Can You Negotiate A Mortgage Loan Modification?
If you are facing trouble managing your mortgage loan, you may not be aware that you can negotiate with the lender to change your payments. Those facing foreclosure are sometimes unaware that this is a potential avenue that you can explore. Modifying loan payments or the period of the loan can make your debt repayment more manageable. You can change the rate of interest, interest type, principle amount, waive penalties and late fees, and more. Ultimately, however, the lender must be willing to approve the modification.
To convince the lender, you will need to negotiate with them. The negotiation process is not simple. First, you need to get approval for the modification and then you need to negotiate the terms of the debts. Having a lawyer help you through the process can increase your chances of successfully negotiating a manageable mortgage and avoiding foreclosure. The Columbus, OH mortgage loan modification attorneys at Kohl & Cook Law Firm, LLC are here to help. If you need help negotiating new terms for your mortgage to avoid foreclosure, our attorneys can help you successfully do so.
Tips for negotiating a mortgage loan with your lender
- Do not ignore the lender – If you’re struggling to make payments on time, you don’t want to ignore your lender. The lender may try to contact you more frequently during this period. Don’t ignore them. You might think that avoiding phone calls from your lender is a good idea. It isn’t. The lender will interpret this against you. It will make the situation much worse and more difficult to handle if the lender believes you are attempting to dodge them.
- Stay in the home – You don’t want to abandon the property unless you’re forced into that position. Abandoning the property prematurely sends the lender a signal that you have no intention of rehabilitating the loan. Abandoning the property will make it more difficult for you to negotiate a loan modification with the lender.
- Collect financial documents – If you’ve decided to apply for a mortgage loan modification request, you should prepare yourself to present financial documents to your lender. You cannot simply tell the lender you can no longer afford the installments. You’re going to need proof of your current financial situation. These include proof of income, tax returns, bank statements, and more. All of this will be used to document your hardship letter stating the reason for your loan modification.
- Contact an experienced foreclosure defense attorney – As experienced foreclosure defense attorneys, we can help you gather evidence and prove your hardship case to the lender. Often, applicants forget about certain documents leading to rejection, or they don’t understand the process well enough to anticipate what the lender will request. Our attorneys are knowledgeable about how to handle a loan modification request. We can help improve your chances considerably by collecting necessary documents, organizing them, and showcasing them to the lender in a manner that proves your hardship case.
Talk to a Columbus, OH Mortgage Loan Modification Attorney
Kohl & Cook Law Firm, LLC represents the interests of those who are behind on their mortgage payments and want to avoid foreclosure. There are numerous ways to avoid foreclosure, and loan modification is but one of them. Call our Columbus consumer lawyers today to learn more.
