Are you behind on your current mortgage and struggling to catch up? It is sometimes possible get the help you need through a loan modification. The loan modification attorneys at Debt Freedom GA can help. Call to set up a free or in-person short consultation.
How Can a Mortgage Loan Modification Help?
Modifying your mortgage is a powerful tool to prevent a lender from foreclosing on your home without having to file for bankruptcy. Lenders may be reluctant to approve loan modifications requested by the homeowner. The attorneys at Debt Freedom have the experience and clout to work with lenders and have helped hundreds of homeowners.
During these turbulent times it is imperative to stay current with the latest developments and programs in the mortgage industry. We will take advantage of every possible option to help you modify your loan.
The loan modification options include:
- Moving missed payments to the end of the loan
- Reduce monthly interest and payments
- Reduce principal loan balance in some cases
- Avoid foreclosure
Benefits of Loan Modifications
There are numerous benefits to these options that can prevent foreclosure. These benefits and examples may not apply to every loan or situation.
Moving missed payments to the end of the loan provides great relief so that you don’t have to make current payments plus the past due payments. It does extend the length and life of the loan but might be a good option.
If you have an adjustable-rate mortgage it is often wise to move it to a lower fixed rate. This can also lower your monthly payment.
If your property is worth less than the mortgage on the real estate then we will work with the lender to reduce the mortgage to the value of the property. We will also ask for a reduction in late fees and penalties.
Another option to lengthen the loan to lower the payment. If you have been in the home for six years or more this might be an option to consider.
Our goal is always to help our clients obtain Debt Freedom. We work with our clients to explore all options and opportunities to help achieve this goal.
Loan Modification with Chapter 13 Leverage
Sometimes it may be helpful to file a Chapter 13 Bankruptcy to stop foreclosure, help pay arrearages, and provide extra time to get a loan modification completed. Some advantages of a Chapter 13 Bankruptcy in this context include, but are not limited to:
- Upon filing you are protected by the bankruptcy “Automatic Stay” which stops all collection efforts and foreclosure
- Past due amounts are paid back in 60 months at no interest with no changes to the loan (you must make current payments as well)
- If you have a second mortgage on the home and the house is worth less than the first and second mortgage combined, then the second can be stripped off. However, you must complete the Chapter 13 (up to 60 months) for the lien strip to be effective.
This can be a very stressful time for homeowners. Call us today for a free consultation and let us help you enjoy Debt Freedom
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