Friday, January 20, 2017

Three Ways Lenders Violate Mortgage Modification Laws

Hands down the largest monthly expense most families have is their mortgage payment. So, when finances take a blow, it can be hard to maintain a mortgage payment that is not in line with a reduced budget. Some homeowners turn to bankruptcy to save their homes, and this is always a good option. However, there are other possibilities and one of those is to seek a modification of your mortgage loan.

A loan modification is a change to your mortgage loan terms, which will permanently alter the payment structure. In most instances the changes involves lowering your interest rate, which results in a lower and more manageable payment. But in order to reap this benefit, you have to apply for a modification, and this process can be daunting. Lenders do not always follow the rules, and when they fail to do so your entire modification can be put in jeopardy. Here are three of the most common ways a mortgage lender violates modification laws:

         Failing to process your paperwork timely. If you are not diligent, the lender or servicer may push your case to bottom of the pile, and this hurts you because while you are waiting on final modification approval you are still bound by the original terms of your mortgage loan. All too often a borrower is advised to suspend payments because the paperwork will be completed before the next payment is due, but when the paperwork gets lost in the shuffle the only person who suffers is the borrower.
         Repeatedly requesting resubmission of documents from the homeowner, which also slows down the process.
         Advising a borrower they do not qualify for a modification because their loan is not in default. The simple truth is that you do not have to be behind on payments in order to have your mortgage loan modified.
The best way to combat these problems is to have a skilled attorney negotiate on your behalf. We stay on top of your application for you, and make sure all documents sent to the lender are tracked for receipt. That way when the lender claims to not have received what is necessary to process your application, we can point to the delivery date and method of delivery. We also make every effort to negotiate terms that fit your budget, on a timeline that makes sense. For help getting a mortgage modification today, call our office.


For more information about how a mortgage loan modification can help you, 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.

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