Los Angeles Loan Modification Lawyers
Every homeowner fears that one day they won’t be able to pay their mortgage. Job loss, business closure, and medical catastrophes can make it hard for even diligent homeowners to pay their bills. If you are facing foreclosure, a loan modification might help. Call Wadhwani & Shanfeld today to find out more. Our Los Angeles loan modification lawyer can explain the benefits of modification and analyze whether you qualify. We can then get to work keeping you in your home by working with your lender.
What is Loan Modification & How Can a Lawyer Help?
Loan modification involves changing the terms of your existing mortgage. The goal is to reduce your monthly payment to something that you can afford. Loan modifications might be temporary or permanent.
Some terms which a lender might modify include:
- Duration. You might stretch a 15-year mortgage to a 20-year mortgage, or a 30-year to a 40-year. By stretching out the loan, you pay less each month. However, you certainly will pay more over the life of the loan.
- Interest rate. If the rate is high, you might ask a lender to lower it. That cuts into their profit, but it should reduce your monthly payment.
- Monthly payment. You might ask for a temporary reduction in your monthly payment or for the suspension of payments for a limited amount of time. These payments then get shifted to the end of the mortgage as a balloon payment.
We have helped clients seek loan modification when their homes are underwater, meaning the value is less than the remaining mortgage balance. We have also helped those with adjustable-rate mortgages that have gotten out of control.
The primary benefit of loan modification is to keep you in your home. Lenders will often agree to modification, typically because they might make more from you by changing the terms. If you stretch out the mortgage, then you will pay back much more over the life than otherwise. Foreclosure is also an expensive process for lenders, who might try to keep you in the house with modification.
Lenders do not approve every modification request. The lender wants to see that you can pay the modified loan because otherwise you’re ending back up in foreclosure. Consult a Los Angeles loan modification lawyer for help analyzing whether you have enough income to continue to service your mortgage.
Filing for bankruptcy might also help. The automatic stay which goes into effect will stop a foreclosure. You can also eliminate certain debts in bankruptcy, which might free up income you can use to pay your mortgage going forward.
Is Loan Modification Right for You?
Get the answers you need by calling Wadhwani & Shanfeld to talk with our experienced Board-Certified bankruptcy specialists. We have helped countless people stay in their homes by working toward a loan modification with a lender. We can also help you decide whether this is the right time to file for bankruptcy protection to eliminate debts and stop a foreclosure in its tracks.
