Know Your Local Loan Modification Laws
Offering an all inclusive guide to the loan modification laws in each state would take too long to write and would be too difficult to keep updated. Since the housing crisis is still relatively young and since there has never been so much scrutiny on the lending industry, new laws are constantly being put into effect in state after state designed to regulate one practice of lenders or another. Some states, like California, have laws that can best be described as “consumer friendly”, meaning that large corporations like lending institutions have to meet certain requirements before taking drastic actions against consumers, like the repossession of property.
Including laws put into effect by the individual states, the federal government also regulates the lending industry with laws that restrict predatory lending practices, collection efforts, and more.
The problem with loan modification laws is that they are something that borrowers more than likely pay no attention to unless they are facing foreclosure. This is unfortunate because when the threat of foreclosure does hit the borrower, the borrower is forced to learn relevant lending laws in a hurry. While it isn’t mandatory for a person to learn anything about the law if facing foreclosure, some knowledge will be beneficial so that the borrower can prevent becoming the victim of a scam or loophole.
While learning about the law will protect the borrower, hiring a professional trained in applying the law will be even more beneficial. Borrowers facing foreclosure are urged to hire an experienced foreclosure attorney because no person can be expected to learn everything about the law that they need to save their home from foreclosure in the amount of time it will take the lender to initiate the process.
Preventing foreclosure is a very time sensitive process that requires experience. Many will attempt to inform the struggling borrower that they can prevent foreclosure on their own, but the odds will always be stacked against the person who goes unrepresented by an attorney.
Even though a general knowledge and understanding of local and federal loan modification laws should be learned, no amount of study will give the average borrower enough knowledge to fully prepare for the foreclosure process. The borrower will not only have to review legal documents, he or she will also have to negotiate with lenders, gather evidence, and present that evidence in court should the case go to trial. These are all tasks that are better left to legal professionals.
What a general knowledge of loan modification laws will offer the struggling borrower is the knowledge that will hopefully be used to avoid a potential foreclosure in the future. Understanding things like predatory lending and how to recognize and stop it will help the borrower avoid a potentially nasty situation in the future. The borrower will learn the tell tale signs of predatory lending practices and will learn what their lender can and can’t do before foreclosing on a property. While it may seem simple, some of this knowledge will go a long way towards helping the borrower maintain ownership of their property through the life of their loan.Post Tags: Loan Modification, Loan modification laws