Many people are wary of taking on substantial loans and mortgages, and in many ways that’s sensible – it’s entirely possible that these large sums of money will prove too much when unfortunate circumstances come about. Of course, we can never truly know what’s beyond the horizon, and in situations where you’ve been entirely capable of repaying your mortgage, something can crop up and ruin your well-laid plans. At Foreclosure Attorney in Westchester NY, we help people in these situations with loan modification services. We’re capable of pursuing a loan modification on your behalf, convincing your lender to change the terms and composition of your payments to something more manageable and fair. If you’ve experienced extenuating circumstances that make the current set-up impossible to manage, you stand a good chance of persuading the lender or mortgage servicer (depending on the scale of the modification). For further details regarding loan modifications, read on below.
What are Loan Modifications?
A loan modification differences from something like repayment plans or forbearance because it aims to actually lower your monthly payments over a longer period of time, in an effort to get you level on your loan. This is done by changing the terms of your loan, usually through extending the time that you’ll be paying the loan, but with lower interest rates, or the reduction of your principal balance. Loan modifications can vary enormously, so it’s important to make sure that you’re getting something that suits your circumstances. If you’re still not able to make your payments following a loan modification, the lender will certainly pursue foreclosure more feverishly.
Remaining at Home
The big threat of foreclosure is losing your property permanently – being evicted from your home – and obviously, this is absolutely the last thing that you want. Loan modification is so effective because it helps you keep your property by giving much more favorable conditions that make sure you’re more able to make regular payments reliably. Generally speaking, we advise our clients to pursue a loan modification before anything else, if at all possible.
It’s possible to pursue a loan modification on your own – something many people don’t realize – but it’s always advisable to use a foreclosure attorney for such situations. We understand the terms of mortgages intimately, as well as the various avenues that you have available to you that might prove useful, so we’re in the best position to negotiate the optimal terms on your behalf. While there’s an upfront cost to an attorney, the financial and mental savings we can give you in the long run are surely more than worth it.
There are a number of reasons why a lender (or servicer) might agree to a loan modification, but it’s always good to remember that it’s in everybody’s interests. Lenders do not want the hassle of a foreclosure, an expensive and lengthy process, and if they can find a way of getting you to make payments, they’ll definitely take that option. If you have unexpected circumstances that were out of your control, lenders are likely to be sympathetic. We are more than capable of making your case to them.