Loan modification can be a tricky business. Many struggling homeowners believe that their loan servicer does not want to take their house, so a loan modification is a sure thing. Unfortunately, that is not the case. For starters, loan servicers exist to make a profit, not to help homeowners. Under Regulation X at 12 CFR 1024.41, every homeowner has a right to be reviewed for a loan modification. However, the right is only to be reviewed for a modification, not to be approved for a modification. Under Regulation X, the loan servicer must give you an answer on the modification within 30 days of receiving a complete loan modification package. However, the law allows servicers themselves to determine what a complete package looks like.
Every loan servicer has a way of reviewing loan modification packages. Further, every loan owner and servicer has unique guidelines on who will qualify for a modification and under what circumstances. There are so many pitfalls when it comes to modification. Just trying to get a complete package in can be tricky. Although service is supposed to tell you within 5 days of receiving a package what, if anything, is missing, it’s not uncommon for them to wait weeks before advising you of what is missing. Then, by the time you supply the missing documents, all of the documents you submitted previously are stale and they will then send another letter telling you that you must provide all new documents. This can start a vicious cycle that could last for months.
Another big issue is the amount of income a homeowner has. If a homeowner has too little income to support a modification payment, it will be denied. On the flip side, if a homeowner has too much income, that is also grounds to deny a modification. This is especially tricky for people who are self-employed or work on commissions. Knowing when to submit a loan modification request and how to submit a loan modification request simply comes with experience. So, while you may be able to obtain a loan modification on your own, having a law firm with a proven track record of success handling the modification request for you will usually greatly increase your odds of being approved. You may be thinking that maybe it’s best to handle it on your own and then go to a lawyer if it’s denied. That’s also not a great idea. Once you have a loan modification denied, it may be more difficult to go back and get a proper second review.
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Further, what if the loan servicer does not give you an answer within 30 days? Well, you have a right to sue them for violating Regulation X, however, that needs to be set up properly. At Loan Lawyers, when we represent someone for a modification, we use all of our experience and best judgment to submit the modification in such a way as to maximize our client’s chance of success. Further, if the loan servicer does not provide a timely answer, we will often sue them in federal court. This may result in them settling the federal case in such a way that includes loan modification.
If someone is sick, they will go to a doctor because that doctor has the training and experience to deal with whatever malady they are facing. Falling behind on a mortgage is a legal problem that also needs a professional with the training and experience to handle that matter for you. We have seen time and again clients who have tried to resolve everything themselves with the expectation that their loan servicer is going to help them out, just to be disappointed and face a foreclosure sale and a much more difficult situation.
If you find yourself behind on your mortgage and are thinking about a loan modification, call Loan Lawyers now for your free consultation with an experienced attorney to go over your options. Getting the right legal help early will likely increase your chances of saving your home before things snowball out of control, which can happen fast for homeowners behind on their mortgage. Call Loan Lawyers now for your free consultation with an experienced Fort Lauderdale loan modification lawyer at 1-888-FIGHT-13.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
