Are you struggling to make your mortgage payments? Maybe you’ve even missed some? If you’re in trouble and afraid of losing your home we should be your first call. We have several ways we can help! The most common way to stop a foreclosure is with a Chapter 13 bankruptcy which we go over in detail here and here. However, in some cases you may not even have to declare bankruptcy. Instead we can sometimes help you negotiate a load modification, or loan workout. Interested? Let’s talk about this option!
What is a loan modification?
It’s exactly how it sounds. If you can’t meet the terms of your mortgage loan (or other loan) because of financial hardships, you can ask your mortgage company to change the terms of your loan. This could be adjusting the interest rate, maybe even just for a set period of time. It could be extending the term of your loan. This would mean paying less each month, but paying the loan for longer. It could even mean refinancing the loan completely and working to find terms that are possible for you to meet.
In some cases of hardship, mortgage companies may be willing to put your loan in forbearance. That means your payments can be postponed for a set period of time. If you’re experiencing a temporary setback and will be able to resume normal payments in the near future, this could be a good option for you. They may also be willing to add your missed payments to the principal payments instead of foreclosing. This is called capitalization of arrears; it can buy you time to get back on your feet.
Why would a loan company agree to modify my loan?
Foreclosure is expensive for everyone involved. It’s much easier and faster for your loan company to negotiate with you than to go through the foreclosure process. In many cases the mortgage or loan company will want to see financial records that show evidence of your financial hardships. However if they know you can’t make your payments, then they may be willing to work out a new plan that allows you to keep your house.
Find out if loan modification is the best option for you at a free consultation.
Not everyone qualifies for loan modifications, and negotiating with a mortgage company is not an easy process. That’s why we offer a free bankruptcy consultation. We’ll help you find the best solution for you and your unique circumstances. If you need a loan modification, we can go to bat for you in the negotiation process. We’ll help you find the solution that will lead to a brighter financial future and advise you on the best way to keep your house, even if you’re behind. We want to be your team! Call for your free consultation today, 503-385-8888.