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Question: When do you hire an attorney to negotiate loan modification?
Answer: The best time to hire an attorney to negotiate a loan modification is when you started to feel that your financial situation cannot sustain the continuous payment of your mortgage under the current terms. Many mortgages will reset to a higher payment terms after the expiry of the interest only or minimum payment terms. If the monthly payments will reset and you have not modified your loan there is a great chance that you could not afford the monthly payment because any unpaid interest during the minimum payment period is added to the principal amount. This new principal amount will be the basis of computing your monthly interest and principal payment. Many interest only and option ARM mortgages will reset by year end and by the year 2010. However you can still hire an attorney anytime during the foreclosure process to protect your rights and to save your home.Question: What are the advantages of hiring an attorney in doing loan modification?
Answer: Banks and lenders listen to attorney when they negotiate because attorneys always negotiate from the position of strength.
Negotiation from a position of strength is what an attorney can do for you. If you do it yourself, the lender will dictate the terms of modification to your disadvantage. In my ten years of experience negotiating personal injury and other cases, you could get what you negotiate only if the other party knows that you will win in Court.
Lenders will not agree to a loan modification unless you can prove that the lender will lose more money by foreclosing the property. Although the government is offering incentives to modify loans the banks and lenders also share about 50% of the loss to be incurred in loan modification. The most important tool an attorney has is the threat of litigation.Loan modification is a legal process. There are Federal and State laws such as Real Estate 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.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.
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