Loan Modification

Irvine Loan Modification Attorney Realtor

Helping Homeowners Avoid Foreclosure in Los Angeles, Orange, and San Diego Counties

Few financial challenges are worse than being unable to keep up with your mortgage payments. Once you fall behind on paying your lender, you may receive threats of foreclosure and eviction. There are numerous means of safely exiting a mortgage and avoiding foreclosure if you are not committed to staying in your current home, but if you do want to stay, you will likely need to renegotiate the terms of your loan.

Our Irvine loan modification attorney and realtor at Lawyers Realty Group can help you determine if you qualify for this form of relief. If you meet the narrow eligibility requirements, we can negotiate with your lending institution and work to make your monthly payments more affordable.

Our attorney-owned and operated real estate brokerage has over 50 years of professional experience. We have helped thousands of California homeowners manage real estate negotiations and transactions. Having previously worked for banks and other financial institutions, we have a complete knowledge of how to communicate with lenders.

We understand what lenders look for when evaluating requested loan modifications. We can leverage that knowledge to help secure the relief that you need.

What Can a Loan Modification Accomplish?

Practically speaking, a loan modification will adjust the terms of your mortgage agreement going forward. The process is designed to allow a homeowner to recover from a default and resume making payments more sustainably at the revised rate.

Most importantly, a loan modification will avoid foreclosure, allowing a borrower to remain in their home. Lenders consider loan modifications in the first place because they generally wish to avoid the foreclosure process themselves. Going through a foreclosure is costly and inefficient for all parties.

A loan modification will typically involve some combination of:

  • Reducing your interest rate or locking in a fixed variable interest rate
  • Extending the term of your loan, meaning that your payments will be spread across a longer period
  • Reducing your principal or putting some principal on the “back” of your loan
  • Adding past due amounts to the “back” of your loan
  • Eliminating some or all late fees and interest or adding them to the “back” of your loan

Who Qualifies for Loan Modifications?

Loan modifications are not simple or arbitrary adjustments to your monthly installment amount, interest rate, or principal balance. When evaluating a loan modification, your lender will engage in a complex financial analysis. They will assess your debt-to-income ratio and your net present value.

The debt-to-income ratio measures the quantity of a borrower’s debt against their current gross monthly income. To obtain a loan modification, borrowers must not make too much money – otherwise, they could afford to pay the original mortgage installments . However, they also cannot make too little, or else they will not be able to manage the modified payments.

Net present value, or NPV, evaluates whether a lending institution is better off foreclosing and selling a home versus granting a loan modification. Its valuations determine which scenario is more likely to generate maximum profit.

See our Loan Modification Report and Loan Mod Traffic Tool for more information.

Find out if you qualify for a loan modification and explore alternatives with our help. Call (949) 264-0966 or contact us online to explore your options today!

Why Is My Lender Denying My Loan Modification Request?

In short, your lender probably does not have the confidence that they will benefit from the transaction and/or they believe that you will be unable to reliably pay under the modified terms. When you formally request a loan modification, you will need to provide documentation demonstrating that you have experienced some form of hardship that prevented you from paying under the existing terms. This can include a temporary or permanent loss of income, a death in the family, a natural disaster, or an injury or illness.

You will also need to provide exhaustive financial documentation that demonstrates your future ability to pay should the terms of the loan be modified.

If you do not meet the eligibility requirements for a loan modification but do wish to keep your home, we can help you explore other relief alternatives, including:

  • Curing Default and Reinstating. In the state of California, you have the legal right to cure your default and reinstate your existing mortgage agreement up until 5 business days prior to a foreclosure date.
  • Refinancing. If you have considerable equity in your home, you may be able to secure a new loan with more attractive terms that can help you pay down your mortgage. Additionally, if you are at least 62 years old and have equity in your home, you may also qualify for a reverse mortgage.
  • Negotiating a Repayment Plan. If you are currently in default but now have the financial resources to make payments, you may be able to convince your lender to allow you to pay augmented monthly installments to help you “catch up” on missed amounts.
  • Obtaining a Loan Forbearance. If your current hardship is temporary in nature, your bank may be willing to pause or temporarily reduce payments.
  • Filing for Chapter 13 Bankruptcy. As a last resort, filing for Chapter 13 bankruptcy will halt foreclosure proceeds for a period of 3 to 5 years. During this time, you will need to pay monthly installments that cover the entirety of your debts. While bankruptcy cannot discharge mortgage debt, it can eliminate credit card and medical debt, giving you time and flexibility to catch up on your loan.

No matter what challenges you face, our Irvine loan modification Attorney/Realtor at Lawyers Realty Group is committed to helping you keep your home. We can quickly assess whether your circumstances may lead to an effective loan modification and will always be straightforward with you when a modification request is not likely to succeed. Should a loan modification not be possible, our team will help you explore other foreclosure alternatives.

Schedule a free initial consultation and get the professional guidance that you deserve. Call (949) 264-0966 or contact us online today!

Committed to Going Above & Beyond for Our Clients

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