April 13, 2020
Covid Development Project – Mortgage Loan Modification
Economic hardships, especially losing your job, make paying regular bills, which you paid consistently for years, even decades, including your mortgage, difficult if not impossible. A few missed mortgage payments pile up quickly and this debt can snowball if not quickly and properly addressed. While you may have never missed a loan payment and feel your current financial situation is beyond repair, we can tell you it is not. For many people facing financial hardship, dealing with creditors and debt collectors can become more than just a nuisance, especially if a creditor crosses the legal line in the sand.
At COVID LEGAL Q&A we provide comprehensive debt relief services to individuals and businesses throughout the United States with offices in Pennsylvania and New Jersey. Debt collection agencies are hired by creditors to collect various types of delinquent debts, including for credit cards, car loans, personal loans, medical bills, commercial debt, and student loans. Debt collectors use letters and phone calls (FDCPA cite) to try to convince borrowers to repay the loan, as they are responsible for negotiating resolution for past due amounts. Debt collectors often work with delinquent borrowers to create a repayment plan, when full repayment is not an option. Remember debt collectors always will attempt to negotiate repayment claims which favor them.
Debt collectors will never look out for your best financial interests. Debt collectors almost universally work on a commission basis and only get paid when they recover a delinquent debt, making the more they recover from you, the more they earn. Before agreeing to a debt collector’s proposed payment plan, your best course of action is to contact one of our experienced attorneys [CLG + DO LINKS]. Our attorneys will negotiate with the debt collectors to ensure your repayment terms are fair and there is no hidden contract language.
We offer confidential, low-cost, and free initial consultations, depending on the type of issues you are facing, and provide hourly and flat rate services for loan modification and other debt settlement matters. However, there are no upfront costs if the debt collector violated the law and we are able to sue the debt collection agency, as in those cases, we work on a contingency fee basis because the FDCPA and FCRA requires violators to pay winning plaintiffs’ attorneys’ fees, meaning we only get paid by the people who violated your rights, if you win.
The FDCPA bans debt collectors from using abusive, unfair, and/or deceptive practices to collect past due payments from borrowers. The FCRA covers the methods for how a credit reporting agency handles each person’s credit information, with the intent to ensure each individual’s privacy. The FCRA requires credit reporting agencies and businesses providing them information, to ensure its privacy and accuracy, while additionally providing a mechanism for disputing any inaccuracies. If you are facing challenges paying your bills, or feel a lender has violated your rights, Covid-19 Legal Q&A, wants to help. We’ll answer your loan modification and debt settlement questions, and help you determine your options, and empower confident, strategic decisions. It is free to tell us about your circumstances and get our experienced advice, so call us immediately to see how we can assist.
Questions Related to Loan Modification
Why Would a Bank Think About Modifying My Loan?
Banks and other lenders never want to foreclose on your property and home. Lenders earn more money if you make your payments. When lenders foreclose, they lose your monthly loan payments, in addition to creating new expenses for foreclosure attorneys’ fees, house rehabilitation, and reseller costs especially for sales agent’s commissions. With the current housing market’s conditions, lenders who successfully foreclose on a property will likely have to keep it unsold for much longer than usual and/or also have to sell the unit at a loss. These combined factors strongly motivate the banks and lenders to agree to a loan modification or loan workout.
Can I Qualify for a Loan Modification If My Mortgage Payments Are Current?
Yes, eligibility requirements for loan modification constantly change and differ between lenders. Most lenders now complete loan modifications with current borrowers. While it is difficult to determine whether you qualify for a loan modification until we speak confidentially [LINK CONTACT PAGE] with you, remember the in the current economic situation lenders are strongly motivated to try and work with you.
I Just Received a Foreclosure Notice Can I still Qualify for a Loan Modification?
Yes, you may still qualify for a loan modification, granted you kept residing in the home and did not voluntarily abandon or otherwise leave and the property has yet to be sold at a foreclosure sale. Time is of the essence with loan modification and foreclosure matters, as more options become available the sooner the process starts. Further, consulting with an experienced attorney, such as those at our firm [LINK CONTACT PAGE], who will contact the bank and lender on your behalf, shows good faith in trying to resolve the debt, and often allows a borrower more time and leeway for any negotiations and modifications.
Can I Trust Any Loan Modification Service Who Charges Up-Front Fees?
Usually no, unless the business offers legal representation. Not paying upfront fees is a great rule to avoid scams and fraudsters, especially for credit counseling services claiming to offer loan modification services. While, attorneys and legal services firms collect their payments upfront, unlike almost all other servicers, are bound by a strict code of ethics and must always act in a fiduciary capacity for you. The best strategy for negotiating a loan modification is to work with a reputable attorney within your state.
Can I Modify My Vacation or Investment Home Loans?
Depending on your state and city, you may be able to modify your vacation home or investment property. Typically, loan modifications are designed for homeowners, not investors, so usually a person stands a better chance of obtaining a loan modification for a primary or secondary residence, the current economic client must be included. Lenders, especially banks, are strongly motivated to work out loan modifications, due to the high levels of default on other investments and the issues related to reselling the property. The banks fear successfully foreclosing a property which, in the current market they would likely have to maintain for many months or even years before selling at a loss.
Can you assist me with modifying a housing loan related to a time share?
Possibly, as time share contracts all greatly vary and oftentimes contain complicated and detailed language about payment terms. Timeshares contracts in certain states may not be considered mortgages or other traditional housing loans, thereby making modifying repayment terms more complicated. Our attorneys have experience helping people modify and terminate timeshare agreements. REVIEW
How Long Does It Usually Take for a Completed Loan Modification?
The loan modification process usually last between 3-54 months, dependent mostly on the specific lender and your ability to efficiently navigate the process with your loan modification lawyer. A loan modification attorney often reduce the required time by efficiently processing your paperwork, formatting your application to each lender’s exact specifications, and knowledge from past experience, about terms lenders will typically agree with.
I Have a Low Credit Score Can I Still Qualify for a Loan Modification?
You can qualify for loan modification regardless of credit score in many situations. Credit scores play less of a role, when determining whether a person satisfies the loan modification requirements. Loan modifications jointly adjust your existing loan terms. Successful loan modifications eventually improve your credit score, as continued payments, prevent worse outcomes including but not limited to delinquent balances, foreclosure, or bankruptcy.
Is a Loan Modification Different From a Loan Refinance?
Loan modifications and refinances greatly differ. When you refinance, you actually apply for a new loan, which when approved, becomes the new agreement whereby you incorporate some, not all of the previous lending terms. With a loan modification, the original agreement remains intact, exactly as it was the day you signed, and only adjusts the terms for repayment.