A loan modification is a process in which the lienholder "bank, lender, or investor" changes the terms of mortgage note so that the payments are more affordable for the borrower. Generally this is in the form of a lower interest rate with a fixed loan program.
Loan modifications are currently the easiest way to lower your mortgage rate. You can modify your loan type, interest rate, and even catch up on delinquent payments. With a loan modification, there are no appraisal fees, no broker fees, no credit checks, and you can modify your loan for a fraction of the cost of a refinance.
There are several different ways you can take advantage of a loan modification, the most common methods are to:
- Lower interest rates
- Stop foreclosure
- Reduce principal balance
- Catch up on delinquent payments
- Turn your adjustable loan into a fixed loan
In the past, banks would only allow a consumer to take advantage of a loan modification in the most extreme cases. Recent changes in the mortgage industry have caused lenders to allow loan modifications for high interest rates, adjustable rate loans, delinquent payments, negative equity, foreclosures, and more.
Foreclosures are rapidly increasing, and banks are overwhelmed with all of the delinquent loans. They are unable to attend to everyone that needs help. Many homeowners get lost in the shuffle, and are forced into an unnecessary foreclosure because of it.
Our attorneys are in constant negotiation with almost every major lender in the country. This enables us to negotiate the lowest rate for your loan modification in the most expediate manner possible. Most banks are already involved in predatory lending lawsuits, and want to make the loan modification process run smoothly for our attorneys.
Working with attorneys enables us to use progressive tactics to accomplish aggressive solutions. When our attorneys receive your loan package, we will determine if the loan you received is in compliance with the Truth in Lending Act, RESPA, and if there were any instances of fraud on the lenders behalf.
If there are any legal implications involved in your loan, our attorneys will find them immediately. We have seen banks reduce principal, and lower interest rates to 2 percent, just so they can avoid the expense and complication of a lawsuit.