There are those who say that for loan modification, a Loan Modification Attorney isn’t needed. This implies the debtor can handle the loan modification individually without anyone’s help. This is simply NOT the case. The loan modification process can stretch out over several months and many issues arise that require both knowledge and expertise. Even those who are skilled use expert help. We all know working on matters that mean as much as one’s personal home can often be best handled by a third party no matter how much we know.
Most of the applications for loan modification that are filed by individuals are not successful. The predictability of a successful approval and outcome increases substantially by using the services of a loan modification attorney.
What does a loan modification attorney do?
The first thing that a loan modification attorney does is review the case. The attorney will study the case on the basis of legalities and determine the way to handle your circumstances to be successful. This includes reviewing any legal actions that have already been brought against you or your property in order to try and find out flaws than be used to your benefit. The most common issues that the loan modification attorneys search for are the violations of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).
What you should expert from a consultation with a loan modification attorney are as follows
- The duration of the session should not exceed two hours
- The fee structure should be discussed
- The loan modification attorney should give an outline of the possible results based on what is happening in current, similar situations
- The attorney should be able to offer a plan to set the clients expectations
- The TILA and RESPA laws should be explained
Here are some of the accomplishments you can expect in a mortgage loan modification:
- Include the past due payments in the new re-amortized loan
- Get rid of the negatively accrued interest
- Reduction of the loan balance
- Convert to a fixed rate mortgage with a rate you can afford
- Reduction in the monthly mortgage payment
- Loan modification applies only to a primary residence