Tips for Negotiating a Loan Modification

 Posted on July 04, 2012 in Loan Modification

If you're a typical homeowner, you probably feel like David facing up at Goliath when you speak with your lender about modification of your home mortgage. Despite efforts to put the odds more in the consumer's favor, most aspects of modification are in the bank's hands. But there are some ways to make easier.

Hire an experienced attorney. The bank has plenty of legal advice and firepower on their side. Plus, they're the ones who make the contracts you sign. So they're at a distinct advantage when negotiating anything with you. In order to even things up, secure an attorney who is knowledgeable and experienced with loan modification.

Write our a concise hardship letter. Explain why your circumstances have changed to the point that you can no longer afford your payments. Were your hours cut back at work? Do you have unexpected medical bills?

Be honest about your financial situation. You'll have to compile a lot of paperwork about your current financial situation. Don't lie about your current assets, or try to make things sound worse than they actually are.

Make sure you know who owns your loan. The bank that originally loaned your the money may have sold or split your loan amongst several other banks. To find out who owns your loan, go directly to your mortgage servicer and ask who owns the loan.

A loan modification is a complicated process, and it's not the kind of thing that most people can take on without the guidance of someone who's firmly on their side. To get the kind of support you need to negotiate with your lender, contact one of our knowledgeable Crystal Lake lawyers today for sound legal advice that is specific to your case.