Home Loan Modifications, An Arduous Task
Article provided by Quincy, MA Bankruptcy Lawyers – Levin and Levin LLP
Many people are facing troubled financial times and as a result have found it difficult to keep up with their bills and are in danger of falling behind on their mortgage payments. When watching television, listening to the radio, surfing the internet or simply socializing with others, people are likely to hear the term “home loan modification.” Mortgage lenders may offer home owners who are struggling to make their monthly payments various modification options that would result in lower mortgage payments. As a result, pursuing a loan modification may appear to be a very attractive option for an individual or family facing financial difficulties. Often, loan modifications were offered through the former HAMP program and occasionally they are offered through the specific lender’s own modification program.
A home loan modification may be just the assistance an individual or family needs to help straighten out their financial troubles. However, before beginning to pursue a home loan modification, people should be aware that the process is not an easy or quick one and at times, it can be very frustrating. Many people who are attempting to work on a loan modification with their lender report long telephone hold times, repeatedly sending numerous documents to lenders which the lenders later claim they never received, and promises that a modification had been preliminarily approved, only to later learn that the statement was incorrect. In some cases, people experience many months of some or all of the above. Only a relatively small percentage of those attempting to modify their mortgage have been able to successfully complete the process. However, for many, despite the reportedly arduous task of the modification process and the reported low success rate, the possibility of having your lender’s assistance to stay in your home may be worth the effort, especially when losing your home to foreclosure is a possible alternative.
If you are considering contacting your lender to request a loan modification you should first seek the counsel of an experienced attorney. With your written consent, if necessary, an attorney can act as your advocate and deal directly with your lender or they can simply give you advice and support as you deal with your lender on your own.