Wouldn’t My Lender Rather Foreclose Than Do A Loan Modification?

When your mortgage loan becomes past due, your lender typically has two options; they can go the route of foreclosing on the property and taking it by force, or it can go the route of negotiating, working with the homeowner, and ultimately settling on something like a loan modification.Oftentimes, lenders will choose the route of foreclosure – or whichever route is best for them, and not necessarily what is best for the homeowner. Sometimes it takes the involvement of good legal counsel to incentivize the bank to gothe loan modification route. The attorneys at The Law Center are effective at creating leverage for homeowners inside the courtroom, so that outside of the courtroom, the lender has a reason to work with the homeowner.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

Is A Loan Modification an Instant Solution to Mortgage Problems?

Oftentimes, when a homeowner falls behind on a mortgage loan, it’s because of some type of hardship and a loan modification can be a solution to solve these mortgage problems. Some reasons for falling behind could be a loss of income, illness, divorce, or just an increase in monthly household expenses. The bottom line is that the monthly mortgage payment becomes unaffordable for homeowners and the purpose of the loan modification is to make that payment affordable again. Here at The Law Center, we achieve this by negotiating with the lender to lower interest rates, extend maturity dates, and sometimes restructure the loan where some portion of the principal balance is deferred, forgiven, or redistributed over the life of the loan. Ultimately, the goal is to lower the monthly mortgage payments and, by doing so, effectively solve the homeowner’s mortgage problems.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

Do I Need Good Credit To Qualify For A Loan Modification?

A loan modification is unlike a refinance, in that a homeowner does not necessarily need good credit to qualify for a loan modification. With a loan modification, the borrower is staying in a relationship with the existing lender. Since they are already in a borrower/lender relationship, the lender doesn’t care as much about the borrower’s credits score. With a refinance, the borrower is trying to obtain a new loan and often working with a new lender, and so the credit score and income levels become more relevant in this scenario.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

I’ve Been Working With The Bank On Getting A Loan Modification. Do I Still Need To Worry About Foreclosure?

Sometimes homeowners mistakenly believe that because they are talking to their lender about various loan modification options, that the lender won’t file a foreclosure lawsuit. Unfortunately, this is not true. Oftentimes, the lender will communicate with the borrower outside the courtroom on a loan modification process, and will concurrently hire a foreclosure attorney to move forward with the foreclosure process., More often than not, having good counsel involved in both processes -- the modification process and the foreclosure defense process -- can yield better outcomes for the homeowner when trying to save their home.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

My Mortgage Company Said If I Pay Them A Lump Sum Of Money, They Will Stop The Foreclosure Process… Should I Trust That?

Once the homeowner is facing foreclosure, they should not rely on any oral representations from the bank, but instead should always insist requests or instructions be put in writing. The homeowner shouldn’t be paying the lender any lump sums of money unless it is in response to a written document, such as a reinstatement letter, or in relation to a settlement or modification agreement that the borrower has with the lender. If a mortgage lender is asking for a lump sum of money in order to stop the foreclosure process, the homeowner should insist on that communication to be in writing. For this reason, it can be beneficial to have good foreclosure defense counsel involved in the process.

For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

If My Foreclosed Home Sells For Less Than What I Owe, Will I Still Owe The Mortgage Company?

If a property goes through the foreclosure process and it ends up selling at the judicial auction for less than the total amount owed to the bank, the bank will have a right to obtain a deficiency judgment against the borrower. The deficiency judgment is the difference between the total amount owed to the lender, minus the total amount that was received at the judicial auction. The deficiency judgment can be very disruptive to the borrower’s life. Sometimes lenders try to collect on those deficiency judgments by garnishing wages, putting liens on personal property, or even by putting liens on bank accounts maintained by the borrower. It is always advisable to not ignore the foreclosure process, even if the homeowner doesn’t want to save the property, because a deficiency judgment can be very disruptive to the borrower’s life financially.
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‍For more information regarding your options, an initial consultation is your best next step. Get the information and legal answers you are seeking by calling (312) 600-8815 today.

Once The Bank Has Started The Foreclosure Process, Is It Too Late To Keep My Home?

It is not uncommon for homeowners to mistakenly believe that they are out of options when a foreclosure case has been filed against them. Sometimes more options become available to the borrower after the foreclosure case is filed than they had before, such as reinstatement rights, redemption rights, and court connected mediation programs where a judge will oversee a loan modification process. With strong communication and attention to detail, a homeowner can achieve a favorable outcome even after a foreclosure case is filed. A home doesn’t need to be lost; there are still ways to save it with good counsel and representation.

For more information regarding your options, a free initial consultation is your best next step. Get the information and legal answers youare seeking by calling (312) 600-8815 today.
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