Mortgage Relief Programs in Illinois

Libertyville Lawyers Helping Clients Refinance and Modify Mortgage Loans

Are you struggling to make your mortgage payment every month? Do you still owe far more on your home loan than what your home is worth? If you answered "yes" to either of these questions, you need to know that you are not alone. An estimated 4.5 million Americans currently owe more on their mortgages than their homes are worth, and many owe at least twice what their home is worth.

When you are behind on your mortgage to the point that the loan defaults, you are at risk of foreclosure. Fortunately, however, there are options available that could help you resolve your mortgage debt and protect your home from being taken by your lender. At Newland & Newland, LLP, our team can help you explore possibilities for refinancing, mortgage loan modifications, and mortgage relief programs to keep you in your home and out of foreclosure.

Exploring Your Options

If you are current on your mortgage payments and have a good history of paying on time, you may qualify for refinancing. A refinance is essentially a new mortgage that you take out to repay your existing loan—usually with more favorable terms and a lower interest rate. A refinance can often save you money by lowering your payments, but if you are already delinquent on your current mortgage, refinancing might not be possible.

You may also qualify for a mortgage loan modification with your lender. A mortgage loan modification is not a refinance; it is an adjustment to the terms of your existing agreement. Your lender may agree to lowering your interest rate temporarily, extending the term of your loan, or moving your overdue payments to the end of the loan, among other possibilities. A qualified attorney from Newland & Newland, LLP can help you negotiate a loan modification that meets your needs.

Depending on your circumstances, mortgage relief programs may also be available for mortgages held by Fannie Mae or Freddie Mac. The availability of these programs changes from time to time, and a mortgage relief lawyer can assist you in exploring your available options.

Flex Modification Program Replaces HAMP and HARP

The Home Affordable Modification Program (HAMP) was introduced by the federal government in 2009 to help homeowners affected by the mortgage crisis of the early 2000s. The program closed, however, at the end of 2016. The Home Affordable Refinance Program (HARP) was also created in 2009 to provide additional options for struggling homeowners. HARP was extended several times but the program closed at the end of 2018.

The Flex Modification Program was introduced in 2017 to replace HAMP and HARP. Through the program, eligible borrowers are able to reduce their monthly mortgage payments by about 20 percent. Lenders may do this by capitalizing overdue payments, adjusting interest rates, extending the term of the loan, or forbearing part of the principal balance. Both Freddie Mac and Fannie Mae require their lenders to review all mortgages for a Flex Modification when the loans are delinquent by between 90 and 105 days. If your lender does not offer you a Flex Modification, our team can help you apply for the program.

Call 847-549-0000 for a Free Phone Consultation

There are many factors to consider before applying for a mortgage relief program, and our experienced lawyers will help you go through them all. Contact our office for a free phone consultation and case review today. Call 847-549-0000 and get the guidance you need to stay in your home and avoid foreclosure. Newland & Newland, LLP serves clients in Libertyville, Grayslake, Lake Bluff, Waukegan, Arlington Heights, North Chicago, Mundelein, Gurnee, Lake County, and the rest of Northern Illinois.