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Loan Modification

Whether you call it a loan modification, mortgage modification, restructuring, or workout plan, it’s when a borrower — who is facing great financial hardship and is having difficulty making their mortgage payments — works with their lender to change the terms of their mortgage loan. The workout plan could result in temporary or permanent changes to the mortgage rate, term and monthly payment of the loan. The plan’s goal is to help the borrower reduce their monthly mortgage payments to 31% of their gross income. Under Obama’s Making Home Affordable Plan, loan modifications will be standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and then they will be implemented throughout the entire mortgage industry.

Who is eligible for a loan modification?
According to the Department of Treasury: “Anyone with high combined mortgage debt compared to income or who is “underwater” (with a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. Eligibility for the program will sunset at the end of three years.”

Who’s not eligible for a loan modification? Speculators — those who bought homes for investment purposes. All homes must be owner/occupied. Also, mortgages with amounts above the conforming loan limits would not be eligible.

Why Use A Loan Modification Attorney?
Lenders are difficult for two main reasons:

    1. You get different answers from the different customer service representatives each time you contact your lender.
    2. Customer service representatives are not equipped with the necessary tools to be able to assist you.

To be able to get the best Loan Modification, you need legal assistance. The Law Office of Christi R. Romero can help you get the results you want from your lender.

    1. We know your needs. We will review your case from a legal perspective. We will know how to deal with your lender, and will help you prepare your application so it's processed quickly. When we present your case, we will be armed with all the necessary documents & the correct negotiation techniques.
    2. Loan modification attorneys get the best results. Your lender will take your Loan Modification request more seriously when you have an Attorney on your side, because an Attorney uses legal information as leverage when negotiating.
    3. We buy more time. If you try to get a Loan Modification on your own it's very possible that they will be transferring you from one department to another without making any progress. And if you already are in foreclosure, you can't waste any more time. A loan modification attorney can stop the foreclosure proceedings, giving you more time to recover while he concentrates on saving your home.

A Loan Modification is an essential component to saving your home so it makes sense to hire a professional and get the best assistance and representation possible. A Loan Modification will not happen overnight, but with a capable Attorney, you can be sure you're in good hands.

For more information about Loan Modification, our fees or to schedule an initial consultation, please contact us as possible before it is too late.