Below is useful information about hiring a loan modification attorney at Maceau Law to help you with a legal issue involving loan modification in Colorado Springs:
Loan modification is the process in which the terms of a mortgage are altered from the originally set terms. When borrowers becomes unable to pay their loan payments, a lender often changes the loan balance, interest rate or term of the loan. This is the action of loan modification. Loan modification is used as a way to prevent borrowers from defaulting on loans and is often the best option for both borrowers and lenders to prevent foreclosure.
When homeowners realize they need a loan modification, the first step they should take is asking their lender about their loan modification policy. Some lenders have reasonable requests when it comes to loan modification requirements, and others are very fastidious. Homeowners or borrowers must ask their lenders what they can do to ensure they qualify for loan modification. If borrowers are refused initially for loan modification, they can pursue other options such as selling their home or refinancing. The following are a few loan modification programs prevalent today:
The MHA Program:
This program, which is more formally known as the Making Homes Affordable Program, was enacted by President Obama and is a comprehensive plan designed to stabilize America’s housing market by aiding homeowners who wish to modify their home loans and avoid foreclosure. The MHA program offers the following solutions for homeowners:
- Allows homeowners to avoid foreclosure when homeownership is no longer desired. It even gives homeowners $3,000 to use for relocation expenses.
- Aids homeowners whose homes are now worth less than the amount they owe.
- Gives unemployed homeowners relief while they are in the process of searching for employment.
- Allows the reduction of monthly mortgage payments.
- Give homeowners access to the lower mortgage interests rates available today leading to lower monthly payments.
- Allows military members special loan modification consideration when they are displaced due to their service.
The HAMP program, which is more formally known as the Home Affordable Modification Program, is designed to aid homeowners who are currently employed yet having difficulty making their mortgage payments on a monthly basis. Homeowners may qualify for the HAMP program if they meet the following criteria:
- Homeowner has not been convicted of a felony within the last 10 years.
- Homeowner has documented and sufficient income to support a modified payment.
- Homeowner has a financial hardship.
- The property in question has not been condemned.
- The borrower owes less than $729,750 on a primary resident.
- Borrowers procured their mortgage prior to January 1, 2009.
Freddie Mac and Fannie Mae mortgage modification:
When homeowners possess a mortgage that is backed by Freddie Mac and Fannie Mae, they can qualify for loan modification without having to prove financial hardship. Loans backed by Freddie Mac and Fannie Mae offer borrowers a stream-lined process for loan modification if they meet the following criteria:
- Borrowers must have a delinquency of at least 90 days but no longer than 24 months.
- Loans must be a first mortgage and be at least 12 months old.
- Loans must not have been modified more than two times previously.
Is hiring an attorney necessary when attempting a loan modification?
Acquiring a loan modification can sometimes be simple and other times be abounding in difficulties. For that reason, knowing when to hire professional help can become confusing. The following are situations in which homeowners would benefit from hiring an attorney:
- When the lender has an attorney who is representing their interests, it is best for the borrower to have their own attorney who is defending theirs.
- An attorney who specializes in loan modifications can predetermine if homeowners would qualify for a loan modification, meaning an attorney could potentially save homeowners time and money by informing them they will not qualify for a loan modification from the onset.
- An expert will handle all aspects of the loan modification leaving the homeowner free of that worry.
- A professional will recognize a fair deal from the lender when they receive one and conversely recognize a deal that would not benefit the homeowner.
- An attorney can orchestrate a better deal than most individuals can on their own, meaning a homeowner will save more money long-term when they hire a professional for their loan modification.
- An expert is not emotionally involved in the process, meaning they can keep a more level head when making decisions.
How to find a loan modification expert:
Ask other homeowners:
Homeowners who know other borrowers who have went through the process of loan modification with the help of an attorney can ask them for attorney recommendations.
Ask real estate brokers:
Most real estate brokers are familiar with local attorneys who are experts in negotiating loan modification deals.
Ask a bank:
If the loan that is in question is not through the bank, homeowners can ask the manager of the bank for recommendations regarding a good loan modification expert.
Contact the state Bar Association:
Information about all area attorneys who specialize in loan modification can be found by contacting the state Bar Association.
Because so many Americans are struggling to pay all their debts, loan modification is very prevalent in today’s society. The above programs highlight some options when it comes to loan modification. However, homeowners should contact their lender and a professional in loan modification to determine what option is best for them.
Hire an experienced loan modification attorney
You can contact one of our experienced bankruptcy lawyers in Colorado Springs at Maceau Law to assist you with a loan modification. Call 719-633-2222 now to schedule a consultation.