Cerritos Loan Modification Lawyer

The Loan Modification Process

Bankruptcy can be the best solution for you in certain situations. There are many benefits of bankruptcy and at Financial Recovery Law, our legal team is fully prepared to discuss those with you. There may, however, be a way to resolve mortgage problems without going through the bankruptcy process. An alternative to bankruptcy can be a loan modification, or mortgage modification, as it is sometimes referred to.

Seek the help of a trained and experienced Cerritos debt negotiation attorney if you want to explore your loan modification options. In order to modify your mortgage, you have to be able to prove you have a financial hardship. Situations such as losing your job, adjustable rate increases that make it impossible to pay your mortgage or loss of value of your property can all create financial hardship. If your case is clearly communicated and backed with hard facts, your chances of approval are greatly increased.

How to Modify a Loan

A loan can be modified by reducing your principal and thus lowering your payments. Reducing or removing penalties, such as late fees, can make your mortgage manageable. Sometimes the interest rate of a loan can be changed or the length of the term of your loan can be extended, both of which can be effective loan modification methods. Changing from a floating to a fixed rate can favorably alter a loan. There are additional ways to modify a loan that may be correct for you.

One of our first actions is to get to know you and your individual financial situation. Not everyone has the same financial problems or the same goals in mind. At times, resolving issues with lenders can be complex. Knowing the right questions to ask your lender and what to expect during the loan modification process can work in your favor. It is also important to have a goal in mind when trying to get your loan modified as well as a contingency plan should your lender deny your application.