A loan modification is a change to your mortgage that you apply for through your lender. If you are struggling to make your monthly mortgage payments, a loan modification might be able to help make your mortgage more manageable by lowering your monthly payments to help you avoid foreclosure.
For anything involving foreclosure, working with a lawyer is often recommended, and for a good reason. Foreclosure is a complicated process with many legal nuances that someone with no foreclosure experience may struggle with. There are also other options for delaying or stopping foreclosure that homeowners might not know about. Working with an attorney for mortgage problems can help make sure that you’re following the best path for your situation.
Joshua Denbeaux is an experienced foreclosure attorney who has helped hundreds of homeowners fight foreclosure and is particularly familiar with the foreclosure and loan modification process in New Jersey. If you are trying to determine if getting a loan modification is a good idea, contact Denbeaux Law today to schedule a free consultation.
What is a Loan Modification?
A loan modification is a change to the terms of your loan that you make with your mortgage servicer. A number of mortgage factors can be changed with a loan modification, such as reducing your interest rate, converting your mortgage to a fixed interest rate, or extending the length of your loan term.
If you are struggling to pay your mortgage and are considering a loan modification, it’s recommended that you consult with an experienced home loan modification attorney. The process of getting a loan modification can be complicated, and a loan modification lawyer may be able to use their experience and resources to help you get the modification you need.
How to Get a Loan Modification
To get a loan modification, you have to apply through your loan servicer. Many people aren’t aware that your loan servicer can change once or numerous times throughout the length of your loan, so it’s important to be aware of mortgage servicer changes when trying to get a loan modification. It’s important to identify who your mortgage servicer is because the loan modification process will differ depending on the servicer.
The loan modification process can be complicated. You have to provide a lot of specific information and financial documentation in your application to be considered by your mortgage servicer. After you complete your application, your lender can approve your loan modification.
After your loan modification is approved, the loan modification is not over. There is typically a trial period before a loan modification is put into place. A loan modification attorney can help you through each step of the loan modification process to make sure you understand what’s going on and what action you need to take.
Loan Modification Attorneys Know What to Look Out For
Mortgage companies have a lot more experience with loan modifications than the average person and often use that experience to take advantage of uninformed and inexperienced homeowners. When you decide to go it alone for your loan modification, you may not know what to watch for, which could result in foreclosure.
In some cases, a mortgage company may promise a homeowner a loan modification and proceed with foreclosure anyway, an illegal process called dual tracking. There are a few ways that this can happen. Your mortgage servicer can enter a default judgment against you even if they say they’re working with you. There’s also a chance that they offer a loan modification as a way to distract you from fighting a foreclosure.
Depending on where you are in the loan modification process, your lender moving forward with a foreclosure may be a servicer violation that could negate the entire foreclosure process. If this happens to you, you should consult a loan modification lawyer as soon as possible to help you fight this as quickly as possible, even if you didn’t hire an attorney initially.
What Can an Attorney Do for a Loan Modification?
An attorney can help in a variety of ways throughout the loan modification process. Our loan modification attorneys are knowledgeable about the loan modification process and can help you through the complicated process.
Your mortgage servicer may be more willing to negotiate with you if you work with an attorney. Your attorney can help you as you complete your loan modification application and make sure you have all of the qualifying documents and that they are filled out correctly.
An experienced attorney can also help you as you work with your mortgage company. A loan modification lawyer can help you negotiate better terms and conditions for your loan modification while looking out for terms or conditions that might be harmful to you.
One of the main benefits of working with a loan modification attorney is that you can use their knowledge and experience to identify errors or violations that you might not have caught on your own.
Homeowners also run the risk of being denied a loan modification. Lenders tend to want to work with homeowners to avoid the foreclosure process. However, they can still deny your application if you don’t have the proper paperwork or don’t meet the servicer’s qualifications. If you are denied a loan modification, a loan modification lawyer may be able to work with you to appeal the denial, fix the application, and reapply or find an alternative solution to make sure you’ve explored all potential options for your specific situation.
Contact a Lawyer for Loan Modification
Ultimately, there are a number of reasons why you should consider hiring a loan modification attorney. Before applying for a loan modification, you should make sure that you’re protected and prepared. Working with an experienced attorney may be the best way to prepare for any loan modification proceedings.
Joshua Denbeaux is an experienced loan modification attorney who has been fighting for homeowners in New Jersey for over 15 years. Contact us today to schedule a free consultation to learn more about how he may be able to help you.
