Obtaining a Loan Modification
How a Loan Modification Works
A loan modification is an agreement between you and your lender to modify the terms of your mortgage to make your payments more affordable. But while it’s certainly promising, a loan modification can be extremely frustrating to obtain. We see client after client with horror stories about their experiences with their lenders.
As a bankruptcy attorney, we can help you get a loan modification. In fact, we recently were retained by a client who had failed to obtain a loan modification and was facing the threat of foreclosure. The client was self-employed and having trouble demonstrating to the lender that he had the income to make the loan payment.
A Case Study
We were able to put a package together that resulted in the lender cutting his monthly payment almost in half. We also negotiated a reduction in his loan balance. For three years, if the client makes the new monthly payment, the lender agreed to reduce his outstanding loan balance by over $80,000 per year. If he can make the payments for three years, his loan will be reduced by over $240,000!
Professional Representation
A loan modification is not always possible, but for some people it definitely is the best solution. You may think you could save money by representing yourself, but we believe you would be better off to invest in my experience as a bankruptcy attorney. That way you will know you have done everything possible to modify your mortgage and hopefully avoid foreclosure.