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FAQ'S
Mortgage Law
A mortgage loan modification is a change in your current mortgage loan terms. The modification is a way for you and your lender to mitigate any further loss while allowing you to remain in your home. A mortgage loan modification can reduce your monthly payment to an amount you can afford. Mortgage loan modifications may involve extending the number of years you have to repay the loan, reducing your interest rate, and/or reducing your principal balance.
Anyone can apply for a mortgage loan modification. However, to qualify for a loan modification, most lenders require that you are currently experiencing or have recently experienced a financial hardship in your life. A qualifying hardship may include a job loss, reduction in income, high monthly debt payments that exceed your net income, or bankruptcy filing.
Yes. A fully completed and lender accepted loan modification application will temporarily stop a foreclosure and sheriff’s sale. However, you must successfully complete a trial payment period (usually three months of timely payments) before the terms of the loan modification become permanent and the foreclosure and/or sheriff’s sale are dismissed.
Once a complete loan modification application is submitted, the lender has up to 30 days to either reject your application or to offer different options with various terms from which you can choose to accept.
Sometimes lenders will not cooperate with you or will give you the runaround when you have questions. At Tilman P. Larson, Attorney at Law, we help you cut through any red tape and confusion the lender may have or create to impede you with your application.