What is Considered a Hardship for a Loan Modification?
To get a modification, you must submit an application to your servicer which includes a hardship letter or affidavit. In this document, you must describe the events that impacted your finances resulting in hardship.
Some common types of hardship are:
- Illness or injury
- Death of a coborrower
- Reduction in your pay
- Losing your job
If you are still unsure if your circumstances are considered hardships so you are eligible for a loan modification, talk to a loan modification attorney in Irvine at McFarlin LLP. We are happy to answer your questions during a free case evaluation.
How We Help Homeowners in Irvine and Throughout LA, OC & Southern California
You don’t want to enter loan modification negotiations without legal representation. Our seasoned attorneys and real estate professionals can keep you in your home if you allow us to sue your lender. But, before we can file a lawsuit, you need to attempt to get a loan modification from your lender, either personally or through a third-party negotiator. If you’ve attempted to get a loan modification and been denied, we can then sue.
Once a lawsuit is filed, there will be a litigation settlement process. During this process, attorneys for both the lender and borrower can confidentially discuss loan modification. Lenders are generally open to considering a loan adjustment, providing foreclosure fees and delinquent payments are added on to the back end of the loan. This is called “recapitalization.” Our attorneys can work with you and come up with a payment schedule that is affordable within your current budget.
We can argue your case for a loan adjustment based on many factors, such as a job loss, death or illness of you or a family member, or a drop in property value. By using these “hardship factors,” we may be able to get the lender to agree to a permanent or temporary rate reduction, lowering your interest rate and making your scheduled payment more affordable.
In certain cases, a lender will consider reducing the principal of your loan on second and third mortgages but, generally, not your first mortgage. If need be, we could also be able to temporarily stall foreclosure proceedings through a forbearance program.
Interested in a Loan Modification? Call to Learn About Your Options During a FREE Consultation.
As you can see, getting your loan modified is a complicated process. This is why you need the skilled attorneys of McFarlin LLP at your side. Any time you miss a mortgage payment it is a serious issue. Don’t hesitate to call us for a free consultation. You DO have rights and options.