Thomas J Sherwood Law Wiki
Many of our clients have questions about how loan modifications work and why its so difficult to obtain a loan modification by yourself, without enlisting the help of a qualified law firm. So we have decided to start this Wiki in order to help answer the most common questions and help you understand the process.
As the economy continues to decline, loan modifications are becoming increasingly necessary for homeowners who find themselves facing the threat of losing their home.
A modification of your existing mortgage loan is a proven solution that can help save your home, even the homeowner who is already in foreclosure status.
Some of the possible results of the loan modification process may include the following:
Rising adjustable rates may be stopped and turned into low fixed rates;
Past due mortgage payments may be forgiven and unattainable repayment plans eliminated;
Principal reduction on the mortgage balance may be obtained.
A modification of your mortgage is not a temporary fix. When your bank approves the loan modification request, it becomes a permanent solution to the repayment terms of your existing mortgage loan. A home loan modification will change your existing mortgage note and can give you & your family the fresh start they deserve. As part of the modification agreement, your account will be brought up to date as soon as the terms of the modification are negotiated and accepted.
Who should explore a modification?
Anyone who is struggling with their mortgage payments.
What makes someone an ideal candidate for a Loan Modification?
- Late on mortgage
- Rate is adjustable
- Rate is too high
- In foreclosure
- Home is worth less than what they owe
- Struggling to make payments
- Experienced a hardship that is causing financial duress
- Unable to refinance
What can a mortgage modification do for you?
- Substantially lower your monthly payments
- Convert your Adjustable rate to a Fixed rate
- Reduce your Interest rate
- Reduce your principle balance owed
- Lengthen your payment terms
- Clear out your accrued back payments and late fees
