Loan Modification FAQ
Q. - What is a loan modification?
A. - A loan modification is when your current lender modifies your existing mortgage to make the loan more affordable. If you are currently in foreclosure, a successful loan modification will stop the foreclosure process and bring you current. Usually, a loan modification is in the form of a rate reduction, and fixes the rate for a specified period of time. In the past, lenders only modified loans when the borrower was delinquent and had suffered a hardship (such as a job loss, divorce, illness, etc). Now, borrowers can obtain help from their lender to prevent unaffordable rate adjustments, to reduce their principal balance in order to sell, or to lower or defer payments until they are back on their feet. The earlier you get started, the better your chances are of getting the modification that's right for you. Fortunately, with the bailout that the Government provided to these lending institutions, it is no longer a requirement to be late on payments or in foreclosure to modify your loan. Many lenders are willing to work with struggling borrowers, even before they fall behind. Each borrower's situation is unique, and we will take the time to fully understand yours, before we make any recommendations.
Q. - How can a loan modification help me?
A. - No matter what size or type of mortgage you currently have - you may find it hard to refinance or sell your home because you owe more than your home is worth. You may also find yourself unable to keep up with your mortgage payments because of rising interest rates, homeowners insurance and property taxes. Additionally, a recent layoff, divorce or illness can have a negative impact on your ability to pay your mortgage. As a result, more and more people are finding they need to modify their existing loans. At Hafter Law & Associates, our attorneys will work with your lender(s) to modify your loan, so you can get a low fixed payment you can afford, avoid foreclosure, lower your principal balance, or reduce and/or defer payments until a future date. Up until now, the only option delinquent borrowers had was to walk away and let the bank foreclose on their home. This is not the best option, since a foreclosure stays on your credit report for seven years. Let our law office help you stay in your home with payments you can afford.
Q. – Can I do this myself?
A. - While you could attempt to manage your own loan modification, most clients experience significantly better results when they leverage the experience and expertise of a loan modification company. Most people become frustrated working with the lender’s loan modification department. The lender is hoping you give up.
Q. – I tried this, but my lender won’t budge?
A. - Yes. We have noticed that most lenders act this way until we get involved. We know how to get the bank to settle on fair terms. We know who to talk to and what to say. We will use our connections and experience to get you the best possible solution. Using an experienced lawyer to assert your rights gets you to the front of the line in this process. The possibility of litigation or bankruptcy may increase your negotiating leverage with your lender. When lenders are forced to get their own lawyers involved, not just an administrative person from the loss mitigation department, our clients see better results.
Q. – I am in bankruptcy proceedings, can Hafter Law & Associates help?
A. - No. We can only help you after the bankruptcy has discharged.
Q. – Can all home loans be modified?
A. - Most home loans can be modified. Speak to an attorney for FREE today to see if your loan qualifies. It does not matter what type of loan you have, we can help! We specialize in out-of-court resolutions of government and non-government mortgage delinquencies for every type of lender, including banks, credit unions, thrifts, FHA, Rural Administration, VA, CalVet, Fannie Mae, Freddie Mac, etc.
Q. – Can a loan be modified more than once?
A. - Most home loans can be modified up to twice a year.
Q. – Why should I use Hafter Law & Associates to modify my loan instead of doing it myself?
A. - Our attorneys have extensive experience in negotiating loans and working with lenders. We have an impeccable relationship with lenders, who are usually unwavering in negotiating with the consumer directly.
Q. – What does this cost?
A. - Our fees are based on your mortgage payment amount, and the complexity and urgency of your situation. Our professional attorneys will evaluate your case and explain the best options to save your home. Our fees and payment schedule are on a client-by-client basis. We will figure an affordable and simple plan for your unique situation.
Q. – I filed for bankruptcy. Can you help me?
A. - Yes. We can review your situation and let you know your options, but must wait until your mortgage has been discharged or dismissed from your bankruptcy to negotiate with your lender.
Q. – What if I can no longer afford my home? Can you help?
A. - Yes. If you are certain that you cannot afford your home we have several options that will minimize your credit damage and forgive the debt. They include returning the property to the lender or selling it to a third party
Q. - Can you help unemployed homeowners?
A. - Yes. In some cases, unemployed homeowners may be approved. But, this will depend on the lender and your specific situation. Most lenders will require that you have enough monthly income to cover your new mortgage payment and expenses. So, if you have other income coming in, this will help. At the very least, we may be able to defer payments until you can gain employment, and then we can complete your modification request.
Q. - Can you count the income of people who live with me, but are not on the title?
A. - Yes. We consider the total income of the household, not just the borrower's income.
Q. - Do I need to be delinquent or behind on my mortgage?
A. - No, but it does make things easier. Loan modifications are meant to help people in financial hardship, and banks are more willing and motivated to help borrowers who are behind on their payments.
Q. - Can you help me with second homes or investment properties?
A. - Yes. There are many lenders who will consider a loan modification on second homes and investment properties now. We suggest that you contact us with the specifics of your situation.
Q. - Is it too late if I have received a Notice of Trustee sale?
A. - Definitely not! We can prevent foreclosure up to a few days before the actual trustee sale date. However, if you want to stay in your home, please don't wait to call us until you have received a notice of sale.
Q. - What payment options do you accept?
A. – Hafter Law & Associates accepts the following forms of payment for your convenience: cash, check, MasterCard and Visa.
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