Loan Modification Attorney

Can You Stop Foreclosure with a Loan Modification Attorney?

Applying for your bank to modify your mortgage can stop foreclosure in many cases. A loan modification is a change to an existing loan contract that allows the borrower to avoid foreclosure and keep their home. The lender, servicer, or owner of the loan agrees to modify specific aspects of the loan such as loan terms and interest rate. Loan modifications are usually done either voluntarily by the lender or at the request of a government agency such as Fannie Mae or Freddie Mac.

Borrowers should work with their lenders early on if they have trouble making payments so that a formal loan modification doesn't need to be initiated when it appears likely that foreclosure will happen. If you are denied for a loan modification, contact the Law Offices of Jeffrey A. Avny, a loan modification attorney for a Free Consultation.

The modification process can be very frustrating as you must deal with the loan servicer and possibly your lender's lawyers. It is important that borrowers know their loan contracts, relevant federal laws, and state laws pertaining to loan modifications. Many modification agreements end up in foreclosure if not done correctly or are not voluntarily handled by the lender as it is easier for them than dealing with a borrower who has legal representation.

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What is a Loan Modification?

loan modification is a permanent loan contract with the loan servicer or owner of the loan that changes loan terms and can lower your monthly payments to help you avoid foreclosure. Loan modifications are generally done by agreements between borrowers and their loan servicers, but if not resolved may result in foreclosure proceedings being initiated against the borrower.

If you are behind on your mortgage payments, it is important to contact your our office right away, rather than waiting until after they initiate foreclosure proceedings. You can often get more favorable loan terms as opposed to dealing with a judge who will decide what steps must be taken in order for them to satisfy the mortgage note holder's rights under state law.

The foreclosure process can be stressful. If you are looking for an experienced foreclosure service to help you stop foreclosure, call us at (630) 286-9276 or read on how filing bankruptcy may help.

Will I Lose My House if I am Not Making My Mortgage Payments While Seeking a Loan Modification?

If loan terms are not modified or if loan modifications are not successful, the loan holder may start foreclosure proceedings. In situations where borrowers have been denied loan modifications from their loan holders and they still find themselves in a situation of default; it is important that you contact a lawyer immediately to see if there can be a negotiated solution as opposed to just waiting until after they initiate foreclosure proceedings.

When you work with an experienced foreclosure attorney that has successfully negotiated multiple mortgage modifications, loan modifications and loan restructuring agreements with loan holders, it is much easier to get loan terms that are favorable for you.

If you received a notice of default or missed payments from your mortgage company, fill out the free evaluation form at the top of this page or call 630-286-9276 for a free consultation. A loan modification lawyer can help stop foreclosure proceedings and force the loan servicer to negotiate loan modification terms when dealing with defaulted loans.

After being denied a loan modification by your lender, many homeowners miss valuable time in the process while waiting for their lender to agree on loan modification terms with them. If you are behind on your mortgages payments, talk to an experienced attorney that can guide you through each step of the loan modification process including loan restructuring.

Can You Stop Foreclosure with a Loan Modification?

If you have have a sale date pending, you can not stop the foreclosure sale, but you may be able to postpone the sale date by submitting a loan modification. Most lenders will only allow loan modifications to be submitted if there is enough time between the time the file is submitted and the sale date. If it is too close, the lender may deny the file in hopes to proceed with foreclosure actions.  If no action is taken, you can lose your home. That is why it is important to take immediate action if you are behind on your mortgage.

If you have a sale date pending and are un able to apply for a loan modification, you may be able to put the bankruptcy laws to your favor by filing for bankruptcy. When filing bankruptcy, the judge will grant a judicial stay which can be used to delay the foreclosure sale on a home. This can be used to buy time to submit a file for mortgage loan modification. If you are behind on your mortgage, it is best to take immediate action to avoid further consequences.

How the Mortgage Modification Process Works

The loan modification process allows the borrower to make reduced payments in order to stay current on its mortgage loan while it attempts to refinance its loan. A loan modification should not be confused with a foreclosure. If the loan holder goes ahead with foreclosure, you will still owe the loan balance even if your home goes into foreclosure. The loan modifications stops this from happening as payment are based on what you earn at present and how much money you have for each repayment of principal balance owed plus interest over time, or any capitalized value added by a lender add-on loan payment.

A loan modification can apply to first mortgage or home equity loan made by a lender that is an affiliate of your current loan holder. The loan must have been originated on or after January 1, 2009 and on or before December 31, 2012. It also applies if the loan doesn't fit into the basic criteria but has been identified as HAMP assist eligible. Be aware that there are loan types which don't qualify for modification under HAMP; such loans include: Any Federal Housing Administration (FHA), Department of Veterans Affairs (VA), Rural Housing Service (RHS) and bank-owned properties(Banks). Even though these loans may not be eligible, they might still offer options that will help you save your home.

How a Loan Modification Helps You

There are many reasons you may not qualify for a refinance.  In some instances, it could be that a short term hardship has effected you or you don't have proof of income. If you are struggling with your monthly payments and do not qualify for a refinance because your credit score has dropped, a loan modification may help to lower the amount that you have to pay each month. This will reduce the possibility of falling behind on your loan, which could eventually prevent foreclosure for not making loan payments.

