Tuesday, March 21, 2017

Do I Have To Accept My Mortgage Lender’s Modification Offer?

When you can’t make your house payment you become scared that the lender will foreclose, leaving you and your family without a place to call home. But if your money is too tight to keep up with all of your bills there are things you can do to stay in your house. One option is to file for bankruptcy, to reduce or eliminate some of your debt. A Chapter 7 case will eliminate all of your high interest rate unsecured credit card debt (and other unsecured debt), so you keep more of your money each month and can pay your other bills. A Chapter 13 will reduce what you owe, allowing you to pay one lump sum payment each month to the Chapter 13 Trustee, for disbursement to your creditors. But if you are not sure about the need to file bankruptcy, you can still work to save your house.

Many times your current mortgage lender will negotiate with you to modify the loan. A mortgage loan modification can result in lower payments because the loan will be rewritten to a lower rate, which lowers your payments. But sometimes the mortgage lender makes a modification offer that still does not make it possible for you to keep up with what is due. So you may be wondering if you have to accept your mortgage lender’s modification offer? The answer is no; you do not have to accept the offer. What you can do instead is:

         Refinance with a new lender, and pay off your existing mortgage in its entirety so you no longer have to deal with your current lender.
         Negotiate a different modification term.

We can help you with both of these options, and can even let you know how bankruptcy might be the answer even if it was not on your mind. We have extensive experience negotiating with mortgage lenders, and handle all of the documents for you so you don’t have to worry about whether your application was sent on time or whether it has been received. We know that most mortgage lenders have a tendency to drag their feet when reviewing a modification request, so we keep on top of them and make them act quickly to get you the answers you need.
For more information about mortgage loan modifications, call us today or reach us online at www.law-ri.com.



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