2010 - HIRING A LAWYER FOR LOAN MODIFICATION ASSISTANCE

Prior results do not guarantee a similar outcome.

Homeowner's behind in their mortgage can sometimes benefit from hiring a lawyer to try to modify their loan and advert foreclosure. Having an experienced lawyer can mean the difference between saving tens of thousand of dollars in fees and actually having a loan modified, or falling prey to scams which result in the homeowner being out of cash, with their home in foreclosure and a radio active credit score.

According to PreventLoanScams.org, operated by the Non-Profit Lawyers Committee for Civil Rights under the Law, homeowners should be cautious of the following:

a) guarantees that a loan will be modified, since not all can be;
b) request for an up-front fee;
c) that property title be signed over to a third party; and
d) offers to redirect the monthly payments to a third party who will forward them to the lender.

One benefit of using an experienced lawyer is that he or she may typically know the ins and outs of the Government Homeowner Assistance Program. Information regarding the government programs may be found at www.makinghomeaffordable.gov.

The homeowner will need to provide the following documents to their lawyer at the initial consultation:

  1. 1. Last two (2) years of Federal Income Tax Returns.
  2. Two most recent W-2 forms.
  3. Six months of pay stubs.
  4. Evidence of other additional income.
  5. A letter explaining the homeowner's predicament.
Once retained the lawyer will then submit these documents along with the Loan Modification Application to the lender or mortgage Servicer. Afterwards, the lawyer will engage in repeated phone calls with the loan officer regarding the status of the application and provide any additional documents that may be needed. This entire process may take multiple weeks or even months before the homeowner learns whether he or she will have the mortgage rate lowered or possibly the principal amount reduced.