Are you facing foreclosure in Massachusetts? If so, it is probably because your mortgage payments are more than you can afford. However, there could be a way to modify your mortgage loan to keep your home. The best way to begin is by seeking legal advice from an experienced New Bedford loan modification attorney.
Attorney Logan Weinkauf has over 14 years of experience in private practice. He has extensive experience handling debt relief matters, including loan modifications.
Contact Logan A. Weinkauf, P.C., to schedule a no-obligation consultation with our loan modification lawyer in New Bedford, MA.
How Our New Bedford Lawyers Can Help You With a Loan Modification Application in Massachusetts
You are not legally required to hire a New Bedford loan modification lawyer. However, it does not mean applying for a loan modification without an attorney is in your best interest. Having an attorney assist you with a loan modification has many benefits.
Ways that our New Bedford loan modification attorney can help you with a Massachusetts include:
- Explain your legal rights and obligations for a loan modification agreement in Massachusetts
- Complete the loan modification application to avoid mistakes and ensure all required documents are included with the application
- Assist you as you prepare a financial hardship letter explaining why you need a loan modification and why the company should approve your request for modification
- Ensure your mortgage lender complies with state and federal laws for loan modifications and the rules for the modification process
- Negotiate favorable terms for the loan modification agreement
- Can handle an appeal if your mortgage lender denies your loan modification application
Our attorneys also help you decide whether the loan modification agreement is in your best interest. Your financial situation might not support a loan modification. If so, your attorney can help you explore other options for dealing with past-due mortgage payments and foreclosures.
What Are the Goals of a Loan Modification Agreement in Massachusetts?
A loan modification can change the terms of your mortgage note in one or more ways. The purpose of changing the terms is to make the mortgage payments more affordable. The bank agrees to modify your loan so you can avoid foreclosure and remain in your home. A loan modification differs from a refinance, where you obtain a new loan to repay the existing loan.
What Terms Can Be Modified in a New Bedford Loan Modification?
Since the goal is to make your mortgage payments affordable, your lender may agree to modify one or more terms of your mortgage. Your mortgage lender may agree to modify your loan by:
- Extended the term of the loan to lower the monthly payments by spreading them out over a longer term
- Lower the interest rate to lower the monthly payments
- Converting an adjustable-rate mortgage to a fixed-rate mortgage
- Placing late payments (arrearage) at the end of the mortgage
Sometimes, the lender may forgive some of the past due amount (reduce the principal of your mortgage loan). While this is rare, it is something that our attorneys discuss during negotiations, especially if you have made a good-faith effort to pay your mortgage payments, even after experiencing a financial crisis.
Do I Qualify for a Loan Modification in New Bedford?
Each mortgage lender has a different qualification that borrowers must meet to qualify for a home loan modification. Generally, you must meet the following requirements to modify your loan:
- You are legally responsible for repaying the loan secured by the property
- Your mortgage is in default or at risk of being in default soon
- You have a financial hardship that has led to or will lead to your inability to pay the mortgage payments.
- The cause of your financial crisis is not within your control (i.e., illness, disability, spouse’s death, etc.)
- You have the means to pay the loan if the lender agrees to the modified terms
Our New Bedford loan modification lawyers work with you to gather the information to prove that you are in need of and qualify for a loan modification in Massachusetts. Documentation included with a loan modification application includes, but is not limited to:
- A current appraisal for your home
- Bank statements
- Copies of tax returns
- Proof of current income, including pay stubs, W2s, 1099s, etc.
- A detailed summary of your finances
- A letter explaining what has led to your financial crisis and supporting documents
Your lender has the final decision on whether to approve a home loan modification. Mortgage companies consider many factors, including your loan history, credit score, current financial status, home loan-to-value ratio, and debt-to-income ratio.
However, this information is facts and figures. Your attorney uses evidence of your financial hardship to present the human reasons why the lender should work with you to modify the loan to avoid foreclosure.
An experienced New Bedford loan modification attorney understands what lenders look for when reviewing applications to modify loans. Your attorney includes all relevant information to develop a compelling argument as to why you are a good candidate for a loan modification.
What Happens if My Loan Modification Application is Denied in Massachusetts?
Re-submission might solve the problem, especially if you did not hire an attorney to submit the original application. An attorney can review the application to correct errors and mistakes. You may need to submit additional documentation and information about your financial hardship to gain approval.
If the company denies your modification on re-resubmission, your attorney demands a detailed explanation of why the lender denied the modification. Your attorney carefully analyzes the reason to determine if the lender committed servicer violations.
If the loan modification cannot occur, you might have other options to explore other than foreclosure. Our New Bedford loan modification lawyers are also skilled and experienced in short sales, bankruptcy, and other debt-relief options. We’ll work with you to find a solution that works for you.
Schedule a Consultation With Our New Bedford Loan Modification Lawyers
If you want to keep your home, a loan modification might help you negotiate affordable loan terms. Our Massachusetts loan modification attorneys at Logan A. Weinkauf, P.C. provide legal advice, guidance, and representation during all phases of the loan modification process. Call our office today to schedule a consultation with an attorney to discuss how we can help you try to stay in your home.