Take Back Control Of Your Mortgage Without Losing Your Home
If you're having difficulty keeping up with your mortgage payments, pursuing a loan modification can be a crucial step in avoiding foreclosure and easing financial strain. At DebtErasers, our attorneys specialize in assisting clients in applying for modifications that adjust the terms of their mortgage loans, ultimately making payments more affordable and manageable given their current income.
Whether you're already behind on payments or facing financial challenges, we'll guide you through your legal options and liaise directly with your lender to negotiate better loan terms.
What Is A Loan Modification?
A loan modification is an agreement you can make with your mortgage lender to change the terms of your current home loan. Instead of getting a new loan, you ask to modify your existing one. This could mean lowering your monthly payments or giving you extra time to catch up on missed payments. The goal is to help you avoid losing your home.
Lenders often like this option because it allows them to get their money back over time without going through the expensive and lengthy process of foreclosure, which is when they take your home due to unpaid loans.
Benefits Of Loan Modification
- Lower Monthly Payments: Adjust your mortgage payment to better match your income.
- Postponing Missed Payments: You have the option to move any late payments to the end of your loan, helping you avoid urgent issues like losing your home.
- Avoid Bankruptcy or Foreclosure: By modifying your loan, you can stay in your home and manage your finances better, helping you steer clear of bankruptcy or foreclosure.
- Protect Your Credit Score: This process can help you avoid the negative effects that losing your home would have on your credit rating.
How the Loan Modification Process Works
Working with DebtErasers ensures your application is prepared correctly, significantly improving your chances of approval. Here’s what to expect:
Step 1: Free Attorney Consultation
Start by scheduling a free consultation with our experienced attorneys. We'll evaluate your situation and explain your best options.
Step 2: Submit Required Documents
To apply, you'll need to submit the following:
- Loan modification application form
- Recent pay stubs and proof of income
- Financial statements and monthly expenses
- Bank statements
- Tax returns (usually last 2 years)
- Hardship letter explaining why you can’t maintain your current mortgage payments
Step 3: Lender Review & Trial Period
Once you apply, your lender will review the details. If you're approved, you'll typically be put on a trial payment plan that lasts around 3 months. This helps prove you can meet the new payment terms.
Step 4: Final Approval
Once you complete the trial successfully, your loan modification is finalized and documented in writing.
Do I Qualify For A Loan Modification?
You may qualify if:
- You’ve experienced financial hardship (job loss, medical issues, divorce, etc.)
- Your mortgage payment is too high relative to your income
- You owe more than your home is worth (“underwater” mortgage)
- You're behind on payments or at risk of falling behind
Our DebtErasers loan modification attorneys will help you determine if you meet your lender’s specific qualifications.
Frequently Asked Questions
How Do I Qualify For A Loan Modification?
When assessing your loan modification eligibility, lenders and attorneys check if your mortgage debt is too high relative to your income or if you're "underwater."
How Long Does The Loan Modification Process Take?
Every case is different, but on average, it will likely take three to six months to complete the process of filing for and getting a loan modification approved.
Does a loan modification hurt my credit?
It may temporarily impact your credit, but it’s far less damaging than foreclosure or bankruptcy.