Many property owners are struggling to pay a mortgage in the face of the current economic crisis. Many face the possibility of bankruptcy or catastrophic financial hardship as a result. Few are aware that there are several options which go beyond a simple bankruptcy declaration, and can help make the situation more tenable. Of these, one of the most promising is home loan modification.
What Is It?
A home loan modification is exactly what it sounds like: it is an actual change in your mortgage terms which alters what is paid every month. There are several different ways by which this change can be determined. In some cases, it is simply a negotiation between the individual who is responsible for payment and the institution that did the lending. This kind of negotiation is almost always mediated by a legal professional on behalf of the property owner. When done right, it can help stop foreclosure and reverse a negative financial spiral without the problems of bankruptcy.
There are also government programs to help encourage mortgage adjustment. These tend to have more prerequisites and requirements, but may also be able to guarantee changes in some situations. As with most financial matters, seeking the advice of a legal professional can help property owners make an informed decision about whether to pursue a government-mediated negotiation or to simply act independently.
Who Is Eligible?
In theory, anyone could request consideration for a home loan modification. In practice, however, it is uncommon that one would be granted outside of sincere financial hardship. When a mortgage payment becomes overwhelming, or a sudden change in circumstances makes it difficult for the owner to pay as agreed, then foreclosure or a change in terms may be the only option. In some cases, the bank may be willing to make a deal. In others, they may attempt to push forward. Trying to negotiate may be the only way to know the answer.
Is A Lawyer Necessary?
There is no technical requirement for a lawyer to assist with a home loan modification. However, it is all but guaranteed that your lender will have seasoned and experienced legal counsel on their team, and will be willing to use all their might to fight for the outcome that will most benefit them. If you are looking to stop foreclosure, there are many different legal avenues that can be pursued, but usually only an expert will be aware of them. Contacting someone for help can mean the difference between a much more painful situation and a quick change for the better.
Legal assistance is especially useful if you intend to pursue government mediated measures to stop foreclosure. There are many complex forms associated with many of the government programs, and understanding which ones need to be submitted can be a daunting task. An experienced lawyer will be able to identify them immediately.
Author is a freelance writer. For more information on Home loan modification please visit http://oaktreelaw.com/
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