Loan Modification

Sub-prime lending has irresponsibly and unfortunately, put many homeowners in financial hardship, even in affluent states such as Washington. However, fortunately, there’s a newly implemented solution for homeowners that has the potential to prevent the impending and, or indefinite foreclosure of your home. Additionally, the program will assist you by essentially *clearing your past mortgage late payments and simultaneously work to lower your monthly mortgage payment by “modifying” the guidelines and stipulations of your current mortgage(s) loan. It is commonly known as a Loan Modification, but is also called a Mortgage Modification. Mary Anderson, Esq. will tell you which documents to provide, and analyze your case to come up with a customized negotiation plan, according to your unique real estate and financial situation. She will then begin negotiating with your lender to lower your interest rates, using any available legal leverage at her disposal to get you the best mortgage modification deal possible. Lenders can be hard to deal with, but remember, you don’t have to do it their way. Get legal foreclosure assistance from a Washington loan modification attorney, and start paying your mortgage off at the rates you can afford.


Loan Modification Frequently Asked Questions

Q: What is a Loan Modification?
A: A LoanModification is when the bank allows a change in the terms of your existing mortgage. The purpose of a modification is to significantly lower your monthly payments (thus preventing a foreclosure of your home, for either a temporary or permanent period of time.

Q: Who qualifies for a loan modification?
A: Anyone that is having trouble paying their existing loan can potentially qualify for a loan modification. In today’s housing market banks are willing to work with mortgage holders who are having trouble paying their mortgage. However, homeowners with a high probability of getting a loan modification are those currently in an adjustable rate mortgage, who have a high interest rate, and/or are experiencing any kind of hardship.

Q: Why will it work for me?
A: The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages for all troubled homeowners. Going to your lender with the representation of an Attorney that is experienced in the area of real estate, will make a scary process seem simple.

Q: What if my credit is bad?
A: A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan. The loan modification will not hurt your credit; generally only late payments or a foreclosure will negatively affect your credit score.

Q: What if I have no equity or I am upside on my home?
A: It does not matter! Some banks are doing a principal reduction, which means the bank will discount the total loan amount to the current value of your home or, fairly close to it. Most banks or lenders rarely do this, as it takes negotiation of an experienced attorney. Mary C. Anderson has been able to successfully negotiate approximately $170,000 of principal reduction, in which the borrowers are (forgiven) the omitted debt.

Q: What if my income is too low?
A: You will need to show the bank that you and all others in your household together can afford the new payment.

Q: What should I expect the terms to be on my new loan?
A: Banks are rapidly changing guidelines for Loan Modifications. A bank will typically modify your loan into a loan you can afford and continue to pay. This may include a lower interest rate, payment reschedule, principal reduction, longer terms or any other modification that will make and keep the loan a “performing loan‟.

Q: How much can I save by doing a loan modification?
A: You can save hundreds or even thousands a month, depending on your loan amount. Remember, a loan is typically for 30 years. So the Loan Modification that saves you $500 a month really equals $150,000 over the life of the loan.

Q: Does every bank do loan modifications?
A: Most all banks do some form of a loan modification today. We are in a housing crisis and most banks are willing to work with clients to help them save their homes.

Q: How do the government programs affect my chances of getting a loan modification?
A: The government is telling banks they need to do their part to fix the housing crisis. The Bail-Out Bill, Obama’s Home Affordable Modification Program (HAMP) or MakingHomeAffordable (MHA), and other plans will only improve your chances of getting a Loan Modification. The government is now offering incentives to banks and servicers, and even homeowners, depending on certain criteria.

Q: How long does the process take?
A: Every bank is different, but it typically takes 30-90 days or more to settle on a loan modification agreement.