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Loan Modification or Loss Mitigation: Is It Right For You?

Life can be unpredictable at times, with new expenses rising up out of nowhere. Whether a life event or major change occurs or you lose your job, many things in life can cause you to fall behind on your mortgage payments. That being said, just because you’re having trouble now doesn’t mean you have to lose everything. You maybe be able to qualify for a Making Home Affordable Loan modification that could help you without putting your home at risk.

What is Loss Mitigation?

Loss mitigation is a process that often goes along with loan modification. It is used in an attempt to lessen the amount of damage typically caused when you default on your mortgage. Essentially, new terms are agreed upon by both the lender and the borrower that ensures the lender receives their money back and the borrower can make their monthly payments.

What is Loan Modification?

A Loan Modification, otherwise known as mortgage modification, mortgage loan modification, or home loan modification is the process of modifying your existing loan to make your payments more affordable. The purpose of a loan modification is to provide you with a mortgage payment you can afford. It’s actually very similar to a mortgage refinance but instead of finding a new mortgage that you can afford, this just modifies your current mortgage into something you can fit into your budget.

Why Loan Modification?

Loan modification may be very helpful to those in times of great financial distress. It can offer numerous benefits and can get you out of debt. Some of the primary reasons for a loan modification are to lower your monthly payments and/or interest rate and to reduce your loan balance.

Why Consider A Loan Modification Attorney?

Lenders are difficult for two main reasons: First, you get different answers from the different customer service representatives each time you contact your lender. Second, customer service representatives are not equipped with the necessary tools to be able to assist you.

A Loan Modification Attorney will review your case from a legal perspective. The Attorney will know how to deal with your lender, and will help you prepare your application so it’s processed quickly. When the Attorney presents your case, he will be armed with all the necessary documents & the correct negotiation techniques because an Attorney uses legal information as leverage when negotiating.

The attorneys sponsoring this site do not offer loan modification services, but an ordinary google search will likely turn up some results. Please know that some states have extra licensing requirements for loan modification providers, including attorneys, so be sure to thoroughly research the issue.

Who Can Use A Home Loan Modification?

Home Loan Modification

It depends on what your current situation is and who your lender is. While most lenders follow the same standards and have the same rules when it comes to loan modification, some do vary. They can easily let you know if you qualify for loan modification. Typically, however, the most common standards include having missed a payment, having experienced a recent financial hardship or change, owning a property and not having filed for bankruptcy. Other factors may come into play, but these are the basic rules you’ll need to follow.

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