A bank loan modification is usually a home loan modification, although other bank loans are also eligible for modification, generally through refinancing. A consumer affairs attorney, real estate attorney or bankruptcy attorney can help with bank loan modification, depending on the type of loan. The experience and reputation of the attorney is the most important criteria. People seeking loan modification should select an attorney with deep, recent experience in the field, and the attorney should also be known for integrity and honesty.
Home Loans
Home loan modification is a process for changing the terms of a mortgage. Many homeowners facing foreclosure seek home loan modification to make the payments more affordable. A successful modification could result in key terms of the loan changing, including the interest rate and the length of the term. Banks can dramatically lower the monthly payment by dropping the interest rate, changing the structure of the loan from adjustable to fixed, and if necessary, adding more months onto the length of the agreement.
Foreclosure Rescue
The Federal Trade Commission advises people to stay away from firms prompting themselves as "foreclosure rescue firms" for modification on home mortgage loans, even if the firms claim to have attorneys on staff. Although some of the firms are legitimate, the FTC has received complaints about others. Some homeowners have paid thousands of dollars in fees to foreclosure rescue firms, but still lost their homes to foreclosure because the foreclosure rescue firm did not perform its duties as promised.
Options
An attorney is not required for bank loan modification, including a home loan modification. Nonprofit housing and credit counselors certified by the U.S. Department of Housing and Urban Development can help with loan modification discussions with lenders, and some charitable organizations, such as The National Urban League, offer assistance as well for home loan modification.
Contacts
People seeking an attorney for help on bank loan modification can seek referrals from a variety of sources. Many local and state bar associations, such as the Atlanta Bar Association and Florida Bar Association, offer a referral service for attorneys. Referrals include local attorneys with deep experience in bank loan modification. Contact information for local and state bar associations is available by contacting the public library. Another option is a local chapter of Legal Aid, or a similar organization. Organizations such as the Legal Aid Foundation of Los Angeles or Greater Boston Legal Services, provide free legal help to the poor, but can also provide referrals for those who do not qualify for free benefits.
0 comments:
Post a Comment