Home Loan Modifications to Prevent Foreclosure

What is a loan modification (also called mortgage modification)? What does it really mean? Is it right for me?

You may have heard it called loan modification, mortgage modification, mortgage restructuring, or something else entirely. But it means the same thing. A loan modification happens when a debtor who is in bad financial shape works with his or her mortgage holder to restructure the mortgage so they can afford to make the payments. If the loan modification does not work out, the homeowner has to face the prospect of foreclosure and bankruptcy

The new plan you agree on may be temporary or permanent. It may change some or almost all of the terms of your original mortgage. The goal for the individual is to get your mortgage payments down to 31% of your gross income. The goal for society is to stem the flood of foreclosures.

You should see our Foreclosure Resource Guide in the Free Legal Information section of our website for more details.

As you might imagine, it is a complex process of negotiation and there is a lot of number crunching involved. Our attorneys are doing a lot of loan modifications now, and we find it is frustrating to negotiate terms with clerks on the other end who seem unable to really negotiate and make the best decision for all of those involved. These can be very difficult negotiations.

You should be careful about trying to negotiate a mortgage modification by yourself. You should hire an attorney to do it for you. That is what we recommend. At the very least, the attorney makes the lender aware that they really do have to make a deal with you, or else you will be filing for bankruptcy. The same threat does not exist if you are doing the negotiations yourself.

Remember, we offer a free consultation, if you are worried about foreclosure, so it doesn’t cost you anything to find out what your options are, and get some good guidance beyond what a blog can provide.

More information about foreclosure:

About Southern Maryland Law

 

Andrews, Bongar, Gormley & Clagett is one of the oldest and largest law firms in Southern Maryland. We have been serving clients here for over 50 years. We have more attorneys and a larger staff than most other local law firms, so we can handle a wider variety of legal matters. Each attorney concentrates his or her practice in a few key areas, so you can be assured of the expertise you need.

 

But we are not so big that we forget about personal service! Your legal matter is unique, and requires a personalized approach. We will always remember that. If you have a legal issue, contact us today to schedule your consultation.