• home
• email us

Mortgage Modifications

A Mortgage Modification, also known as a Loan Modification, is simply an agreement where a lender reinstates an already given loan, but with an adjustment to make it affordable to the mortgagor. This works out in everyone's favor since the lender gets their money and the mortgagor can pay off his/her debt without negative repercussions.

Many people question whether or not a Mortgage Modification is actually useful, because they suspect that you will need to pay legal fees up-front - but this is not the case. Fortunately, legal fees and other costs can simply be added to the modified balance of the aforementioned loan. This allows them to be paid off in a reasonable method.

Another great benefit to a Mortgage Modification is that all late fees and charges up to the point of balance modification are to be waved by the issuer of the mortgage. This means that you won't be responsible for prior late payments anymore, which will help make your current and future payments significantly more affordable. It's important that you always pay on time to avoid such fees.

When you have a Mortgage Modification performed, the mortgagee is required to lower the rate of your loan to whatever the current rate is. This is especially useful in situations where you had a high rate, but the market rate has since dropped significantly.

There is another process that goes along with Mortgage Modifications, known as Loss Mitigation. This is basically used to help reduce the damage done due to a default on a mortgage. Both you and the lender will create a new set of terms that benefit everyone. This creates an ideal situation with mutual benefit.

It is often advisable to contact a Loan Modification Attorney who can help you get your finances back on track. Typically, they will begin with a consultation regarding what you have and what you need. This then leads to the drafting of a Letter of Hardship for your lender, which is responsible for proving that you need a loan modification. Once your request has been approved, your attorney will help you negotiate the mortgage modification. They will know how to fight to get you the best possible outcome.

Loan Modification Attorneys know exactly what you need and they understand how to properly and efficiently deal with lenders. Their job is to properly present your case and handle all of the necessary documentation, as well as implement the best negotiation techniques. Cases with Attorneys have been proven to receive the best results - partly due to the fact that a lender will take you more seriously when they see you're being represented.

Keep in mind that Mortgage and Loan Modifications are not for everyone - but in the majority of cases, they are preferred by both lenders and borrowers. If you're facing financial hardship, it is recommended that you explore this option thoroughly to see if it's right for you.

For a free consultation about a New Jersey property tax appeal, call Sharit & Deliyannis at 201-488-6338 or email: info[at]sharitdeliyannis.com