A Loan Modification allows the borrower to change one or more of the terms of their mortgage, including lowering the interest rate, lowering the principle and fixing an inflated APR at a lower rate for a set period. Previously this was only used when a borrower was past due and suffered a hardship such as a job loss, divorce or illness. Because of new laws, homeowners can now obtain loan modifications from their lender because of unaffordable rate adjustments on an ARM or for significant reductions in the property value.

      The sooner into your delinquency you start the process, the better your chances are of keeping your house by negotiating a loan modification with a low fixed rate and a payment that you can afford. Loan modifications also avoid the long-term credit report impact that bankruptcy or foreclosure will have on your financial future. In fact, the loan modifications themselves have no impact on your credit at all, and can actually help improve your credit by bringing you out of delinquency.

      Our law firm can work with you to find the best alternative to foreclosure available for your specific situation. You may have other options if you do not wish to remain in your home but want to avoid foreclosure, including Deed in Lieu of Foreclosure and conducting a short sale of your property. Contact us to schedule your FREE initial consultation to discuss your loan modification options, as well as these other foreclosure alternative possiblities.