Loan modifications are the altering of the characteristics of a loan without refinancing in order to prevent foreclosure, short sale or deed in lieu of foreclosure. In recent years our economy has witnessed the biggest real estate boom in history. Interest rates were at an all time low, property values were skyrocketing, the economy was thriving and investor guidelines we so loose that anyone, even those who blatantly could not afford it, were given loans. Most of these loans were two, three or five year interest only arms with the borrower putting little or no money down and having bad credit.

Now that the real estate boom is in the midst of its inevitable correction, many borrowers find themselves in extreme financial distress due to the purchase of the American Dream: their own home. There are many different dispositions that are causing millions of Americans sleepless night in fear of foreclosure. The most common problems that borrowers are facing are adjusting arms and declining values. These are the people that a loan modification program will help stop foreclosure and keep you in your home. The banks are the financial analysts that allowed you to put yourself in this predicament and the right loan modification attorney will prove it to them.

A law office loan modification program will force the banks loss mitigation department to analyze your situation in order to modify your loan into something that the bank and yourself can agree upon. This might be lowering and freezing your interest for the life of the loan. This might be lowering the balance to the around current market value. This also might include deferring the payments and interest to the back side of the loan so that you are no longer months behind. No matter what situation you are in, the threat of foreclosure combined with the ability to litigate will result in the best possible modification! Having an attorney negotiate your modification could end up saving you hundreds of thousands of dollars over the life of your loan.

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Why would someone use a Loan Modification

1. To remove a loan from foreclosure
2. To bring the loan current
3. To adjust the loan terms

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Items to consider before requesting a loan modification:

1. Must have experienced a hardship resulting in a reduction in income that affects ability to make monthly mortgage payment(s)
2. Must have a source of stable monthly income
3. Must want to retain ownership of property
4. Must occupy the property as primary residence