The attorneys at Murff Law Offices have helped hundreds of Utah families resolve past due mortgage loans and bank foreclosure attempts using the loan modification process.
A loan modification is an agreement between a past due homeowner and a mortgage lender, which change the terms of a mortgage loan and usually cures any past due balances. There are federal loan Modification programs, such as H.A.M.P. (Home Affordable Modification Program), and private loan modification programs available directly through many lenders. For homeowners who find the loan modification process complicated and overwhelming, the attorneys at Murff Law Offices can help simplify the process and increase the likelihood of loan modification approval.
A mortgage modification can include:
- A reduction or change in the loan’s interest rate.
- A reduction in the loan’s principal.
- A reduction or elimination of late fees and penalties for non-payment.
- A reduction in your monthly payment.
- Forbearance, to temporarily stop making payments, or extend the time for making payments.
Loan modifications can decrease the interest rate of your loan, reduce the over principal of your loan, and lower your payment. Not all loan modifications will lower your payment, and some can result with a higher payment, because modifications take your missed payments and roll them into a new loan. This can result in a longer term for payoff and a higher balance due to all of the fees and past due payments. Call Murff Law Offices today at 801-872-4882 to see if you qualify for a loan modification.
Frequently Asked Questions about Loan Modifications
Many of the major banks have loan modification programs available. Each bank may use different formulas to determine the financial health of an applicant. To qualify, a homeowner must show the bank that they can resume making house payments if allowed to start current. Approval can be difficult to obtain and the mortgage company decides whether to accept a loan modification, but banks are required to accept a qualified applicant’s loan modification under some federal programs.
While the application process can be difficult, it is not impossible for you to do on your own. For some, the process is overwhelming, especially with the games some banks play. Many homeowners have found the assistance of an experienced attorney greatly reduces the stress of the process, and may even increase the likelihood of achieving the best loan modification.
Mortgage modification may be in a lender’s best interest because the mortgage company is able to avoid the expense of foreclosure and bring the delinquent loan into back into a performing loan on its books.
If you’re behind on your house payments and need help, give the attorneys at Murff Law Offices a call today for a FREE loan modification review. We have offices conveniently located in Ogden, Salt Lake City, and Sandy.
H.A.M.P. stands for Home Affordable Modification Program
H.A.M.P. modifications are backed by the federal government and have special standards and guidelines. A homeowner still applies thorough a mortgage servicer to begin the process and your servicer reviews each application to determine whether approval is granted. Not all servicers participate in HAMP but for those that do it can be a great program for borrowers to save their home.
Other programs offering mortgage relief for homeowners in financial difficulty are offered by Fannie Mae, Freddie Mac, the FHA, the VA and USDA for borrowers with those types of loans.
Refinancing your current home loan is another way to obtain a lower mortgage payment. However, refinancing requires that you have good credit and solid finances – which sadly many candidates for a loan modification do not have.