Can A Mortgage Loan Modification Attorney Help Me Keep My Home?
While mortgage loan modification was always an option for homeowners who were behind in their mortgages, it wasn’t a popular option until the Recession of 2008-2014. In 2009, America was facing a foreclosure crisis. To address the matter, the federal government enacted a measure to help borrowers modify their mortgages and make their payments affordable. This program was known as HAMP (Making Homes Affordable Program). This program encouraged private lenders to renegotiate the terms of mortgages and help borrowers who were in arrears. At the same time, many banks instituted their own in-house mortgage loan modification programs under pressure from the federal government to limit foreclosures.
The goal of these mortgage loan modification programs was to reduce the overall number of foreclosures. The programs accomplished this by combining a borrower’s arrearages with their principal monthly payments and often extending the term of the loan. By restructuring the mortgage, a borrower had more time to repay their loan and make up for any arrearages.
Today, lenders are more willing to allow borrowers to modify their mortgage loans. At Kohl & Cook, we can help homeowners negotiate with lenders and navigate the often difficult process of negotiating with banks. In this article, the mortgage loan modification attorneys at Kohl & Cook Law Firm, LLC will discuss how our attorneys can help you keep your home out of foreclosure.
How can a mortgage loan modification help me keep my home?
There are several ways that a mortgage loan modification can help prevent your home from going into foreclosure. These include:
- Mortgage arrears absorbed into the principal – A mortgage loan modification can absorb any arrearages on your mortgage into the principal taking your loan out of default. This creates a new loan that is larger than the original but no longer in arrears.
- Better terms – The newly modified loan usually has better terms concerning interest (which is lower) and the duration of the loan (which is generally extended), which results in a lower monthly payment that is usually slightly less than what you were paying prior to the mortgage loan modification.
- Loan duration – Lenders can extend the loan term up to 40 years.
- Arrears deferment – Lenders can provide for a deferment of some loan arrears in lieu of a large payment at the end of the loan term.
Most institutional lenders offer several in-house programs which are often modeled on HAMP. Due to the difficulty of navigating through these programs and dealing with the lender’s bureaucracy, many homeowners facing foreclosure elect to have a qualified Columbus mortgage loan modification attorney work on their behalf to urge the lender to modify their mortgage loan. Often, lenders are receptive to these requests because it avoids the problem of the borrower filing for bankruptcy and the costs related to foreclosure.
Talk to a Columbus, OH Mortgage Loan Modification Attorney Today
Kohl & Cook Law Firm, LLC represents the interests of homeowners whose mortgages are currently in arrears and facing foreclosure. Call our office today to schedule an appointment, and learn more about how we can help you modify your mortgage and negotiate a deal you can afford.
