• What is a Loan Modification?
• Is a Loan Modification for me?
• Can anyone qualify for a Loan Modification?
• Can you do a Loan Modification by yourself?
• Why should I use an attorney?
• How is this different from a refinancing agreement?
• How much time do I have before they sell my home?
• How long does the Loan Modification Procedure take?
• Will I have to meet with my Bank/Lender?

Q: What is a Loan Modification?

A Loan Modification is a procedure in which the terms of a loan, such as the interest rate, the monthly payment, or the duration of the loan, are changed to meet the current situation of the homeowner. All of this requires the approval of the lender. We will negotiate with your lender to try and change the terms of your loan, allow for you to have a lower monthly payment, keep your home, and save your credit.

Q: Is a Loan Modification for me?

If you are one of the millions of Americans with an adjustable rate mortgage (ARM) that recently reset, or is about to reset to a higher monthly payment, then Loan Modification is probably right for you. There are many homeowners that currently have adjustable rate mortgages or interest only mortgages that have little or no equity in their homes, therefore, it will be impossible for them to refinance. A short sale or forbearance is not a good option because they often come with negative tax and credit history consequences. In most cases, a loan modification does not affect your credit, nor does it come with negative tax consequences unless we are actually able to reduce your principle mortgage balance.

Q: Can anyone qualify for a Loan Modification?

Unfortunately, not everyone will qualify for a loan modification. People that have waited too long to act and take charge of their situation might not qualify for a loan modification. There are, however, other options available for you, and our consultants will explore every possible option to keep you in your home and save your credit.

Q: Can you do a Loan Modification by yourself?

It is not a requirement that you hire an attorney to negotiate a loan modification or a pay rate reduction on your mortgage, however, many borrowers find that they get resistance from their mortgage lender and the process can be time consuming and confusing. Our office is comprised of attorneys and real estate finance professionals with decades of experience in dealing with mortgage lenders and financial transactions. Through the experience we have gained in dealing with different lenders over the years, we will do everything in our power to try to find a way for your Loan Modification to be completed successfully. We have the means and the infrastructure to work with lenders to help you reach your goal.

Q: Why should I use an attorney?

There are several reasons why you should use an attorney. Our attorneys have extensive experience negotiating with banks and legal entities and they understand the nuances of state laws, federal law, and lending regulations. An attorney can also threaten the recession of a loan, which would force the lender to return all unjustifiable fees. They can also use the Truth in Lending Act (TILA) and Real Estate and Settlement Procedures Act (RESPA) to the borrower’s advantage. Our attorneys will use these laws to put the servicers and lenders on the defense and correct your loan.

Q: How is this different from a refinancing agreement?

A refinance involves taking out a new loan and using those funds to pay off the existing mortgage on your property. In order to refinance the borrower and the property must meet all the requirements to be approved for a new loan. In today’s market it has become increasingly difficult to be approved for a refinance, usually due to poor credit scores, lack of equity, debt to income ratios, and a host of other market factors. Current home values have been dropping to all time lows which combined with stricter bank requirements, has made it difficult to refinance.

Q: How much time do I have before they sell my home?

Every situation is different. The entire foreclosure process typically takes about three to six months depending on your location and other factors. The sooner we start the loan modification process, and the more time we have to work with your lender, the greater the likelihood of success.

Q: How long does the Loan Modification Procedure take?

It depends. Fortunately, most lenders will take only a few months to approve a loan modification once they have received the necessary information. Many lenders will postpone the sale of your property if they have received a complete package at least two to three weeks before the sale date. If a government guaranteed loan (e.g. FHA) is involved, forbearance plans will generally take two to three months. However, some government loans may take longer to work out.

Q: Will I have to meet with my Bank/Lender?

No! We will take care of all the paperwork for you after you fill out your initial application. Once your application is complete, we will have all the necessary documents to negotiate and speak with your bank on your behalf.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.