Loan Modification and Workouts
If you are struggling to make your monthly mortgage payments or have fallen behind, you may be at risk of losing your home. But depending on the circumstances, you may be eligible for a loan modification, which can make it easier to stay on top of your mortgage payments and avoid foreclosure.
Loan modification is a change made to the terms of an existing loan by a lender. It may involve an agreement in the form of rate reductions, fixing the interest rate, extending the term of the loan, and reducing principle, or maybe a combination of all of the above.
Most successful loan modification processes are negotiated with the help of an experienced attorney and team of experts. Sternberg Law Group has been modifying loans for years. Our mortgage modification attorneys are experts at securing loan modifications for our clients that help to make their loans work for them, saving them from losing their home and ending up in financial ruin.
We have the experience you can trust and want to have working for you. If you can no longer sustain your mortgage with its current terms, contact us today.
Qualifying for Foreclosure Assistance
Sternberg Law Group will conduct a free consultation to determine whether you are a pre-qualified candidate for a loan modification. While the qualification formula is complicated and comprehensive, generally, people who have suffered a documentable hardship will qualify for a loan modification program.
A loan is considered modified when the lender (bank) agrees to reduce the homeowner’s (borrower) monthly payment by restructuring the existing terms of the loan. The lender will reduce interest rates, adjust the length of the contract and reduce principle balance in an effort to make the loan payments affordable to the homeowner’s current financial position.
An important question addressed in all loan modification submissions is the existence of a documentable hardship. Even if the hardship is temporary, the most important aspect of the hardship is that it must be provable.
Here is a list of hardships to consider in qualifying for a loan modification:
- Reduced Income
- Loss of Job
- Inability to Sell the Property
- Inability to Rent the Property
- Mortgage Servicing Problems
- Reduced Income
- Failed Business
- Marital Separation
- Medical Bills
- Job Relocation
- Illness of the Borrower
- Illness of a Borrowers Family Member
- Abandonment of Property
- Property Problem
- Transfer of Ownership Delays
- Death of the Borrower
- Death of Spouse or Co-Borrower
- Death in the Family
- Military Duty
- Damage to Property (natural disaster or unnatural)
Can I do a Loan Modification Myself?
The answer is yes. However, working with your lender can be very complicated and stressful. There are qualification formulas and financial packages that the banks need to see in order to qualify a homeowner for a loan modification.
It is not a good idea to negotiate with your lender on your own. It is important to use a trained professional to guarantee you receive maximum results.
Protecting Your Credit Score
Typically, the loan modification process takes 3-4 months. It is not required for you to go 30 days late for us to modify your mortgage, therefore you can stay current with your mortgage and avoid any negative credit reporting. You do not need to have good credit to qualify for a loan modification. Your current credit score does not factor into the loan modification process.
Receiving a loan modification or simply going through the loam modification process, does not damage your credit. However, being 30 plus days late on your mortgage payment does.
Why Work with a Law Office?
With hundreds of overnight Loan Modification businesses popping up all over the country, this opened the flood gates for scam artists and quick money gimmicks. Many people in the process of trying to save their home wind up losing thousands of dollars and their homes, an intolerable double blow. Many of these firms charge homeowners just to push paperwork to your lender. Protect yourself by hiring a licensed professional. Even the Loan Modification firms that are legitimate often times still mishandle the process, leading to a complete loss of your investment and home. There is no substitute for working with an attorney.
Sternberg Law Group has successfully worked with the following lenders and others:
- American Advisors
- American Mortgage
- American Savings
- America’s Wholesale
- Bank of America
- Cal Fed
- Financial Freedom
- First Capital
- Home Capital
- JP Morgan
- Mr. Cooper
- National City Mortgage
- Nations Direct
- PHH Mortgage
- PMC Bancorp
- Provident Funding
- Quicken Loans
- Select Portfolio Servicing (SLS)
- Sierra Pacific
- Sunwest Mortgage
- United Financial Mortgage
- US Bank
- Wells Fargo