Can a Mortgage Modification Stop a Foreclosure?

Foreclosure Defense Lawyer

When homebuyers sign their mortgage contracts, their mortgage lenders make it clear that the potential consequences of falling behind on their obligations are severe. However, it sometimes takes actually falling behind on one’s payment schedule to truly appreciate just how much power mortgage lenders yield. A mortgage that is paid late or is not paid at all, even for a few billing cycles, can result in foreclosure. And unfortunately, it takes very little time and very little effort on the part of the mortgage lender to foreclose upon a homeowner who has fallen behind on their payment schedule.

As a result, it is critically important to speak with an experienced attorney as soon as you begin falling behind on your mortgage contract. Under certain circumstances, you may be able to petition for a mortgage modification. Doing so may allow you to catch up on your payments and stay in your home. Not every homeowner is eligible for a mortgage modification and petitioning for a modification is not in every homeowner’s best interests. But it is an option worth exploring with your attorney if you have fallen behind on your payments.

The Benefits and Limitations of Mortgage Modifications

Not all mortgage modifications are created equal. Some are more advantageous than others and some serve different functions. It is therefore important to discuss the details of your financial situation with your attorney so that you can explore the kinds of modifications that may be available to you. Some modifications reduce the principal of the home loan, while others reduce its interest rate. Still, others do neither but reduce or eliminate penalties and late fees associated with non-payment. Depending on your circumstances and your mortgage lender’s willingness to work with you, you may even be able to secure a modification that reduces your monthly payment amount, extend your payback period or temporarily halt your payment schedule in order to have time to catch up on the payments you currently owe.

Some of these solutions may provide you with enough resources to remain in your home if you qualify for a modification. An attorney will be able to advise you about whether a modification is currently an option, given the specifics of your situation.

Legal Support Is Available

If you are concerned about the risk of foreclosure, please consider consulting an experienced attorney at your earliest possible convenience. Depending on the details of your specific circumstances, a lawyer will be able to advise you of any number of legal and financial options currently available to you.

It is important to understand that the longer you wait to contact an attorney, the fewer viable options may remain. When it comes to saving your home, time and knowledge serve as profound resources. When faced with the threat of foreclosure, it is common for homeowners to feel relatively paralyzed by fear and indecision. While this reaction is normal, it will not serve your best interests or keep you in your home. If you are behind on your mortgage payments, please consider contacting an experienced foreclosure defense lawyer, today.