Loan Modification Lawyer Elgin IL – ASM Law
Foreclosure rates are relatively high in the state of Illinois. Due to factors like high taxes, it can be a challenge for many homeowners to remain current on their mortgage. Additionally, as residential property values stagnate, those homeowners who are able to make their payments might question doing so. A loan modification may just be the right solution if you’re in this situation. A Loan Modification Lawyer Elgin IL can help guide you through this process.
Basics of Loan Modification in Illinois
With a loan modification, borrower and lender agree to change the terms of a home loan. This may include:
-A change to the interest rate or the principal.
-Changing the monthly loan payment.
-Changing the duration of the loan.
A temporary suspension of payments.
In agreeing to these modifications, the mortgage lender expects the borrower will be able to consistently make the payments. Consequently, the borrower prevents foreclosure and stays in the home.
Qualifying for a Mortgage Modification in the State of Illinois
A potential candidate for a loan modification typically must show:
-A decrease in the value of their home to where it’s worth less than the remaining balance of the loan.
-They are paying a high interest rate and have a poor credit rating.
-Financial difficulties, struggling to keep up with mortgage payments.
A Loan Modification Lawyer Elgin can perform a thorough review your mortgage and your general financial circumstances. In addition, an appraisal of your home’s value is important too. This analysis helps determine if you’re a candidate for a loan modification.
Don’t Fall Victim To Fraud – Talk to a Load Modification Lawyer Elgin IL at ASM Law
The loan modification industry sometimes – unfortunately – draws less-than-legitimate parties looking to prey on others. It’s critical to take measures that will protect you against unsavory business practices. Talk with our law firm today – we have experience in helping people in situations similar to your own. There are alternatives to foreclosure and bankruptcy that can put you on the path to financial recovery.
Adjusting Your Mortgage to More Affordable Payments
In the event you find yourself unable to consistently pay your monthly mortgage, it doesn’t necessarily mean default is inevitable. It may be possible to make adjustments that allow you to make the payments without damaging your credit. A mortgage loan modification plan can offer relief through permanent or changes to the terms of your loan. It’s helpful to understand what loan modification entails and how to obtain one. Without a doubt, talking to a Loan Modification Lawyer Elgin IL is an ideal first step.
Although homeowners do have the right to seek a modification themselves, legal expertise significantly approves the odds of success. For example, a lawyer can help you fully understand your rights and help guide you through the process. After all, the goal is to stave off foreclosure and enable you to remain in your home.
Fundamentals of Loan Modification
A modification to your loan is simply a restructuring where your lender changes its terms. The purpose is to make it more affordable for you. With this solution, the lender may consent to do the following steps to lower your monthly loan payment.
-Lower your loan’s interest rate.
-Switch your rate from variable interest to fixed interest.
-Forbear a portion of the principal balance or extend of the duration of the terms.
Consult with a Lawyer Today About Alternatives to Foreclosure in Illinois
To obtain a loan modification, you’ll probably need to apply for it to your loan servicer. In addition, you’ll need to include documents such as current paycheck stubs and bank statements.
If you are considering foreclosure but are not sure if the modification process is right for you, call ASM Law. We can inform you of your legal options and rights. When it comes to your home, having sound legal advice is essential for making the right move. Each case is unique and depends upon your own circumstances, but generally your lawyer might suggest:
-Proceeding with a mortgage loan modification and fighting foreclosure proceedings in court
-Giving up your property through a short sale or a deed in lieu of foreclosure.
Hiring a lawyer is a smart decision if, for instance, you want to modify your loan yet don’t fully understand how to apply. Or, perhaps your financial situation has a lot of complications. It’s worth it to hire a Loan Modification Lawyer Elgin IL for assistance with:
-Correctly filling out all the application paperwork.
-Collecting and submitting the appropriate documentation along with your application.
-The best way to document your current financial situation.
Along with these important points, there are still other very good reasons to consider hiring a lawyer. There can often be other factors that can make it difficult to obtain a loan modification other than the application. For example, sometimes the problem can be with the loan servicer. In some instances, they may fail to follow federal or state laws which govern the modification process. Certainly, a lawyer can help to enforce your legal rights.
ASM Law – Serving Homeowners in Elgin IL
According to federal law, loan servicers cannot begin a foreclosure proceeding for 120 days after borrower defaults. The purpose is to provide the borrower with an opportunity to avoid foreclosure through alternatives. For example, through a loan modification that reduces the payments to an affordable amount. The loan servicer can’t initiate a foreclosure as long as the borrower’s application is still pending. In the event your loan servicer begins foreclosing too early, that is probably a violation of the law and a lawyer can help to stop it.
With a Lawyer representing your interests, you’ll gain a much higher chance of preventing foreclosure and keeping your home.
State law in Illinois is what governs foreclosure proceedings. If your loan servicer violates Illinois law during foreclosure, your lawyer may be able to stop the process. It may be possible to leverage the violation to obtain you a mortgage modification so the payments are more affordable. It is not unusual for loan servicers to make errors while they are foreclosing on a home. A Loan Modification Lawyer Elgin IL can identify errors that a homeowner may not notice.
If your loan servicer turns down your request for loan modification, you may wish to appeal. In this case, you may receive some extra time to seek an appeal. A Loan Modification Lawyer Elgin IL may be able to assist you in this effort. It involves showing why the loan servicer is mistaken in turning down your request for a loan adjustment. This can possibly improve your chances of approval.
Call ASM Law to Speak to a Lawyer if You’re Struggling with Mortgage Payments
ASM Law is a leading firm with years of experience helping homeowners throughout Kane and Cook Counties. If you are having a tough time paying your mortgage, it’s important to act sooner rather than later. Call our offices to schedule a free consultation to learn more about your options. From loan modifications to short sales, there are alternatives to foreclosure that make it possible to keep your home.