How it Works

To fully understand how Slade Law is able to help you, it’s important to know how it works. The process of loan modification is fairly simple once you understand all of the details. A modification to an existing loan is often made by the lender in response to a long-term inability to repay the loan. This loan modification agreement is a way to help buyers who are struggling find a way to keep their home.

It may consist of:

• Reducing the principal balance
• Reduction in the interest rate
• Extension of the length of the loan
• Or a combination of these three methods

When the loan is modified, it is generally with the goal of lowering the monthly payments and making it possible for someone who is facing foreclosure to keep their home.

If you’re thinking, “Why would a lender want to help me when I can’t even pay for my house?” then the answer is quite simple. It’s often cheaper for the lender to modify than the loan than to face default or foreclosure. In this type of situation, everyone can win from a loan modification.

In today’s economy, people are learning that losing your home to foreclosure is a very real scenario. Because of this, more and more home buyers are looking into all of the available options for them to save their home. This makes loan modification a more common term and option for people who could be struggling with their home loans.

How Does a Loan Modification Differ from Forbearance?

When considering options to repay your home loan and avoid defaulting, you may have also heard of forbearance. This is a good alternative for someone who will not be able to repay their loan for a short period of time. This differs from loan modification because in cases of modification, the buyer will never expect to be able to repay the loan, therefore the terms of the loan need to be changed.

Essentially, forbearance provides short term relief for homebuyers struggling with their loan payments and a loan modification provides permanent relief. If situations have caused you to be unable to repay your loan as it currently exists, then loan modification may be an option for you.

Making it Happen

If you’ve already made the decision that loan modification is right for you, the next step is how to make it happen. This could be a difficult and challenging process to go through with the bank or lending institution which is why it is important to seek the help of a professional in the field, .

The process of negotiating new terms of the loan can be very overwhelming, especially if you are already facing the stress of losing your investment of your home as well as other life situations that caused you to be unable to pay your loan.

When you allow a professional to handle this process for you, it’s possible to get the help you need fast and legally so you can save your home. Slade Law can represent you to your bank or lender and negotiate terms and conditions that help you regain control and keep your home.

For more details or to get started now, contact us today for a non-obligation free consultation.