Dealing with mortgage problems including loan modification and foreclosures is fraught with several pitfalls due to the multiplicity of complicated laws and bylaws. Most homeowners do not have any knowledge of the thin lines, hidden charges, the old and outdated clauses, and the latest changes that are made from time to time.
The legal implications of these laws are beyond the comprehension of the common homeowners. Most people just append their signatures on the dotted lines at the end of the application forms. They feel shocked when they receive unexpected demands and notifications from the lenders or the banks.
Most borrowers are generally tight on budget and are reluctant to engage the services of qualified and experienced attorneys. They, therefore, tend to trust what is mentioned in the headlines of the lenders’ ads.
Some homeowners sit silently and do nothing to stop the process of foreclosure thinking that the law will take its own course and there is nothing they can do about it. If you consult a loan modification attorney, you will be surprised to discover that you can save your home from foreclosure by seeking modification in your loan terms.
The rate of interest on your loan can be substantially reduced. The loan term can be increased and the principal balance amount too can be slashed. There are several laws that only an expert attorney is expected to know and an ordinary homeowner remains unaware about them.
It is always advisable to seek the advice and assistance of a reputed attorney who has sufficient expertise and experience in handling the loan modification and foreclosure cases. Their services are needed all the more if you are lagging behind on your mortgage payments, facing penalties and other charges, suffering financial scarcity, apprehending foreclosure auction, or, have been trapped into debt by a predatory lender.
A loan modification attorney can negotiate with your lender on your behalf to reduce the rate of interest to your affordability level. They can help in getting exemptions on fees that are charged for default payments and also negotiate for a reduction in the principal balance.
As a layman you may not be able to present your case for loan modification in a heart-felt and convincing manner. You have to submit your application with a completed budget worksheet to enable the lender to consider the loan on new terms.
An experienced attorney is much better qualified to present your hardship letter in such a way that your loan modification proposals are not declined. As a worried and tensed borrower, you may not be able to do so in the best possible way.
It must be known that scores of loan modification assistance companies have cropped up in recent years to take advantage of the collapse of the real estate market. They consist of people who were erstwhile mortgage brokers. They are more likely to mess up your matters than provide any helpful solution.
Some of these companies try to defraud the hapless homeowners of their hard earned money by offering false promises of relief. Others charge them for auditing their accounts. They point out accounting defects that have no relevance to the current loan situation of the borrowers and extract heavy fees from them in the name of correcting the problems.
A reputed loan application and foreclosure attorney will surely not ruin his reputation by resorting to such low methods. They are the perfect choice to get you out of the furnace and back on the path of a stable financial situation.