Key Faqs Of Loan Modification
Although there is a lot of information about loan modifications that you should know
, there are some key pieces of information that are more important than others. Many individuals are after asking these questions and perhaps without receiving any real answers.
What are loan modifications? Loan modifications are loans that have the original agreement changed to make it easier for individuals to pay their monthly payments. These most often happen on mortgages.
How can they prevent foreclosure? Loan modifications can prevent foreclosure because once the process is started the foreclosure process is delayed for a maximum of three months while the applicant is waiting for a response. If they are accepted into the modified loan program then the foreclosure process is further delayed and stopped when the modified agreement is made and put into action. This means that the family is once again safe from losing their home.
Why are lenders willing to give modifications on mortgages? Lenders years ago were not so flexible in giving loan modifications but that has changed recently. With such a downturn in the economy and housing market they have already foreclosed on too many homes. They are having trouble with auctioning them off because the demand for these homes isn't there. They are losing millions of dollars of profit. If they agree to a
loan modification then they are losing less money than if they went through with foreclosure.
Should I hire an attorney for this process? It is advised that you do hire an attorney for this process. Although you can do it yourself, there is a likelihood that you will not receive as good of an agreement as an attorney would. They have a lot of experience with negotiating and they are familiar with the lenders. They know the tactics that can get good modifications including those with a reduction of principle. Lenders also respond faster to attorneys so it speeds up the process.
How long does this process take? The time that it takes relies on how complicated the case is and who is handling it. Sometimes it takes several months whereas other times, such as for governmental programs, it can take over a year. When an attorney is working for you, this will shorten the length of time and they will be able to give you a better estimate when they review your case.
Are all attorneys the same? Definitely not. When you go to a law firm, these attorneys have experience from many different fields but they may not have worked on modification cases. Attorneys from the loan modification firms have the experience already. If you hire an attorney be sure that they have adequate experience in the area of loan modifications.
To obtain the best results for any loan modification application, you should familiarize yourself with the process. In the event that you hire an attorney, you should still have some background knowledge but keep in contact with them to keep yourself informed on what is happening with your application.
by: 1stforeclosureprevention
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