Obtaining a loan modification may seem like a difficult, if not impossible task that gets harder each month as property values rise and interest rates do, too. Even with recent legislation designed to assist homeowners, lenders and loan servicers still find ways to make it difficult for borrowers to obtain a reasonable modification. This is because loan servicers make more money when you default and even more money when they foreclose. They don’t want to lose money by helping you catch up and avoid default and foreclosure
When you are unfairly denied a loan modification from your lender, our lawyers at Advocate Legal can protect your rights and your home by filing a lawsuit against your servicer and using it to get you a modification. A modification attorney uses lender violations in the modification process as leverage to force lenders to give you what they wouldn’t give you willingly. We provide skilled, aggressive representation and are highly successful at securing modifications as settlement.
For veterans, there are extra benefits including priority attention from the Consumer Financial Protection Bureau and a specific program in California called Cal Vet Modification.
Borrowers who can afford their mortgage, but simply want a lower interest rate, don’t qualify for a loan modification. Borrowers with equity in their property also don’t qualify and must refinance instead of modify since equity negates the concept of hardship.
Homeowners with a high interest rate or a principal balance that is more than the value of the property will qualify for a loan modification if they can’t afford their monthly house payments. Homeowners will also qualify for loan modification if they have faced significant financial hardships that make it difficult or impossible to make timely payments on their mortgage.
The definition of financial hardship is loose and includes such things as job loss or salary reduction, a decrease in property value, the loss of a wage earner, unexpected medical costs, or payment shock when an interest rate suddenly adjusts. Contrary to what you may have been told, you don’t have to be behind on your mortgage payments to qualify for a loan modification.
You may qualify for HAMP if the following criteria apply:
Even if a borrower does not qualify for a HAMP modification, there are other options to pursue with your lender based on the strength of the new foreclosure statutes designed to aid consumers and reduce foreclosures. Options may include an application for federal and state government loan modification assistance and other programs:
Although it may seem impossible, modifications are obtainable, especially when you have a diligent and tenacious attorney on your side. The lawyers at Advocate Legal are devoted to obtaining justice on behalf of our clients.