Loan Modification FAQ
Loan Modification Attorney in Attleboro, Massachusetts and Providence, Rhode Island
What is a loan modification?
A loan modification is a process wherein a borrower and lender work out an agreement that modifies the terms of an existing mortgage. The purpose is to lower the borrower’s monthly payments.
Do I need an attorney?
Working with a Massachusetts and Rhode Island loan modification attorney is highly recommended. Working alone, you may find that you have difficulty getting the process started and moving it along quickly. This is particularly important when you are in danger of facing foreclosure and need quick relief. An attorney can also protect your legal rights through the process of seeking a loan modification in order to reach new terms that actually work for you.
Will my lender allow a loan modification in the first place?
With the housing market in the condition it is in, almost all lenders provide loan modifications. It may actually save the lender time and money by avoiding the need to foreclose on the property. You should contact your specific lender to find out whether they offer loan modifications.
Will bad credit affect my ability to get a loan modification?
A loan modification is not based on your credit but rather your ability to pay the modified payment. As such, you will need to show that you have the income to cover the new payment, but seeking a loan modification will not hurt your credit.
How much money can I save?
Depending on the modification of your mortgage, you may save hundreds or even thousands of dollars every month. With a 30-year mortgage, this could add up to well over one hundred thousand dollars!
Will I be able to get a loan modification if I’m upside down on my home?
It does not matter if you have no equity in your home or owe more than it’s worth. A loan modification is simply meant to alter the terms of your mortgage. In some rare cases, a bank may even allow a principal reduction, which actually discounts the loan amount to the current value of your home, or close to it.
Find out more about this important issue by contacting a Massachusetts and Rhode Island Loan Modification Lawyer at our law firm today.