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Benefits of a Lawyer for Loan Modifications

With the help of an experienced lawyer, homeowners have a greater opportunity to avoid foreclosure or to regain the lost equity in their homes. With so many loan modification programs being advertised, the possibility of being scammed is real, but a credible loan modification lawyer can safely help you with your mortgage issues.

Can I Get a Loan Modified?

Many homeowners have recently found themselves owing more than the value of their home due to the depressed housing market and also as a result of paying to much when home values were artificially high. Other borrowers may have lost their jobs or are underemployed but could still maintain their loan payments if they were more in line with their home’s current value.

Loan modification programs are often complicated, and lenders want assurances that a homeowner can afford the modified terms. Some programs in the past had been offered on a trial basis, but lenders rejected the homeowner’s application with little or no justification.

For some, it is unlikely that a loan modification application will be approved if they cannot meet the lender's documentary requirements or they lack a sufficient or steady income to meet the lender’s terms. For these reasons, consulting with an experienced lawyer is essential to get the answers homeowners need regarding their mortgage loan concerns.

Benefits of Loan Modification Lawyers

A knowledgeable attorney handling your mortgage issues can accomplish these acts on your behalf:

  • Advise you about available state and federal loan modification programs
  • Advise you on what paperwork is needed and if you'll qualify
  • Pressure the lender to promptly respond to a loan modification proposal
  • Present the risk of potential litigation to lenders
  • Avoid fraud in loan modification programs
  • Offer credibility when negotiating a loan modification proposal

Finding a Loan Modification Lawyer

Some states regulate a lawyer's representation of distressed homeowners seeking loan modifications if they work with a for-profit foreclosure aversion company or debt recovery firms and other nonlawyers. To find an experienced, independent lawyer, consumers can contact either the Department of Housing and Urban Development (HUD) for a referral to a loan modification lawyer or ask their local bar association.

Costs and Fees

An attorney advising you or representing you on a loan modification typically charges from $1,500 to $3,000. If litigation ensues, the fees will be higher. There are some programs that charge fees and some that will take a portion of the modified loan amount, but others are free of charge.

A successfully modified loan means you can keep your home and any equity while you make lower payments, or you can start rebuilding your equity while the housing market takes its time to regain some degree of stability.