Wednesday, May 3, 2017
Are Banks Required To Modify Mortgages?
Asking for a modification of your mortgage loan is a good way to lower your payment, and provide much needed financial relief. The process requires you to make an application and provide some documents to your current mortgage lender. From there though, the result can be different for different people, depending on a number of factors. Income is taken into account, job stability is a factor, and you might even be asked to resubmit documents you have already provided. It is not uncommon to be asked to repeat a task you have already completed, and the process can become tiring. If you get to the end of the road and are told you do not qualify, you can feel defeated. So if might be good to know if the bank is required to give you a modification before you start this process. Unfortunately, the answer is no. That said, it is still worth giving it a try, and an experienced attorney can help make the process go more smoothly.
Here are some things you can expect when you ask your bank to modify your existing mortgage loan:
• A longer, rather than shorter, timeframe for completion of the process.
• The possibility that the bank will continue to take collection or foreclosure actions against you while you are seeking the modification.
• Repeated requests for submission of documents.
• An offer of a trial modification, which lowers your payments for a limited time and only once you have made all of those payments will a final modification be approved. In some of these trial periods it might be that your bank reports you are not making full payments on your mortgage, which can have an adverse impact on your credit score.
In order to have a successful mortgage loan modification you have to stay on top of things. This can become confusing and time consuming, especially if you are also trying to hold down a job during the process. But we can help. We have experience with modifications, and can also offer other options to relieve your debt load. If a modification is not right for you, bankruptcy is another alternative. Or, you might consider a refinance of your home with an entirely new lender. Whatever your needs are regarding overwhelming finances, we can provide assistance.
For more information about mortgage modifications, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.