A qualified loan modification attorney can help you secure the best possible plan for your unique situation. An attorney will bring the parties together and aggressively secure the loan modification plan you need. This can result in a more favorable loan agreement and monthly payments for you. When you decide to hire a lawyer, there are many benefits to doing so. Read on to learn more. Until you have an attorney’s name in front of you, start researching your options.
Avoiding scam artists
If you are in the process of refinancing your mortgage, you should avoid dealing with anyone who promises a loan modification without any work on your part. Many scammers will convince you that you can save thousands of dollars just by hiring them and then insist on getting your documents sent to someone else’s state to complete the paperwork. While this is not always the case, it can be a sign that you’ve been scammed.
The first step in identifying scam artists is to check for the Illinois Registration & Disciplinary Commission (IRDC). Federal law prohibits law firms from collecting advance fees in mortgage relief or modification cases. So beware of any loan modification attorney who wants to charge you an advance fee. In addition to examining credentials, you should also look for the firm’s accreditation. The Illinois Registration & Disciplinary Commission (IRDC) issued an alert last year warning homeowners about loan modification scams.
Beware of long-term modifications
There are many long-term modifications you can get, but they’re not for everyone. If you can’t afford to continue paying your mortgage, it might be time to sell your house. Your lender will likely suspend payments while the sale is taking place. The bank may also agree to a short sale, which means they will accept the sale proceeds if they don’t cover the remaining amount of the mortgage. Of course, you must ensure the bank won’t come after you later.
Hiring a loan modification attorney with experience is essential. This way, you can be sure that your attorney is negotiating your best interest. The process with lenders can be difficult and confusing. Having a qualified loan modification attorney working on your case can help you get better terms and speed up the whole process. You may qualify for a loan modification if you have an adjustable rate mortgage or you’re behind on your payments.
Time-consuming process of applying for a loan modification without a lawyer
If you are experiencing foreclosure issues, the time-consuming process of applying for loan modifications without a lawyer can make the entire process even more stressful. It involves a long list of documents and tight deadlines. Even if you feel confident that you’ve submitted all of the required documents, lenders can still request more or require updated copies of the same documents. Sometimes, you may have to go through the entire list again.
Using a lawyer can save you a great deal of time, since attorneys have extensive knowledge of the loan modification process. Without an attorney, you can easily make mistakes that can cost you a lot of time. Getting a loan modification approved can be complicated, and the wrong information can lead to a denial or a modification that barely reduces the payment amount and does nothing to reduce the principle balance.
Cost-benefit analysis of getting a loan modification
A loan modification may be your best option for a short-term fix, but it can also lead to greater delinquency in the future. In some cases, the bank may refuse to consider the present market value of a home when determining if the loan should be modified. However, most loan modifications are only temporary fixes and eventually fall delinquent again. As such, it’s important to conduct a Cost-Benefit analysis before deciding on a modification.
A loan modification may be the best option for struggling borrowers, but it should only be your last option if you cannot afford to make your full payments. Refinancing will likely be a better option if you need a better interest rate and want to get rid of the debt faster. Refinancing can also make monthly payments more affordable, but it’s better for your credit to be in good standing to get a better deal.