A loan modification allows you to modify your original loan with your mortgage company. It’s often considered to be a great resource for homeowners to save their homes from foreclosure. Depending on the specifics of your situation, pursuing a loan modification might be a good idea for you.
Before applying for a loan modification, it’s important that you’re aware of all of the different loan modification requirements. Even if you meet all of the requirements, it can still be difficult to get a loan modification approved. Before starting the process of trying to modify your loan, consider talking to an experienced loan modification lawyer.
Joshua Denbeaux is a New Jersey foreclosure and loan modification lawyer who has represented thousands of homeowners fighting to keep their homes. Contact us today to learn more about how he may be able to help you save your home.
Tips to Help You Get a Loan Modification
Through the many years that Denbeaux & Denbeaux Law has worked with foreclosure and loan modifications, we’ve discovered a few helpful strategies that we often use with our own clients.
Contact a Loan Mod Attorney
Before applying for a loan modification, you should consider talking to an attorney you trust. A loan modification attorney can help make sure you’ve explored all of your options before taking any action. The experience and advice of an attorney can help you make sure that you’re choosing the option that’s best for your situation.
Gather Your Documents
In order to apply and get approved for a loan modification, there is certain documentation, like contribution letters, that you’ll need to have. The required documents will depend on your specific mortgage company, but there are a few things that most mortgage companies ask for. It is very likely that you’ll be asked to turn in bank statements, pay stubs, tax returns, and a letter documenting your financial hardship, but you might need to provide other documents as well.
The letter of financial hardship can often be the hardest documentation to provide. In order to be eligible for a loan modification, you need to be able to prove that some sort of financial hardship caused you to fall behind on your mortgage payments. There are a few circumstances that qualify for loan modification financial hardship. An experienced attorney may be able to help you write your financial hardship letter to make sure that you cover everything important and relevant.
Talk to Your Lender
While you’re waiting to hear from your lender about your application, it’s important that you stay in communication with them. You can check in with them regularly about your application and ask if they need any additional information from you. It’s also important that you communicate any changes in your circumstances with your lender. If anything changes and you haven’t informed them, it could impact your ability to get approved for a loan modification.
Be Ready for Anything
It’s common for things to come up during a loan modification application process, or the mortgage company might even lose your application, resulting in a request for you to resubmit your application. If you get a request to resubmit your loan modification, it’s important that you stay calm. This request doesn’t mean that receiving a loan modification is out of the question for you. Even if you receive a denied loan modification, it doesn’t mean that you’re out of options for getting a loan modification.
You might still have options or be able to change things about your application and get a loan modification. A loan modification attorney can help you go through your application and documents and see if there’s anything that you could change to help you get approved for a loan modification.
Keep Your Options Open
When negotiating a loan modification with your lender, you might be offered multiple options for modifying your loan. Your mortgage company might offer you the following:
- Reduced interest rate
- Extended loan term
- Partial deferment of the loan principle
After you’ve been offered a loan modification agreement, it’s important that you look over the agreement carefully. Before you agree to change your mortgage, you should make sure that you know exactly what you’re agreeing to and how it will impact your mortgage.
Contact a Loan Modification Attorney
Loan modifications can be a great option for homeowners who are struggling to pay their mortgages. Before entering into a loan modification, it’s important that you’ve thoroughly considered it and are prepared for the process.
If you’re looking for someone to help you through the loan modification process, Joshua Denbeaux may be the lawyer for you. He has over 15 years of experience working with loan modifications in New Jersey. Contact us today to learn more about how we may be able to help you save your home.
