Getting approved for a loan modification can be tricky. Still, it is important for struggling homeowners to consider this to avoid foreclosure. So, where do you begin? Understanding the terms of a loan modification can help you become more knowledgeable and determine the best option for you. Once you’ve decided to apply for a loan modification, contacting an experienced loan modification lawyer in Los Angeles is the next step.
Are you ready to learn about loan modification terms and what to expect? Keep reading to discover them now.
Interest Rate
Lowering your interest rate can save you a lot of money over time. A loan modification lawyer can help you determine if this is possible. If your interest rate is much higher than the current market rate, you have a good chance at getting it lowered.
Principal Balance
Getting a reduction on your principal balance would be great, but it is uncommon. The lender wants a full return. Sometimes, you will be offered a reduction. That said, you shouldn’t go into this process expecting one.
Payment
The monthly payment is one of the biggest factors in a loan modification. In order for a loan modification to be approved, the payment must be arranged in a way that is still affordable. It may be lower or higher than the original payment. This depends on negotiations and any late fees owed. An experienced loan modification lawyer will work with you to determine your best payment option.
Length of Term
Most mortgages come with a term of 30 years. A loan modification will likely extend the length of your term to 40 years. This makes the monthly payment a lot more manageable.
Trial Period
A trial period will likely be required before you are granted a permanent loan modification. It is in your best interest to work with a loan modification lawyer in Los Angeles to come to an agreement with your lender. Then, you will need to prove that you can pay the new amount on time.
Even though the process may seem overwhelming, applying for a loan modification doesn’t have to be stressful. An expert loan modification lawyer such as the highly experienced and reputable lawyers at Vokshori Law Group in Los Angeles and surrounding areas can make this process much easier. We will help you understand the terms and negotiate for the best possible outcome as we have done for thousands of our clients. For further information or to schedule an appointment with one of our expert loan modification lawyer in Los Angeles please contact Vokshori Law Group at 855.855.2608 or visit www.Voklaw.com.
