What is a loan modification?
A loan modification is an agreement between the borrower and the mortgage company to change the original terms of the mortgage — including the amount, length of the loan, interest rate, and more. The goal of a loan modification is to prevent foreclosure and keep the homeowner in their home by lowering mortgage payments to an affordable amount.
Depending on your situation, The Lane Law Firm's experienced team of foreclosure defense attorneys can delay or even halt your foreclosure while a loan modification is negotiated.
Advantages of a Loan Modification
Loan modification is an ideal solution for most homeowners, as it allows you to keep your home and prevent foreclosure. While loan modification is a great option, it is only available if the mortgage company believes modification is in their best interest. That's where an attorney can help.
When is a Loan Modification the Best Choice?
Loan modification is an option for homeowners who want to keep their home and stop the foreclosure process. If you had originally fallen behind on payments, are now able to make payments again, but just don't have the ability to pay the full amount due, you may be a good candidate for a loan modification. The most frequent cause for foreclosures is a sudden and temporary change to the financial condition of the household, including:
- Birth or death in the family
- Extended and unexpected hospital stay
- Caring for loved ones
- Change in job or working conditions
If you have undergone any of these difficult situations and are now able to make payments again, but your home is at risk of foreclosure, loan modification may be an option for you.