If you have taken out a loan on your home, you might discover that it is difficult to make your current payments on this loan. For example, your interest rates might have gone up and you might find it difficult to make your monthly payments. If this is the case, it's essential you speak with a lawyer specializing in loan modifications as soon as possible.
How Loan Modification Programs Work
There are several loan modification programs that are available. When you receive a loan modification, you will then be able to make payments for a longer period of time at a lower interest rate. You might be able to reduce your monthly payments so that they are more reasonable.
However, if you are considering pursuing a loan modification program, you will want to contact a lawyer who is familiar with loan modification law. This is because you will need advice on how to best obtain a loan modification and whether you should consider refinancing instead.
Loan Refinancing Vs. Loan Modifications
When you refinance, you will be taking out a new loan to replace the existing loan. In contrast, a loan modification is a situation in which your loan that is currently in place is replaced by a new loan. Some terms of your loan will remain the same and other terms will be modified. However, you will need to qualify for the program.
Several programs require that you live in the home that you are seeking a loan modification for. In other cases, you simply need to prove that you reside in the United States to qualify. Therefore, you might need to create documents to prove that you currently reside on the property.
Some programs place restrictions on how old your loan has to be, how much you are allowed to owe on the loan, and other characteristics of the loan. Fortunately, a lawyer can guide you toward the right loan modification plan for you.
You may need to prove that you are experiencing hardship to be able to qualify for a loan modification. You must show how much you are paying in rent and you must also show how much income you are bringing in. This can be accomplished by showing several paycheck stubs or by providing the loan modification service with your tax forms. You will also need to fill out all of the necessary forms to properly request a loan modification.