The Loan Modification Process

What is Loan Modification?

When a loan modification is successful, it brings about a permanent change in the terms of the borrower’s loan and allows the new loan to, in essence, be reinstated. The end result is a payment that the borrower can afford going forward. Typically, in determining if the borrower is eligible for a loan modification, the lender applies a specific financial analysis. The criteria utilized can be explained to you during the free initial consultation with one of the bankruptcy/loan modification attorneys at Villani & DeLuca, P.C.

Apply for a Loan Modification with the Help of an Attorney

Home Mortgage ForeclosurePrior to finalizing any loan modification, such as a mortgage modification, the borrower must successfully complete a three month trial payment plan prior to executing the loan modification documents required by the lenders. When applying for a loan modification, you are required to complete an application and provide a hardship letter to your lender. The application specifies your income, debts and all monthly expenses. The hardship letter also outlines the reasons why you need a loan modification. Subsequent to receipt of that correspondence, the lender then runs your credit and subsequently reviews the application.

One of the benefits of having an attorney assist you with a loan modification process is that you have that attorney’s knowledge of the required paperwork and negotiating with the lender. Also, with the assistance of an attorney, you can confidently avoid becoming a victim of what has been a very common practice of loan modification scams. Any perspective individual contemplating a mortgage modification must recognize that often times these programs do not always deliver the desired result. In fact, it could sometimes leave you in a worse situation than when you began the process.

Retain a NJ Bankruptcy Lawyer for Loan Modification

The Home Affordable Modification Program and other affordable programs consist of detail oriented and complicated applications. The bankruptcy lawyers at Villani & DeLuca are experienced at working on home loan modifications. They are also intimately familiar with the issues that surround the programs and the eligibility requirements that are associated with these programs. Please contact Villani & DeLuca today at (732) 965-3390 to arrange for your free consultation. Villani & DeLuca proudly serves residents throughout the Jersey Shore areas of Monmouth and Ocean Counties.