Whether it’s losing your job or experiencing some type of financial hardship, your disposable income can be significantly reduced to the point where you’re unable to make your mortgage payments. When you fall behind on home loan payments, your lender may foreclose after 90 days and it can have a negative impact on your credit score.
Fortunately, sometimes a mortgage modification can help avoid foreclosure. A home loan modification amends the original terms of the mortgage agreement, enabling you to make payments you can afford. Once your income, mortgage payment, and other debts are thoroughly examined, your lender may lower your mortgage’s interest rate, thus substantially lowering your home payment into something more manageable. Mortgage modification should not be confused with refinancing, which requires the completion of a new home loan application and usually requires (REMOVE INVOLVES) a credit score of at least 620 to 680, as well as being responsible for any related fees.
But when it comes to getting it done, are you able to negotiate a loan modification on your own or do you need professional help? First, it is important to understand that banks and other financial institutions that provide mortgage loans have a hardship department where you can request a modification if you can no longer afford your payments. Although a telephone request commences the process for modification, you must provide your lender with thorough documentation substantiating your situation. (REMOVE - visit your lender in person to discuss your situation and negotiate the terms of the new mortgage.) Obtaining approval for modification can take many months to complete. (REMOVE -up to 90 days.)
If you have the time and energy to commit to the process on your own, then you may not don’t (REMOVE “DON’T”) need a lawyer. On the other hand, if your busy schedule does not enable you to meet the deadlines and navigate the process, having an experienced attorney on your side can help you get the results you desire. The process for modifications is known to be slow, especially when a lawyer is not involved. Having legal representation can force your lender to take action and resolve the issue quicker.
For more information, contact our Brevard County foreclosure attorney at The Buchalter Law Group today.