Going hand-in-glove with our Foreclosure Defense services, Tadross Law offers loan modifications (also known as “Loss Mitigation”) as a means of helping you save your house and stave off foreclosure.
What is a Loan Modification?
Whenever a homeowner is interested in changing the terms of their mortgage or another loan, this is considered a loan modification. After the mortgage crisis in the mid-2000s, the federal government established a program called the Home Affordable Modification Program (HAMP) and its counterpart known as the Home Affordable Refinance Program (HARP). These programs were designed to lower monthly mortgage payments to make them more affordable for homeowners. If you qualify, the loan modification may adjust your interest rate, extend the term of your loan, and could reduce or delay principal payments.
With a mortgage modification, the lender may agree to do one or more of the following to reduce the monthly payment of the requester:
- Reduce high-interest rates
- Convert from a variable interest rate to fixed interest rates
- Extend the length of the term of the loan
Generally, to be eligible for a loan modification, homeowners must:
- Show that they can’t make their current mortgage payment due to a financial hardship
- Complete a trial period of lower fees to demonstrate they can afford the new monthly amount
- Provide all required documents to the lender for evaluation.
Required documents for the lender’s review will likely include:
- Financial statements
- Proof of income (pay stubs)
- Most recent tax return
- Recent bank statements
- A letter declaring financial hardship.
How We Can Help
When you hire an attorney at Tadross Law in Philadelphia or Montgomery County, PA, to assist you with loan modifications, we will become your voice in all dealings with your bank or lenders. If our law firm is unable to get the process moving with a loan or bank officers, our lawyers will work directly with bank attorneys to get the loan modification process moving quickly to get the mortgage modification you need.
Our lawyers have a complete and comprehensive understanding of all the programs available to help clients refinance or restructure their loan and avoid foreclosure. Our attorneys carefully evaluate each situation to determine what plans their clients qualify for, and we will explain the options as well as the benefits and consequences of different strategies. If your lender isn’t complying with federal laws or state laws that govern the loss mitigation process, our attorneys will help enforce your rights.
The goal at our law firm is simple — to negotiate a loan modification that is affordable to you and acceptable to the lender. In most cases, we seek to modify the rate or length of the loan. From our bankruptcy lawyers to our attorneys specializing in short sales, we’ll help you acquire debt settlements and relief you need.
Get Help Dealing with Mortgage Modifications
If you find yourself struggling with the loan modification application or your lenders aren’t abiding by the law, you should consider consulting with a qualified, reputable attorney at Tadross Law to help you with the process. With offices conveniently located in center city Philadelphia and Montgomery County, PA, our lawyers can advise you whether modifying your mortgage is the right option for you. Arrange for an initial consultation by calling us today!