The hard part is convincing your lender to grant you loan modification when they are not required to do so by law. Since loan modifications were implemented by Congress in 2009, many lenders feel no need to give relief based on this legislation since it's optional and voluntary on their part; however there many reasons why a loan modification can work in your favor such as:

  • Reducing interest rates
  • Lowering monthly mortgage payment
  • Extending the term of loan repayment
  • Lowering principal balance
loan modification attorney

How We Can Help You

Our Law Offices started 25 years ago to help people with their home purchases and sales. But as the housing market evolved, we found that many clients needed advice beyond just buying or selling a property; they need help keeping it safe too.

After seeing so many people being taken advantage of by unscrupulous people, we decided to make it our mission to assist homeowners who have suffered from a financial hardship. We studied the entire modification process inside and out and are well versed in the different underwriting guidelines for Fannie Mae, Freddie Mac loans as well as Government-backed mortgages like VA or FHA loans.

The best way to protect your money is by having a skilled advocate in your corner. We work hard so you don’t have to, and that includes protecting against predatory lenders who want nothing more than for you to give up on yourself because they are too powerful for one person alone.

The Law Offices of Jeffrey A. Avny is the best place to go for a loan modification, we believe in helping people by actually helping them and will give you full refund if not successful. There are many companies out there (many of which are out of state) that may take your money or charge more whether they are able to help you with restructuring your mortgage debt

At the Law Offices of Jeffrey A. Avny we offer a 100% Money Back Guarantee to help make the decision easier for you. We don't feel we should get paid, if we can't help you.


 
loan modification attorney

Sample Mortgage Loan Modification

loan modification

Not ALL Loan Modifications Result This Way, but this is a rare exception

How a Loan Modification Helps You

There are many reasons you may not qualify for a refinance.  In some instances, it could be that a short term hardship has effected you or you don't have proof of income. If you are struggling with your monthly payments and do not qualify for a refinance because your credit score has dropped, a modification of terms may help lower the amount that you have to pay each month. This will reduce the possibility of falling behind on your loan, which could eventually prevent foreclosure for not making loan payments.

The hard part is convincing your lender to grant you loan modification when they are not required to do so by law. Since loan modifications were implemented by Congress in 2009, many lenders feel no need to give relief based on this legislation since it's optional and voluntary on their part; however there many reasons why a loan modification can work in your favor when you hire a loan modification attorney.  Here are some of the results you can expect:

  • Reducing interest rates
  • Lowering monthly mortgage payment
  • Extending the term of loan repayment
  • Lowering principal balance

Call 630-286-9276 For A FREE Consultation

How to Get a Loan Modification

First, start by speaking with your loan holder and requesting loan modification. If you are approved for loan modification, they may refer you to Housing Assistance Council or the Homeownership Preservation Foundation. Both of these organizations are HUD-approved housing counseling agencies that can provide free help with loan modifications as well as other mortgage assistance programs . 

Additional Resources:  Helping you keep your home when times get tough

Submitting a Modification Request

After reviewing your situation, we will help determine what options are available to you. If you decide you want to keep your home we can submit a modification request on your behalf. In order to do that on your behalf, we will need to gather your financial documents and prepare a hardship letter which explains your hardship to your lender.

Once all documents are gathered, we will notify your lender that we are representing you and submit your file for modification of mortgage. This process typically take around 45 days. Upon underwriting approval from your lender, you will be given a repayment plan (also known as a trial modification) in which you have to make three trial payments at the reduced rate. Upon satisfactory completion, your lender will send out the final modification for you to sign in front of a notary public.

After these documents are received by your lender they will finalize the modification and you will be taken out of foreclosure all together. Falling behind on your mortgage can cause a lot of stress. Not knowing where to turn can lead most people to ignore the situation and hope it goes away.

Hope is not a strategy!

Instead, call the Law Offices of Jeffrey A. Avny to discuss your situation in a free consultation.

What to Do if You Don't Qualify for a Loan Modification?

Many loan modification programs are available to help homeowners that otherwise might not qualify for loan modifications. Some loan modification alternatives include:

  • Short sale
  • Flex modification
  • Hardship exemption
  • Deferment  (payment postponement)
  • Forbearance  (payment postponement)
  • Mortgage loan workout  

A modification of loan terms is possible before the foreclosure process even begins; this may be an alternative to loan modifications, especially if you have a loan on second or third mortgage that is owned by a different lender. It is worth investigating opportunities with your current loan holder and with any other creditors involved in your mortgage loan.  

If you are facing financial hardship  or have further questions about how mortgage loan modifications work, speak with a local housing counseling agency regarding options or be sure to contact our office for a free consultation.

The Avny Law Group's office is conveniently located in Mount Prospect, Illinois just minutes from the O'hare International Airport. We provide foreclosure prevention service throughout Illinois including: Addison, Arlington Heights, Aurora, Barrington, Bartlett, Bensenville, Bloomingdale, Bolingbrook, Buffalo Grove, Burr Ridge, Cicero, Des Plaines, Downers Grove, Elgin, Elk Grove Village, Elmhurst, Elmwood Park, Evanston, Franklin Park, Glenview, Gurnee, Hoffman Estates, Itasca, Joliet, Lombard, Melrose Park, Morton Grove, Mount Prospect, Mundelein, Naperville, Niles, Oak Brook, Oak Lawn, Oak Park, Orland Park, Palatine, Park Ridge, Prospect Heights, Rockford, Rolling Meadows, Roselle, Schaumburg, Skokie, Tinley Park, Villa Park, Volo, Wheaton, Wheeling. We represent clients from Cook County, DuPage County, Kane County, Will County, Kendall County, Lake County and all of Chicago.