Advantages of Using a Loan Modification Lawyer
Many people today have mortgage loans they can no longer afford, and worry about avoiding foreclosure and filing for bankruptcy. Loan modification may be an alternative to bankruptcy in some cases; however, trying to deal with a lender on your own can be difficult.
Many bankruptcy attorneys negotiate with lenders on behalf of individuals who are struggling financially. Consider the advantages of using a bankruptcy lawyer to handle a loan modification:
- Knowledge of the financial and legal jargon used in loan agreements
- Proper preparation of loan applications with necessary documentation
- Negotiation experience and skills
- A legal view of your situation and knowledge of your rights under the law
- Help with evaluating whether your financial condition can support proposed loan changes
- Careful scrutiny to proposed loan changes that are in your best interest
What is the legal definition of a loan modification?
The Department of Housing and Urban Development (HUD) defines a loan modification as a permanent change in one or more of the terms of a borrower's loan that allows the loan to be reinstated and results in a payment the borrower can afford. A lawyer can help you with the many details that go into negotiating a loan, such as whether the lender can include late charges or whether the lender can assess a new basis interest rate.
When seeking a loan modification you want to avoid revisiting the same financial problems. You need to end up with a loan that you can actually afford. Professional legal help can save money and certainly frustration. Rely on a lawyer and get it right the first time.