Van Nuys Loan Modification Lawyer
Millions of people have trouble paying their mortgage. If you have been unable to pay your mortgage for several months, your lender may even start foreclosure proceedings, which could result in you losing your home. If you have been notified of foreclosure, you may think losing your home is inevitable. Fortunately, this is not true. You do have options and below, our Van Nuys loan modification lawyer explains what they are.
What is a Loan Modification?
A loan modification changes the terms of your existing home loan with your lender. A loan modification allows you to change the principal amount, your interest amount, and any other term of your loan. The changes in a loan modification can be either temporary or permanent. Mortgage loan modifications are different from refinancing. When you refinance your mortgage, you essentially get an entirely new loan. Through a loan modification, you keep your existing loan and simply make the necessary changes to it that make it more affordable to repay.
Benefits of a Loan Modification
A loan modification can result in a longer term on the loan, or reduce your interest rate. Balloon payments are also part of a loan modification. When your lender agrees to a balloon payment, a large portion of the loan is moved to the end of the loan’s terms. This can reduce your financial burden now, but you will be responsible for paying it in the future. Balloon payments are most appropriate when the financial hardship that caused you to miss mortgage payments is temporary.
A loan modification can also save you thousands of dollars on your mortgage. Typical mortgages have 30-year terms and so, if a loan modification saves you $500 a month, you will save $180,000 over the entire term.
Qualifying for a Home Loan Modification
If you are struggling to pay your mortgage, a loan modification may be an option. However, your lender must agree to the modification. If any of the following are true, you may have a better chance of obtaining a loan modification:
- You have an adjustable rate mortgage
- Your mortgage has a high interest rate
- You owe more on your home loan than the property is worth
- You are experiencing another type of financial hardship
When any of the above statements are true, the majority of banks will be willing to negotiate a loan modification. The foreclosure process is a long and expensive one, for lenders and consumers alike. As such, many lenders are willing to work with borrowers so they can keep their home.
Call Our Loan Modification Lawyer in Van Nuys First
While most banks offer loan modifications, they are still not easy to obtain. By working with a Van Nuys loan modification lawyer, the bank will take you more seriously and you can make sure your rights are upheld. At Wadhwani & Shanfeld, our experienced attorneys can negotiate for a modification on your behalf and handle all aspects of your case so you obtain the best outcome possible. Call us now at 818-658-2669 or chat with us online to schedule a consultation.
