Can My Late Charges Be Included In My Mortgage Modification?

When you are behind on your house payment it can seem like the world is about to end. In addition to the constant worry of being foreclosed on, you are probably also worried about how you can get back on track without a huge hassle. The problem is that if you are behind on your payments, the lender has now added late fees and the interest is also accumulating. This can make it hard to get caught up, because those fees quickly escalate and become unmanageable.

One option is to modify your mortgage, so the interest rate is lowered and you can make a lower payment. The good news is that you can have the opportunity to clear up all your mortgage issues in the modification, you just have to follow the correct procedure. For example, you will need to:

•         Have a good idea of how far behind you are, and what all is included in that figure. Your bank should provide you with a detailed pay history and balance printout, which you should reconcile with your own records to make sure the pay history is accurate.

•         Have a good idea of how much you can afford to pay each month for your house payment, so when the rate is dropped and a new payment calculated you will know if the new payment fits your budget.

•         Fill out the application and be prepared to be put on a trial modification before your final modification is approved. Banks will sometimes do this, to make sure the new payment is doable.

Modifying your mortgage to a lower rate and payment helps you in a couple of ways, such as saving money on your house payment each month. But, you can also shore up loose ends, like late payments and fees, when you modify your mortgage. It does take some doing, and you have to be diligent about stating what you want and staying on top of your lender as they review your request. We can help by making sure your application is done properly, and by performing all of the negotiation and follow up on your behalf. The benefit of having an experienced attorney working for you is that the lender will be less likely to brush you off, or to make an offer that does not work

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For more information about how to modify your mortgage payment, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.