Working With Your Lender to Make a More Realistic Payment Plan
Excessive debt comes upon people for many different reasons. Sometimes a solution can be found by jettisoning some of the values that got you into debt in the first place. Other times Chapter 7 bankruptcy or Chapter 13 bankruptcy provide debt-relief options. Another option that many people don't consider is loan modification.
Our experienced attorneys understand the process of loan modifications in California. Sobti Law Group is a law firm dedicated to finding you a debt-relief solution that is perfect for your particular situation. We will look over your financial situation and help you tailor a plan for financial freedom, representing you throughout the process.
Process of Loan Modification
Although it might seem intimidating at first, the process of loan modification is pretty simple:
- Attorney consultation: The first thing we will do is analyze the terms of your current loan and your financial situation to determine whether it is worth it to attempt to get a loan modification. We will then attempt to pre-qualify you for the H.A.M.P. (also known as Making Homes Affordable) based on the specific guidelines of the program.
- Negotiation with your lender: If it seems like you would qualify for a loan modification, we will contact your lender and start negotiations.
- Qualification determination: You lender will consider whether you qualify for a loan modification under its terms and whether it will allow the modification.
- Possible further negotiation with your lender: If the lender has denied your request for a modification or offers modification with terms that we feel could be improved, we will continue negotiating with your lender.
- Final decision and implementation: Assuming everything goes as planned your lender will accept a loan modification.
Through this process, we could get you a loan with terms that are more reasonable for your situation, and in some cases we could reduce your principal or reduce your interest rate.
Generally, the entire process takes 30 to 90 days initially, and then another 90 to 120 days while on a trial modification program. Lastly, there is an additional 30-90 days while completing the final modification process. All in all, it is usually best to assume it will take a very long time from start to finish. We always estimate a minimum of 6 months and a maximum of 1 year but each modification is different and working with some banks takes longer than others.
It is safe to say, the modification process is no easy road. Trying to travel this road without the help and advice of a professional is not recommended. The lender's modification process is frustrating and painstaking for anyone attempting it. You will be told throughout your initial investigation into the program that you can do this yourself without paying for it. You can also contact free agencies such as N.A.C.A. or HUD that have free counselors to help you. Whatever you choose, remember that your lender has only THEIR best interest at heart and sometimes going to a free service means you get what you pay for.
Contact Bankruptcy Attorneys Palm Springs
Either call 888-627-8013 or contact us online to schedule a free initial consultation with a lawyer in San Bernardino, Palm Springs, Beaumont, Orange or Corona.
