Financial situations change unexpectedly sometimes, making you face head-on the possibility of filing for bankruptcy. However, loan modification gives you a way out of this difficult problem by allowing you to change one or more of the terms of your loan permanently. Getting a lower payment may make it easier for you to retain ownership of your home, and you are allowed to get a loan modification once every two years if you meet the requirements.
Bankruptcy law is complicated, but the attorneys at the Law Offices of David Kohm understand it completely. Use the following guide to help you decide which financial path is the best for your situation.
What You Need to Know
Questions that are frequently asked by others about getting a modification to a loan are probably on your mind as well. Review these answers that usually help others in your situation to make a decision:
- You must meet certain eligibility requirements that are based on specific financial analysis criteria to apply for a loan modification.
- It is acceptable to include legal fees and foreclosure costs for completed work in the new balance on your loan.
- You must successfully complete a three-month trial that shows your ability to pay the reduced amount set by the modification before being accepted.
- Late fees are usually waived when you qualify and are approved for your modification.
Opening Your Financial History
You may find the investigation into your current financial situation intrusive and even a little embarrassing. But with the help of an Arlington bankruptcy attorney, you can decide if you think it is worth doing. The alternative that you face by doing nothing is probably much worse and can include defaulting on your loans and eventually filing for bankruptcy anyway.
The modification program is administered through the U.S. Department of Housing and Urban Development (HUD), and the agency encourages you to take action when you cannot cover your mortgage payment. Getting further behind makes it more difficult to reinstate your loan, a process that happens when you get a modification. Failing to take action can even result in the loss of your home.
Call the Law Offices of David Kohm at 817-204-0900 to get the aggressive representation needed to save your home.
