Loan modification is an agreement between the homeowners and the bank to change the original monthly payment, interest rate, balloon payment, or payment year terms. If done correctly, a loan modification can reduce your monthly payment, decrease your interest rates, and increase the number of years you have to pay back the original loan.
Loan modification is an excellent alternative to foreclosure. However, a loan modification requires a legal and binding new mortgage agreement between you and the bank or mortgage company. The banks will attempt to negotiate in their own favor. If you don’t have a foreclosure defense attorney on your side, you will find it difficult to get favorable terms. With the Lenoir Law Firm you can negotiate the best possible terms. Loan modification can happen even if you are not yet in foreclosure proceedings. It is in your best interest to seek assistance so that a loan modification can be negotiated.