Loan Modification Lawyers in
What Is a Mortgage Loan Modification?
If you are struggling to make your monthly loan payments, then you have probably heard the phrase "mortgage loan modification" a few times when researching your options online and talking to friends. Also called restructuring, mortgage modification, loan modification, or workout plan, all of these names are getting at the same idea: Changing the terms of your mortgage to make it affordable for you. Some options include: Interest rate reductions, forbearance agreements, and principal balance reductions. There are options, but you do need to act quickly in these scenarios to keep your options open.
It is our goal to help you get back on track. The process can be frustrating — some lenders are reluctant to negotiate a loan modification or will give their borrowers the runaround and repeatedly ask for information. This is why working with an experienced lawyer will help get you the results you want. We know that financial hardship is an incredibly emotional experience, so we find solutions to one of your biggest financial responsibilities. For many, a mortgage loan modification is the right answer, and for others filing for bankruptcy and starting over is a better solution — we will explain every option and come up with the solution that is right for you.
Do You Know What Type of Information the Lender is Looking For?
It can be hard to get started on looking into a mortgage loan modification when you don't know what information you need to apply. To begin, accepting a modification to your mortgage is almost always voluntary on the part of the lender. Working with an attorney can help ensure that you choose the financial option that is best for your situation and that your application is accepted.
The type of information that lenders are looking for in a mortgage loan application has to do with your money. Since they are making a determination on whether a change to your initial mortgage term will ensure future consistent payment, it makes sense that the lender wants to see detailed financial documentation relating to your finances and career stability.
Some of the documentation includes:
- Income: Information relating to the monthly gross income of your household. In addition to paystubs from your primary place of employment, this also includes documentation of any additional sources of income.
- Account balances: Bank account balances, including checking and savings accounts.
- Additional mortgages: Many individuals have a second mortgage on their home. The bank will need to see the terms of this mortgage as well.
- Additional financial debt: Including monthly payments for credit cards, student loans, and car loans.
- Financial hardship: Whether it was a car accident, sick child, or another unfortunate life event that made keeping up with your mortgage payments impossible, the lender will ask for documentation and explanations relating to this area of your life.
Cal West Law offers a free consultation to discuss your best option.