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Loan Modification: An Option To Prevent Foreclosure

Loan modification is a term that is brought up quite often, but many people don’t understand exactly what it is and to whom it is available. Basically, a loan modification is a restructuring of your current home loan to make the monthly payments fit within the parameters of your budget. Generally, the homeowner applies for the modification through their current lender to check if they qualify, and if the modification is approved, then the homeowner will start a trial period where they make monthly payments in the new amount for a few months as dictated by the lender. Finally, if all goes smoothly, the homeowner signs the loan finalization documents to make the new payment plan permanent.

It is important to know that not everyone qualifies for a modification. Qualification varies greatly, depending on household income, debt ratio and other bank-specific requirements. When the homeowner is approved for a loan modification, a new agreement is created and the foreclosure suit is eliminated.

Is It Necessary To Use An Attorney For A Loan Modification?

Many attorneys who handle foreclosure cases don’t process modifications. Partially because an outcome cannot be guaranteed and it is very time-consuming. Homeowners can complete the loan modification process on their own, though it is a tedious and often intimidating process. At Graham Legal, we have focused all of our energy on learning everything about foreclosure suits, including filing loan modifications for our clients. Thus, we are prepared to submit all of the correct documents to the bank, we know when and how often to follow up with the lender to prevent any lags in the process, and we also have the skills to review a loan modification proposal and advise clients if it is a worthwhile offer.

Given that we have processed an insurmountable number of modifications for our clients, with all mortgage lenders, we know exactly what the bank needs in order to process your application. Furthermore, we stay one step ahead of the bank and we know their tricks. We can navigate the loan modification process better than a homeowner who chooses to do it alone. When there is a foreclosure defense attorney involved in the suit, the bank knows that the homeowner has a much higher probability of obtaining a judgment in their favor and it encourages them to work towards a resolution of the case.

Staying One Step Ahead Of Banks During Loan Modification

Many homeowners are shocked to learn that many banks proceed with foreclosure suits while the homeowner is in the midst of processing their modification. It is surprising, but true, that certain bank branches don’t communicate with others or their attorneys, for that matter. This means that the bank’s attorneys can simultaneously take the home while the homeowner is in the middle of the loan modification trial payment period.

For these reasons and many others, at Graham Legal, we take on the burden of processing the loan modification for our clients while defending their case. We pride ourselves in our ability to successfully allow our clients in Miami-Dade, Broward and West Palm Beach, to keep their homes by obtaining a loan modification that works for the homeowner.

A Real Life Example Of How A Foreclosure Attorney Can Yield A Better Loan Modification

There are many resources available online to assist homeowners with the process of attaining a home loan modification on their own. As a matter of fact, we have given guidance to prospective clients who decided that they wanted to pursue a modification on their own before hiring an attorney. In many situations, it is possible to get the bank to process your loan modification, but unfortunately, the number of times that banks don’t do their part in processing home loan modifications effectively is still too high.

One of our recent clients came to Graham Legal, P.A. seeking assistance because the bank did not provide him with the loan finalization documents months after he made the trial payments. The process for obtaining a loan modification begins with applying through the mortgage lender. Many homeowners don’t get past this point because the bank takes too long to review the financial documents, and by the time they do, the documents are usually outdated. Then, the bank requests new documents, thus restarting the process.

After the bank has reviewed the financial documents and decided that the homeowner qualifies, they then send an offer to the client in writing and begin the trial period. The trial period is generally about four months long or as otherwise dictated by the agreement. During the trial period, it is of the utmost importance that the homeowner makes every payment on time. This period is used to scrutinize the homeowner’s ability to make payments in the future. We always advise our clients to keep detailed records of their payments and any communication with the bank.

Following the trial period, the homeowner should receive the final loan modification documents from the mortgage lender. It’s common for banks to get stuck in this part of the process and not send the homeowner the finalization documents. This is very dangerous because until the modification is finalized with a signed contract, the bank can still make other sly moves, such as proceeding with a foreclosure or changing the payment amounts.

This particular client got stuck in the final phase of the loan modification. He had been working tirelessly to finish processing the modification, he made all his trial payments and then some, and he continued communication with the bank regularly, but all his efforts were in vain. Luckily, he kept meticulous records of all his efforts. After signing up with our office, we immediately contacted the bank to push this finalization along. Shortly thereafter, the bank sent him the loan finalization documents, and we negotiated his loan payments, which were significantly lower than the bank originally offered. Banks are very difficult to work with, but we know exactly what needs to be done in order to get them moving. If your mortgage lender isn’t cooperating, know that you don’t have to do it alone.

Get Started On The Loan Modification Process Today

We understand how overwhelming the foreclosure and loan modification process can be. With over 40 years of experience, you can trust us to guide you through the process so that you can keep your home. If you would like more information on modifications and to find out if it is the right option for you, please send an email or call Graham Legal immediately: 305-985-6555. From our Coral Gables office, we represent homeowners in Miami-Dade country and throughout the state. We also offer virtual representation for your convenience.