If you find yourself falling behind in your mortgage payments, and you think your lender is about to foreclose on your property, you should be aware that there may be loan modifications available that may help you keep your home. The following are a few alternatives you should think about to foreclosure.
There are several possible modifications to your mortgage
There are many possibilities that may be open to you. For example, Your mortgage can be extended by several months or years. Your monthly payment can be reduced using various methods, such as a lower interest rate. If you can make your monthly payments, but you have fallen behind, it may be possible to tack on missed payments to the end of your mortgage. Sometimes late fees can be waived. It may even be possible to switch from an adjustable rate to a fixed-rate mortgage.
You will need to qualify for a mortgage modification
Qualifying means you can convince the lender to modify the mortgage. A lender is under no legal obligation to change the lending agreement. They can simply foreclose on your property. Often, if you can demonstrate that future forward, you will be able to make all of your payments on time, it is a big step in negotiating with your lender. In addition, you will have to demonstrate that you went through a financial issue that was outside your control, and this is why you fell behind on your payments or can no longer make meet your monthly mortgage obligation. A desire for better terms in your mortgage contract is not sufficient. If a lender suspects they're being taken advantage of, there will be no modification to your mortgage, and foreclosure will ensue.
You need an attorney to negotiate on your behalf
You don't have the experience needed to negotiate with a mortgage lender. If they believe that without this modification they will have to foreclose, they may be motivated to negotiate new lending terms. But they will also need to believe that you can stay current on your mortgage for many years to come after a modification. An attorney with experience negotiating with lenders will know how to use your financial information to get modifications to your loan. Success by an attorney will mean a new loan contract. An attorney can review this contract and explain to you each provision in it.
If you begin to fall behind on your mortgage, and this is due to an unforeseen event in your life that affected your finances, you shouldn't wait until a foreclosure begins. At that point, it may be too late. But before this, a loan modification attorney may be able to help you. Provided your finances have stabilized, it may be possible to negotiate a modified mortgage. However, a lawyer will need to be used to negotiate with your lender.
For more information about getting a loan modification, reach out to a local law firm.