If you have a hard time keeping up with your loan payments, then you may need to consider a loan modification.
Loan Modification: What is it?
This refers to any changes to the original terms of the loan. Many people mistakenly believe the term is interchangeable with refinancing. It is not. When you refinance, you get your old loan replaced with a new one. When you go for a loan modification, though, that means you only seek out changes to the terms of an existing loan.
Why Do You Need One?
If you find it hard to make ends meet, changing the terms of your loan can help you meet your financial obligations. For instance, modifications could lead to an extension on the length of your loan. That can lower your monthly payments, allowing you to meet those obligations with ease.
Do You Qualify for the Loan?
Not everyone can get loan modifications. Changes to the requirements now make it harder to qualify for a loan modification. If you are in danger of losing your home, you can reach out to the Mortgage Modification Mediation (MMM) for help on how to keep your house. You can also talk to a lawyer to find out what your best options are. An experienced attorney can counsel you on your options moving forward and put together a backup plan for you in case the modification fails to go through.
Do Real Estate Laws Affect the Loan?
Yes. If you are in the midst of a bankruptcy case, for instance, then you will need to consult with legal counsel for further help. Asking for changes to the terms of your loan, especially when you’re dealing with a bankruptcy case, is not a ‘business as usual’ practice. The bankruptcy court may need to approve the modifications first, depending on the kind bankruptcy filed.
What Should You Look for?
Find experienced real estate attorneys in Phoenix AZ to provide you with the guidance and assistance you need to navigate through your bankruptcy while you seek out changes to your loan. Expertise and experience are good indications that you’re hiring the right legal help. With a seasoned attorney by your side, you have someone to guide you through the process of filing for bankruptcy while getting changes to your home loan approved.
Find out more about how bankruptcy laws affect your loan modification. Hire real estate attorneys in Phoenix AZ from The Law Office of Larry P. Karandreas.