Individuals facing foreclosure are applying for loan modification assistance all over the country. The idea of the loan modification is that it allows borrowers and lenders to agree to a change of original loan documents so that the monthly mortgage payment of the borrower can be lowered and so that the home may ultimately avoid foreclosure. In theory, a loan modification is cheaper for a lender to approve than a foreclosure, but in reality, thousands of borrowers still have trouble convincing their lenders to modify loans. In recent months, several leaders of the lending industry have cited “improperly filled out application forms” as the reason for the high number of foreclosures. This means that lenders admit that they would rather foreclose on a property than help a borrower fill out an application form. These statements have puzzled scholars and lay-persons alike because it would appear that lenders would prefer to lose money, and cost local communities thousands of dollars (through lost tax revenue and lower property values) by foreclosing on a home rather than assist the homeowner with a loan modification.
Hiring home loan modification attorneys makes sense to borrowers who can’t make sense of lending industry contradictions. Below are some additional benefits to hiring home loan modification attorneys:
Full client representation: The attorney is allowed to represent their client on all matters dealing with their loan modification, which means very little to no contact has to be made between borrower and lender at all. This can be a huge relief to borrowers who feel that they have been treated unfairly by their lenders or who simply have no desire to sit in a room with their lenders while their lenders try as hard as they can to avoid offering assistance. The attorney can be empowered by his or her client to make any and all decisions in regards to the request for a loan modification.
Affordable results: Many think that paying for an attorney is an expensive process that can and should be avoided. While these individuals are entitled to their opinion, homeowners are also entitled to do everything in their power to keep their home from foreclosure when times are tough and money is tight. In most cases, hiring an attorney who can keep a home from foreclosure is much cheaper than watching one’s home be auctioned away to the highest bidder. Not only does the homeowner not have to shell out the money to pay for a move, but they can spare themselves the emotional roller coaster ride that often accompanies a home foreclosure. At some point the homeowner has to realize that when a lender wants foreclosure, the borrower is going to lose. It may not be noticeable, but the borrower always loses. Whether it’s their home, the cost of an attorney, or simply the headache of having to deal for months on end with stubborn and often incompetent lending officials, the borrower is going to lose. By hiring an attorney, the borrower is given the opportunity to mitigate their losses to the greatest degree possible.
Required maintenance of high standards: Attorneys are held to very high standards before and after they admitted to practice law. Not only must they complete specialized law study programs, they must also pass state licensing exams that are some of the most difficult to pass and must maintain a personal and professional standard of conduct that would not cast any shadow of doubt on their ability to represent clients. Non attorney consultants are not held to these same standards.