Loan Modification: Knowing Your Options
If you have fallen behind on your mortgage, you could soon be on the path to foreclosure.
A loan modification is a change to the original terms of your mortgage loan to save your home. Unlike a refinance, a loan modification does not pay off your current mortgage, instead it is replaced with a new one. A loan modification may be the right path for you, however, at your initial consultation, we will assess all of your options and help you decide which is the best option based on your financial goals. If you are ineligible to refinance, facing a long-term hardship or several months behind on your mortgage payments, a loan modification may be beneficial for you.
Our goal with a loan modification is to reduce your monthly payment and bring you back to a current status with your lender. Some benefits of a loan modification include:
- Staying in your home and avoiding possible foreclosure
- Changing the original terms of your mortgage permanently
- Less damage to your credit score
- Reducing your monthly mortgage payments for a more affordable amount
- Providing a fixed interest rate
Eligibility requirements for loan modifications are different for each lender because some lenders require a minimum of one late or missed mortgage payment. Lenders may also assess the causes of the hardship and whether a loan modification is the right path in terms of affordability. Lenders will most likely ask for proof of hardship which can include decrease in household income, a divorce or separation, an increase in housing costs, health pandemic or an illness or disability. If you don’t qualify for a loan modification right away, you have the right to appeal it. Getting precise information on why it was denied will help you prepare a better case in your appeals.
Here at DAL Law Firm, we would represent you in your modification and handle the entire process as well as handle any and correspondence with the mortgage lender. If you are needing more information about loan modifications, we can help, just give us a call or text today at (206) 408-8158.
19803 1st Avenue S.
Normandy Park, WA 98148
T (206) 408-8158
F (206) 374-2810
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