Mortgage Loan Modification
Loan modification, also known as note modification, is a modification to the terms of an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the principal balance, the mortgage lender changing the terms on an existing mortgage, the lender granting an extension of the of the terms or otherwise changing the terms without refinancing. Loan modification is an extreme form of foreclosure prevention. But, with lenders being overwhelmed with foreclosures and defaults, you'd be surprised at what settlement you could obtain.
Can I negotiate a loan modification myself?
Some people say you can negotiate a loan modification by yourself. But, it's not recommended. It's better if you retain a real estate attorney that specializes in loan modifications because the lawyer can use advanced legal techniques to achieve the most aggressive results for you. Plus, you stand a much better chance of qualifying for a loan modification with an attorney's assistance. The attorney knows what lenders look for in the hardship letter (probably the most important document in your loan modification request) and how to fill out the forms to meet the lender's strict qualification guidelines.
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