There are many reasons why a homeowner may get behind on their mortgage payments. The homeowner may be unable to work because of an accidental injury or illness, making it difficult to make the mortgage payments. An unexpected loss of income because of unemployment, divorce, or the death of a spouse could create a financial crisis that makes it difficult to keep up with mortgage loan payments.
Whatever the reason might be for the mortgage arrearage (past due mortgage payments), the fact remains that you may want to keep your home. If so, we recommend that you talk to our Surprise loan modification attorneys. We can answer questions about the loan modification process and provide support and guidance as you try to work out a mortgage modification with your lender to keep your home.
What is a Loan Modification?
Your loan agreement with the lender contains various terms and conditions of the loan, such as the interest rate charged by the lender, monthly payment amounts, the term of the loan, and default provisions. A loan modification changes one or more of those terms. It allows the homeowner to keep the home by restructuring the mortgage note.
For example, your mortgage lender may agree to extend the term of the loan by six months and add the past due mortgage payments to the back of the loan. You resume making regular mortgage payments and keep your home. A lender may also agree to modify the interest rate or forgive a portion of the past due payments to help lower monthly payments to an affordable payment.
Problems with Loan Modifications
Our Surprise loan modification lawyers have worked with many individuals who are behind on their mortgage payments. They apply for a loan modification with their lender. After months of hard work by the homeowner to provide information and documentation regarding income and resources, the lender denies the loan modification application.
In some cases, the lender refuses to modify the loan without even considering the matter. A lender is not required to work with a homeowner to modify a mortgage loan. If the homeowner is in default of the loan terms, the lender can proceed with a foreclosure action.
In other cases, the homeowner works diligently with the lender to work out the details of a mortgage modification and may even pay a lump sum payment to the lender to catch up on some of the past due payments. However, the lender continues with the foreclosure action while it is negotiating with the homeowner to modify the loan. Suddenly, the lender denies the loan modification and immediately proceeds with a foreclosure sale.
Do Homeowner’s Have Other Options to Stop Foreclosure?
Unfortunately, the loan modification process is complicated and does not always work, even if you hire a Surprise loan modification attorney to help you with the process. If the loan modification does not work, you may want to consider a Chapter 13 case.
A Chapter 13 bankruptcy case can give you a fresh start. Your mortgage lender does not have a choice but to work through the bankruptcy process. The mortgage arrearage is included in your Chapter 13 plan payment and paid over several years. You resume your regular mortgage payments outside of the plan, and the mortgage lender must stop foreclosure proceedings.
As long as you are paying the amount required by the Bankruptcy Code through your Chapter 13 plan, your mortgage company has to accept the plan that the court confirms.
Contact Our Surprise Loan Modification Attorneys for More Information
Loan modifications can be frustrating. Working with an experienced Surprise loan modification lawyer can help. Because our lawyers are also experienced bankruptcy attorneys, we provide comprehensive advice about how you can stop foreclosure and save your home.