Negotiating Loan Modifications to Stop Foreclosure

If you reach a point where you are struggling to meet your mortgage payments, you can get the help of a foreclosure defense attorney, which means you can stop struggling! Although your mortgage repayment plans may seem to be set in stone, you are well within your right to renegotiate it if you find yourself in financial difficulty.

Modifying a Loan

If you find that your payments are unaffordable, there are a number of steps you need to follow.

  • First of all, keep in touch with your creditor. Do not avoid their calls, letters or emails. While it is in their best interest to avoid foreclosure.  You need to present a good plan to solve your problem with them. Be transparent about your situation and discuss your options. The lender may agree to temporarily suspend payments. This is a short-term solution, however, and if you need something more permanent, then you should consider modifying the loan.
  • Secondly, if you do decide to modify the loan, read the terms of your modification carefully – is it helpful?  Is it fair to you? 
  • Thirdly, you must be able to present evidence to show that you have hit upon hard times financially and cannot service the debt as it stands, but you have a good chance to pay the modified loan requested.
  • In the fourth step, get the help of an experienced and specialized foreclosure defense attorney. They will know the correct way to maximize your chances for success.
  • Step Five is the application itself. You or your lawyer will contact the lender’s loss and mitigation department, and your eligibility will be assessed. You will then receive the application to complete and, once this submitted, along with your motivation letter, pay stubs, bank statements W-2 forms, and tax returns, you should receive a response within a few weeks to a month. The application should be organized and complete with a hardship letter and a new well-Powered solution submitted with pay stubs, bank statements, profit & loss records for the self-employed, tax returns, and other backup documents.

It’s always best to enlist the help of a consumer and foreclosure defense attorney to make your loan modification application smoother and easier. Contact the Law Offices of Neil Crane, LLC, the renowned Connecticut debt relief, bankruptcy, tax and foreclosure defense attorney.