How Banks View Loan Modifications
Helpful Information Regarding Why Banks Are Not Always Interested in Allowing Loan Modifications
Millions of Americans are underwater on their home loans or face excessively high monthly mortgage payments. Loan modifications seem to be a reasonable solution to resolving too-high mortgage payments. Yet, banks are frequently unwilling to modify home loans, even when foreclosure will result. Why is this?
The answer is quite simple. When a bank forecloses on a home, it might be able to realize a relatively high percentage of the home's loan value. For instance, if a bank sells a home with a $200,000 loan for $170,000, that's $170,000 it can apply to its bottom line.
When a bank opts to modify a loan, though, the full value of the loan remains outstanding and unrecovered. At the same time, the bank continues to receive mortgage payments at a below-market rate. It can therefore make more financial sense for a bank to foreclose on a property than to agree to a loan modification.
Banks do, though, allow for loan modifications in many instances. At the Beaumont, Corona, San Bernardino and Palm Springs law firm of Sobti Law Group, our attorneys are familiar with the guidelines banks use to determine whether a loan modification makes sense. We can determine whether it is advisable for you to pursue debt reduction through loan modification, a short sale or Chapter 7 and Chapter 13 bankruptcy. Most importantly, we will only proceed with the modification of your home loan if it makes sound financial sense for you.
Our loan modification close rates are very high, our rates are low and our initial consultation is free. For more information, contact our firm at our Beaumont, Corona, Riverside, San Bernardino, Chino, Orange, Rancho Cucamonga or Palm Springs office.
Contact Us
The Orange loan modification lawyers of Sobti Law Group offer free consultations, are available for Saturday appointments by request, and speak English and Spanish as well as Armenian, Russian, Arabic, Persian, Hindi and Punjabi. To contact Sobti Law Group or U.S. Law Center, call 888-627-8013.
