The Mellor Law Firm, APLC

California Real Estate, Construction, Bankruptcy, Foreclosure and Business Litigation Lawyers

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Call: (951) 221-4744

  • Our Firm
  • Attorney Profile
  • Practice Areas
    • Real Estate Law
    • Construction Law
    • Foreclosures
    • Business Law
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
    • Contract Disputes
    • Insurance
    • Loan Modifications
    • Personal Injury & Wrongful Death
  • Case Handling
  • Clients
  • Blog
  • Contact

When Is Loan Modification the Right Choice?

April 22, 2021 by Anne Hunt

Many unfortunate circumstances can lead to someone not being financially stable. Finding yourself in an unstable financial situation while paying back loans can be especially difficult.

While you may find your next steps elusive and overwhelming, there are some options. One of those options is to ask for a loan modification. Here’s what you should know about loan modification and whether it’s the right choice for you.

What is a Loan Modification?

Loan modification is when a mortgage lender agrees to change the terms of a mortgage so the homeowner can avoid defaulting on their loan. A lender may do this when the individual has experienced recent financial hardship and asks for a reduction in their payments. That way, they’ll be able to afford to pay back their loan every month.

Usually, the lender will change the loan by extending the repayment term or lowering the mortgage rate. This change does not negate other terms of the loan or excuse the borrower from paying back any part of what they still owe on their loan. The goal with loan modification is to help you pay off your loan and hold on to your investment in the long run.

In most instances, a loan modification will not change the total principal amount you owe on your loan. Even if you’re given a longer period to make payments, your lender may give you a lower interest rate for a certain time to avoid additional hardship. They might also roll your late fees into your total due amount so you can pay these later.

How Do You Know if Loan Modification is Right for You?

Loan modification isn’t ideal for everyone who has financial difficulties. You want to look into what it entails and if it’s going to be the right choice for your unique situation. Even though changing your loan agreement makes things easier in the short term, it may come with drawbacks as well.

If you want to remain in your home for as long as possible and don’t intend to sell your property within a few years, you might find enough benefit from getting your mortgage loan modified. If you hope to sell soon but know your home’s value is less than the total loan amount after adding missed payments to it, you might do better looking into other options such as refinancing.

Getting a loan modification will buy you time and help you avoid foreclosure or default of your loan. It can also help protect your investment in the home so you can keep it for yourself or transfer this asset to your family.

One of the best things you can do is seek help from a professional who has experience with such matters. Speak to a Riverside mortgage assistance lawyer from Mellor Law Firm to get more information and expert guidance about your next steps in loan modification.

Filed Under: Bankruptcy Education, Foreclosure Education, Legal News, Lender Law News, Personal Property Law News, Real Estate Education Tagged With: loan modification, riverside attorney, riverside lawyer, Riverside mortgage assistance lawyer, riverside personal attorney

Call Us: 951-222-2100

Consultations available in-office or over
the phone. Speak to one of our leading attorneys in California today.

Recent News

Don’t Let Wire Fraud Real Estate Scams at Closing Stress You Out: Here’s How You Can Avoid It

January 24, 2023 By Mark Mellor

For years you diligently save up to buy your first house. After months of searching through listings, you finally find your dream home and make an offer that gets accepted. Just days before closing, everything goes smoothly until you get an email from your "real estate agent" … Read More...

Do’s and Don’ts for Getting a Loan Modification and Is It the Right Option for You

January 18, 2023 By Mark Mellor

Are you struggling to pay your mortgage loan? If so, a loan modification may be an option for you. Loan modification can make your loan more affordable and help you avoid foreclosure. But before applying for a loan modification, it's important to understand what it is, and … Read More...

You’ve Been Involved in an Accident, What Now?: How to Find the Best Car Accident Attorney

January 3, 2023 By Mark Mellor

According to the Bureau of Transportation, around 13 car crashes occur every minute in the U.S. When an accident happens it's important to know what steps to take and how to protect your rights. The most important step you can take is to hire a qualified car accident attorney … Read More...

Follow Mellor Law Firm

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Our Areas of Practice

  • Real Estate
  • Construction Law
  • Mechanic’s Lien – Stop Notice
  • Foreclosures
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Navigate

  • Home
  • Our Firm
  • Mark Mellor
  • Practice Areas
  • Case Handling
  • Clients
  • Resources
  • Contact
  • Blog
  • Privacy Policy

Practice Areas

  • Real Estate
  • Construction Law
  • Mechanic’s Lien – Stop Notice
  • Foreclosures
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Recent Posts

  • Don’t Let Wire Fraud Real Estate Scams at Closing Stress You Out: Here’s How You Can Avoid It
  • Do’s and Don’ts for Getting a Loan Modification and Is It the Right Option for You
  • You’ve Been Involved in an Accident, What Now?: How to Find the Best Car Accident Attorney
  • Top Types of Real Estate Scams in 2022 and What We Can Learn From Them

Follow Us

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Contact our offices

The Mellor Law Firm, APLC
6800 Indiana Avenue, Suite 220
Riverside, CA 92506
Phone: (951) 221-4744
Fax: (951) 222-2122
10.0Mark Albert Mellor

The Mellor Law Firm, APLC © 2023. All Rights Reserved.