Is A Divorce Making Mortgage Payments Difficult? You May Qualify For A Loan Modification
Loan modifications and loan workouts are now available to many struggling homeowners. A divorce is often a financial hardship for both parties and if there is a home involved there may be a way to secure some assistance from one of the new federal programs, or directly from the lender.
Whether a divorce is involved or not, your best source of mortgage modification help is from a licensed attorney. You need an attorney on your side to review and resolve these key points:
- Is the mortgage you have a legal one? If it isn't you have many more choices
- Have illegal charges and fees been added to your mortgage?
- Did the property appraiser provide an inflated appraisal?
- Which is really best for you: a modification, a workout or an exit?
Millions will qualify for a loan modification and you may too. But even if you don't you may have been a victim of predatory lending, and if so, that could open the door to a resolution of the problem. For more information, contact me online or call 866-930-0582 to schedule a free initial consultation.
Predatory Lending and Bad Mortgages
Your loan may not be a lawful one. Quite simply, many loans written in the last two years violated the Truth in Lending Act or other state or federal laws. If that is proven to be the case with your loan, then you have a powerful bargaining chip.
If your loan is legally sound, as most are, then the next step is to determine what kind of help you may qualify for.
A Mortgage Loan Modification Is One of Several Solutions
A 'loan modification' (also called a 'mortgage modification' or 'loan mod' for short) involves a revision of your mortgage terms by your lender and a contribution by the federal government. This government program was launched in March of 2009 and will be available for 3 years. If you meet certain qualifications then the government will provide some funds to help get your monthly payment down to a level you can more easily maintain. Millions of homeowners are expected to qualify and it might be a good solution for you as well.
If you do not qualify for a loan modification, then a 'loan workout' may be best. In this case you and your financial institution mutually agree to change the terms of the loan, such as the interest rate. Needless to say, getting a lender to agree to receive less money from your loan is a delicate process. You will need help in presenting the severity of your plight, but that it is not SO bad that you won't be able to make the negotiated payments.
If neither of these routes is possible, then you still need help getting the best exit possible from a bad situation. At the very least you will need time to make other living arrangements.
Loan Modification Qualifications
You may qualify for a loan modification if:
1) The loan closed prior to Jan 1 2009
2) The primary mortgage is less than $729,500
3) It is for your primary residence
4) You can document your income
5) The home is at risk of being lost
A divorce certainly qualifies as putting the home at risk. Other factors could be a serious decline in income, an interest rate increase, owning more on the house than it is now worth and a high mortgage payment compared to your income.
Get Help Now - A Loan Modification, a Loan Workout or an Exit
Whether you are current on your mortgage payments and can't pay other bills or if you are already falling months behind, get help now. There are many tricks to making it through this complicated process and you'll need all of them if also involved in a divorce.
For example, if you aren't making your mortgage payments for any reason, do not use the money to catch up other bills instead. Any negotiated workout or loan modification is likely to require that you make a good faith payment that may be equal to several months of missed payments. So don't pay down the cards - yet!
A Free Mortgage Modification Consultation
I provide free initial consultations in my Glendale office during regular business hours or on evenings and weekends by special arrangement. During this conversation, I will get to know you, your family and your concerns. We will discuss your legal options, the likely outcomes of those options and how we could help you achieve your goals.
For a free initial consultation call toll-free at 866-930-0582 or contact me online.
