Need a loan modification?

 

  • Don’t allow yourself to become delinquent on payments and risk foreclosure
  • Apply for a loan modification even before you’ve missed any payments because it can have long-term benefits
  • Get back on track with your finances with help from Babi Legal Group!

Ways to keep your house with a loan modification in Novi, MI

A loan modification is a loan term change made to an existing loan by the lender. The borrower may be unable to repay the original loan and often seeks help from either their lawyer or a settlement company. Some borrowers are eligible for government loan modifications as well.

How to negotiate a loan modification in Novi, MI

There are different types of loans. Loan modifications are common with secured lending, such as mortgages. A modification might happen during a settlement or potential foreclosure when the lender has concluded that it will be less costly for them than either one of those options. It’s not the same as forbearance agreements which provide temporary relief for people with temporary financial problems.

There are two kinds of professional help you can get when it comes to negotiating a loan modification. Settlement companies, which work on behalf of borrowers and focus primarily on reducing or alleviating debt by settling with creditors, represent the first type. Mortgage modification lawyers specialize in negotiations for those owners whose mortgages have gone into default and are threatened with foreclosure.

How does a loan modification work?

If you are experiencing financial hardship and your loan is not in default, contact the loan servicer to see if they will work with you. You can also talk to a certified housing counselor or an attorney about contacting lenders on behalf of borrowers who might be eligible for loan modifications because their homes have been abandoned due to foreclosure. The process starts by submitting documentation that verifies your income, expenses, living situation (including any roommates), property value, and other key details like whether or not there has been insurance coverage on the home since it was purchased.

What is a loan modification agreement?

A loan modification agreement is a written document that details the terms of your loan.  It will include the new monthly payment amount, and how long it will take you to repay the loan with this rate. The agreement should also state whether or not there are any fees associated with modifying your loan.  Loan modifications may change some items on an existing mortgage contract including interest rates, repayment periods, and any other financial aspects of your loan such as forbearance agreements for extra time to pay off what you owe without penalties if necessary. You need to carefully review all sections of the loan modification before agreeing so that you fully understand its effects on your finances going forward!

What is a loan modification on a mortgage?

A loan modification is a change in the terms of your mortgage. It may involve reducing the monthly payment, increasing the loan term, or both. It’s important to note that loan modifications can affect one’s credit score—which impacts future loans and borrowing for school tuition etc.  If you are current on payments and would like to explore other options before making changes to your loan (such as refinancing), it would be best to review those options first! Loan modifications require approval from lenders, but they do not know about these other possibilities if you’re considering them now…

How does a loan modification affect your credit?

A loan modification can affect your credit score in a few different ways.  The loan could be reported as “paid as agreed (PA)” or “current” if the loan is modified to make it easier for you to pay, which may help raise your credit score. On the other hand, lenders are less likely to offer loan modifications if they know that there’s been trouble paying on previous loans and this will stay on your credit report for seven years! So even though applying for a loan modification means submitting another hard inquiry into one’s history of borrowing—or at least considering doing so—it also has potential benefits such as avoiding foreclosure and bankruptcy. It all depends on how the lender reports these changes to the bureaus–and that’s not something you have any control over.

How to get approved for a home loan modification?

To get a modification, you will need to submit all requested documents and material as soon as possible. You must send in every page of items the servicer asks for- if any pages are missing, your application is incomplete and it won’t be processed until everything has been sent back in. Be sure to keep copies of any correspondence from them so that they don’t lose track or ignore what you’ve submitted!

How long does a loan modification stay on your credit report?

You might want to consider the fact that it stays on your report for 7 years. A deed in lieu of foreclosure will have the same credit impact as a straight-out foreclosure. If this is something you’re looking into and would like more information about how to proceed with one or both types of foreclosures, give us a call today! We’ll walk through all possible scenarios with you so that together we can make an informed decision about which path may be best for your particular situation.

How to appeal a loan modification denial?

You can appeal a denied loan modification application in the event that you applied for it at least 90 days before your foreclosure sale and have been rejected. Appeal must be requested within 14 days of being notified by the servicer about their decision on whether or not to grant you relief from mortgage payments through this program. If they deny, then an appeal should be filed with them as soon as possible so that someone else reviews their case while there is still time left!

How to get a home modification loan approved?

There are many providers of home modification loans, and the requirements for approval vary from one lender to another. There are also second-lien lenders that specialize in rehabilitation loans with long amortization periods as well as industry specific types of financing like FHA 203K mortgages. Lenders use various criteria like credit scores, outstanding debt relative to income, arrears on previous mortgages or other debts and delinquencies within the last year. In addition to a thorough examination of your loan application, they may request evidence of recent employment or bills in their review process. Some lenders will also provide free consultations where you can bring specifics about your situation and get expert advice on what else needs to be done.

Who qualifies for a loan modification?

The guidelines for loan modification loans include not only people who are in danger of foreclosure, but also those who are underwater on their houses. A modification means that a change is made to the terms of repayment on your mortgage so that you can continue to make your scheduled payment and stay in your home despite financial hardship such as unemployment or illness.  One way to get a modification without actually defaulting is for the bank or lender to lower an interest rate from say 10% down to 5%. Underwater mortgages are where the homeowner owes more than the house is worth and would cause a depression if anyone would dare sell.

Loan modification denied what next?

It depends on how you decide to handle the denial. Some clients try to qualify for a government program instead of going through another modification process. The Prime Loan Modification Program is offered by many mortgage lenders and guaranteed by the federal government, so it can be worth looking into if you are denied a loan modification. Other clients simply put their house up for sale after being denied a loan modification, or make the decision not to live in it anymore because they know they will never be able to sell it with negative equity. Either way, keep an open mind about your situation and consider all your options before making any rash decisions that don’t work out in your favor down the line! Here at Babi Legal Group we can surely lend a hand!

What is HARP loan modification?

Answer: HARP modifications are a program by the U.S. Department of Housing and Urban Development for those who have mortgages that can’t be refinanced under today’s low interest rates to make certain they can continue to afford their homes until housing values recover. The HARP 2.0 legislation gave relief last year for people whose homes had dropped more than 20% in value since 2007, a significant minority of homeowners facing foreclosure because they can no longer meet monthly mortgage payments thanks to lower property values and stagnant incomes. HARP loans are available on loans below $729,750 in most metropolitan areas as well as most rural areas where home prices have not fallen significantly since 2007.

About Babi Legal

Babi Legal Group provides exceptional legal and consulting services in a confidential and professional manner. The Firm’s combined 20 years of real estate experience, over 10 years of business law, criminal, bankruptcy, debt collection and debt settlement experience provide our clientele with the extraordinary personalized service they deserve.

Babi Legal Group is a law firm with an unrivaled reputation for providing exceptional legal services to clients in various areas of the law. The Law Firm of Babi Legal Group is fully committed to a philosophy of client service, excellence, proficiency, value and results.

Legal Practice Information

Babi Legal Group, PLLC
22710 Haggerty Rd
STE 151,
Farmington Hills, MI 48335
248-434-4110

See what others In Novi, MI have to say about Babi Legal’s Services.

Matt B.

Having been in Real Estate related fields for over 20 years, I have come to realize that there are few people who do what they say they will. Babi Legal Group is one of those rare entities that does what they promise. They are trustworthy and efficient. I will not hesitate to recommend this organization to anyone who needs their services. Thank you Melvin!

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