There are many reasons that a homeowner may struggle to make his or her mortgage payments, including job loss, the birth of a child, or an unexpected illness. Regardless of the reason, falling being on your mortgage payments can be a terrifying prospect, as it has the potential to result in foreclosure.
Fortunately, foreclosure is not inevitable, and homeowners who find themselves in trouble can often seek a mortgage modification in order to stay in their home. A mortgage modification is exactly what it sounds like – a permanent change to the terms of your mortgage agreement that makes it more affordable. There are various things that a mortgage lender can do to accomplish this coal, including the following:
- Reduce the interest rate on your loan
- Convert a variable-rate loan to a fixed-rate loan
- Extend the term of your loan
- Forgive a portion of the principal balance of your loan
- A financial hardship statement or affidavit
It is important to remember that your mortgage lender is typically under no obligation to approve your request for a modification, and the more documentation that you submit in support of your request, the better your chances of obtaining a modification. Some of the documentation that you may need to submit include pay stubs, bank statements, and tax returns.
An attorney can be of assistance in a variety of ways when attempting to obtain a mortgage modification. Perhaps most importantly, a lawyer can help determine whether a modification is appropriate in your situation. In some cases, it may be better to fight the foreclosure in court or to file for bankruptcy and pay the mortgage arrears off over the course of a Chapter 13 repayment plan. If pursuing a modification is right for you, an attorney can help you fill out the paperwork required to apply for a modification, gather and submit evidence of your need for the modification, and generally present your application in the best light possible. In addition, should your initial application be denied, your lawyer will be able to represent you through the appeals process. Finally, a lawyer familiar with mortgage modification law will be able to protect your rights throughout the entire process and ensure that your lender is in compliance with the law. For example, lenders are prohibited from dual tracking a mortgage (pursuing foreclosure while considering your request for a modification) and must wait 120 days after a default before starting foreclosure proceedings. Without the assistance of an attorney, it is possible that your lender may ignore these rules to your detriment.
Call JLT Law Today to Speak with an SLC Mortgage Modification Lawyer
If you are having trouble making your mortgage payment each month or have fallen behind on your payments, you should speak to a lawyer as soon as possible. Attorney Jory Trease focuses his legal practice on helping consumers who are experiencing financial difficulty and work hard to resolve his clients’ issues as favorably as possible. Mr. Trease will evaluate your financial situation at no cost to you and advise you as to your legal options. To schedule a free consultation with Mr. Trease, call our office today at 801-797-2098 or send us an email through our online contact form.