California Loan Modification Lawyer
Riverside Mortgage Assistance Lawyer Helping Homeowners Stop Foreclosure
The Obama plan for helping homeowners has not been as effective as hoped — only about 4% of eligible loans have been modified. Since loan modifications are a matter between a borrower and a bank, lawyers can leverage laws to force a creditor to offer a loan modification. However, an attorney can provide valuable advice and guidance, especially if a short sale or bankruptcy becomes necessary after a request for a loan modification has been denied. In order to assist homeowners interested in loan modifications, The Mellor Law Firm created RESCUE (Real Experts Serving Communities Utilizing Experts), a non-profit organization dedicated to providing educational materials and guidance for homeowners working through loan modifications on their own.Loan Modifications — Understanding Your Options
In general, banks are willing to offer loan modifications if you’re employed, are not substantially behind on your house payments, and have a variable rate loan that can be changed to a 20- or 30-year fixed rate mortgage. While your payments will be extended over a longer period of time, changing your loan to a fixed rate should reduce your monthly mortgage payments. Here, it’s important to know the details of your mortgage and your financial situation. Since lenders are under no legal obligation to offer a loan modification, a bank may offer only a short-term discount or a small reduction in payments. In the end, this may only delay the eventual foreclosure on your home. Understanding what you can and cannot afford will help you leverage terms you can live with and hopefully avoid foreclosure.What Do I Need When Asking for a Loan Modification?
While every bank and case is different, you should be prepared to provide some or all of the following when requesting a home loan modification:- Hardship letter
- Pay stubs
- Bank statements
- An itemization of monthly expenses
- Tax returns