Mortgage modification is a way to avoid foreclosure and keep your home if you can no longer make your mortgage payments. It consists of changing the terms of your original mortgage to better suit your current financial situation. The process consists of sitting down with your bank or other mortgage lender and agreeing to reduce your interest rates, change your minimum payment or even reduce the principal of the loan.
The logic behind a mortgage modification is that for a bank, modifying your mortgage is less of a loss than having to write it off as a result of your bankruptcy. If you have fallen on hard times, it may be a win-win proposition.
Always get a lawyer
The most important thing when considering a mortgage modification is to consult with a qualified bankruptcy attorney specializing in property issues. An attorney often acts as a go-between and provides valuable counsel when filling out your forms. Most mortgage modification applications filed without an attorney are denied. People take you more seriously if they know that you have a legal advocate on your side.
Who qualifies for a mortgage modification?
Each lender makes its own mortgage modification terms, and there are federal programs for which you can qualify. Generally speaking, in order to qualify for mortgage modification, you need to fill out proof of hardship forms. You will have to show proof of financial hardship such as loss of a job, reduction in hours, mounting medical bills or other unforeseen expenses, and you will have to prove that there is no other way out of your financial situation.
If you have considered bankruptcy as a way to get out of your debts, mortgage modification may be an option for you. It is an alternative to bankruptcy that provides a win-win solution for you and your mortgage lender.
How can I get a mortgage modification?
Contact Harold Shepley and Associates for an initial consultation. Your attorney will tell you if you have a chance at modifying your mortgage. If so, you can begin the process of applying for a modification. Contact Shepley & Associates today to schedule your free initial consultation!