Loan Modification

A loan modification is where you and the lender agree to change one or more of the terms of the loan to make it more affordable. Common changes include: reducing interest rates, extending the term of the loan, and putting arrearages back into the principal balance of the loan. Loan modifications are case by case specific and unfortunately there is no set formula for knowing whether or not you will qualify for a loan modification.

Making matters worse, the mortgage industry was woefully unprepared for the mortgage and housing market meltdown, so the loan modification departments at the lenders are understaffed and often poorly trained. The result can be frustrating – with waits of even months for an answer to a loan modification request. Typically, the lender will want a copy of your bank statements, tax returns, pay stubs, and some explanation of why you fell behind.

Lender’s want to be certain that if they extend a modification to you that you will be able to meet the new modified loan payments, so lenders rarely extend modifications where you do not have a stable source of income. In some cases, the lender may require a lump sum payment to accompany they loan modification.

Contact Maxwell Attorneys LLC today if you think foreclosure is pressing in on you. Call 414-727-0123 or complete the secure contact form in the sidebar to make arrangements for an appointment.