Loan modification can help save your credit and your home, but you only want to work with a reputable Georgia real estate attorney like us. It only applies in certain circumstances and you will have to meet certain criteria to qualify; even then a lender has to be receptive to making a deal.
What is Loan Modification?
When a borrower is unable to make their mortgage payments due to great financial hardship (loss of income or employment, at risk of default, etc.), they may be able to work with their lender to change their mortgage. This could lower your monthly payments, term and rate with the goal of bringing payments to 31% of a borrower's income. If your mortgage payments exceed 38% of your income, your lender may work with you to modify your original mortgage.
Do You Need Legal Counsel for a Loan Modification?
You don't necessarily need an attorney for a loan modification, but depending on the seriousness of your situation it could be the right choice for you. Before you start looking for a Georgia real estate lawyer you need to know what you should avoid:
- You don't want to work with an lawyer or firm that primarily does loan modifications.
- You also want to avoid a firm that promises or guarantees a successful modification - each case is different.
- Any group that claims to be a non-profit advertising "forensic loan audits" should be able to provide proof of non-profit status.
- Any lawyer that demands a full upfront fee with "guaranteed results".
Since early 2010 almost 30,000 homeowners have been defrauded by loan modification hoaxes. You can learn more about preventing loan scams at the Homeownership Preservation Foundation's national website here.
Why Would a Lender Modify Your Loan?
Most lenders would rather keep homeowners in their homes - a distressed property is a hard property to sell. Once it falls into the bank's name they're responsible for upkeep, taxes, utilities and more. Some government programs will pay for each successful loan modification plus a yearly stipend.
A successful loan modification will depend on the circumstances of your case - from the lender servicing the mortgage, your financial status and whether or not you have a case. When you choose to work with us we'll work to help you save your home and keep it. While you may not need a Georgia real estate attorney to get a successful loan modification, it never hurts to have help.