Loan Modifications

Are you having difficulty paying your mortgage? Are your mortgage payments too high and unaffordable? Is the value of your home less than what you owe to the bank?

If you answered yes to any of these questions, a Loan Modification may provide the relief that you need.  At the Law Office of Anthony P. Scali, P.C., we will help you deal with your lender and provide you with answers to your questions.

Why chose an attorney for your loan modification needs?

Many homeowners are upside-down on their mortgages and are unable to remain current with their monthly payments. As a result, many unscrupulous companies have tried to capitalize on a homeowner’s difficult circumstances by presenting themselves as Loan Modification experts. Be careful of these companies.  Rather, consider their experience and ability to work with and convince the lender to process your Loan Modification.

At the Law Office of Anthony P. Scali, P.C., a Loan Modification request includes a complete financial analysis to make sure loan modification is your best option, not the only option. We have legal experience in slowing the rate of foreclosures and negotiating with lenders to achieve a positive solution to the homeowners’ hardships.

What is a loan modification?

A Loan Modification request to your lender means that you are seeking to modify the terms of your original mortgage to secure a lower monthly payment obligation.

If your mortgage payments are too high, but you can make a more reasonable payment amount, you are probably a good candidate for a loan modification. However, approval of a Loan Modification is generally still at the discretion of the lender, and there is no guarantee that a lender will agree to modify a loan.  Accordingly, it is important to have the right assistance in understanding what a loan modification is, and how it may work for you.

Today, loan modification programs generally appear in the following forms (and/or combinations thereof): (1) the lender may reduce the interest rate; (2) the lender may re-amortize (or lengthen) the term of the loan, or (3) the lender may reduce the outstanding principal loan amount.  An experienced attorney will attempt to have any outstanding mortgage payments rolled back into the loan so that the homeowner starts with a clean slate.

If your loan modification request is approved, it is likely that the lender will enroll you in a “trial period” plan, where the homeowner is given an opportunity to show that terms of the modification are sustainable.  The lender may reserve its right to revisit the modification after the trial period is over before making the loan modification permanent.  While your focus is on reducing your monthly payment, the lender’s focus is on minimizing its own losses.

There are other loss mitigation programs such as a short sale or deed in lieu of foreclosure. Those options should be discussed as well, even before undertaking a Loan Modification request.  Information regarding these other loss mitigation programs are featured throughout this web site.

If you would like more information about loan modifications or if you would like our office to assist you in handling your loan modification, please contact us immediately to schedule a consultation.