All About Mortgage Loan modification and Bankruptcy

bernemanlawfirm

Americans hold an estimated $10 trillion in mortgage debt for a family residence. While the mortgage payment may be a stretch during “normal” circumstances, a financial difficulty can lead you with few options. Read the whole PDF to understand how loan modification can help you solve debt repayment and modify your interest rate.

A L L A B O U T

MORTGAGE

L O A N

MODIFICATION

N A T H A N A B E R N E M A N


Americans

hold an estimated $10 trillion in

mortgage debt for a family

residence.

The

average mortgage for first-time

homeowners is $260,386, but

the combined cost

of the mortgage, utilities, and

insurance can range upwards of

$1,500.

You

could modify or refinance your

home loan. Or, you can file for

bankruptcy.


What is a Loan

Modification?

A loan modification is

a change to your terms to

mitigate loss. The change can

extend the number of

years for repayment, forebear,

reduces your principal balance,

or reduces your

interest rate.


Modifying a Mortgage

Loan?

The modification of

your mortgage loan should get

you out of your current

haphazard situation and

allow you to get back on your

feet financially. The goal of the

loan

modification is to make your

payment more affordable, but

the goal for your

lender is to avoid a default or

the loss of any more money than

necessary.


Depending on your

loan, your situation, and other

factors, the lender can offer

modification

options, including:


A loan extension--from 30-to-

40 years, for example.

• A lowered interest rate.

• An agreement to add the

arrears to the loan debt.

• The conversion of the loan

from an adjusted-to-fixed-rate

mortgage.

• A possible deferral or even

forgiveness of part of the

principal on your loan.


While the lender

doesn't technically have to offer

generous terms or offers to help

mitigate

your financial hardship, but it's

often worth it for the lender to

work with

you so they can avoid the cost

and inconvenience of

foreclosure.


Depending on your

financial situation and hardship,

you may also be eligible for

other government

programs that can get you even

more favorable terms. The Flex

Modification

Program, for example, is

designed to prevent foreclosure.

Even if you aren't

eligible for government

programs, your lender may

offer a modification program

to meet your needs.


Who Can Qualify

For a

Loan Modification?


You might qualify for a loan

modification if your loan is owned by

a bank or mortgage company.

You could also be eligible if your

loan is a Fannie Mae or Freddie Mac

loan. Other qualifying factors could

include:


Your house value has declined so

such a degree that you now owe

more than your home is worth.

You're spending more than 31% of

your income on your housing costs

every month.

Your current financial situation

puts you in danger of default (or

you may have already defaulted).


How Can a

Bankruptcy

Attorney Assist You

Get Loan

Modification?


A loan modification can happen

concurrently or separately from your

bankruptcy. Either way, a bankruptcy

attorney should be able to assist you

in

navigating the process.

He or she can review the paperwork,

make sure the agreement is in your

financial best interest, and consult

with you on how to best accomplish

the

loan modification.

The law does not require a lender to

offer a loan modification. The

lender is only required to review your

application. Having a lawyer in your

corner to review, offer advice, and to

advocate on your behalf with the

lender

is always beneficial.


NathanAbernamanAPC

bernemanlawfirm.com

8054927045

Nathan-A-Berneman-APC

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