Avoiding Foreclosure With A Loan Modification

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It can be incredibly difficult to keep up with your mortgage payments if you suddenly find yourself in tough financial times. This can happen because you needed a hospital stay, you needed to take care of another family member, or maybe because you got a pay cut or lost your job. Whatever your situation, it may make it incredibly hard to continue paying your mortgage and you may start to feel like there are no more options. Once you get behind on your monthly payments, you may start facing the fact that you could lose your home due to foreclosure. What can you do when you are facing a difficult reality like this? Is there anyone you can turn to?

Can a lawyer help during this time? 

You may not think that the first person you should turn to during this difficult time is a lawyer. How can they help? The truth is, your lawyer will be able to take a look at your specific situation and see what options you have ahead of you and whether there is a chance you can keep your house. Your lawyer, like a foreclosure lawyer from our friends at Wright Law Offices, knows that a loan modification may be the right course of action for you.

What is a loan modification? 

A loan modification is exactly what it sounds like. Your lawyer could help you adjust the amount that you pay every month for your mortgage and in doing so, this can prevent foreclosure from happening. When you sign the paperwork on your house and get the loan, you are telling the lender that you agree to pay a certain amount every month for a specific period of time.

There are many reasons you may not be able to continue paying the original agreed-upon amount and if this happens, a lawyer may be able to work out a deal with the lender where you pay a new amount every month–temporarily or permanently–until you pay off the remainder of your loan balance.

If you are unable to make changes to your loan, this can result in a damaged credit score or foreclosure on your home. Because you want to avoid these things from happening, it is crucial that you speak with a lawyer as soon as you can to see what steps you need to take.

Why a Lawyer Can Help You

A lawyer will understand the paperwork you need to file for a loan modification and can ensure that you get your paperwork filled out and submitted on time. Your lender will need to look at the terms of your new loan modification and will need to approve it before any adjustments can be made. It may be possible to reduce your principal, lower your interest rates, switch from adjustable rates to fixed rates, and more.

When you are hoping to avoid foreclosure on your home, it is time to seek help from people who know what options you have. Reach out to a trusted law office today.