Loan Modification: Knowing Your Options
If you’ve fallen behind on your mortgage, you could soon be on the road to foreclosure.
A loan modification is a modification of the original terms of your mortgage to save your home. Unlike a refinance, a loan modification does not pay off your current mortgage, but replaces it with a new one. A loan modification may be the right path for you, however, during your initial consultation, we will evaluate all of your options and help you decide which is the best option based on your financial goals. If you are not eligible for refinancing, are having long-term difficulties, or are several months behind on your mortgage payments, a loan modification may be beneficial for you.
Our goal with a loan modification is to lower your monthly payment and bring you back to current status with your lender. Some benefits of a loan modification include:
- Stay in your home and avoid possible foreclosure
- Permanent modification of the initial conditions of your mortgage loan
- Less damage to your credit score
- Reduce your monthly mortgage payments to a more affordable amount
- Offer a fixed interest rate
The eligibility requirements for loan modifications are different for each lender, as some lenders require at least one late or missed mortgage payment. Lenders can also assess the causes of difficulties and determine if a loan modification is the right path in terms of affordability. Lenders will most likely ask for proof of hardship which may include a decrease in household income, divorce or separation, increased housing costs, a health pandemic, or illness or disability. If you don’t qualify for a loan modification immediately, you have the right to appeal. Getting specific information about why it was denied will help you prepare a better case in your appeals.
Here at DAL Law Firm, we would represent you in your modification and handle the entire process as well as handling any correspondence with the mortgage lender. If you need more information about loan modifications we can help, call or text us today at (206) 408-8158.
19803 1st Avenue S.
Normandy Park, WA 98148
Phone. (206) 408-8158
F (206) 374-2810
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