your best interests and keep you from being pressured into a bad agreement simply because you don't quite 'get' all the legalese in the papers you are asked to sign.
A loan modification program can save your home, you just need a knowledgeable attorney to walk you through the process and ensure you get everything you deserve.