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QUESTION: What are the advantages of hiring an attorney to do my loan modification?
Answer: Loan modification is a legal process. There are Federal and State laws such as Real Estate and Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA), law of contracts and other laws that govern the relationship between lender and homeowner. Only an attorney has the experience and preparation to protect your rights to keep your home and avoid foreclosure. Negotiation from a position of strength is what an attorney will do for you.
Question: What is the difference between an Attorney based Modification Companies and Law Offices?
Answer: The basic differences are:
Attorney based modification companies cannot offer legal advice and do not have the ability to directly litigate.
The Law Office will immediately request the loan documents and proposal approved from the lender. Most banks will separate this proposal from every other including attorney based modification companies. The lender knows there is a direct threat of a lawsuit and will act accordingly. The Law Firm will get the fastest reaction from the bank.
Law Firm will be able to handle your foreclosure, deed in lieu of foreclosure, short sale or bankruptcy if necessary.
Protection from possible tax problems is better handled by an attorney.
Once the bank has filed a Notice of Default on the property, Loan Modification companies cannot collect a fee until the loan modification is complete under California Civil Code 2945. If a Notice of Default has not been filed, the Loan Modification companies cannot have you sign a contract and collect money without prior approval from the Department of Real Estate. However, Attorneys are exempt from these regulations because they are regulated by the State bar.
Attorneys must give personal consultation with the client upon request.
Question: Who may qualify to loan modification?
Answer: You may qualify if you have any of the following:
Your Mortgage Loan is substantially more than the value of your home.
Your loan is an Adjustable rate mortgage (ARM)
Your interest rate is too high.
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